Mortgage Update | Keeping Business Moving Forward
As the lending industry continues to change, we will keep you updated with the most current information.
Where Are We Now?
- All qualified loan products, including Fannie Mae and Freddie Mac, FHA, and VA, are doing business as usual and closing on time. These loans are liquid because they are insured and guaranteed by the U.S. government, and the Fed has provided as much money as needed to continue lending.
- The government is only backing qualified loans. Portfolio loans are non-qualified loans, and as of now, most portfolio loans are on hold, including bank statement loans, asset qualify loans, and no-income investment loans, even if these were previously approved.
- There are tremendous financing opportunities for well-qualified, entry-level and mid-range buyers. If you were in the market before the current COVID-19 situation, you should seriously consider purchasing now. There is more opportunity to get your offer accepted. Once we come out of this, there will be a huge pent-up demand and the market will once again be flooded. If you are on the fence, the best thing is to be pre-approved and active in looking online so you are ready to jump when this current health crisis is over.
- There are tighter qualifications for buyers. W-2 employees must prove their employment and ability to pay at the time of funding. Self-employed buyers must be able to qualify with tax returns, be prepared to show liquidity and show a cash reserve of 2-4 payments at closing. We are still closing jumbo loans at 80% LTV.
We have been in business for nearly 40 years through all types of market challenges We have introduced several new products with 85% and 90% loan options to help you secure financing. VA is still funding up to $5M with no money down. Our loan officers are here to help you navigate today's market and keep business moving forward.