Ohio Homeownership Help

The Ohio Homeownership Alliance (OHA) is a public-private partnership of organizations committed to increasing homeownership throughout Ohio.

Learn more about homeownership opportunities and resources in Ohio by coming to our home pages:

Ohio State Office, U.S. Department of Housing and Urban Development (HUD) has funding and affordable ‘Homes for Sale’. Visit us athttp://www.hud.gov/local/index.cfm?state=oh.

Ohio Mortgage Bankers Association (OMBA) is dedicated to maintaining a strong housing, residential and commercial real estate finance system. Connect with experts in mortgage services and mortgage industry-related firms athttp://www.ohiomba.org/.

Ohio Association of REALTORS is the trade association-of-choice for Ohio’s real estate brokers and sales agents, and certified appraisers. Reach a REALTOR athttp://www.ohiorealtors.org.

Ohio Home Builders Association (OHBA), a proactive voice representing the residential construction industry in Ohio, whose 9,000-plus members and associate vendors take pride in housing Ohioans. Visit us at http://www.Ohiohba.com.

Ohio Housing Finance Agency (OHFA) provides financing for the acquisition, construction and rehabilitation of single-family housing and multi-family rental projects for low- and moderate-income consumers. And check out our first-time homebuyer program at http://www.ohiohome.org/homebuyer/sweethome.aspx

U.S. Department of Agriculture (USDA) Rural Development provides financing for individuals and families to purchase homes in rural areas. For ‘No Downpayment Home Loans’ visit us at http://www.rurdev.usda.gov/oh/housing.htm.

Ohio Insurance Institute (OII), committed to strengthening consumer understanding and confidence in Ohio’s property and casualty insurance industry. For facts about your homeowner insurance needs and related safety issues, visit us athttp://www.Ohioinsurance.org.

- See more at: http://ohiorealtors.org/consumers/homeownership-assistance/#sthash.6FSHBiEB.dpuf

New Mortgage Rules

New “Qualified Mortgage” rule takes effect January 10

By Carl Horst

The start of 2014 signals the launch of new rules by the Consumer Financial Protection Bureau (CFPB) requiring that borrowers seeking a mortgage show proof of their ability to repay the loan.

According to the CFPB:

The Ability-to-Repay and Qualified Mortgage rule is a “back-to-basics” approach to mortgage lending that will protect consumers from the debt trap of a mortgage they can’t afford. Starting January 10, lenders will be required to make a reasonable, good-faith determination that a borrower can afford to repay a mortgage. That’s a common-sense policy that responsible lenders have already been following for decades – and this month it will be the law.

The Bureau also has a fact sheet about the new rules. In short, to be a Qualified Mortgage, the loan:

  • Cannot have excessive upfront points and fees:
  • Cannot be longer than 30 years;
  • Cannot have certain risky features, such as paying only interest and not principal, or paying less than the full amount of interest so that the total debt grows each month; and
  • Must be in one of three categories:
  1. The monthly loan payment, plus the borrower’s other debt payments, does not exceed 43 percent of the borrower’s monthly income; or
  2. The loan qualifies for purchase or guarantee by a government sponsored enterprise (Fannie Mae or Freddie Mac), or is insured or guaranteed by a federal housing agency; or
  3. The loan is made by a small lender that keeps the loan in portfolio.
The CFPB estimates that 92 percent of all mortgages fit into one of the three key categories. CFPB Director Richard Cordray, who previously served as Ohio’s Attorney General, explains the rule to the following National Association of REALTORS video (which also accessible via realtor.org if this doesn’t appear on your mobile device):

- See more at: http://ohiorealtors.org/2014/01/09/new-qualified-mortgage-rule-takes-effect-january-10#sthash.32ogY9Nc.dpuf