Mortgage Blog

I still have a few options for Self-Empoyed people that need stated income loans.  Most programs require a 720 Credit Score and a maximum Loan to Value of 75%, or in other words a 25% down payment.

Colby 

The bond yield is back down around 3.8, which has helped lower our rates to around 6.375-6.5% as opposed to the 6.75-6.875% we were at over the last several weeks. 

I have read and seen in the news that Freddie Mac and Fannie Mae, which are the two government sponsored lenders who buy most of the "conventional" loans, are in trouble financially.  I guess FHA may be the only one standing before too long.  Back over the last several years Fannie Mae and Freddie Mac were very loose on there requirements to become approved for a "Flex-100" or 100% Conventional loan.  It seemed like just about any borrower I sent into the system would get approved for a 100% loan at some level.  If they had really bad credit, Fannie/Freddie would just approve them at a level that had a higher interest rate and higher mortgage insurance and give them the money to buy the house.  I'm sure stuff like that is contributing significantly to their current problems.  I'm surprised I don't see more information about the Mortgage Insurance companies that were insureing these loans, like MGIC, going out of business.  Maybe they are in trouble but I just haven't paid that much attention to them.

One last thing....I've noticed that there are a lot of people that read this blog, but I have no idea who any of you are.  No one has ever left a comment.  If you feel like it, it would be good if you could just leave the city/town where you're from in the comment section.

Thanks,

Colby

Our credit report company has a new service that is seriously awesome.  It allows us to put in what credit score we would like to achieve and tells us how to get there.  Usually it tells us how much money (cash) would need to be invested by paying off certain debt to a certain amount and then tells us how many points that should raise the score.  Once the debt is paid off, we have them do a "re-score".  After that, the scores are higher and the borrower then qualifies for a loan that they couldn't qualify for before.  It usually costs between $45-$100 for that all to take place, but I eat the cost as long as the loan closes.

Have a good week and a happy and safe 4th of July....

Colby

www.colbyzeka.com

Our Corporate office has hired 7 new underwriters to go along with the 4 we already had, and that's helped out a ton on underwriting turn times.  We were at 3 weeks for a while, and now we're at 1 week, and soon we should be back to what we're used to which is 24-48 hour turn around times for approvals that aren't automatically approved online, which of course takes about 30 seconds for an approval.

Interest rates have come back down just a little, moving with the 10 year U.S. Bond yield which yestersday dipped back under 4.00%. 

We had a good week of wheat harvesting last week but then the rain fell and now we're back working in the office until it dries out.

Check out my updated website www.colbyzeka.com.