Government backed mortgages new stricter rules

On Oct 15,2008, any mortgages that are government backed may impact you.

• No more 100% financing. On Oct 15, purchasers must have at least 5% down
• TDS Ratio (total debt to service ratio) Before that meant that all your debt obligations including mortgage, property taxes and heat compared to your gross income was 45%. On Oct 15, it changes to 40%
• Amortization Period: Before was 40 years, on Oct 16 it changes to 35years.
•  Loan Documentation: If you could breathe and said you earned x amount of dollars, you most likely could have qualified for a mortgage. After Oct 15,2008, you will have to prove your earnings and and provide documents.

Overall, if you have decent credit and can document your income, you will have no problem obtaining a mortgage. As with REALTORS*, not all mortgage providers are the same!

If you have any questions or require the services of a qualified good mortgage broker, let me know and I will provide you with a few names of professionals who I have worked with.