Looking to secure a home loan in the Tampa Bay area and curious about the “Ability to Repay” rules?

In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time.

It’s a longer-term view that goes beyond immediate income, debt and credit rating.

These new Federal laws- supervised by the CFPB – require lenders to ask more questions -about income, assets, employment, credit history, and monthly expenses -as they relate to the proposed loan.

For example, a lender offering a mortgage with a low initial rate must try to assess how a borrower will handle the later, higher rate as well.

If you’re applying to borrow ask whether the program you’re considering is a Qualified Mortgage.

Ability-to-repay rules are built in to loans that meet Qualified Mortgage guidelines.

At Flagship Title we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 813.875.1200.

In case you missed it, check out our last Flagship Title post: 5 Tips If A Storm Damages Your Home.