and compensating factors), often engaging in Monday morning quarterbacking by focusing on early payment defaults.
Department of Energy, EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios
CBMA offers an affordable mortgage program for LMI borrowers through the Massachusetts Association of Community Organizations for Reform Now with below-market rates, liberal qualifying ratios
, and lowdownpayment requirements.
And last year HUD announced that homes that meet MEC qualify for a 2 percent stretch on loan qualifying ratios
These can include missing or incomplete verifications of employment and deposit, a failure to document adequately the borrower's source of funds invested in the transaction, approval of a borrower with high qualifying ratios
in the absence of sufficient documented compensating factors or with poor credit history, or a miscalculation of the maximum mortgage amount.
Fannie Mae and Freddie Mac responded by expanding qualifying ratios
- the "2 percent stretch.
According to HUD, the lender under this pilot program will first process the mortgage application and qualify the borrower using the standard underwriting requirements and qualifying ratios
under FHA rules.