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Mortgage Changes in 2014

Posted on December 19, 2013

Couple in office signing contractual documentsThe real estate industry has been working hard to set guidelines and regulations to avoid another housing crash. If you are considering purchasing real estate in Northwest Florida in 2013, there are a few changes coming that you need to be aware of.

The first change to the Ability-to-Repay Mandate. This establishes a set standard that each and every borrower must meet in order to qualify for a mortgage loan. It includes a review of each borrower’s income, assets and obligations before a lender can extend approval. If you are self-employed there will also be tighter regulations for you to adhere to. Be sure to ask your lender about these.

Another big change is the decrease in FHA loan limits, which now limit mortgages to no more than $625,000. Those wishing to purchase a more expensive home will need to apply for a jumbo loan. No matter your mortgage amount though, the next change will cap your points and fees to just 3% of the purchase price.

For more information about changes to home purchases in 2014, contact us today!

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