Episode 304: Mortgage Qualification Just Got Harder

2023-02-07

Recent announcements from the government sponsored entities (GSE) now penalize qualified homebuyers who’s debt-to-income ratio (DTI) exceeds 40%. Many times, a final DTI is unknown until days before the scheduled closing date. Meaning, the locked in or quoted interest rate may not be accurate. Additionally, the automated underwriting software used in the majority of conventional conforming home loans is being adjusted to where the results are expected to limit the number of approvals granted.

Recent announcements from the government sponsored entities (GSE) now penalize qualified homebuyers who’s debt-to-income ratio (DTI) exceeds 40%.

Many times, a final DTI is unknown until days before the scheduled closing date. Meaning, the locked in or quoted interest rate may not be accurate.

Additionally, the automated underwriting software used in the majority of conventional conforming home loans is being adjusted to where the results are expected to limit the number of approvals granted.

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