Mortgage News: New Home Loan Options Coming Soon

As mortgage applications decrease, lenders are beginning to offer new loan products to meet the news of borrowers.

After the 2007-2008 mortgage crisis, many of the innovative mortgage products that offer people with special financial circumstances a path to home ownership disappeared. Now that economic recovery is underway, mortgage bankers have loosened their lending criteria and have started to introduce new home financing solutions. While you will still need to document your income and have a reasonable credit score, people who are first time home buyers, have low incomes or need a jumbo loans will have new mortgage options this fall.

New Home Financing Solutions

Some examples of the new mortgage products reported by Realtor Magazine that will be available soon include:

  • Home Loans for Low Income Borrowers: Some private lenders are offering an alternative to traditional FHA loans that have interest rates that are independent of the borrowers FICO score and the loan to value (LTV) ratio can be as high as 95 percent. Once the LTV reaches 80 percent, the borrower no longer needs to carry private mortgage insurance (PMI). Another new mortgage option allows borrowers to substitute up to 70 percent of certain assets for income.

  • Jumbo Loan Options: After the mortgage market meltdown, many lenders pulled back from offering mortgages for high priced homes. New home loan solutions allow a maximum LTV of 85 percent for homes costing $1.5 million and a LTV of 80 percent for homes costing as much as $ 2 million. The borrow needs to have a minimum credit score of 740 for these loans.

  • To discover what home loan solutions are right for you, contact a local independent mortgage broker.