Mortgage Update | Keeping Business Moving Forward

• 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.