OK, NOW THAT THE FEDERAL GOVERNMENT IS BACKING JUST ABOUT EVERY MORTGAGE LOAN PRODUCT KNOW TO MAN WHY IS IT THAT MY CLIENTS STILL NEED TO PAY FOR AN ADDITIONAL INSURANCE AGAINST DEFAULT?
The Federal Government is now guaranteeing the performance of Fannie & Freddie... If borrowers default, thats ok. The originating lender, servicing lender, or purchaser of that debt will not lose a thing because Uncle Sam's hand is firmly in place to help steady the imbalance.
So, why do our clients all have to pay an additional premium to a company that is essentially doing nothing. It like the loans are now doubly insured!!
Of course I imagine that the PMI companies will help the government recoup some of their loss... But ultimately it is our tax money insuring these loans.
Yesterdays bailout puts us one step closer to socialism...
This bailout was not really required because Fannie & Freddie both had the required capital reserves. They lost around 17 billion... but WaMu lost 19 billion. Losing money is not a prerequisite for taking control over a company; if it were the government would've seized many more companies by now.
in the short term this will be good for mortgage interest rates and ultimately the housing market. In the long term this is going to wreak havoc on our financial system and economy as a whole. The FED is going to start printing money to cover losses and to make cash infusions, the value of our dollar once again is going to plummet, and investors are going to turn to oil again as a hedge against inflation. The cost of gasonline will soar and we will be in the same type of mess that we are in now except that it will be deeper and take longer to recover from.
We have an amazing new loan program here at Lake City Mortgage that is sure to help a lot of people. To my knowledge we are the only mortgage company in the area offering anything like it. 100% conventional financing has completely gone away which is why I am so thrilled to be able to offer The Lake City Home Express!
Here Are a Few of The Highlights:
This program is limited to Sub-Urban and Rural areas. Lake City Mortgage and I are located in Plattsburgh, NY 12901. While we cannot close the Lake City Home Express directly in the city of Plattsburgh we can provide this financing for any property located in the sub-urban and rural areas that surround Plattsburgh, NY including Cumberland Head.
This program is viable in many regions of the North Country including:
And any other region in NY, RI, and MA that has a population of 20,000 or less. I am very excited to be able to offer this program. To get pre-qualified for this program just give me a call at 1-866-562-6930 ext.105
or send me an email at cohlsen@lakecitymtg.com.
We also have a full suite of conventional financing options for ineligible areas and FHA in-house. We basically run the Full Gambit here at Lake City Mortgage so give us a shot today! I promise you that it is worth the call!
Sincerely,
Christopher Ohlsen
Mortgage Advisor
1-866-562-6930 ext.105
1-518-907-4665 (cell)
1-518-324-3358 (fax)
www.lakecitymtg.net
  |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Priced at $298,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note to Reader: This is a Co-Marketing Project betweeen myself and the listing agent. The listing agent on this property is Kathy Bennett of RE/Max North Country. Kathy can be reached directly at 518-569-5959. Thank you for your interest in this property.
And what I mean by that is that FHA is not some kind of a spectacular loan program. It is very useful in certain situations, but most often the best way to go is conventional if you qualify. Conventional offers the best rates and terms avaiable which is why it is reserved for those with good credit and income qualifications.
I get people coming to me all the time who have been sold by someone who later denied them on an FHA program. Sometimes the person coming to me is qualified for conventional financing, and I ask them "why FHA". I usually get the same response. Something along the lines of "I am a first time home buyer" or some other irrelavent speech about why FHA is so great.
Often times the file is denied for one reason or another, most often because the person in need of financing was not properly qualified. Most deals that can go through FHA can also go through conventional with better terms. Traditionally FHA is utilized for the credit challenged or those with unestablished credit. No score programs are great for people who have zero establish credit and no derogatory tradelines. FHA really filled in some of the gaps when the subprime crisis hit.
Still, most deals that would've gone through a subprime category back when loans were easy and loan officers were lazy could've also gone through Fannie Mae. Prior to the PMI companies stepping in and laying out some heavy restrictions, I could get people with low 500 scores approved and closed through Fannie Mae.
Now that PMI companies are refusing to insure loans for low credit score borrowers with high LTV's (I don't blame them) FHA offers some attractive alternatives. As of today MGIC is refusing to insure any loan that is over 95% LTV if the borrowers credit score is under 680...
Still, the products to get the deal done are out there, you just need to find them and sometimes you need to be more creative.
 |
|
|
I love the Adirondacks. The homes really get me excited. I am thrilled to be an integral part of the Adirondacks Real Estate scene. I'm your Adirondacks Mortgage Specialist; I'm always happy to help!
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2008 ActiveRain Corp. All Rights Reserved
