Federal Government Announcing New Mortgage Lending Rules
Written by Emil Fleysher | January 23, 2013 | Debt
In an effort to stabilize the future of our housing market, the government is announcing new mortgage lending guidelines. Although the new rules may decrease the number of loans made overall, they are necessary for this country to maintain a stable housing market. According to the Chicago Tribune, “For most borrowers, the rules will mean no more interest-only mortgages, no more loans where the principal due increases over time, no more loans that carry a balloon payment and no more loan terms of more than 30 years. In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.” These guidelines are designed to limit the number of risky mortgage loans made in order to prevent another housing bust.
If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives, please feel free to call my office at 888-886-0020, send an e-mail to firstname.lastname@example.org, or complete the contact form below.