The state of the world today during the COVID 19 virus has made an impact on many areas of life, one of which includes the housing market. During this unprecedented time, here’s what you should know about home mortgages and what the New Mexico market looks like right now in May 2020.
Due to uncertainties in the current and future mortgage markets, lenders have cut programs and have limited offers. Jumbo mortgages, which are home mortgages above $510,000, are currently very hard to find unless they are through the Veteran’s Administration (VA). Non-QM mortgages such as bank statement loans and low credit score loans are also suspended during this time. One-time close and rehab construction loans such as the VA and Fannie Mae have been suspended as well.
Customary VA, FHA, and conventional loans are still going strong as rates are now approaching all-time lows. Individuals are getting qualified daily.
Lenders are also putting overlays on income verifications and job verifications. They are processing verifications up until the hour of funding. This means if a borrower loses his/her job on the day of closing or even up to 3 days afterward, up to the point that the loan funds, the lender will cancel the loan.
As you can see, there have been quite a few changes recently to the New Mexico housing market. For more information or to get started on an application for a home mortgage loan, reach out to the team at Indigo Mortgage New Mexico! We are always here to help.