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Lender qualifying changes make a BIG IMPACT

24 May

A move by two lenders to change their calculations on debt servicing ratio’s for both Visa and Lines of Credit is frustrating.  Instead of using the interest only payment or 1% of the balance two lenders are now using 3%.  This greatly affects qualifying ratios when purchasing a property.  They are also now making clients use a payment in their qualifying ratios for secured Lines of Credit, even if the balance is a zero.  “The implications of these changes in underwriting could be huge if it catches on with all lenders”.  Fewer people will be able to qualify to purchase a home.

 
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Posted by on May 24, 2013 in Uncategorized

 

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