Doug's Blog

MS Homebuyer Advantage

Doug Capps (Fairway Independent Mortgage Corp.) — Wed, 16 Sep 2009 14:36:41 -0500

The MS Home Corporation has a new program called "Homebuyer Advantage." This program will provide funds for homebuyers to aid in principle reduction, covering closing cost/ prepaids and "half" of the required down payment (based on loan type) for foreclosed properties.

Other conditions do apply. See below:

For more information on this program, please call DOUG CAPPS at (662) 429-5100 Ext. 105.

Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS 38632 is a "MS and TN Licensed Mortgage Company." An Equal Housing Lender. All loans are subject to credit approval and compliance with investor guidelines.

Know your mortgage options!

Certificate of Recognition

Doug Capps (Fairway Independent Mortgage Corp.) — Wed, 16 Sep 2009 14:13:49 -0500

A personal story - I was pretty blown away by a client that I had helped with a VA loan.

He was transferring from up north to Mississippi because of a new job. Since he only had a few weeks to make the move, I quickly got him prequalified for a VA loan and the seller was willing to allow him to move in until the loan closed (less than 30 days). Sounds easy enough...

When the appraisal was received, it appraised for $13,000.00 less than the purchase price. So, to make a long story short, no deal.

So... this guy is moving from out-of-state, cannot purchase the house he just moved in too...You can see where this is leading.

In less than (2) days he found another home (even better than the original - Thanks to his Realtor), got into contract and we "still" closed within 2 weeks, meeting the "first" contract due date. Nonetheless, the buyer was VERY happy. I just didn't know that he would come to my office, have a sit down talk with my manager and then present me with this "civilian" version of a Certificate of Achievement (all you military folks know what I'm talking about).

You hear more horror stories, then good ones. Thought I would share this one.

Here's the certificate - what you cannot see is that it was matted and framed in a brushed-silver frame.

Hernando Homebuyer Assistance Program - Hernando, MS

Doug Capps (Fairway Independent Mortgage Corp.) — Tue, 25 Aug 2009 10:53:49 -0500

HERNANDO HOMEBUYER ASSISTANCE PROGRAM

The City of Hernando has received State grant funds from the Mississippi Development Authority to assist low and moderate income persons who would like to purchase a home. The program provides a grant of $30,000.00 per applicant that can be used toward a down payment on a home, help with closing costs, or help with reducing a home's price so that the buyer can afford it.

Income Eligibility:

Family Size 1 = $32,400, 2 = $37,000, 3 = $41,650, 4 = $46,250, 5 = $49,950, 6 = $53,650, 7 = $57,350 and 8 = $61,050

Other Eligibility Criteria:

There are only 9 grants available. Applications are approved on a first-come, first-served basis.
No first-time home buyer requirement. Applicants must not currently own a home and must secure a mortgage through a financial institution at a fixed interest rate.
Property must be located within the city limits of Hernando.
Primary residence only.
The home must be kept for 15 years, or teh $30,000 or a portion must be repaid.
Homebuyer education is required through Sacred Heart

For more information on this program, please call DOUG CAPPS at (662) 429-5100 Ext. 105.

Know your mortgage options!

Desoto County Grant - Homebuyer Assistance for Mississippi

Doug Capps (Fairway Independent Mortgage Corp.) — Mon, 10 Aug 2009 18:37:50 -0500

DESOTO COUNTY RECEIVES FUNDS FOR HOMEBUYER ASSISTANCE

(The following information is from a Memo dated August 8, 2009 from the Desoto County, Office of the County Administrator)

Desoto County recently received a Home Investment Partnership Program Homebuyer Assistance Grant. This project was funded with a $500,000.00 Home Grant from the Mississippi Development Authority. The grant funding is intended for down payment assistance toward the purchase of homes in Desoto County that were built before March 2008.

The homebuyer assistance funds should assist approximately (16) families. The primary goal of this program is to help individuals who can afford a monthly mortgage, but cannot afford the down payment cost. Funds enable low-to-moderate families to become homeowners.

The criteria for this grant is:

Must be a US citizen
House must be in Desoto County or any city in Desoto County
You cannot own a home now
How many people live in the home?
Maximum incomes are: 1 = $32,400.00, 2 = $37,000.00, 3 = $41,650.00, 4 = $46,250.00, 5 = $49,950.00, 6 = $53,600.00, 7 = $57,350.00
You must attend Home Buyer Education Class
Home buyer must find the home and get qualified through a mortgage company for a mortgage
Funds in the amount of $28,750.00 will be given for the down payment and closing costs on the home
Homebuyer must live in the house for (10) years and they cannot sell or lease, or funds will have to be repaid.

For more information on this program, please call DOUG CAPPS at (662) 429-5100 Ext. 105.

Know your mortgage options!

For MISSISSIPPI - Why Choose USDA over FHA Financing?

Doug Capps (Fairway Independent Mortgage Corp.) — Mon, 13 Jul 2009 13:12:49 -0500

For more information about this program, please contact DOUG CAPPS at (662) 429-5100 Ext. 105 or by email at dougc@fairwaymc.com. Fairway Independent Mortgage Corp., 224 West Commerce St., Hernando, MS is a "MS and TN Licensed Mortgage Company." An Equal Housing Lender.

Who is FAIRWAY MORTGAGE?

Doug Capps (Fairway Independent Mortgage Corp.) — Thu, 18 Jun 2009 18:22:18 -0500

Additional Items:

CUSTOMER SERVICE - This is our #1 goal - we strongly believe in customer service!!
SPEED - Our underwriting times are typically faster than many in the industry
COMMUNICATION - We believe this is KEY!
STABILITY - Fairway Mortgage has been serving Hernando and Desoto County for over 10 years!

For more informaiton about Fairway Mortgage, please contact Doug Capps at (662) 429-5100 Ext. 105. A Licensed MS and TN Mortgage Company, 224 West Commerce St., Hernando, MS 38632. An Equal Housing Lender.

*** We WON 2008 Branch of the YEAR!!!

Doug Capps (Fairway Independent Mortgage Corp.) — Tue, 09 Jun 2009 17:05:33 -0500

Wow... what an accomplishment!! Out of 85+ branches, our branch wins 2008 Branch of the Year! (Actually, there were two awards - best big branch and we won for the best little branch).

And we achieved this with only 3 loan originators and great processors!! I think that is STRONG!

Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS 38632. A MS and TN Licensed Mortgage Company. Equal Housing Lender.

For more information about Fairway Mortgage, please contact Doug Capps at (662) 429-5100 Ext. 105 or visit our website at www.fairwaysouth.com.

For MISSISSIPPI - 13 Things You Should Know About USDA Rural Housing Loans

Doug Capps (Fairway Independent Mortgage Corp.) — Thu, 14 May 2009 18:03:13 -0500

13 Things You Should Know About the USDA Rural Development Loan

USDA Rural Development has TWO different loans. Rural Development loans are broken down into two different loan types: USDA Guaranteed Rural Housing (GRH) Loans and USDA Direct Loans. USDA Guaranteed loans are originated through local Lenders, Banks and Brokers. The USDA Direct Loan is originated directly through the USDA office. There are distinct benefits of each program.
NEW Income Limits - Based upon the number of people in the household: 1 to 4 = $73,600.00 and 5 to 8 = $97,150.00.
100% Financing - NO down payment. Can go up to 102% with financing USDA Funding Fee.
NO Loan Limit - Unlike FHA or Down Payment Assistance programs, GRH loans have no maximum sales price limitation. The maximum sales price allowed is determined specifically by the borrower's financial situation.
NO First-Time Home Buyer Requirement - You don't have to be a first-time home buyer to benefit from this program. Under certain circumstances, you can even own another home!
NO Monthly Mortgage Insurance. Compared to FHA mortgages, mortgage payments on USDA loans are less because of the lack of mortgage insurance.
Flexible Credit and Qualifying Guidelines - A 620 credit score is preferred. Credit scores from 580 - 619 can be done with STRONG compensating factors.
Finance Closing Costs - Borrower's closing costs/pre-paid items can be financed into the loan as long as there is room between the purchase price and the appraised value. NO other loan program allows for this!
NO Limit to Seller Contributions - Most lenders/investors stick to the 6% rule.
Appraisal Requirements - The appraisal requirements for RD loans are similar to standard conventional loans.
Finance Required Repairs - Any lender required repairs can be financed into the loan, up to 10% of the purchase price. 150% of the repair amount is required. Of the 150%, 50% has to be from the borrower or the seller for any cost over-runs. Work has to be from licensed professionals. Upon completion, any money left over is returned.
NO Pools - Currently, USDA guidelines do not allow financing homes with in-ground pools without a waiver.
FAIRWAY MORTGAGE #1 in Desoto County. Fairway Mortgage closes more USDA Guaranteed Loans than any other mortgage lender, bank or broker in North Mississippi!

Don't let your clients miss out on a great loan opportunity!

For more information regarding the USDA Guaranteed Rural Housing loan, please give me a call Doug Capps at 662-429-5100 Ext. 105.

Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS 38632 is "A MS and TN Licensed Mortgage Company." An Equal Housing Lender.

For MISSISSIPPI- First-time Home Buyer's - MSHC Bond and DPA only 3%

Doug Capps (Fairway Independent Mortgage Corp.) — Mon, 16 Feb 2009 22:07:03 -0600

FOR MISSISSIPPI ONLY:

The MS Home Corp Mortgage Revenue Bond (aka MS Bond Money) and the MS Home Corp DPA (Second Mortgage) programs have not adjusted to meet the new FHA 3.5% down payment requirement. These (2) programs will remain at 3%.

This mean first-time homebuyers will need to provide the .5% difference.

Fairway Independent Mortgage Corp, "A MS and TN Licensed Mortgage Company" 224 West Commerce St, Hernando, MS 38632. An Equal Housing Lender.

USDA Rural Housing - FAIRWAY Still Closing Loans!!

Doug Capps (Fairway Independent Mortgage Corp.) — Mon, 16 Feb 2009 21:04:47 -0600

As many of you are aware, there are many Lenders that have ceased originating and funding USDA Rural Housing loans until funds for the USDA program have been appropriated.

Fairway Mortgage has (2) Investors that will allow us to continue funding USDA loans regardless of the funds appropriation.

If you have any questions or any clients that need assistance, please let know.

Fairway Independent Mortgage Corp, "A MS and TN Licensed Mortgage Company" 224 West Commerce St, Hernando, MS 38632. An Equal Housing Lender.

For MISSISSIPPI - Fairway Mortgage Ranked #10 in Mississippi for USDA GRH Loans

Doug Capps (Fairway Independent Mortgage Corp.) — Mon, 22 Dec 2008 18:05:26 -0600

The USDA newsletter, December 2008 came out today and Fairway Mortgage was ranked #10 in the entire State of Mississippi for originating USDA Guaranteed Rural Housing loans!! And we accomplished that with only ONE branch and 3 originators!!!

For such a small office, this is a HUGE ACCOMPLISHMENT!! Most of the top 10 lenders have hundreds of branches/offices across the state.

For more information about the USDA Guaranteed Rural Housing loan program, please contact DOUG CAPPS at (662) 429-5100. Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS is a "MS and TN Licensed Mortgage Company."

City of HERNANDO, MS - December CHRISTMAS Events

Doug Capps (Fairway Independent Mortgage Corp.) — Sat, 22 Nov 2008 12:50:53 -0600

LIGHTING OF THE CHRISTMAS TREE

Date: December 06, 2008

Location: Courthouse Lawn

A new tradition for Hernando's historic downtown, the inaugural "Lighting of the Christmas Tree" on the scenic Hernando Court Square - hosted by Hernando Main Street. There will be carolers and festive music on the courthouse lawn, along with other holiday offerings. The fun begins at 6:00 pm and will run into the evening. For more information, contact the Hernando Chamber of Commerce at (662) 429-9055.

HERNANDO CHRISTMAS PARADE

Date: December 08, 2008

Location: Downtown

Celebrate the sights and sounds of Christmas as the City of Hernando hosts its annual Christmas Parade. Experience everything from marching bands and fire trucks to cars, trucks, horses and floats. Santa Clause himself will make an appearance atop a Hernando Fire Department fire ladder truck! Parade lineup begins at 5:30 pm with the parade beginning at 6:30 pm from Commerce St/ Mt. Pleasant St (west of the railroad crossing). For more information, contact the Hernando Chamber of Commerce at (662) 429-9055.

Why use the USDA Guaranteed Rural Housing?

Doug Capps (Fairway Independent Mortgage Corp.) — Tue, 18 Nov 2008 18:16:31 -0600

Why use USDA Guaranteed Rural Housing?

The 100% Guaranteed financing offers your clients the most affordable payment, least out of pocket costs and a competitive interest rate!

NO down payment
NO first-time homebuyer requirement
NO maximum loan limit
NO monthly mortgage insurance
NO limit to seller contributions
Closing cost and prepaid items may be included
620 or higher credit score receives automatic credit approval
660 or higher means qualifying debt-to-income ratios can be waived!
Plus many more features...

For more information about the USDA Guaranteed Rural Housing Program, contact DOUG CAPPS at (662) 429-5100. Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS, a "MS and TN Licensed Mortgage Company."

All Lending Institutions are NOT Created Equal!

Doug Capps (Fairway Independent Mortgage Corp.) — Wed, 12 Nov 2008 09:20:16 -0600

All lending institutions are NOT created equal!

When you look across the lending spectrum, there are many differences that many people are not aware of.

#1 - Loan Options

Most people know very little about mortgages and even what it takes to qualify for a specific mortgage, say FHA versus VA, Conforming versus USDA.

Just because the sign says "Mortgages" or "Home Loans" or it's a local or regional Bank that offers mortgages, DO NOT think that that institution is fully capable of offering a full array of mortgage products - because many are not. Many companies are limited with their mortgage products and do not offer FHA, VA, USDA, first-time home buyer programs, 30 year fixed terms or even 100% financing options. So how many clients are missing loan opportunities???

I get phone calls all the time from clients asking, "What is your interest rate today?" What they "should" be asking is what loan programs do you have available that may be more beneficial to me. I have found too many times that LO's (loan officers/ originators) are only "order takers," and not acting like the mortgage professional many say they are. They should be looking at the client's options versus just putting them "in the box." But here's the problem.... When you don't know, then how do you know you're getting the best program? If your mortgage company or bank has limited programs, then you may be missing an opportunity that saves you money through the life of your loan.

Even worse than that is when a company has a loan program but the LO doesn't know much about other programs and doesn't offer it. Talk about a missed opportunity! I've heard of LO's not offering a program because "It's too hard" or "It takes too much time." That is really sad, because who are these LO's really looking out for? I will let you answer that question...

But the difference doesn't stop there.

#2 - Lending Guideline Differences

This is a MAJOR difference!! Just because a company can offer FHA doesn't mean that the lending requirements are the same from institution to institution. Here's a short story:

About 6 months ago I was working with a client who happened to have $3,000.00 worth of old collections. The client's Realtor called me questioning about the collection, "What are you going to do about these collections? I have been doing this for 12 years and the lenders I work with will require these collections to be paid. And they don't have the money. So what are you going to do about these collections.....etc. etc.'" After taking a DEEP breath, I responded, "Mrs. Realtor, I have only been doing this for 4 years and NO lender that I work with on FHA loans will require these "OLD" collections to be paid. It appears that this may be your lender's requirement. Why pay something when you're not required to, according to FHA? Why put the borrower through that unnecessary stress?" Oh she was really not happy then...

The point here is that each company IS different and just don't think that if THEY require something for a particular loan program that it's the standard across the board.

These same differences apply to many other aspects of the mortgage industry, such as:

Underwriting and Processing Capability
Credit Score Requirements
Credit History Requirements
Interest Rates
Mortgage Terms
Down Payment Requirements
Property Types
And the list goes on...

Know your mortgage options!

City of SOUTHAVEN, MS - Annual Veteran's Luncheon

Doug Capps (Fairway Independent Mortgage Corp.) — Tue, 11 Nov 2008 08:20:43 -0600

It's not late - Honor a Veteran and tell them about the City of Southaven's Annual Veteran's Luncheon

In observance of Veteran's Day, Tuesday, November 11, 2008 Mayor Greg Davis and the City of Southaven will host the Annual Appreciation Luncheon in honor of military veterans. The luncheon will be held at the Arena at Southaven located at 7360 Highway 51 and will begin at 11:30 a.m.

All veterans are urged to make their reservations early. There will also be a memorabilia table set up for exhibiting pictures and awards, so bring mementos if you wish.

The luncheon is free to veterans and admission for guests will be $10.00. All branches of the service will be recognized. Please make your reservations now by calling the Mayor's Office at Southaven City Hall at 662-393-6939.

Freedom is not "free." Honor the men and women that serve and have served our nation.

USDA RURAL HOUSING Income Limit Change?

Doug Capps (Fairway Independent Mortgage Corp.) — Fri, 07 Nov 2008 10:02:07 -0600

According to a recent lender notice, a direct final rule was published by the Federal Register to simplify the USDA Rural Housing income limit structure. These income changes will become effective January 20, 2009 UNLESS adverse comments are received by January 5, 2009.

Until final acceptance and implementation of these proposed new income limits, the current limits below will be utilized.

For more information about the USDA Guaranteed Rural Housing Program, please contact DOUG CAPPS at (662) 429-5100. Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS, "A MS and TN Licensed Mortgage Company"

For MISSISSIPPI - Lending Integrity Seal of Approval - Mississippi Members

Doug Capps (Fairway Independent Mortgage Corp.) — Tue, 28 Oct 2008 14:45:51 -0500

Jeff Farnham, CMC, CRMS - JTS & Co., Columbus, MS
Doug Capps, CRMS, MRMS - Fairway Independent Mortgage Corp, Hernando, MS
Dan D'Amico, CRMS, MRMS - AMS Mortgage, Madison, MS
Vickie Graves, CRMS, MRMS - AMS Mortgage, Madison, MS
Kenneth McNeal, CRMS, MRMS - Gum Tree Mortgage LLC, Tupelo, MS
Sharon Bradford, MRMS - Intergrity Mortgage Center LP, Natchez, MS
G. Richard Munton, MRMS - Prime Mortgage Inc., Hattiesburg, MS
Aaron Patten, MRMS - Integrity Mortgage Center LP, Natchez, MS
Angela Richardson, MRMS - Allied Home Mortgage, Southaven, MS
Jim Shirley, MRMS - Gum Tree Mortgage LLC, Tupelo, MS
Tim Tubb, MRMS - CMI, Shannon, MS
Ken Williams, MRMS - Gum Tree Mortgage LLC, Tupelo, MS
Robert Blake - Bay City South Mortgage Co., Ridgeland, MS
Charles Bouldin - Assurance Mortgage, Tupelo, MS
Amanda Brown - Prime Mortgage, Inc., Lucedale, MS
Melissa Butler - Gum Tree Mortgage LLC, Tupelo, MS
Shelly Capps - Fairway Independent Mortgage Corp, Hernando, MS
Eric Cole - Gum Tree Mortgage LLC, Tupelo, MS
Sandra Cutrer - Eagle Mortgage, Inc., Poplarville, MS
Diane Goolsby - AMS Mortgage, Madison, MS
Melissa Hudspeth - Assurance Mortgage, Tupelo, MS
Sheila Kelly - Gum Tree Mortgage LLC, Tupelo, MS
William Lott - Prime Mortgage, LLC, Greenwood, MS
John-Michael Marlin - Gum Tree Mortgage LLC, Tupelo, MS
Owen Munton - Prime Mortgage Inc., Hattiesburg, MS
Wanda Munton - Prime Mortgage Inc., Hattiesburg, MS
Nathan Porter - Gum Tree Mortgage LLC, Tupelo, MS
Sharon Rice - New South Mortgage, Hattiesburg, MS
Andrea Rutherford - Gum Tree Mortgage LLC, Oxford, MS
Jonathan Shows - New South Mortgage, Hattiesburg, MS
Alice Staten - Prime Mortgage Inc., Hattiesburg, MS
Gina Tamoglia - Allied Home Mortgage, Southaven, MS
Catherine Turner - Assurance Mortgage, Tupelo, MS
Glenda Webster - Assurance Mortgage, Tupelo, MS
Ken Williams - Gum Tree Mortgage LLC, Tupelo, MS
Anthony Zepponi - Mississippi Home Loan Mortgage LLC, Greenville, MS

For North MISSISSIPPI - USDA Rural Housing - 100% Financing still Available!!

Doug Capps (Fairway Independent Mortgage Corp.) — Tue, 28 Oct 2008 10:57:59 -0500

A "Mississippi and Tennessee Licensed Mortgage Company." Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS 38632.

For more information about the USDA program or additional loan programs, please contact Doug Capps at (662) 429-5100 Ext. 105. Loan subject to credit approval and compliance with investor guidelines. Ranking was based on last quarter 2008 loan origination statistics.

FOR North MISSISSIPPI - MS Home Corp DPA - Down Payment Assistance

Doug Capps (Fairway Independent Mortgage Corp.) — Sat, 11 Oct 2008 15:09:55 -0500

Features of the Down Payment Assistance Program:

(1st Mortgage) FHA, VA, or RD qualifying guidelines.
(2nd Mortgage) Interest rate of 1st Mortgage, 10-year fixed rate, no prepayment penalty.
Maximum down payment assistance is 3% of loan amount (not sales price).
Sales price of property being purchased or built must be at or below $198,000.
Down payment assistance can be used for down payment and closing costs (no pre-paid fees).

Who is Eligible:

First-time homebuyers or applicants with low to moderate income not to exceed County Income Limits.
NO first-time homebuyer requirement in TARGET areas - refer to DPA map.
Applicants who meet the credit eligibility requirements as determined by FHA, VA or USDA guidelines.
Acceptable credit profile.

Program Requirements:

Household incomes do not exceed the program's income limits.
Applicants with no more than $4,500 in liquid assets.
Property must be owner occupied.
Property must be primary residence.
$200.00 reservation fee cannot be paid by the buyer

Property Requirements:

Owner occupied.
Single family detached.
Single family attached.
Approved townhomes or condominiums.
Permanently affixed manufactured homes.

For North MISSISSIPPI - USDA Guaranteed Rural Housing - 100% Financing!!

Doug Capps (Fairway Independent Mortgage Corp.) — Tue, 30 Sep 2008 10:22:12 -0500

Know your mortgage options!!! 100% Financing is still alive and well through the USDA Guaranteed Rural Housing Program! Income limitations and property location restrictions DO apply.

For more information about the USDA Rural Housing Program, please contact DOUG CAPPS at (662) 429-5100. Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS is a "Mississippi Licensed Mortgage Company."

FOR North MISSISSIPPI - (2) FREE CEU's for REALTORS Sept. 23, 2008

Doug Capps (Fairway Independent Mortgage Corp.) — Fri, 22 Aug 2008 18:38:29 -0500

In order make our Association more known, along with the local members, the Northwest District of the Mississippi Association of Mortgage Brokers (MAMB) is sponsoring a FREE class offering 2 hours of approved CEU's. The class, FHA Basics for Realtors, will be taught by a HUD representative and will cover FHA basics along with new and upcoming changes to this program.

MY HOME LOAN - My own personal experience

Doug Capps (Fairway Independent Mortgage Corp.) — Fri, 27 Jun 2008 12:08:58 -0500

After reading a recent blog, I was compelled to write about my own personal lending experience.

Following the military, I moved to a new town, bought a new home and started a new career as a loan originator. When I left the military, me and my wife purchased our home using a NO DOC loan because we both had no history of commission income. Thank God our credit scores were high enough!! (This will come into play later.)

About a year after we purchased our home, we decided it was time for some new furniture!! So we went through a local furniture store and financed everything through a 12-month same-as-cash plan. In order not to overburden our credit, we decided that we would split the financing - some on my credit and the rest on hers.

At the end of 12-months, we decided to go ahead and consolidate the remaining balance into a joint account. (This is where the fun begins) The company we financed through is VERY well known - along with their consumer financing they do mortgages as well.

The representative called me to make an appointment and to also offer me a "special" refinance deal to consolidate all of my debt. We of course being curious said, "Sure, we'll see what you are offering."

At our appointment, the representative made his pitch: refinance the current mortgage (which was an adjustable rate mortgage) and pay off our debt using the equity in our home. When we looked at the paperwork, he was offering another adjustable rate mortgage (not a 30 year fixed rate) and he was charging 3 points in origination, plus the rate was higher than what we had with the NO DOC loan. Of course the representative knew we were both originators, yet still presented his deal like it was the best thing since sliced white bread. A very good salesman he was!! Thank God we knew better....

To make a long story short, of course we did not take the deal! We eventually refinanced ourselves through our own mortgage company into a 30 year VA loan after we had enough time of commission history.

Now.... We can say that mortgage brokers are bad, and yes some are (and were). But this company rhymes with SMELLS ESCARGO. Now how many unknowing consumers took this deal just to get duped by a "brand name, household named" company??? These types of acts are across the lending spectrum with many MAJOR lenders. As a matter of fact, I worked for a local MAJOR bank for a span and there was a loan officer "on board" that did the same thing - well at least when she could get away with it.

So you can see, that regardless of where you go - I think it's really up to the individual that your working with that will either help you or scalp you.

Of course this can easily lead into a discussion about predatory lending practices or even the sub-prime meltdown. But the fact still remains, every company played a part in this - from banker to mortgage broker.

FOR Mississippi - 100% Financing with USDA Guaranteed Rural Housing

Doug Capps (Fairway Independent Mortgage Corp.) — Tue, 22 Apr 2008 13:04:37 -0500

USDA Guaranteed Rural Housing is NOT just for Mississippi, but for the purpose of this post, the map below is for Desoto County. To see if you are in an eligible area, go to: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

With the demise of 100% conventional conforming loans, there has been a large resurgence of these types of loans. Because this is a government guaranteed loan, many loan officers/ loan originators may not like to offer these programs to their prospective clients and may not even be knowledgeable enough to offer them. This is a good loan program, but like every other program, is not the "right fit" for everyone. Because this loan was specifically intended for low-to-moderate income families with minimal resources for down payment, there are some qualifying criteria...

Property eligibility - refer to map below. Property has to be located in an area designated by USDA as rural.

Debt-Ratio requirements - standard 29 (housing ratio)/41 (total debt ratio), but can be exceeded with higher credit scores and compensating factors.

Income limitations - uses total household income - number in household 1 - $49,550.00, 2 - $56,600.00, 3 - $63,700.00, 4 - $70,750.00, 5 - $76,400.00, 6 - $82,050.00, 7 - $87,750.00 and 8 - $93,400.00. These are the new 2008 income figures and represent NO GO Zone - for GO Zone, use the (family of 4) income limits for 1 through 4 family members and when there is above 4 in the household, use (family of 8) income limits.

Now for the POSITIVES:

100% financing (102% financing with the 2% funding fee)
NO first-time homebuyer requirement
NO down payment
NO private mortgage insurance
Conventional 30 year fixed interest rates
Flexible Credit and Qualifying Guidelines
620 or higher, automatic credit approval
660 or higher, will waive qualifying 29/41 ratios
Seller contributions are NOT limited to 6%
NO sales price limit
Closing costs can be financed if equity available
NO investment properties allowed

Ask your loan officer for more information and if they know and are comfortable offering this mortgage product to your customers. If they are not, then your clients may be missing a good mortgage option!

For MISSISSIPPI: LENDING INTEGRITY SEAL OF APPROVAL

Doug Capps (Fairway Independent Mortgage Corp.) — Fri, 28 Mar 2008 16:17:35 -0500

Currently in the State of Mississippi, there are 804 licensed loan originators. Only 22 loan originators to date, have earned the NEW Lending Integrity Seal of Approval. These 22 loan originators represent the "first" Lending Integrity members in the State.

The National Association of Mortgage Brokers (NAMB) began working on the Lending Integrity Seal of Approval over 3 years ago and began officially approving members March 2008.

"For the first time ever, homebuyers have a simple way to assess a mortgage professional - a sign that they can look for before they even step foot in the door.

It's called the Lending Integrity Seal of Approval and those who display it have been through a rigorous validation process. They've pledged to adhere to a strict code of ethics, a best business practices policy, and an ethics grievance review process. They also receive ongoing education and have submitted to criminal background checks.

Make sure you're working with a responsible lending professional. Ask to see your mortgage originator's Lending Integrity Seal of Approval."

The Lending Integrity Seal of Approval is sponsored by the National Association of Mortgage Brokers. For more information go to, www.lendingintegrity.org.

MORE Lending Changes - NEW Mortgage Insurance Guidelines

Doug Capps (Fairway Independent Mortgage Corp.) — Thu, 14 Feb 2008 15:53:11 -0600

It just got harder to finance greater than 95% financing. Here is an excerpt from one Mortgage Insurance Company. All three companies that I have checked so far are making similar changes.

These changes only affect conventional Fannie and Freddie loans - regardless of AUS (Automated Underwriting System) findings. Government loans (FHA, VA , USDA) are not affected by this change.

Read below. This is an excerpt from one company.

Standard (A) guideline changes:

• LTVs greater than 95% require a minimum credit score of 680.

• LTVs 95% or less require a minimum credit score of 620.

• Loans with nontraditional credit require a manual underwrite and are limited to a maximum LTV of 95%.

• Primary residence cash-out refinances require a minimum credit score of 680; and the maximum LTV is 90%.

• Cash-out refinances of investment property loans are ineligible.

• Loans with potential negative amortization, including Pay Option ARMs, are ineligible.

Expanded Criteria (A-) guideline changes:

• The maximum LTV is 95%.

• The minimum credit score is 660.

• Primary residence cash-out refinances require a minimum credit score of 680. (The current maximum LTV of 90% remains.)

Reduced Documentation (Alt-A) guideline changes:

• The maximum LTV is 90%.

• The minimum credit score is 660.

• At least 50% of qualifying income must come from self-employment.

As I had mentioned, the other three companies I checked were all making similar changes to their guidelines. One company even made their guidelines tighter than what is listed above.

Credit counseling anyone?