South Central Alabama CMHC - Luverne AL 36049

The Federal Housing Administration (FHA) is currently evaluating the financial condition of the South Central Alabama CMHC. In order for them to be approved for financing, a mortgage has to meet specific requirements. These requirements include a healthy economy with low unemployment rates, a stable housing market, and an established credit history, among other things. If an applicant is approved for financing, they will be required to make regular payments on the loan in order to keep their home.\n\n \n\nCurrently, the South Central Alabama CMHC is making some changes that are intended to improve the conditions of the program. The first thing they are planning to do is raise the amount of down payment funds required from five percent to ten percent. This change is designed to increase the risk-to-return ratio. The second change will be to increase the maximum loan-to-value ratio for new loans. Finally, the South Central CMHC is also planning to limit the amount of loan-to-income ratios that it allows on loans made from the mortgage. If the company is unable to do this, borrowers will no longer be able to obtain loans at all.\n\n \n\nThe changes are expected to begin to be implemented in late 2020. This may prove to be quite an upsetting situation for many borrowers. It is important to note, however, that the changes are only temporary and that the loans will be in effect once again when the current recession ends. The goal of the federal government is to prevent foreclosures from happening in the future, and to create a stable market where consumers can purchase homes. While the changes in the South Central CMHC loan program may put some borrowers in a tough position, there are many more options for those who need them. It is important to remember that the federal government has made several changes to help the housing market and homeowners who are having a difficult time keeping their homes.