The changes in the Qualified Mortage Rules take effect on january 10th, 2014. These changes are predicted to make it more difficult for a lot of people to qualify for a new home loan. Primary changes are going to be a tightening of the income to debt ratios and proof of income criteria. As of January 10th, the income to debt ratio will be lowered to 43%. This will likely result in many first time home buyers either failiing to qualify or having to settle for less home.
As of January 10th, the criteria for proof of income will also become more stringent. Thus, people who have a varying annual income - say, entrepreneurs and anyone who works on commission, or takes home some salary with part tips or part commission based income - will have a difficult time overcoming the new requirements.
Many experts predict we will see a 20% decrease in people qualifying for new loans under these new rules. If you are in the market to buy your first home, or even a second investment home on Lake Hartwell, you are up against a tight deadline to avoid these hassles. We need to find your home within the next 2 weeks to assure you close prior to the rules taking effect.
Below is the link for further information on the actual Dodd-Frank Act changes. Review them for yourself; let me know what you think!