Today, let’s talk about both the current and future state of loan qualification in our market.


Back during the financial crisis of the late 2000s, Fannie Mae and Freddie Mac (two entities that govern lending) made some adjustments to their qualifications by allowing a higher debt-to-income ratio, meaning people could borrow more money relative to what they earn.

Now that the market has fully recovered, these entities are taking another look at those ratios, and the qualifying debt-to-income ratio may drop back down by the year 2021. That means in around 18 months, you might be able to borrow less money for every dollar you make.

“The qualifying debt-to-income ratio may drop back down by the year 2021.”

If you’re thinking about buying, selling, or investing in a home, doing so before then is a great idea. Interest rates are back down to historic lows, meaning that home affordability is still relatively high. That means that buyers can still afford to purchase homes and also that sellers may see increased activity around their listings.

We would love to help you process this information, and we work with some awesome mortgage lenders who can assist you, as well. If you have any questions or need help with your next transaction, reach out to us. Let us help you make the most with your money.