Who, What, When & Why?
Who? – This impacts new buyers with less than 20% down payment who are purchasing properties below $1,000,000.00
What? – Three changes;
- No more borrowing a down payment (gifted down payment remains OK)
- New minimum credit score of 680 mandatory – be impeccable with your credit!
- Another reduction in borrowing (buying) power of ~ 10%-12%
When? – July 1, 2020 is the office date to have your offer accepted by, the completion date can be up to 120 days later with most lenders. However, certain lenders will adopt these new rules sooner. Expect ten days sooner on average.
Why? – Well that’s much more complicated. I’ve been unpacking the real reasons in a series of Facebook live video’s over the past few weeks. These changes have ZERO to do wth COVID-19, ZERO to do with existing homeowners, ZERO to do with existing mortgage holders, and everything to do with attempting to artificially reduce home prices via demand-side economics. A model that will almost certainly benefit only the wealthy and will backfire on young aspiring home buyers.
What country is this again?!?