Are Home Mortgage Easier to Obtain Compared to One Year Ago?

Question: **Are home mortgages easy to obtain today in comparison to a year ago Answer: Easy? Hmmm define easy. lol. I’ve heard that it is much more difficult for someone to get a loan today then it was 10 years ago. But it’s different for very person. The bottom line is paperwork! EVERYTHING needs to be documented. Here are some of the guidelines now:

• Minimum credit score of 620-680 depending on the Lender

• No bankruptcy within 2yrs of discharge for FHA and 3yrs for Conventional

• No late payments showing on your credit report within the last 12 months

• Must have a credit score, tradelines are no longer accepted (as far as I know)

• Must have a legal identification or citizenship

• VA no money down, FHA 3.5% down and Conventional 5% down

• Employment of at least 30 days and history of at least 2yrs

• If self employed, 2yr minimum history & 2yr business returns

• 2yrs W-2’s or 2yrs tax returns

• If you have rental income, it can only be used if it’s been reported on your returns or if you have copies of canceled checks and a lease agreement

• must be able to document where your down payment is coming from

• if you get a gift for the downpayment, you will need a gift letter signed by the gifter along with their asset information showing that they have the funds to gift you

• Your debt to income cannot generally exceed 45%-50%

• If you receive child support you have to have the court order showing the length of time or be able to show at least 3 consecutive months of deposits

It’s not really easy or hard, it’s different for every individual. Same with quoting rates. Every persons credit history, income and debts plays into the rates and the ease of the loan. I hope this helps!