4816 Hearthside Drive, Summerville, SC, 29485 3 Bed • 2 Bath • 1,355 sqft This Well-Kept & Charming 3BR/2.5BA Ranch is Located in Wescott Plantation of
Impact Of QM Mortgage Changes
The most noteworthy change is a proposed cap to debt-to-income (DTI) ratios of 43%. However, Fannie Mae and Freddie Mac, who insure the vast majority of mortgage in the current market, have long capped DTI at 45%. So, this is a very slight change for most mortgages. Veterans Administration (VA) and Federal Housing Administration (FHA) loans do allow higher DTI ratios, often up to 55%. However, the CFPB has stated that exceptions to the 43% rule are allowed and will most likely be implemented for FHA and VA loans.
In addition there have been rules put in place to prevent excessive up front fees and points paid by the consumer. Generally speaking, the points and fees paid by the borrower must not exceed 3% of the total amount borrowed, if the loan is to be considered a qualified mortgage. However, I know of almost no one charging anywhere near 3% in the current market. The only real impact this will have is on extremely small loan sizes where set lender fees may exceed 3% of the loan amount.
All in all it is estimated that approximately 12% of the loans closed in 2013 would not qualify under the new QM rules. It is my personal belief that many of those 12% could be guided into an approved loan status by working with an experienced mortgage professional such as your SC Mortgage Pro. Call or email if you have any questions or concerns.
Ikon Financial Group
"The SC Mortgage Professional"
http://realestatemarbles.com/toddsevier/ (Video Blog)
https://secure.smartapp1003.com/101781/ (Secure Loan Application)
Hunter Reynolds is a full-time Realtor with Keller Williams Realty in Charleston, South Carolina and is Foreclosure and Short Sale Certified. He specializes in residential properties in Charleston, SC....
Latest Blog Posts
2652 Martha Drive, North Charleston, SC, 29405 3 Beds • 2 Baths • 1,069 SqFtYour Search for a Low Maintenance Lakehouse Escape just an hour outside of the
1046 Island Court, Summerton, SC, 291484 Beds • 3 Baths • 1,400SqFt.$220,000Your Search for a Low Maintenance Lakehouse Escape just an hour
4761 Horse Drawn Way, Summerville, SC, 29485 3BR/2.5BA • 1,875 SqFt.$210,000Welcome Home to this Low Maintenance Move-In