Mortgage Loan Requirements Changing?

[Anonymous]

Anyone read this over on reddit? https://www.reddit.com/r/RealEstate/comments/fpyslp/a_shakeup_in_the_mortgage_lending_is_quickly/

I'm in the process of closing on a home and was wondering if this is accurate and if this is going to affect me? We have a signed contract, have recieved initial underwriter approval, a locked rate and are in the process of providing the necessary documents (LOE for large deposit, etc.) to get our clear to close.

Our loan will be an FHA with 3.5% down and our closing date is currently scheduled for April 30th. Our lowest middle score is 662. Our current DTI is ~20%, with the new mortgage, it would be ~30%.

Kind of freaking out as we still have 5 weeks to go, seems like an eternity at this point!

[Anonymous]

I don't know if this is true, but it does have me worried, I can't buy a home until later in the year.

[NC_Mtg_Loaner]

Lender overlays can always change and they often do.

That general comment doesn't appear to have any facts to support what is stated. 

I would look to www.hud.gov, www.freddiemac.com and www.efanniemae.com for updates  overall but if you are in the market to buy and you havea good solid and sound understanding of how to manage credit and save money---you'll likely not have any issue. 

[MauiMan85297]

Already seeing investors charging a higher interest rate and the cost of the rate is high for lower scores, going to start pushing people to a Conventional product with at least a 620 score, problem is it would require more money down (not much more but more).

[Anonymous]

Any recomendation for a buyer like me, who is already in the loan process? Should I switch gears and go conventional or should I let the process work itself out?

[MauiMan85297]

I'd stick with FHA for your purchase with your score, what is your loan size and did the 3.5% cost you anything? (discount points)

[Anonymous]

Total loan amount including the MIP is $366,244 and I got locked in at a 3.5% interest rate that cost me nothing.

[MauiMan85297]

It's a good rate for the score and loan size-Congrats!

[Anonymous]

That Reddit post is terrifying, since I am self-employed. Reducing my income by a QUARTER would be absolutely devastating. Any LO's here able to chime in and give their opinions or predictions?

We are almost to the finish line of our new construction and did a 2-close with the second close being a Conventional rate/term refi. We already put 10% down on the construction so not be approved would be beyond devastating. This post is going to keep me up at night to be honest.. 

[CreditCuriosity]

can confirm on verification of employment past closing on refi this friday use to be 5 days, but will be within 24 hours of close for final verification.  I get it and understandable to cover the investors during this very uncertain time with regards to employment, etc.