It’s about to get harder to buy a home
"Why getting a mortgage will be trickier and costlier in 2014"
", new mortgage rules by the Consumer Financial Protection Bureau go into effect, which restrict the types of mortgages lenders can provide. The changes could leave next year’s mortgage applicants with fewer and more expensive financing options to choose from than what’s currently available, experts say. “If you’re comfortable with what you can get this year, lock it in,” says John Vogel, adjunct professor of real estate at the Tuck School of Business at Dartmouth College. “Most rules that will come are in fact going to be less favorable to borrowers.”
*Most applicants who get shut out of Fannie Mae and Freddie Mac loans will have to turn to the private market. Private lenders, include many banks, credit unions and independent mortgage lenders, originate mortgages under their own terms and in most cases hold the loans on their books. Most are very selective, seeking out affluent borrowers who present little risk of default. “The concern will now be for less well-qualified borrowers who [will] fall above the loan size limitations,” says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California, Los Angeles."
http://www.marketwatch.com/story/its-about-to-get-harder-to-buy-a-home-2013-09-11?link=MW_story_popular
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