Mortgage Update | Qualified Mortgage Products Moving Forward
Recently portfolio lenders became very aggressive with low interest rate offerings, low down payment requirements (only 10% down), and aggressive underwriting.
All that ended last week when the investors for those loans withdrew from the market.
The Government only backs 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.
All qualified loan products including Fannie Mae and Freddie Mac, FHA and VA, and Jumbo Fixed and Adjustable are doing business as usual and closing on time. These loans are liquid because the Fed has provided as much money as needed to continue lending.
In addition, the 90% loans that were offered by the non-qualified mortgage companies have gone away, however, we have an amazing new Jumbo 80% with a 10% 2nd available that can fill that gap.
As a Mortgage Banker, San Diego Funding/Great Pacific Funding is an essential business and we will remain open and available to assist you. We are still writing pre-approval letters, opening new loans, and closing ON TIME. All of our systems are secure and we already pre-approve, process and fund online. Taking care of your needs will not be interrupted.