First Lender Reaction from the Housing Bill
So if you followed the housing bill at all and read my post in response to it, then you knew the news would be flowing in. The first lender has taken a stance on the elimination of down payment assistance. Chase has eliminated allowing new FHA loans where you are buying a house using down payment assistance (Nehemiah….).
Another more interesting note is that Chase is not going to allow nontraditional credit FHA buyers. What this means is that they are over turning a long standing FHA rule (still in place with FHA as a matter of fact). If you were yet to establish credit in any sort of fashion, by FHA standards you can create an alternative credit report using cable bills, insurance, cell bills…. This allows you to get a credit rating to qualify for an FHA home loan. Of course you still have to qualify with your debt ratios and the like. Chase has said they aren’t going to allow these types of buyers as well.
More news to come I am sure as other lenders monitor what Chase has done as of tomorrow. Make sure you are working with an educated and licensed mortgage consultant. If you are having issues or concerns that make you uneasy about your lender, let me know via email or phone. After all, you don’t want to lose your earnest money , or worse the house of your dreams.