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Mortgage interest rates have declined to the lowest in history but there are still some challenges out there for people buying or refinancing a home.

The first affects home owners who took advantage of a forbearance, which is when your lender has allowed you to temporarily pause or pay less than your monthly mortgage payment. After a forbearance, the rule is still the same– a borrower is not eligible for a refinance until they have made three consecutive payments since coming out of that forbearance.

Veterans Administration (VA) One Time Close Construction Loans as well as FHA 203 K and conventional rehab loans are again available, but only a limited number of mortgage lenders are offering these again.

As we all deal with the Covid-19 pandemic, we are seeing Jumbo loans (up to $510,400 in most areas) are coming back and again, we have a few lenders that have opened these up again.

Self-employed borrowers will still have to jump through some extra hoops to prove that Covid-19 did not disrupt their business; they will be required to supply an audited year-to-date Profit and Loss Statement or 2 months of business bank statements to prove cash-flow. That’s not impossible but it is still an extra requirement for self-employed borrowers.

If a W-2 employee has been put on leave or their job suspended, they are eligible for home loans or ReFi’s as soon as they return to work full time. If borrowers have questions about the impact of the Coronavirus on mortgage loans, Indigo Mortgage is a great resource for New Mexico borrowers. Don’t hesitate to call us with your questions.

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