January 28, 2014

Is the Middle Class Caught in A Mortgage Squeeze?

From the desk of Lead San Francisco Attorney Alison Cordova:

New mortgage laws go into effect at the beginning of next year that will seriously hinder the middle and working class families to qualify for a mortgage loan.  The regulation will prohibit banks from approving mortgages for anyone whose debt-to-income ratio is higher than 43%.

This not only hurts middle and working class families who are often struggling under credit card debts, medical bills, and student loans, it will also forecloses many young, successful professionals from becoming first-time home buyers because their student loan debt is enormous.  “Banks also will have to limit the fees for originating mortgages to no more than 3 percent of the loan amount, which could discourage many institutions from pursuing loans for lower-priced houses.”

Read more here: https://www.newsday.com/classifieds/real-estate/mortgage-lending-rules-revision-could-squeeze-working-class-home-buyers-1.6279591

If your debt-to-income ratio is higher than 43% and you want to buy a home, contact a debt settlement attorney who can likely help you off-load your debt for a fraction of what is claimed due and get you into a new home sooner than is currently possible.