RUMOR – The only loans available are 80% LTV with a credit score of 720 and above. There has been some talk over the past couple of years that this is where we were headed, but the head of Freddie Mac said recently that the loans that are coming in now are very good quality and this is helping their portfolio.
FACT
CONVENTIONAL FINANCING is actually loosening up a little. We have 95% Conventional loans with mortgage insurance – of course. If the home is a HomePath home (www.homepath.com) your buyer can get in at 97% LTV, with no appraisal fee and seller contributing to the closing costs.
GOVERNMENT LOANS - 100% financing is available through USDA (available in any town 25,000 or less) and VA and FHA is going strong with 3.5% down.
It is true we are asking for documentation for all income and assets but we should have been asking for that all along. And I am conservative. I will not get you into a loan that is not good for you in the long term. We are underwriting by the 4 C’s – Credit – Are the borrower’s credit worthy? Capacity - Can they afford the payment? Capitol – Do they have any money to work with? Collateral – Is the property worth what we require?
