There are a lot of changes happening right now in the mortgage industry as a whole. 

Who is it affecting?

  • People with lower credit scores that need 100% financing.  A lot of big companies right now that use to give someone 100% financing are now out of business.  They are out of business because the people that took these loans are going into foreclosure.
  • A Lack of credit – someone that doesn’t have the creditors’ history.  A good history to have is three creditors over a 2 year period.  This will not hurt to start now if you don’t have them, even if it is a secured credit card.  Credit Card (revolving) creditors on your credit are a major plus when paid on time.  Note: do not max out the credit card that will in turn hurt you again.  Keep it below 50% of the high credit limit and it will look good.

How can we get by this?

  • FHA Mortgages- with a minimum down payment of 3% I have a lot of flexibility to getting you approved with today’s going rates with out a credit score requirement.
    • Example: I had a friend of mine who had got hurt on the job. He could not pay his bills with out a pay check coming in.  Once he went back to work all his bills were current we were able to go FHA and get him a rate at 6% on a 30 year fixed.
  • Conventional Loans @ 100%.  Right now with a minimum credit score of 575 I am able to still get you approved to 100%.  This loan does have mortgage insurance but is a great replacement for the high rate mortgages people are use to.

 

If you are in one of these high rate mortgages – what do you do?
 

  • The best thing to do is give me a call or send me an email and I can see if you fit into one of the programs above or another loan that will save you thousands of dollars a year.  With a lot of the changes you would be surprised at how much I can actually save you monthly.