Real Estate Changes in 2014Posted on 12/20/13
The housing bubble and resulting crash of the economy has made it necessary for the real estate industry to work towards a set of guidelines and standards for mortgage lending. Beginning early in 2014 many of those regulations will be go into action and could affect your ability to purchase real estate in Northwest Florida or anywhere.
The first new guideline that has been put into place to help avoid another housing crash is the Ability-to-Repay Mandate. This sets forth a specific set of qualifiers that each lender will have to follow and adhere to when qualifying a borrower for mortgage financing. This mandate includes a full review of each borrower’s income, assets and financial obligations. Are you self-employed? If so, be sure to ask your lender about any additional hoops you may need to jump through, as regulations for proof of income will become much tighter in 2014.
FHA loans will also be changing in the new year. Lending limits have been lowered. If you were planning to purchase a home in Destin for more than $625,000 using this type of loan, you will now need to apply for jumbo FHA loan. Have you been exasperated by points and fees at closing in the past? In 2014, these have been capped to just 3% of your loan amount, which may lead to savings for many.
For more about changes to real estate in 2014, contact your RE/MAX Southern agent today.