Current Mortgage Qualification Requirements For Purchases & Refinances What it takes to get a mortgage in today’s market R...
First, the Basics <ul><li>Here are the basics of what you need to qualify: </li></ul><ul><ul><li>You need a job – or  prov...
Now, Let’s Define Terms <ul><li>Loan Amount  – the amount loaned after any down payment is made  </li></ul><ul><li>Down Pa...
Next, the Various Loan Types <ul><ul><li>Conventional  – the most common loan type. These loans are typically sold to Fann...
Conventional Loan Requirements High cost areas of the country have new, higher loan limits – Check with me if you think th...
Conventional Loan Requirements For Investment Properties The maximum number of properties that any one person/entity can o...
“Flex 97” Conventional Loan Requirements <ul><li>This is a conventional loan product with a maximum loan-to-value of 97% <...
“Jumbo Select” Loan Requirements These requirements are for MetLife loans only. Each Lender has their own qualifications, ...
FHA Loan Requirements These requirements are for MetLife loans only. Each Lender has their own qualifications, which may b...
VA Loan Requirements * The VA loan limit may be higher in some instances – check with me for details These requirements ar...
Lastly, Some Useful Information <ul><li>Each loan is different, so make no assumptions – check with me. </li></ul><ul><li>...
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Current Mortgage Qualifications

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Mortgage Qualification Requirements as of September 25, 2009

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Transcript of "Current Mortgage Qualifications"

  1. 1. Current Mortgage Qualification Requirements For Purchases & Refinances What it takes to get a mortgage in today’s market Requirements as of 09/25/09 It’s a tough mortgage market today – at least in terms of the recent past – but it is not impossible. Most people can still get the mortgage they need for the home they want.
  2. 2. First, the Basics <ul><li>Here are the basics of what you need to qualify: </li></ul><ul><ul><li>You need a job – or provable income sufficient to make the mortgage payment and your other debts </li></ul></ul><ul><ul><li>You need some money (assets) – for the down payment, the closing costs and for ‘reserves’ </li></ul></ul><ul><ul><li>You need decent credit – decent, not excellent </li></ul></ul><ul><ul><li>You need to be reasonable – buy a house you can afford </li></ul></ul>
  3. 3. Now, Let’s Define Terms <ul><li>Loan Amount – the amount loaned after any down payment is made </li></ul><ul><li>Down Payment – the amount the you will pay of the purchase price. Not applicable for refinances </li></ul><ul><li>Credit Score – your scores, from 400 to 850, from all three credit agencies </li></ul><ul><li>Reserves - The assets that you need to have available (above and beyond the down payment and closing costs) to make the mortgage payment </li></ul><ul><li>Debt-to-Income Ratio – the percentage of the your gross monthly income (before any deductions) you pay in long term debt </li></ul><ul><li>Documentation – you will have to able to prove your income with pay check stubs, tax returns, etc., and your assets (reserves) with account statements, etc. Stated income loans are no longer available, so don’t ask </li></ul><ul><li>Seller/Interested Party Contributions – the percentage of the purchase price that the Seller or other interested party can contribute toward the transaction </li></ul><ul><li>Loan-to-Value – the percentage of the appraised value of the home that the loan constitutes </li></ul>
  4. 4. Next, the Various Loan Types <ul><ul><li>Conventional – the most common loan type. These loans are typically sold to Fannie Mae and Freddie Mac. These loans are limited to $417,000 or less. </li></ul></ul><ul><ul><li>Jumbo – conventional loans over $417,000. MetLife’s Jumbo program is capped at $2,000,000. Other Lenders have their own limits. Note: these loan programs are scarce – many Lenders are not offering them at this time </li></ul></ul><ul><ul><li>FHA – loans guaranteed by the Federal Housing Administration. Loan amounts vary by geographic area. This is the easiest loan to get. </li></ul></ul><ul><ul><li>VA – loans for qualified US military veterans. The loan amounts are limited to $417,000. </li></ul></ul><ul><ul><li>ARMs – Adjustable Rate Mortgages. These loans have a fixed interest rate for the first few years (1, 3, 5, 7, or 10 years), then the interest rate adjusts each year. They are available under the conventional, jumbo and FHA programs </li></ul></ul>
  5. 5. Conventional Loan Requirements High cost areas of the country have new, higher loan limits – Check with me if you think this may apply to you. These requirements are for MetLife loans only. Each Lender has their own qualifications, which may be different from these. The requirements listed here are NOT all-inclusive. Your specific situation may be different 3% 6% 9% LTV >90% LTV 75.01% to 90% LTV ≤ 75% Seller Contributions (based on loan-to-value LTV) Full Full Documentation Maximum 41% to 55% Minimum None Debt-to-Income Ratio (depends on LTV) Maximum None Minimum 3 months Reserves To Get Best Rate 740 Minimum 580 Credit Score (depends on LTV) Maximum None Minimum 5% Down Payment Maximum * 1 unit - $417,000 2 units - $533,850 3 units - $645,300 4 units - $801,950 Minimum None Loan Amount
  6. 6. Conventional Loan Requirements For Investment Properties The maximum number of properties that any one person/entity can own is 4 High cost areas of the country have new, higher loan limits – Check with me if you think this may apply to you. These requirements are for MetLife loans only. Each Lender has their own qualifications, which may be different from these. The requirements listed here are NOT all-inclusive. Your specific situation may be different 2% All LTV’s Seller Contributions Full Full Documentation Maximum 41% to 55% Minimum None Debt-to-Income Ratio (depends on LTV) Maximum None Minimum 6 months – for ALL properties Reserves To Get Best Rate 740 Minimum 580 Credit Score (depends on LTV) Maximum None Minimum 20% 25% - for best rates Down Payment Maximum * 1 unit - $417,000 2 units - $533,850 3 units - $645,300 4 units - $801,950 Minimum None Loan Amount
  7. 7. “Flex 97” Conventional Loan Requirements <ul><li>This is a conventional loan product with a maximum loan-to-value of 97% </li></ul>High cost areas of the country have new, higher loan limits – Check with me if you think this may apply to you. These requirements are for MetLife loans only. Each Lender has their own qualifications, which may be different from these. The requirements listed here are NOT all-inclusive. Your specific situation may be different 3% Any LTV Seller Contributions Full Full Documentation Maximum 41% Minimum None Debt-to-Income Ratio Maximum None Minimum 6 months Reserves To Get Best Rate 740 Minimum 700 Credit Score Maximum 10% Minimum 3% Down Payment Maximum 1 unit only - $417,000 Minimum None Loan Amount
  8. 8. “Jumbo Select” Loan Requirements These requirements are for MetLife loans only. Each Lender has their own qualifications, which may be different from these. The requirements listed here are NOT all-inclusive. Your specific situation may be different Not allowed 3% LTV >75% LTV ≤ 75% Seller Contributions (based on loan-to-value LTV) Full Full Documentation Maximum 36%-40% (depends on Credit Score) Minimum None Debt-to-Income Ratio Maximum None Minimum 6 months Reserves To Get Best Rate 740 Minimum 680 (based on LTV) Credit Score To $1 million loan amount $1 million to 1.5 million $1.5 million to $2 million 80% LTV 75% LTV 65% LTV Loan-to-value Limits (based on loan amount) Maximum $2,000,000 Minimum $417,001 Loan Amount
  9. 9. FHA Loan Requirements These requirements are for MetLife loans only. Each Lender has their own qualifications, which may be different from these. The requirements listed here are NOT all-inclusive. Your specific situation may be different * The FHA loan limit is geographic area specific, so check with me for details for or google “FHA loan limits.” 6% any LTV Seller Contributions Full Full Documentation Maximum 43% (over 43% gets special review) Minimum None Debt-to-Income Ratio Maximum None Minimum 2 months Reserves To Get Best Rate >620 Minimum 620 Credit Score Maximum None Minimum 3.5% Down Payment Maximum * $271,050 Minimum None Loan Amount
  10. 10. VA Loan Requirements * The VA loan limit may be higher in some instances – check with me for details These requirements are for MetLife loans only. Each Lender has their own qualifications, which may be different from these. The requirements listed here are NOT all-inclusive. Your specific situation may be different 4% any LTV Seller Contributions Full Full Documentation Maximum 41% - or as determined by an automated system Minimum None Debt-to-Income Ratio Maximum None Minimum 2 months Reserves To Get Best Rate >620 Minimum 620 Credit Score Maximum None Minimum 0% Down Payment Maximum * $417,000 Minimum None Loan Amount
  11. 11. Lastly, Some Useful Information <ul><li>Each loan is different, so make no assumptions – check with me. </li></ul><ul><li>Most Lenders lend based on the lower of purchase price or appraised value </li></ul><ul><li>Stated Income loans are no longer available, and I don’t see them coming back any time soon. So don’t ask. </li></ul><ul><li>Self employed people have it tough these days – for qualification purposes, your income is based on your net income from your tax return plus any depreciation expenses you took. </li></ul><ul><li>If you are in doubt about your ability to qualify, call me and I will try to pre-approve you (or go to another Lender, but why would you when you can come to me?) </li></ul>
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