Are Easier Financing Requirements Ahead?

 Are Easier Financing Requirements Ahead?   

      Recently (and I'd say somewhat unceremoniously given the importance and need for the announcement), Fannie Mae and Freddie Mac announced the easing of Financing Guidelines ... including the news that they're bringing back the 3% Down Payment - Conventional Mortgage. 

          Good news, no doubt about it.  But even more changes are needed ...

     Mortgage Lenders and Agents (and the public) are still anxiously awaiting the much-needed relief demanded to relax the tougher standards that came as a result of the housing recession/crisis that arrived in the mid-2000's.  A crisis from which we are still healing.  

     Perhaps slow, stagnant sales numbers and housing-sales statistics have finally caught the attention of the "powers-to-be" and that's why we're finally seeing Fannie and Freddie take action?  Facts prove the housing market has not come back to good or robust health.  

     While it's true some areas of the country are doing better,  collectively things are still not as they COULD or SHOULD be.  Although better, Mortgage Lenders are still somewhat reluctant to freely lend money.  There's a reluctance by potential Sellers to list their homes, or lower prices if they did.  Buyers are slow to seek financing or to actively view homes to buy.

     As a result, there are fewer Real Estate Transactions being conducted in the current market.  And while less demand typically means stable prices ... it generally means an over-supply of properties too.  

     What would remedy the imbalance we're currently seeing?

     A loosening of financing approval standards would definitely help.  It would allow:

• Deserving Home Buyers to buy
• Home Sellers the ability to move on .. move up  
• Baby Boomer Home Sellers the ability to achieve a retirement goal 
• Mortgage Lenders would have the ability to lend more easily without constant worry about nitpicking details.  They would be capable of focusing on the larger picture and things that truly matter and facilitate Closings

     Bottomline:  It's time to see the pendulum swing back ... and in the favor of the voice of reason.  That certainly doesn't mean a return to the loose lending standards found prior to the housing downturn.  

     A voice of reason, commonsense mortgage lending would be lending as Goldilocks considered ...  "just right".  Right now no one seems to know what "just right" is or should be.

     One thing is obvious to me.  Home Buyers and current Home Owners need to know what the benefits of homeownership are.  They have to want to be Home Owners.  And they certainly need to face fewer fears or stresses during their Mortgage Process.

     That won't happen as long as Mortgage Lenders themselves remain under the tremendous number of regulations and pressures they currently deal with.  If Lenders remain under the stringent and highly-stressful regulations the government and regulatory entities now place on them, clients and others within the industry will continue to feel them too.

     The recent announcement made by Fannie Mae and Freddie Mac is a hopeful start ...  

     *  Hoping to Buy, Build, or Refinance a Home in the Chicagoland area?  Contact Me Today!  I'll put my 37 years of Mortgage experience and expertise hard to work on your (or your clients') behalf.
     I can be easily found at:

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

 

              

             

Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 

Referrals are Welcomed!

    
     

         
      

New Mortgage Program Helps Those Suffering from Significant Adverse Credit Buy Again

New Mortgage Program Helps Those Suffering from Significant 
Adverse Credit Buy Again

     In a continuation of a recent loosening of home financing guidelines, I now can offer "expanded programs" for Borrowers with Credit Scores (middle score) of 580 (FHA Loans) and 600 (Conventional Loans).

     These new options apply to:  Purchase Transactions of 1-to-4 residential units ... for Buyers use as a Primary Residence (Owner-Occupied).

     Allowances are made for Borrowers having suffered past major events such as:

• Bankruptcy
• Short Sales
• Foreclosures

     This program's Waiting Periods are reduced from those of traditional programs.  

     Be aware:  There are several caveats to this program.  Those caveats include "Risk-Related" guidelines for Down Payments, Credit Scores, and Debt-to-Income Ratios.   

     This is NOT a reversion to bad lending practices of the first decade of the 2000's.  

     These will be very common-sense Underwriting deals.  Down Payment requirements of at least 15% or more will be required depending on Credit Scores.  

     The lowest Credit Score Buyers will need a substantial Down Payment of 25% or more and the loans will be either a:

• 30-year Fixed Rate term 
• 7/1 ARM

     
     These requirements will be in place to maintain stability of monthly payment amounts and the risk to the Borrower ...

     

     Borrowers most likely to take advantage of this program will be those that have:

• Stability within their employment 
• Stability in their income
• Possess reasonable debt  
• Have had an "event" (such as those listed above) during recent years ... or suffered financial misfortunes during the last 10 years.

     Misfortunes considered for this program include:

• Loss of Home Value
• Income Reduction
• Layoff from Employment
• Job Loss 
• Etc.

     This program allows (with Qualifying Conditions), financing for a home purchase in the following cases:

• 2-Years AFTER a Bankruptcy Discharge, Chapter 7 or Chapter 11
• 1-Year AFTER a Bankruptcy Discharge/History - Chapter 13
• 2-Years AFTER a Foreclosure (waiting period measured from the date of the action/judicial sale)
• 1-Year AFTER a Short Sale, measured by the Closing Date on the Sold Property

     The minimum loan amount in this program is $150,000.  

     Please Note:  Several Underwriting Requirements must be met to qualify for this program.  It is NOT an "anything goes" loan product.  Those who qualify will have to meet stringent requirements and risk of lending will be weighed heavily during the process.

     Also Note:  This product may not be available in all states.

     Should you want more detailed information regarding this program and your ability to utilize its benefits, please contact me.  This program could provide the path back to homeownership that you've been looking for ...   

     *  Hoping to Buy a home in the Chicagoland area?  Contact Me today!  I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

 

              

             

Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 

Referrals are Welcomed!

     

More Good News for High-End Well-Qualified Buyers

More Good News for High-End 

Well-Qualified Buyers

    

     JUMBO Loans, and the advantageous interest rates they have been enjoying, have been in the news quite often over the past few months.  

     These loans have continued to be a good bargain in comparison to the past, due to current rate climate and Lenders' appetites for high-end, high-performance loans to well-qualified Borrowers.  

     Great!  But for my American Portfolio Mortgage Corp. customers, existing or new, the news just got even better ...

     Why?  

     Generally, loans above 80% of the Sales Price/Appraised Value (whichever is less) have been required to carry Private Mortgage Insurance (PMI).  With American Portfolio Mortgage Corp.'s new CORE JUMBO Program ... clients will NOT be required to have Private Mortgage Insurance.

     This option is available to any of my Borrowers with the following qualification:  

• Borrower must be capable of putting down 10.1% of the Purchase Price ... up to $1.5 Million Loan Amounts

     Also:  Specific qualifications must be met on the following:

• Credit Score
• Housing Payment History
• Employment History
• Debt-to-Income

     The loan type will be a 5/1 ARM.  Funds for down payment will be verified.  Funds must come from the Borrower's own funds*.   

     Note: * There is a minimum of 5% that must be the Occupying Borrower's own funds.

     Other benefits to the APMC CORE JUMBO Program include higher loan amounts and/or allowed for lower Credit Score Borrowers with larger down payments (20% or more down).   

     Credit Scores can be as low as 700 ...

     Borrowers with high incomes, relatively mobile in their employment/professions, and experiencing challenges in amassing a 20% down payment, will especially benefit from the flexibility of American Portfolio Mortgage Corp.'s new CORE JUMBO Program.

     The following special features are also included within the APMC CORE JUMBO Program:

• Second Home Buyers can participate, but must comply to program restrictions
• Investors can also participate, but also must comply to  program restrictions 
• Traditional (Warrantable) Condominiums are eligible

     As with most financing programs, certain restrictions do apply.  Please contact me to see how my APMC CORE JUMBO Program can prove beneficial to you and to seek a customized review of your personal financial scenario ... State restrictions do apply...


    

  *  Hoping to Buy, Build, or Refinance a home in the Chicagoland area?  Contact Me today!  I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

 

              

             

Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 

Referrals are always welcomed!

 

    
         

 

Why Are the Most Recent 2 Years of Your Life Important in Financing?

Why Are the Most Recent 2 Years of Your Life Important in Financing?

     It's definitely true.  Much has changed in the Mortgage Industry and the financing of homes in a very short time.  

     But one thing has not changed.  That is the importance placed by Mortgage Originators and their Underwriters on the most recent 2 years of a Mortgage Applicant's life.

     Why is this 2-year period so important?

     There are several factors that are considered and weighed by Underwriters when they're reviewing a Mortgage Application for Approval.  Many of those decision-making factors take place during "the most recent 2 years" of a potential Borrower's History.

     And sometimes there are also "waiting periods" tied to the "passing of time" during this 2-year period.  Examples of lending tied to this "passing of time" period are:

• FHA's timeline for acceptance of a Borrower's filing and subsequent discharging from a Chapter 7 or Chapter 11 Bankruptcy
• VA's guideline requirement concerning a 2-year waiting period after a Short Sale or Foreclosure

     But EVERY Mortgage Applicant, whether they're a First-Time Homebuyer, someone returning to home ownership, or Refinancing ... must disclose the following at the time of their application:

• Employment History 
• Residence History 
• Payment History 
• Information regarding the amount and type of debt they have incurred

     So what gives with the Mortgage Industry's obsession with the last 2 years of your life?  What answers are Underwriters seeking ... or what clues or insights regarding your behavior are they examining throughout that time period?

     Simply, they're watching for an established 2-year pattern of financial and employment:  

• Stability
• Reliability
• Consistency
• Accountability
• Responsibility

     So, if you're someone hoping to buy a home or refinance, know that the most recent 2 years of your life will be examined closely during your Mortgage Process.  A 2-year residence history, income (all types), current savings/savings history, and current credit/credit history will have to be documented and provided to your Lender.

     But also consider this good news:  If you have suffered financial problems in the past, you are NOT condemned to rent forever.  

     The Mortgage Industry provides pathways to help you successfully become a homeowner either for the first time or once again.  And in most cases, you can get on solid financial footing within ... yep, you guessed it!  A TWO Year Period of time.  

     Kinda ironic, right?

     But true.  Often, in a 2-year period you can build from scratch ... or re-build credit.  A stable employment history can be established.  Money can be saved for a down payment.

     It's also true that help and guidance is readily available. With the help and guidance of a Mortgage Originator throughout that 2-year period, you can typically gain the credit/credit history and ability to borrow money to become a homeowner, if you follow the advice and directions they provide.

      Bonus:  That help and guidance is often provided to you at NO Cost. 

     Whether you are just beginning your journey to home ownership ... or hoping to return to it once again, in the Chicagoland-area reach out to me today.  The sooner we get started, the sooner you reach your goal ...

     *    Hoping to Buy or Refinance a home in the greater Chicagoland area?  Contact Me today!  I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. 031.0006220  -  WI Licensed

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  1.815.524.2281

gmundt@goapmc.com

www.genemundt.com

              

       

Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), 
DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI. 

Your Referrals are Always Greatly Appreciated!