The rumors are officially true the stress test for BOTH conventional and insured mortgages is increasing June 1, 2021.
The new qualifying rate is now 5.25% or the contract rate (The rate you are getting) plus 2% whichever is greater.
What does this mean? Well your purchasing power will now be reduced by approx. 5%
Any applications that have been submitted prior to June 1, 2021 are eligible to full under the current guidelines. Pre-Approvals do not count as an application you must have found a home
Not the news we wanted but the changes are happening, as always if you or anyone you know have any questions feel free to reach out anytime.