Home Loan Requirements For 2014 – Will Stricter Rules Prevent People From Buying Homes?

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A new guide from LoanLove.com takes an in-depth look at the changes home buyers should expect when they apply for a mortgage this year.

LoanLove.com is a borrower advice website that offers in-depth information on home loans that experienced home buyers can benefit from in an easy-to-understand and entertaining way that even first-time borrowers will be able to grasp. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending news, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A newly released article from LoanLove.com continues to help borrowers stay up to date, with a guide to the new home loan requirement for 2014.

The new article titled “Strict Home Loan Requirements In Effect For 2014 (Just Updated)” says, “Looking to buy a new home this year? If so, you better brace yourself for stricter loan requirements than what’s been seen in recent years. You can blame the bursting of the housing bubble for new rules designed to keep borrowers out of hot water. Regardless of the intent, the process has become more complicated and some potential homeowners may find themselves giving up on a home purchase for the foreseeable future.”

The new changes to home loan requirements, which were put into place by the Consumer Financial Protection Bureau, can be loosely categorized as: ability to repay, qualified mortgages, rules for existing loans, and other changes. Loan Love explains that these new changes, while intended to help borrowers stay out of debt and help the market recover, could make it very difficult for some people to obtain a home loan. Loan Love briefly explains each “category” of changes,

“The rules addressing the prospective borrower’s ability to repay are primarily tied to the debt-to-income ratio. Lenders will be looking for a ratio below 43 percent. Unlike in years past, there will be few exceptions to the rule because doing so will greatly risk the lender’s ability to resell the loan. Be sure to get your financial house in order before stepping foot in the lender’s office. Changes that fall under the “qualified mortgages” category relate to safeguards being put in place to ward off predatory lending practices and other actions that take advantage of borrowers by extending loans that are beyond a borrower’s ability to repay. If you already own your home, keep in mind that the new rules also spell out the steps a lender has to make to attempt to help you return a past-due account to a personal one. Other changes you can expect to see involve more clarity in your mortgage bill and other communications from your lender. Deadlines for response to your inquiries are more precisely spelled out.”

For fuller details on each of the rule changes, visit LoanLove.com to read the complete home loan requirements 2014 guide.

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Kevin Blue
Loan Love
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