Is Real Estate over heating?
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NEW -> Contingent Buyer Assistance Program
Some personal experience. I bought my Irvine home under 70% of what I qualified for, but had trouble refinancing even after home prices skyrocketed.
Attempt to Refi in 2014:
55% LTV
32% DTI
No debt other than primary home and car leases totaling $600/mo
Failed to qualify for refinance.
Why?
The lenders would not count a significant portion of our income after one of us quit our jobs to work as an independent contractor.
Even when we did finally refinance (waited until our income significantly increased), our official DTI was significantly higher because they only counted about 60% of our income.
My mortgage payment is under 10% of our income now, but I bet we'd have trouble qualifying for a mortgage again...
I don't know. We aren't BFF's or anything, but occasionally we touch base. I've never actually met him in person. We were supposed to meet up for drinks one time, along with el Oracle, but it fell through when he tripped and broke his foot or something like that.
He reached out last year asking if I could get him an interview for a capital markets analyst position, so I did.
There are a lot more programs for qualifying with bank statements now than there were in 2014. Things were still very tight back then as nobody wanted to be the first to dip their toes back into "risky" mortgages, since the crisis was still so fresh in everybody's minds. The Bernanke Taper Talk in 2013 caused rates to spike up rapidly, so 2014 was the first time you had banks lowering FICO requirements post-crisis as a response to retain more volume. Nobody was accepting alternative types of income documentation yet.
You also had the QM rules going into effect at that time and banks were being especially cautious as they gauged the effects of that. Very few lenders wanted to make mortgages that didn't conform to QM. Impac Mortgage was about the only one that I knew of that was trying to create programs outside of QM and they were just tiny niche programs at that time.
paperboyNC
New member
Liar Loan said:
Some personal experience. I bought my Irvine home under 70% of what I qualified for, but had trouble refinancing even after home prices skyrocketed.
Attempt to Refi in 2014:
55% LTV
32% DTI
No debt other than primary home and car leases totaling $600/mo
Failed to qualify for refinance.
Why?
The lenders would not count a significant portion of our income after one of us quit our jobs to work as an independent contractor.
Even when we did finally refinance (waited until our income significantly increased), our official DTI was significantly higher because they only counted about 60% of our income.
My mortgage payment is under 10% of our income now, but I bet we'd have trouble qualifying for a mortgage again...
Liar Loan
Well-known member
Happiness said:
I don't know. We aren't BFF's or anything, but occasionally we touch base. I've never actually met him in person. We were supposed to meet up for drinks one time, along with el Oracle, but it fell through when he tripped and broke his foot or something like that.
He reached out last year asking if I could get him an interview for a capital markets analyst position, so I did.
Burn That Belly
New member
x
Liar Loan
Well-known member
paperboyNC said:
There are a lot more programs for qualifying with bank statements now than there were in 2014. Things were still very tight back then as nobody wanted to be the first to dip their toes back into "risky" mortgages, since the crisis was still so fresh in everybody's minds. The Bernanke Taper Talk in 2013 caused rates to spike up rapidly, so 2014 was the first time you had banks lowering FICO requirements post-crisis as a response to retain more volume. Nobody was accepting alternative types of income documentation yet.
You also had the QM rules going into effect at that time and banks were being especially cautious as they gauged the effects of that. Very few lenders wanted to make mortgages that didn't conform to QM. Impac Mortgage was about the only one that I knew of that was trying to create programs outside of QM and they were just tiny niche programs at that time.
usctrojancpa
Well-known member
I do agree that some buyers are stretching more and more as they continue to get outbid with multiple offers. And at times, "buyer fatigue" sets in and buyers fall back to Plan B turns the focus of buying a new home to not deal with getting constantly outbid. I see more of that stretching in the sub $800k market with first time buyers than I do in the $1m+ market move-up buyers.