Changes to qualification requirements for conventional Mortgages
- Borrowers qualify at a payment based on the contracted interest rate
New Guidelines as of January 1, 2018
- Borrowers must qualify at a payment based on the greater of the qualifying rate (currently 4.99%) or 2% above the contracted rate.
*All Insured borrowers (less than 20% down payment) currently have to qualify at a payment based on the qualifying rate (4.99%).
* The new changes taking affect January 1, 2018 affect only conventional borrowers (20% or more down payment).
Contact Jon at 403-302-0800 today if you have any questions about these changes!
(Source: Brenda Mackay - Mortgage Alliance Advance Mortgage)