Health & Fitness
Homebuyers, Are You "QM" ready?
Next Friday January 10th the “Qualified Mortgage” rules go into effect. The Department of Housing and Urban Development defines “QM” loans as meeting the following requirements: “require periodic payments without risky features; have terms not to exceed 30 years; limit upfront points and fees to no more than three percent with adjustments to facilitate smaller loans.” Lenders must demonstrate that the applicant meets ability to pay standards including a debt-to-income ratio of no more than 45%. Loans that are certified as “QM” provide safe harbor for lenders against borrower litigation. It is important for home shoppers to meet early with a lender to assess their mortgage qualifications.