Front of small starter home with brick façade

    QM Rules

    We have discussed new “QM” (Qualified Mortgage) rules several times, and how the new rules are supposedly tightening lending guidelines.

    QM prohibits loans with negative amortization, interest-only payments, balloon payments, and terms greater than 30 years. QM also prohibits loans in which the points and fees are greater than 3% of the loan amount.

    None of the above rules apply to JVM Lending because we did not offer those loans, and we never charge 3% of the loan amount.

    Additionally, for most lenders, QM requires that consumers have a debt-to-income (DTI) ratio of less than 43%. Fannie and Freddie, however, still allow for higher debt ratios.

    The 43% DTI cap does not apply to JVM Lending because we have lending sources that have not changed DTI guidelines.

    Point: 2014 is “business as usual” at JVM Lending. QM has no effect on us. If you are having DTI issues, call us at (855) 855-4491.

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