Qualified Mortgages (QM) is the Law for Home Buyers
2013 has been a year of government turmoil with budgets, healthcare, and a shut-down. Through all of this there has been proposals made that could greatly affect the ability of home buyers to obtain mortgage financing for the purchase of real estate. Most of the discussions and proposed legislation revolve around Qualified Residential Mortgages (QRM). The National Association of Realtors (NAR) has been highly involved in these discussions and has submitted multiple proposals of its own that would better align QRM's to QM's. Both deal with borrower's ability to repay loans.
20% and even 30% down payment requirements have been written into preliminary legislation in both the House of Representatives and the Senate. Through the hard work of the NAR, these requirements are being eased as continued studies of a borrower's ability to repay their loans have shown that it has less to do with down payment size than it does with respons... read full post