Sonoma County Mortgages

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now
  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • Scott Sheldon
    • Scott Sheldon
      Senior Loan Officer
      NMLS ID# 287389
      Direct: 707 217-4000
      Scott.Sheldon@nafinc.com
      Specializing in Residential Home Loans for Primary Residences, Second Homes, Investment Properties, Single Family Homes, Condos, PUDs, 1-4 Units.

Get Your Latest Rate Quote Now!

Lending guidelines just got easier for conventional traditional mortgages

September 26, 2017 by sonomacountym

Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Email this to someone
email
Print this page
Print
Why the purchase price in a real estate transaction should not be the single most important factor

If you’re in the market for a mortgage and you are paying alimony, the guidelines just got easier to allow you to get a mortgage. Here’s how the new guideline will benefit you if you’re paying alimony…

Previously, most mortgage companies would take an alimony payment obligation and use this debt against your income. Last year the FHA was the only loan program that allowed the payment of alimony to be removed from your income rather than using the payment as a debt. Put another way, you will be able to borrow more money when your alimony payment comes off your income rather than off your debt. The reason why is because it takes two dollars of income to offset every dollar of debt. So for example that saying you’re paying $500 per month in alimony. It would take $1000 of income to offset that number. If you did not have enough income to offset that number you’re borrowing power could be reduced by upwards of $100,000.

Traditional mortgages such as conventional financing now give the lender a choice to calculate this in the debt to income or simply remove it from income. In every scenario it benefits the borrower for this to come off income. Do not be fooled working a loan officer or bank that tells you otherwise. Different mortgage banks are going to have different opinions about the alimony payment coming off the form as a monthly debt obligation or off income. More aggressive lenders will likely take it off income as more underwriters now know it a choice on which way factor the alimony payment.

This is a game changer because it allows you to qualify for more even though you still have the monthly obligation. The concept here is that your debt to income ratio can now be lowered even while borrowing more. It is perfect approach. The lower your monthly expenses the Morehouse you can purchase. When you come across a banker or broker that gives you the mortgage amount you qualify for make sure they are specifically taking the alimony payment off your monthly income when using a conventional or FHA Loan. It is likely that as Fannie and Freddie allow these changes, Jumbo mortgage will soon follow suit as many Jumbo investors follow Fannie and Freddie’s guidelines.

Hopefully, the information provided in the post will help you more easily secure finance by providing more choices for you to consider when it comes to purchasing a home or refinancing one you already own.

Get a no cost, rate quote online now.

Related Mortgage Advice from Scott Sheldon

  • FHA Mortgage Rates Vs. Conventional Mortgage Rates

    Searching for a home financing? If yes, consider the most common types of mortgage loans…

  • Buying A Home Or Refinancing A Mortgage: Same Guidelines Apply

    Lets get one thing straight... no matter what mortgage company you work with, banker, broker,…

  • fannie mae debt to income ratio change
    How Fannie Mae's debt to income change may help you get a mortgage

    Fannie Mae recently announced changes to its debt-to-income ratio policy, increasing its allowance from 45%…

  • Should you go Fha or Conventional?
    Should you go FHA or Conventional?

    FHA loans and conventional loans remain the most popular financing type for today's mortgage borrowers.…

Filed Under: First Time Home Buyers, Interest Rates, Loan Programs, Mortgage Shopping Tagged With: banks and credit unions, buying a house, conventional mortgages, fannie mae, freddie mac, home buying, lending ease up, Low Rates, sonoma county refinancing

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

SCM on Facebook

SonomaCountyMortgages.com

Location & Contact

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
1450 Neotomas Ave Suite 115
Santa Rosa, CA 95405
1-707-217-4000
Email Us!

Copyright 2019 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing | Privacy | Terms of Use | Electronic Consent Agreement

Connect With Scott In Your Inbox

Looking for a home? Real estate insider? Get connected with Senior Loan Officer Scott Sheldon. Scott stays updated on the latest in the mortgage industry, so you can stay updated with him!