FHA Loans Coral Springs, FL; What You Need to Know About Mortgages in 2013

Check out this great article about the Federal Housing Administration capping the debt-to-income ratio at 43%. Be sure to contact Ace Mortgage Loan Company for more information about the new regulations surrounding housing loans.

You can read the article here.

Basically the new FHA rules will make it so any borrower with a debt-to-income ration over 43% will not be able to secure a mortgage loan. Someone’s debt-to-income ration is how much money a person spends on their debts per month compared to how much they make. If you spend half of what you make on your debts, then your ratio is 50%. If your debt to income ratio is 43%, it means you bring in more money then you pay for your debts. That’s somehting that lenders look for.  Lenders used to set their own guidlelines for who’s debt to income ratio was too high, now its a set standard across the industry.

Another thing lenders will look at is credit score. Credit scores vary by country, but in the United States they range from 300 to 850, with the latter being the best score possible. Quite simply, if you pay your bills then your credit score will be fine. Borrowers who have credit scores lower than 620 and a debt to income ratio of more than 43% are going to have a very difficult time securing a loan. Chances are they won’t be able to get one at all.

The new regulations are all about minimizing the risks of lending money, something mortgage lenders in the past did not do much of. If your looking for an FHA loan in Coral Springs, Fl, it’s not time to panic just yet. Figure out your credit score and debt to income ratio, then come visit Ace Mortgage Loan Company. We can help you will all of your mortgage needs.

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