New Laws in Place : 10-15-2013 and 01-10-2014

The name of the game now is preparation. You will now have to prepare for your home loan there will no longer be any quick fixes in the home buying process due to the new qualifying standards for an FHA Loans and the over-all approach to the QM rule due to hit 01/10/2014.
Having a great credit score will only help you in your quest for a Home Loan.
I am a trusted advisor and can really help you to quailfy if you want to qualify for your loan. We here at Karn Kay Realty, take the time out to help you get quailfied. We are not like all the rest if you are not ready then we can't help. No we are willing to walk you from credit to close.
Please call us at : 281-580-4848
The U.S. Department of Housing and Urban Development issued mortgage letters Aug. 15 instructing lenders to add collections accounts and judgments to an applicant's debt-to-income ratio, one of the qualifying standards for an FHA loan. Loans made on and after Oct. 15 must follow these guidelines.

What Lenders Need to Look At: Charge-offs and medical collections are not included in these new standards, though they have a negative impact on credit scores and will therefore be factors in consumers' credit-worthiness. For an applicant with more than $2,000 in collections accounts, the lender is required to incorporate those debts into the debt-to-income ratio, because paying those debts may interfere with the ability to make mortgage payments.

"It's very dramatic because typically FHA has been geared toward people with less than perfect credit," said Eddie Hilliard, a loan originator at Mortgage Acceptance Corp. in Florida. "Now for them to not only have to explain away the collections and judgments but to add them to the debt ratio -- it's really going to put them out of sorts."



The rule will take effect on January 10, 2014. It is intended to create a class of “safer” mortgages. It does this by (A) restricting certain loan features, (B) capping mortgage points and fees, and (C) imposing certain underwriting requirements for loans. In exchange for generating QM loans, lenders will be given some degree of legal protection from consumer lawsuits, either in the form of a safe harbor or a rebuttable presumption.

Summary of Final Rule

The final rule contains the following key elements:

Ability-to-Repay Determinations

Read more: https://www.qualifiedmortgage.org/#ixzz2nlWDsPrM