These days one of the biggest impediments to closing a real estate sale can be the buyer’s ability to get a mortgage.
Here are some tips for anyone who hopes to land a loan:
Turn to the government. The biggest source of loans these days is the Federal Housing Administration (FHA) and the Veterans Administration (VA). These programs accept borrowers with lower credit scores and allow them to put down as little as 3.5 percent of the purchase price.
Document, document, document. Borrowers will need bank statements, brokerage statements, W-2 forms and tax returns.
Boost credit scores. Borrowers should avoid having more than one-third of their maximum borrowing capacity outstanding on one credit card. If necessary, rotate the debt among several cards.
Work your connections. Comparison shopping is easy online, but if your customer has an established relationship with a local bank, suggest they try that lender first.
Source: BusinessWeek.com, Christopher Palmeri (01/23/09)
“In what may the biggest sign yet that banks are getting serious about attacking the nationwide wave of home foreclosures, giant JPMorgan Chase (JPM) announced on Oct. 31 that it is sharply ramping up its efforts to restructure the loans in its massive mortgage portfolio. For the next 90 days, JPMorgan will not place any new homes into foreclosure. “
See this BusinessWeek article HERE
Renovation Mortgage Plus
Mario E. Boles/ Diego Hodge
FHA/203K/Fannie Mae (Homestyle)/Freddie Mac (Renovation Mortgage)
2475 Northwinds Parkway, suite 200
Alpharetta, GA 30009
*Vonda Henry, Loan Officer (West End Resident)
*Bank of America Mortgage
Mortgage Loan Officer
Assistant Vice President
6075 Roswell Rd
Atlanta, GA. 30328
866-517-8923 Right Fax
*Sam Thompsonread my blog: http://samthompson.thewrittenblog.com
Home Mortgage Consultant
Home Services Lending, LLC
An Affiliate Of Wells Fargo Home Mortgage
3391 Town Point Drive, Ste 325
Kennesaw, GA 30144
(678) 355-0785 Tel
(770) 301-0527 Cell
web address to apply on-line:
*Jayson Duff (can also do FHA loans for 550- 580 credit score!)
Mortgage Banker- REMN, Inc.
500 Town Park Lane Suite 145
Kennesaw, GA. 30144
*Countrywide Bank, FSB
Home Loan Consultant
4531 Olde Perimeter Way, Suite 200
Atlanta, GA 30346
Cell: (404) 964-4803
I was hoping this might happen. FHA may be coming to the rescue. There is a big void out there now for customers with sub-standard credit scores that cannot qualify for conventional loans. There are others that already own a home and have a loan but need help with the type of mortgage they used to purchase their current home. They may have one of those infamous conventional 2/28 loan programs where the rate can jump up to 12% after the first two years of the loan. The “2” represented the time bomb period and the “28” is the number of days they have until they lose their home.
Seriously, I would like to meet the person that invented the 2/28. I’m sure it was a Wall Street type, probably someone in their late 20s or early 30s that may have even originated loans for a few months before moving over to the investment world. Can you imagine maxing out your mortgage payment on an adjustable rate mortgage for $200,000 at 7.5% only to see your rate increase to 12.25% after two years. “But you can refinance the house after a year or so.” You have to wonder how many times some loan officer or real estate agent said that to the homebuyer.
But let’s move forward. The Senate passed an FHA modernization bill by a 93-1 vote today that will raise the FHA loan limit to $417,000 in high-cost areas and lowers the minimum down payment requirement to 1.5% from 3.0%. The House passed its version of the bill in September. So it could be law in early 2008. So help is on the way, along with Santa….
1-866-226-2066 (toll free)
222 Chastain Meadows Court, Suite 300
Kennesaw, GA 30144
Email/call Sam to find our more about his competitive mortgages and weekly rates.