Some of the main changes that have come down:
- Most mortgage will need to meet the criteria as follows:
- Max DTI ratio of 43%
- ARM loans must be 5 years in length or more
- No Interest Only loans
- No Fees in excess of 3% of the loan amount
- Minimum of 2 years Required Income information (Tax Returns, etc.)
Some of the highlights:
- On ARM Loans - must qualify at the highest rate the ARM can adjust to
- No loan terms longer than 30 Years
- No Balloon Payments - where a large lump amount is due at the very end of the loan or during the loan period.
Change is difficult, but some change is necessary. For the safey of the consumer and for the betterment of our industry, these rules have been put in place.