Tighter Mortgage Rules Jan. 10, 2014

[Ace A.]

With tighter mortgage lending rules coming next year, what's everybody thoughts about this and are you doing anything to prepare for this?

Apparently, as of today, my broker told me that he was able to get someone a loan that their back-end DTI was at 55% for FHA, with the new rules in place, my understanding is that all loans must be 43% or less. With conventional loans, it won't be as big of a deal as it's currently at 45%

I also heard as of last week, FHA will require your spouse to run their credit, regardless if they are on the loan or not and if there are any collections, the spouse must either pay it off first, or have at least a 3 month repayment history with the collections company or debt source.

http://homes.yahoo.com/news/tighter-mortgage-rules-will-soon-squeeze-these-groups-even-more-005538769.html