Agents, are you aware of the fact that new lending requirements (Starting NEXT MONTH) will require 20% down payments on mortgages. Yes, you read that correctly…20% down will be the new minimum requirement thanks to the new QRW Lending Rules.
Welcome to the new world of QRM: Qualified Residential Mortgage
The new QRM requirements exclude FHA mortgages. However, as you will learn in this video the NAR believes that higher downpayment loan requirements will trickle down to FHA loans as well. With non-FHA mortgages putting less than 20% down will require a very nasty interest rate and other added fees. Bottom line agents, unless something dramatic changes in the next 12 months you will see the mortgage products requiring less than 20% down disappearing.
In this housing market…the worst ever…does it make sense to require substantially higher down payments?
Bottom line, the new QRW rules may become the new rule April 2011 and be in full effect April 2012.