Mortgage Update – August 23, 2016

    The Six Most Important Things You Need to Know From the Mortgage World this Week.


    Effective June 30, FHA made it harder to qualify for a mortgage by changing how student loan payments are viewed in underwriting.


    Gone is a rule that allowed lenders to NOT count student loan payments deferred for more than one year. Now, deferred payments must be included in the debt ratio calculation.


    For deferred payments, the lender has to use the greater of the payment showing on the credit report or 1% of the outstanding student loan balance. The lender can use a payment of less than 1% only if the lender can document the payment and prove it will fully amortize over the student loan term.


    The U.S. Census Bureau reports that the homeownership rate in the U.S. is down to 62.9%, the lowest level since the bureau began tracking the rate in 1965.


    The main reason for the drop is most likely a factor of demographics and the result of the slow start it has taken many millennials to buy a home.


    Encouraging are survey results from Fannie Mae that show over 90% of millennials are optimistic they will eventually own a home, pointing toward a trend reversal and higher future homeownership rates.



    Last week’s economic data had little impact but mixed messages from various Federal Reserve members stimulated mortgage rates slightly higher.


    The New Home Sales Report is due out on Tuesday, the Existing Home Sales Report on Wednesday, Durable Orders on Thursday, and the second estimate of 2nd Qtr GDP on Friday.


    Jim Scheu
    NMLS# #659050 GA #51170
    Senior Loan Officer
    Shelter Lending Services
    5780 Windward Pkwy, Suite 100
    Alpharetta, GA 30005
    Visit my Website
    Mobile: 404.906.6010
    Fax: 610.629.6369

    If you have questions about your mortgage needs, please contact our preferred mortgage lender – Jim Scheu with Shelter Lending Services at 404.906.6010 or click the blue banner just below to send him an email.

    The material is intended for licensed mortgage professionals only and is not an extension of credit. Information contained in this document is subject to change without notification. ©2016 Shelter Lending Services, LLC is an Equal Housing Opportunity Lender. NMLS#1033753 ( This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to underwriting and property approval. 695 Mansell Road Suite 200, Roswell, GA 30076. James Williamson NMLS# 552530, AL:#59117, GA:#36174, TN:#120865. Georgia Residential Mortgage Licensee # 38779.

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