Posted on 04/27/2017 8:33:12 PM PDT by Lorianne
Fannie Mae (FNMA/OTC) announced new policies that will help more borrowers with student debt qualify for a home loan. These innovations address challenges and obstacles to homeownership due to a significant increase in student loan debt over the past decade and provide access to credit for qualified borrowers. The new solutions give homeowners the opportunity to pay down student debt with a mortgage refinance, allow borrowers to exclude non-mortgage debt paid by others as part of the loan application process, and make it more likely for borrowers with student debt to qualify for a mortgage loan by allowing lenders to accept student debt payments included on credit reports. We understand the significant role that a monthly student loan payment plays in a potential home buyers consideration to take on a mortgage, and we want to be a part of the solution, said Jonathan Lawless, Vice President of Customer Solutions, Fannie Mae. These new policies provide three flexible payment solutions to future and current homeowners and, in turn, allow lenders to serve more borrowers. Innovative Solutions for Making Homeownership Affordable for Borrowers with Student Debt Because there is rarely a one size fits all approach to this issue, the policies announced today provide options to borrowers based on their individual circumstances: Student Loan Cash-Out Refinance: Offers homeowners the flexibility to pay off high interest rate student debt while potentially refinancing to a lower mortgage interest rate. Debt Paid by Others: Widens borrower eligibility to qualify for a home loan by excluding from the borrowers debt-to-income ratio non-mortgage debt, such as credit cards, auto loans, and student loans, paid by someone else.Student Debt Payment Calculation: Makes it more likely for borrowers with student debt to qualify for a loan by allowing lenders to accept student loan payment information on credit reports.
Here we go again .... wheeee
ouch, here it is with paragraphs _____
WASHINGTON, DC Fannie Mae (FNMA/OTC) announced new policies that will help more borrowers with student debt qualify for a home loan. These innovations address challenges and obstacles to homeownership due to a significant increase in student loan debt over the past decade and provide access to credit for qualified borrowers. The new solutions give homeowners the opportunity to pay down student debt with a mortgage refinance, allow borrowers to exclude non-mortgage debt paid by others as part of the loan application process, and make it more likely for borrowers with student debt to qualify for a mortgage loan by allowing lenders to accept student debt payments included on credit reports.
We understand the significant role that a monthly student loan payment plays in a potential home buyers consideration to take on a mortgage, and we want to be a part of the solution, said Jonathan Lawless, Vice President of Customer Solutions, Fannie Mae. These new policies provide three flexible payment solutions to future and current homeowners and, in turn, allow lenders to serve more borrowers.
Because there is rarely a one size fits all approach to this issue, the policies announced today provide options to borrowers based on their individual circumstances:
Student Loan Cash-Out Refinance: Offers homeowners the flexibility to pay off high interest rate student debt while potentially refinancing to a lower mortgage interest rate.
Debt Paid by Others: Widens borrower eligibility to qualify for a home loan by excluding from the borrowers debt-to-income ratio non-mortgage debt, such as credit cards, auto loans, and student loans, paid by someone else.
Student Debt Payment Calculation: Makes it more likely for borrowers with student debt to qualify for a loan by allowing lenders to accept student loan payment information on credit reports.
I just never ends. The left’s solution to continual failure - double down.
Failure with good intentions is the essence of socialism.
>>by excluding from the borrowers debt-to-income ratio non-mortgage debt, such as credit cards, auto loans, and student loans, paid by someone else.
Now wait a minute: let’s assume for a second that this (i.e. parents or others paying these debts) is legit. Isn’t that because they live at home and can’t find a job? So they find a job and buy a home — is there a place on the app that guarantees payment by others will CONTINUE?
My parents helped me after college with a few things. That lasted a few (maybe 3) months and was only a few hundred a month. Had I been looking to buy a house during that time, the subsidy would have stopped.
We refinanced in late 2016. We both have ~800 credit scores and no missed payments of any kind. Solid income, etc. Our payment with the refi was going DOWN compared to what it was. Yet the anal exam that we got during the loan process is still being felt. Its nice to hear that people with none of these credentials will have an easier time.
Indeed, here we go again. The future will see another massive wave of foreclosures when they can’t make their payments. Not counting credit card debt and auto loans in debt ratio is insane. They will be qualifying people for loans who have debt ratio over 50% of their income.
True. I'm in my 20's, no debt, comfortable. I spend a lot of time with college students. They have two, three, four or more parents and they rely heavily on all who allow it. Accountability? None. What dad can't cover, stepdad 1 or 2 will handle.
I'm often asked how to acquire a house of one's own, and I always say don't waste time looking for a mortgage, go to a tax sale and buy a fixer-upper and then fix it. The response is initial interest but after a few minutes they default to infantile thinking. Moms and Dads will co-sign or let them live with them. Or "give" them the family house. Anything is preferable to shelling out a thousand or two and applying some sweat.
Any banker who'd fund such people belongs in a different sort of institution.
Making pretty statistics is all that matters anymore, and when prior efforts at making pretty statistics inevitably go awry, it’s always some sort of -ism that’s responsible, not idiotic federal programs that are thoroughly detached from reality.
If a property has real value, there will be multiple bidders to bid up the price at a tax sale. And a tax sale requires cash. Those without resources are not going to have the cash to do it.
1. Not always true.
2. College kids can usually lay their hands on $1000 or so.
Show me the house, other than in Detroit, that sold at a tax sale for $1,000. It will be an anomaly.
If someone is fortunate enough to find that deal that investors somehow missed, the college kid, unless he has relatives or friends as a source of income, will not have the resources to fix the disaster property that sold at a tax sale for less than land value.
In most states, the period for tax default is typically five years before it goes to sale. The county will usually have a plan to make back payments for the property to avoid a tax sale. The $1,000 you cite means that the property tax, before interest and penalties was probably only about $200 per year. Where is that house with a property tax of $200 per year? In California, that would be taxes on a $16,000 house.
Those buying at tax sales are typically investors and a great deal of foreign money has come into the country.
I am not saying it is absolutely impossible to find a $1,000 house at a tax sale, but if you do, it is likely in a place where the college student is not going to be able to find a meaningful job that will pay off a student loan. If your advice to young people is to have a strategy of going to tax sales with $1000 in their pocket, they are going to spend their lives as tenants.
If a property has a loan, the lender has probably already foreclosed and paid the back taxes to avoid being wiped out by a tax lien that is senior to its position. Or an investor has made a deal with the owner and given that owner some walking away money.
Have it your way, dfu! :D
I will smile back.
You are fairly new here so you don’t know my background. Among other business ventures in my life, I have been licensed in California since 1977 and taught RE Law, Finance, Econ, and Investments at the college level for 10 years. My specialty has been creative real estate, consulting, exchanging, and problem solving. I’ve bought and sold fixer properties and been involved in transactions in several states.
I really do wish I could find tax sale houses for $1,000.
My advice to a young person would be to find a partner with some capital for acquisition and use fixer talents, sweat, and hard work to build up some equity and then move on to the next property. Either sell it and take the money, exchange it, or borrow on its newly improved value to acquire another.
Interesting. Me, I’ve done very well buying properties at tax sales, but I’m not inclined to say where my gold mines are. Sorry about that!
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