Take a look at the new program Home Possible. Right now I can give people who have low scores, high DTI's some normally to high to qualify for a bad rate let alone a good one, a loan with a rate as low as if they had the highest score and the most amount of equity. Even if they are only putting 3% down. Without MORTGAGE INSURANCE. WITHOUT A HIGH RATE. This enables the buyer to offer a higher amount, 25k-75k more home for the same payment, just because of a program.
The real interesting part is that we are steering the buyers. Just google, Home Possible Lookup Tool, then type in your address. It will look like the picture below, if it says No Limit, than anyone can buy the home even a millionair. But if it says 65k limit, then if a buyer makes 66k a year, he cannot buy the home. Even if he switches out of the program to a normal loan, other factors will put his DTI too high, making it so he can spend the extra money, but not on your house. Only where we want you to spend the money.
