The Good ol' Days: Blogs may contain information for years to come about the good old days of a 562 credit score getting 100% financing with discounted mortgage insurance. In the summer of 2006 I originated a loan with this exact situation offering a 30 yr fixed loan at 5.875%. I was the rock star!
Reality: Today the only product that resembles that is an FHA Loan with down payment assistance. Only if it qualifies through the Automated System. Current Market Rate? At Wells you can get it for 6.5% to 7% depending on loan size. At Allied I would be able to offer 5.875% if the loan amount was over 100K. The My Community Loan product is still available but with the current changes a 562 credit score would not qualify for 100% financing or the mortgage insurance that would be necessary to help someone get into the loan. And the interest rate would be over 7%. Isn't this great?
I know you don't doubt the reality of the mortgage meltdown and the changes in lending. You really do need to work with a Mortgage professional that has researched and been educated on the current programs that are available in lending.
The Good Old Days: Gas $1.14 per gallon. Reality: $3.04
I'm just here to give you an inside look at lending.
sk
Saturday, February 23, 2008
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