Analyzing your number of suspects, conversion ratio to prospects, and qualifying ratio
into the sales funnel, along with your close ratio, tells us a lot about your future.
When a borrower is purchasing a new home, yet still has an outstanding mortgage on a property located in a Federal Emergency Management Agency (FEMA) Disaster Area, the lender may exclude the mortgage payment on the previous residence from the qualifying ratio
calculation provided: 1) the previous residence is either heavily damaged or destroyed and unlikely to be repaired; 2) the lender obtains a property inspection of the previous residence confirming its status; and 3) the borrower provides the lender with information indicating he or she is working with the servicer to appropriately address the prior mortgage obligation and agrees to apply any property insurance proceeds to the mortgage on the damaged home.
Kleinhenz notes that the qualifying ratio
is more than 30 percent in lots of instances today, trade-up buyers are able to make substantial down payments and there are a variety of loan products available.
As a practical matter the number or qualifying ratio
many lenders use is closer to 40 percent, and in rare cases it could be 50 percent if there were no other household debts,'' he said.
The old measure of debt capacity--the split ratios of housing expense to income and total debt to income (DTI)--have been replaced by a single qualifying ratio
(SQR) that doesn't explicitly take into account monthly household expense.
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.
Calculate maximum FHA loan limits, qualifying ratios
, up-front and monthly MIP
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.
HSBC Mortgage Corporation (USA) is also offering its own CommunityWorks mortgage that allows for a discounted interest rate, expanded qualifying ratios
, and liberal credit criteria designed to assist families purchasing either a one or two-unit property.
The liabilities from the import of the credit report populate the debt sub-screen in pre-qualification for easy calculation of qualifying ratios