Skip to comments.JPMorgan Chase to raise mortgage borrowing standards as economic outlook darkens
Posted on 04/12/2020 6:42:48 AM PDT by BusterDog
From Tuesday, customers applying for a new mortgage will need a credit score of at least 700, and will be required to make a down payment equal to 20% of the homes value.
(Excerpt) Read more at cnbc.com ...
“JPMorgan would not disclose the current minimum requirements for its various mortgage products, but the average down payment across the housing market is around 10%, according to the MBA.”
Dang. What’s the rate on a 30 year fixed?
It is their choice and it is not unreasonable.
If all the lenders follow along, your home’s value just dropped about 30%
Huge numbers of landlords AND banks have been letting people pay a little later. What about credit cards? Any leniency? Hmmm???
FHA will pick up any slack.
Not that that’s a good thing.
No one should want to return to the time when if you had a pulse you could get all the money you wanted to buy a home. That led to the crash.
After the last financial fiasco, I thought all the minimums had moved higher....maybe not 20%. I bought my first home in 1986. If you want a home, you need to save. You need to demonstrate financial discipline, delayed gratification and a seriousness about home ownership. To do this you need to demonstrate some level of employment security.
These things don’t just happen and are not a right. They are earned.
30 yrs ago you had to have 20% to put down...then California complained about redlining and minorities weren’t able to buy a house.
Then when they did and couldn’t make payments they left...banks were stuck with mortgage hence 2008 meltdown.
The upside of this is that it’s likely to drive the prices of homes DOWN.
I just got a VA mortgage last month, 3.375%, I put over 50% down and I was still give the 3rd degree for everything, such as where did my earnest money come from, had to show bank statements and the check.
I went VA because Disabled Vets don’t have to pay a funding fee.
Beat me to it. Wouldn't be the last time we hear it.
Reliant was quoting 3.25% on Friday for those with excellent credit. May go up.
My son looked into refinancing with his bank, Wells Fargo. The rate was low enough he would have saved some $$ each month, and they had a link on their site when he logged in to click to find out more.
He clicked. Then he got an email saying in order to do the refi he’d need to have $275k in his accounts with WF.
Needless to say, he passed (as if he had a choice!).
These should have been the standards along, except for honorably discharged veterans. Homeownership, though a worthy goal, is a privilege earned. It is not a constitutional guarantee.
Makes more sense than the Obama era practice of handing out mortgages to folks who had no demonstrable evidence of being able to pay.
F the Bankers.
So are mortgages.
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