New “Ability to Repay” Rule Could Hurt and Help Miami Homebuyers

by Isaac Benmergui, Esq on April 18, 2013

Risk -blocks on ball smallerThe new mortgage guideline of “Ability to Repay” will take effect next year. The measure is intended to do away with risky loans that were so prominent during the housing boom and prevent Miami lenders from offering mortgages that borrowers would not be reasonably able to pay back.

While the rule may keep some homebuyers from qualifying for mortgages, those that are eligible for mortgages will know they’re in a good position to pay back the loans on their South Florida home.  And their payments won’t increase to the point that they’ll be in danger of default.

Lenders who violate the guidelines of the Ability-to-Repay rule could be assessed stiff penalties as high as $350,000 for a $200,000 mortgage.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

 

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