An eye-opening trend, really. Homeowner associations, similar to lenders, can foreclose on homes to recoup delinquent payments. Nevada, as well as 20 other states, has laws giving HOA liens priority over first mortgages.
The move is expected to help open up the credit box to first-time buyers, self-employed borrowers, borrowers who have had recent job switches, and borrowers who faced financial hardship during the recession.
According to the article, “underwriters generally treat student debt in a more positive light than credit card or auto loan debt.”
Wondering whether you qualify to purchase a new home? A government agency reports that the average credit score on FHA-backed loans fell to 680 in 2013, and the average debt-to-income ratio of borrowers rose to 40.3 percent — both indicators that credit requirements may be easing.
In comparison, the agency reported in January 2013 that the average credit score was 701 and the debt-to-income ratio was 38 percent.
If you’d like more information on whether you qualify for an FHA or other type of mortgage to buy a home, contact me today ((443) 924-7418). I’ll be happy to put you in touch with an excellent group of mortgage professionals.
While mortgage application fraud has dropped 5.6 percent year-over-year, the industry is seeing a rise in income-based fraud, according to CoreLogic findings.
“These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated,” says Frank Nothaft, Freddie Mac’s chief economist.
Since September 2008 — the start of the financial crisis — about 4.4 million foreclosures have been completed.