And it is with the lenders who are picky about their customers and about their needs. JPMorgan Chase, for example, will only issue mortgages to new customers with credit scores of 700 or higher (up from 640) and down payments of 20% or more. The USAA has temporarily stopped granting jumbo loans, which are mortgages usually too large to be guaranteed by the federal government, among other products. Bank of America said it had tightened its underwriting as well, but declined to provide details.
Ms Smith and her husband, Philip Ellis, had hoped to go through a first-time home buying program in Wells Fargo that would require them to deposit 3 percent. They even took a compulsory training course. But two weeks before their $ 205,000 home closed, their loan officer said they had to cut 5% to maintain their rate.
The coronavirus epidemic>
Frequently Asked Questions
Updated August 4, 2020
I have antibodies. Am I now immune?
- For now, that seems likely, for at least several months. There have been frightening accounts of people suffering from what appears to be a second episode of Covid-19. But experts say these patients can have a prolonged course of the infection, with the virus taking weeks to months after initial exposure. People infected with the coronavirus usually produce immune molecules called antibodies, which are protective proteins made in response to infection. These antibodies may only last for two to three months in the body, which may sound worrying, but it’s perfectly normal after an acute infection clears, said Dr. Michael Mina, an immunologist at Harvard University. It may be possible to catch the coronavirus again, but it is very unlikely that it will be possible within a short time from the initial infection or making people sicker the second time around.
I own a small business. Can I get relief?
- Stimulus bills enacted in March offer help to millions of American small businesses. Those eligible for assistance are businesses and nonprofit organizations with fewer than 500 workers, including sole proprietorships, independent contractors and freelancers. Certain large companies in certain sectors are also eligible. The assistance offered, which is administered by the Small Business Administration, includes the Paycheck Protection Program and the Economic Injury Disaster Loan Program. But a lot of people haven’t seen any payments yet. Even those who have received help are confused: the rules are draconian, and some are stuck on money they don’t know how to use. Many small business owners receive less than expected or hear nothing at all.
What are my rights if I am afraid to return to work?
Should I refinance my mortgage?
- This might be a good idea, as mortgage rates have never been lower. Refinancing demands have pushed mortgage applications to some of the highest levels since 2008, so be prepared to wait in line. But defaults are also on the rise, so if you’re thinking about buying a home, be aware that some lenders have tightened their standards.
What will school look like in September?
- Many schools are unlikely to return to normal schedules this fall, requiring continued online learning, makeshift child care and reduced work days. California’s two largest public school districts – Los Angeles and San Diego – said on July 13 that distance education would only be remote in the fall, citing concerns that the surge in coronavirus infections in their regions pose too serious a risk to students and teachers. Together, the two districts are home to some 825,000 students. They are the largest in the country to date to abandon their plans for a physical return, even partial, to classrooms when they reopen in August. For the other neighborhoods, the solution will not be an all-or-nothing approach. Many systems, including the country’s largest, New York, are devising hybrid plans that involve spending a few days in class and other days online. There is no national policy on this yet, so check back regularly with your municipal school system to see what is happening in your community.
A week later, Ms Smith said, they learned their loan was less than what they had been pre-approved for – and that they needed to find an additional $ 4,000. In the end, their down payment and closing costs went over $ 14,000, about 45% more than they had expected.
The couple, who were married in April, used the money recovered from their canceled wedding reception. Ms Smith said they were also fortunate to have the support of their families, who fed and hosted them to save every penny. But the stability of their employment was also very likely a crucial factor.
“I think our ability to get the loan was due to the fact that we were both teachers and already had an employment contract for the next year,” she said.
Wells Fargo said it did not increase its credit rating requirements, but increased down payment minimums on some government unsecured loans because it had to put most assessments on hold. interior of homes during the pandemic. Even under normal circumstances, there are a variety of situations in which borrowers may be asked to increase their down payment or get a better rate by doing so, a company spokesperson said.
Some lenders are also interested in learning more about other possible sources of cash for borrowers.
When tech executive Chris Eberle and his wife blocked off their giant mortgage on a new home in Palo Alto, Calif., Their lender, a California mortgage bank, wanted to know not only how much they had in their retirement accounts, but how easy it was to get that money.