Mortgage Requirement Rule Changes Explained

MORTGAGE REQUIREMENTS PRIME A LOOK AT THEN & NOW 2007 2011 Dream Home Dream Home $200,000 X $200,000 I can get you a "I can get you a loan for 80% of it..." loan for all of it, no problem! " (up to $2 million) (up to $1 million) AS LONG AS YOU MEET THESE REQUIREMENTS* " 1 620 (MINIMUM) 1 680-720 (MINIMUM) CREDIT SCORE CREDIT SCORE JANE SMITH JANE SMITH 620 680-720 GRED SCORE CREDIT SCORE MasterCard 2 MAX DEBT TO INCOME RATIO 2 MAX DEBT TO INCOME RATIO Your income not spent on debt Your income not spent on debt Your income spent on debt Your income spent on debt Debt spent on housing Debt spent on housing Debt not spent on housing Debt not spent on housing 84% 87% 16% 13% 45% 38% 55% 62% 3 OPTIONAL 3 REQUIRED IRS FORM 4506 IRS FORM 4506 TAXES TAXES TAXES GIFT AS SOURCE GIFT AS SOURCE OF FUNDS IS OF FUNDS IS ALLOWED NOT ALLOWED 5 1 YEAR OF W2'S 5 2 YEARS OF W2'S W2 2006 2010 W2 6 VERIFY JOB 6 VERIFY JOB WITHIN 10 DAYS WITHIN 30 DAYS DAYS DAYS 30 10 7 ESCROW NOT REQUIRED 7 ESCROW IS REQUIRED IN CONCLUSION Since 2007, prime mortgage requirements have become tougher in an attempt to curb the effects of the housing bubble. It is now no longer acceptable to spend more than 45% of your income on debt or have a credit score below 680, in addition to other requirements. *There are many other requirements to receive a prime mortgagenot just the ones we listed. This infographic brought to you by Movoto.com. MOVOTO Source: http://www.dbrs.com/research/240298/u-s-structured-finance- newsletter/prime-mortgage-requirements-then-versus-now.pdf MORTGAGE REQUIREMENTS PRIME A LOOK AT THEN & NOW 2007 2011 Dream Home Dream Home $200,000 X $200,000 I can get you a "I can get you a loan for 80% of it..." loan for all of it, no problem! " (up to $2 million) (up to $1 million) AS LONG AS YOU MEET THESE REQUIREMENTS* " 1 620 (MINIMUM) 1 680-720 (MINIMUM) CREDIT SCORE CREDIT SCORE JANE SMITH JANE SMITH 620 680-720 GRED SCORE CREDIT SCORE MasterCard 2 MAX DEBT TO INCOME RATIO 2 MAX DEBT TO INCOME RATIO Your income not spent on debt Your income not spent on debt Your income spent on debt Your income spent on debt Debt spent on housing Debt spent on housing Debt not spent on housing Debt not spent on housing 84% 87% 16% 13% 45% 38% 55% 62% 3 OPTIONAL 3 REQUIRED IRS FORM 4506 IRS FORM 4506 TAXES TAXES TAXES GIFT AS SOURCE GIFT AS SOURCE OF FUNDS IS OF FUNDS IS ALLOWED NOT ALLOWED 5 1 YEAR OF W2'S 5 2 YEARS OF W2'S W2 2006 2010 W2 6 VERIFY JOB 6 VERIFY JOB WITHIN 10 DAYS WITHIN 30 DAYS DAYS DAYS 30 10 7 ESCROW NOT REQUIRED 7 ESCROW IS REQUIRED IN CONCLUSION Since 2007, prime mortgage requirements have become tougher in an attempt to curb the effects of the housing bubble. It is now no longer acceptable to spend more than 45% of your income on debt or have a credit score below 680, in addition to other requirements. *There are many other requirements to receive a prime mortgagenot just the ones we listed. This infographic brought to you by Movoto.com. MOVOTO Source: http://www.dbrs.com/research/240298/u-s-structured-finance- newsletter/prime-mortgage-requirements-then-versus-now.pdf MORTGAGE REQUIREMENTS PRIME A LOOK AT THEN & NOW 2007 2011 Dream Home Dream Home $200,000 X $200,000 I can get you a "I can get you a loan for 80% of it..." loan for all of it, no problem! " (up to $2 million) (up to $1 million) AS LONG AS YOU MEET THESE REQUIREMENTS* " 1 620 (MINIMUM) 1 680-720 (MINIMUM) CREDIT SCORE CREDIT SCORE JANE SMITH JANE SMITH 620 680-720 GRED SCORE CREDIT SCORE MasterCard 2 MAX DEBT TO INCOME RATIO 2 MAX DEBT TO INCOME RATIO Your income not spent on debt Your income not spent on debt Your income spent on debt Your income spent on debt Debt spent on housing Debt spent on housing Debt not spent on housing Debt not spent on housing 84% 87% 16% 13% 45% 38% 55% 62% 3 OPTIONAL 3 REQUIRED IRS FORM 4506 IRS FORM 4506 TAXES TAXES TAXES GIFT AS SOURCE GIFT AS SOURCE OF FUNDS IS OF FUNDS IS ALLOWED NOT ALLOWED 5 1 YEAR OF W2'S 5 2 YEARS OF W2'S W2 2006 2010 W2 6 VERIFY JOB 6 VERIFY JOB WITHIN 10 DAYS WITHIN 30 DAYS DAYS DAYS 30 10 7 ESCROW NOT REQUIRED 7 ESCROW IS REQUIRED IN CONCLUSION Since 2007, prime mortgage requirements have become tougher in an attempt to curb the effects of the housing bubble. It is now no longer acceptable to spend more than 45% of your income on debt or have a credit score below 680, in addition to other requirements. *There are many other requirements to receive a prime mortgagenot just the ones we listed. This infographic brought to you by Movoto.com. MOVOTO Source: http://www.dbrs.com/research/240298/u-s-structured-finance- newsletter/prime-mortgage-requirements-then-versus-now.pdf MORTGAGE REQUIREMENTS PRIME A LOOK AT THEN & NOW 2007 2011 Dream Home Dream Home $200,000 X $200,000 I can get you a "I can get you a loan for 80% of it..." loan for all of it, no problem! " (up to $2 million) (up to $1 million) AS LONG AS YOU MEET THESE REQUIREMENTS* " 1 620 (MINIMUM) 1 680-720 (MINIMUM) CREDIT SCORE CREDIT SCORE JANE SMITH JANE SMITH 620 680-720 GRED SCORE CREDIT SCORE MasterCard 2 MAX DEBT TO INCOME RATIO 2 MAX DEBT TO INCOME RATIO Your income not spent on debt Your income not spent on debt Your income spent on debt Your income spent on debt Debt spent on housing Debt spent on housing Debt not spent on housing Debt not spent on housing 84% 87% 16% 13% 45% 38% 55% 62% 3 OPTIONAL 3 REQUIRED IRS FORM 4506 IRS FORM 4506 TAXES TAXES TAXES GIFT AS SOURCE GIFT AS SOURCE OF FUNDS IS OF FUNDS IS ALLOWED NOT ALLOWED 5 1 YEAR OF W2'S 5 2 YEARS OF W2'S W2 2006 2010 W2 6 VERIFY JOB 6 VERIFY JOB WITHIN 10 DAYS WITHIN 30 DAYS DAYS DAYS 30 10 7 ESCROW NOT REQUIRED 7 ESCROW IS REQUIRED IN CONCLUSION Since 2007, prime mortgage requirements have become tougher in an attempt to curb the effects of the housing bubble. It is now no longer acceptable to spend more than 45% of your income on debt or have a credit score below 680, in addition to other requirements. *There are many other requirements to receive a prime mortgagenot just the ones we listed. This infographic brought to you by Movoto.com. MOVOTO Source: http://www.dbrs.com/research/240298/u-s-structured-finance- newsletter/prime-mortgage-requirements-then-versus-now.pdf MORTGAGE REQUIREMENTS PRIME A LOOK AT THEN & NOW 2007 2011 Dream Home Dream Home $200,000 X $200,000 I can get you a "I can get you a loan for 80% of it..." loan for all of it, no problem! " (up to $2 million) (up to $1 million) AS LONG AS YOU MEET THESE REQUIREMENTS* " 1 620 (MINIMUM) 1 680-720 (MINIMUM) CREDIT SCORE CREDIT SCORE JANE SMITH JANE SMITH 620 680-720 GRED SCORE CREDIT SCORE MasterCard 2 MAX DEBT TO INCOME RATIO 2 MAX DEBT TO INCOME RATIO Your income not spent on debt Your income not spent on debt Your income spent on debt Your income spent on debt Debt spent on housing Debt spent on housing Debt not spent on housing Debt not spent on housing 84% 87% 16% 13% 45% 38% 55% 62% 3 OPTIONAL 3 REQUIRED IRS FORM 4506 IRS FORM 4506 TAXES TAXES TAXES GIFT AS SOURCE GIFT AS SOURCE OF FUNDS IS OF FUNDS IS ALLOWED NOT ALLOWED 5 1 YEAR OF W2'S 5 2 YEARS OF W2'S W2 2006 2010 W2 6 VERIFY JOB 6 VERIFY JOB WITHIN 10 DAYS WITHIN 30 DAYS DAYS DAYS 30 10 7 ESCROW NOT REQUIRED 7 ESCROW IS REQUIRED IN CONCLUSION Since 2007, prime mortgage requirements have become tougher in an attempt to curb the effects of the housing bubble. It is now no longer acceptable to spend more than 45% of your income on debt or have a credit score below 680, in addition to other requirements. *There are many other requirements to receive a prime mortgagenot just the ones we listed. This infographic brought to you by Movoto.com. MOVOTO Source: http://www.dbrs.com/research/240298/u-s-structured-finance- newsletter/prime-mortgage-requirements-then-versus-now.pdf MORTGAGE REQUIREMENTS PRIME A LOOK AT THEN & NOW 2007 2011 Dream Home Dream Home $200,000 X $200,000 I can get you a "I can get you a loan for 80% of it..." loan for all of it, no problem! " (up to $2 million) (up to $1 million) AS LONG AS YOU MEET THESE REQUIREMENTS* " 1 620 (MINIMUM) 1 680-720 (MINIMUM) CREDIT SCORE CREDIT SCORE JANE SMITH JANE SMITH 620 680-720 GRED SCORE CREDIT SCORE MasterCard 2 MAX DEBT TO INCOME RATIO 2 MAX DEBT TO INCOME RATIO Your income not spent on debt Your income not spent on debt Your income spent on debt Your income spent on debt Debt spent on housing Debt spent on housing Debt not spent on housing Debt not spent on housing 84% 87% 16% 13% 45% 38% 55% 62% 3 OPTIONAL 3 REQUIRED IRS FORM 4506 IRS FORM 4506 TAXES TAXES TAXES GIFT AS SOURCE GIFT AS SOURCE OF FUNDS IS OF FUNDS IS ALLOWED NOT ALLOWED 5 1 YEAR OF W2'S 5 2 YEARS OF W2'S W2 2006 2010 W2 6 VERIFY JOB 6 VERIFY JOB WITHIN 10 DAYS WITHIN 30 DAYS DAYS DAYS 30 10 7 ESCROW NOT REQUIRED 7 ESCROW IS REQUIRED IN CONCLUSION Since 2007, prime mortgage requirements have become tougher in an attempt to curb the effects of the housing bubble. It is now no longer acceptable to spend more than 45% of your income on debt or have a credit score below 680, in addition to other requirements. *There are many other requirements to receive a prime mortgagenot just the ones we listed. This infographic brought to you by Movoto.com. MOVOTO Source: http://www.dbrs.com/research/240298/u-s-structured-finance- newsletter/prime-mortgage-requirements-then-versus-now.pdf