When I left off in my last post, I was discussing buyers and sellers and how the rules have changed.
In spite of the various restrictions or limitations to loan programs that we have mentioned, there are exceptions to the guidelines that may open up other loan opportunities to consider.
Veteran’s Administration loans (VA): Individuals who have served or are active in the military (including the National Guard) are not subject to the credit scores or other guidelines that typically apply.
A VA loan is a 100% financing program with attractive interest rates and the opportunity for the buyer to pay little or no closing costs.
Federal Housing Administration loans (FHA): Each day, we read more pronouncements from our Federal Banking regulators and Congress recommending an increase in the role of FHA to underwrite loans that Fannie and Freddie cannot.
The principal benefits of an FHA loan are the flexible underwriting guidelines and availability to those borrowers with less than a 620 credit score.
Portfolio Loan Products: These are mortgage loan programs offered by a bank or private investor. Since there are no rules or encumbrances governing the Lender, each loan is evaluated on its own merits. These unique loans would be funded by the bank / investor and not sold to Fannie or Freddie.
With each of these options, you need to discuss which may apply to your client. Let your mortgage professional research what option best suits their needs.
Our intent in identifying these issues and options was not to be all inclusive or suggest that other options might not be available. The rules are changing daily. Interest rates and loan programs often change numerous times during the day.
The fact is that the home buying process has gotten considerably more complex with a declining number of financing options available from a decreasing number of Lenders.
As a Real Estate professional, you need a team of experts, from yourself to a mortgage professional to an appraiser, to properly support your sales efforts.
0 comments:
Post a Comment