Guidelines Maybe Loosening

Many borrowers and mortgage professionals alike did not expect guidelines to tighten and were planning to refinance out of their adjustable rates. Although several years ago guidelines were very loose and almost anyone was able to qualify for a mortgage within the past few years guidelines have conversely changed making very difficult for borrowers to obtain financing.


Borrowers in this difficult situations are caught between rising monthly payments and the inability to refinance.  Luckily, the pendulum swings both ways. Recently, MGIC Mortgage insurance lifted their DTI cap from 41% to 45% for FICOs of 740 or higher. Although this is not a significant change to guideline across the board it is potentially a sign that guide line may be loosening. 


Hopefully, we see more positive changes to guidelines and the mortgage industry as a whole.