What Is Available for Me?

The number of options for people wanting to purchase homes or refinance the ones they have to possibly use funds to make it through the pandemic economic downturn are few.  That’s not to say that it’s impossible, in fact lenders are still making loans.  However not all the products we rely on to tailor a loan to meet the borrowers needs are currently available.  So, what is available for me?

The burden of proving your ability to make your mortgage payments is still the number one factor in qualifying for a loan.  And it’s no doubt that lenders are requiring proof of employment as well as proof of future employability to even be considered.  There are tens of millions of people in the U.S. that are either unemployed or furloughed indefinitely due to the pandemic.  It’s tough for lenders to be able to secure loans if borrowers have no way to repay.

The forbearance also figures in.  If you took the forbearance but started paying your mortgage again, you will need three consecutive months of on-time payments to be able to apply for a refinance or new loan.  While some have decided to get out of forbearance, others may need to continue beyond three months.  In any event, three months of consecutive mortgage payments are the minimum requirement to being a refi.

Some products are slowly rolling back out.  There are areas where non-QM loans and Jumbos may be possible.  For now, conforming loans and FHA loans are still available, your credit score will need to be “decent” to get a good rate or even qualify for some products.

As of this writing, rates are averaging as follows:  30 year fixed 3.09%;  15 year fixed 2.69%; FHA 2.62%; Jumbo 4.05%  Remember that even though rates are super low, qualifying remains stringent, and down payment minimums are also required.  Your best bet is to reach out to your lender to see if one of their products will work for your needs.

Thanks again, and please be safe.