Qualifying for a Mortgage is Easier Than You Think
A recent survey by Ellie Mae and reported in the LA Times confirms what we are experiencing in greater Lansing.
What they discovered was:
- The the percentage of new loans with under 700 FICO scores is growing and FHA insured loans had an average FICO score of 684. In our market if you have continuing employment, a reasonable debt ratio, and a 620 FICO score there is a variety of mortgage product available.
- As far as debt ratios are concerned, the total reoccurring ratios for FHA averaged 41% but Fannie Mae and Freddie Mac were even lower at 34%. More and more lenders are becoming more flexible on this.
- Small down payment product is available at 5% with FHA, Fannie and Freddie but sometimes mortgage insurance is required. VA loans are offered at 0% down.
The point is, that you need to consult with a loan officer from a reputable local lender to see what you will qualify for. You may be surprised.
Here's the link to the LA Times article. http://www.latimes.com/business/realestate/la-fi-harney-20140427-story.html#ixzz30Bj0qNoS