Recent Guideline Changes

There has been some recent guideline changes that we thought we would share. Please keep in mind that each lender puts their own spin on every rule.

– Some lenders now factor in a monthly payment for secured credit lines with a zero balance. What does this mean? Even if you are not using your line of credit, a payment has to be factored into your total debt service ratio!

– On revolving unsecured credit, monthly payments are being set at 3% of the outstanding balance. This means that interest-only or minimum payments can no longer be used when qualifying clients.

– Calculating expected heating costs will now factor in the property size. So, homes over 3,500 sq ft have a “heat factor” of $115-220 factored in which may reduce a borrower’s potential mortgage size.

A bank may simply decline your application if you don’t meet their qualifications. As your dedicated Mortgage Consultants, we have access to a multitude of lenders to suit your needs! Contact us for a Free Mortgage Consultation! 250-851-8888