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home buyers ability to repay home loan

Jeannie Hill - Friday, January 11, 2013

Home Buyers Ability To Repay Home Loans home buyers ability to repay home loan

Reducing Borrowing That Causes Struggling Homeowners Facing Debt

The CFPB released mortgage standards aim to help stop home foreclosure due to the type of risky lending that caused the housing market crisis. "The rule defining a 'qualified mortgage' really means one a borrower can actually be expected to pay back, while eliminating questionable loans that stretched homeowners to the capacity that many faced foreclosure and couldn't stay in their homes. Many housing market professionals would like to see the regulations loosen current tight loan standards by limiting bankers' liability for home loans that can be sold to mortgage giants such as Fannie Mae and Freddie Mac," says Jenna Thuening, owner of Home Destination.

What Makes Up An Ability-to-Repay Determination

At a minimum, the general rule is creditors must evaluate the following eight underwriting factors:

home buyers income or assets<e current or reasonably expected income or assets
buyers payment on the covered transaction current employment status
the monthly payment on the covered transaction the monthly payment on the covered transaction
buyers monthly payment on any simultaneous loan the monthly payment on any simultaneous loan
monthly payment for mortgage-related obligations the monthly payment for mortgage-related obligations
Current debt obligations, alimony, and child support current debt obligations, alimony, and child support
monthly debt-to-income ratio or residual income the monthly debt-to-income ratio or residual income
home buyers credit history the home buyers credit history

Home Buyers Ability To Repay Their Home Loan And Make Payments

Home Destination stand behind every viable effort to help homeowners stay in their homes. Prospective home buyers should be able to trust the American dream of homeownership without worrying about losing their last dollar and the home they have come to share family life in. The Ability-to-Repay rule is an effort to avoid homeowner loan delinquencies and is intended to ensure that lenders and applicants for a home loan share the same basic financial incentives. The basic premise is that both of them win when borrowers can afford their loans and keep up with their monthly home payments. With this confidence, consumers can be active participants in the market and choose which of a wide variety of products they believe is best for them. /

Lenders Ignored The Number To Get Home Loans Approved

Jenna has received many inquiries from struggling homeowners worried not only about losing their home, but about losing their family’s sense of stability and financial future. Unaffordable home loans helped cause the housing crisis after the housing bubble burst. People across the country were sold unsustainable mortgages - often without fully comprehending the terms of their home loan. Some may have entered with their eyes open, believing in a continued wave of rising Minneapolis housing prices, but many were led to the devastating process of being forced into the Minnesota foreclosure time line. For many borrowers, some housing authorities now say it appears that lenders ignored the numbers to get the loan approved - including the CFPB. "This kind of reckless lending was an endemic problem," says the CFPB.

Call Jenna Thuening, owner of Home Destination, if you are needed help and recognize that you are finding it tough to repay your home loan. I can help you though offering many resources and connections to local professionals. Call 612-396-7832

Jenna Thuening, a Jenna Thuening, owner of Home Destination Certified Distressed Property Expert, helps home buyers understand their ability to buy a home and meet loan repayment plans

11200 W. 78th St
Eden Prairie, MN 55334
Phone: 612-396-7832
Jenna's home page: homedestination.com

If I'm out in the field, you may quickly reach me by email: jenna@homedestination.com and note how I can help you, or leave a message on my voicemail and I will return your call as quickly as possible.

About the Author

Jullian MaCkey commented on 19-Jun-2013 03:20 AM
Very good post. I certainly love this site. Keep writing with more helpful tips for home buyers!
Ivey Christian commented on 28-Jun-2013 03:41 AM
I agree that to help protect homeownership, it is good to learn from your page, Home Buyers Ability To Repay Home Loans.

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