As homebuyers know, the mortgage interest rates have declined to the lowest in history during the summer of 2020, but there are still some challenges to consider for people buying or refinancing a home.

The first challenge affects home owners who took advantage of a forbearance, which is when your mortgage lender allowed you to temporarily pause or to pay less than your regular monthly mortgage payment. Following the months affected by the forbearance, the rule is still in place– a borrower is not eligible for a refinance until they have made three consecutive payments after the forbearance.

A limited number of mortgage lenders are offering Veterans Administration (VA) One Time Close Construction Loans as well as FHA 203 K and conventional rehab loans; those had not been available during the early months during the Covid-19 impact.

As we all deal with the Coronavirus pandemic, we are seeing Jumbo home loans (up to $510,400 in most areas, or up to $765,600 in some counties in Colorado) are coming back, and Indigo Mortgage Colorado has a few lenders that have opened these up again.

Self-employed borrowers will still have some extra hoops to jump through in order to prove that Covid-19 did not disrupt their business. They’ll be required to supply an audited year-to-date Profit and Loss Statement or two months of business bank statements to prove cash-flow.

If a W-2 employee was put on leave or had their job suspended due to Covid-19, they are eligible for home loans or ReFi’s as soon as they return to work full time. If borrowers have questions about the impact of the Coronavirus on mortgage loans, Indigo Mortgage is a great resource for Colorado borrowers. Call us with your questions, we’re happy to help.