With COVID -19 disrupting the mortgage market, there have been many unexpected changes. Below is an update as to where things are in the mortgage industry, according to the Indigo New Mexico team.
As consumers know, mortgage interest rates have declined and are currently the lowest in history. With that being said, there are still some challenges out there for consumers. The first challenge is related to homeowners who took advantage of mortgage forbearance programs, which allow a payment to be postponed. The rules remain the same, a borrower is not eligible for a refinance until they have made 3 consecutive payments since coming out of that forbearance. Another challenge is the fact that one-time close construction loans, as well as FHA 203 K and conventional rehab loans, are still suspended, and it doesn’t look like they will be returning until Fall. Jumbo loans are starting to trickle back to life, but it is hard to find a lender willing to do Jumbo loans at this time.
Another challenge to address is difficulties for self-employed borrowers. Self-employed borrowers will have to jump through more hoops to prove that COVID-19 did not disrupt their business. They will be required to supply an audited YTD P&L or 2 months of business bank statements to show secure cash-flow. This is not impossible for these borrowers but it can make things harder for them.
As the economy opens up, restrictions will gradually start to be lifted. The team at Indigo Mortgage New Mexico suggests having patience with your lender during these busy times. Reach out to us for more information or to get started on your New Mexico home loan process.