Recent reports show that its been the toughest in 17 years to obtain a mortgage.  So next time a Loan Officer calls you and says a program has changed since the pre-qual letter or the program now does not exsist, you now know why.  Below is a list of 241 lenders that are currently gone out of business within the last 18 months.

UPDATED: 03/23/2008

241. Origen Financial, Inc. (Correspondent)
240. CitiMortgage - Home Equity Wholesale
239. Bear Stearns Mortgage
238. East West Mortgage Co. of VA
237. New Vision Residential Lending
236. Washington Savings Bank, F.S.B. - Wholesale
235. Macquarie Mortgages USA Inc.
234. Global Mortgage, Inc.
233. Unique Mortgage Solutions (UMS, LLC)
232. First Franklin - Merrill Lynch
231. First National Mortgage Sources
230. Resource Mortgage (Wholesale)
229. KH Financial
228. Lydian Mortgage
227. OMG Wholesale Lending
226. Saxon Mortgage (Wholesale)
225. Beazer Mortgage Corp.
224. E-Loan (Wholesale)
223. Allpointe Mortgage (Broker Program)
222. Popular Warehouse Lending
221. Allied Lending Corp. (Wholesale)
220. BF Saul Wholesale Lending
219. Community Resource Mortgage
218. Lehman/Aurora Loan Services
217. Residential Mortgage Capital
216. Maverick Residential Mortgage
215. Countrywide Financial Corp.
214. First NLC Financial Services
213. First American Bank (Wholesale)
212. Soma Financial
211. National City Corp. (Wholesale)
210. Heartland Wholesale Funding
209. Homefront Mortgage Inc.
208. PNC Bank H.E.
207. Family First Mortgage Corp.
206. First Fidelity Financial
205. BSM Financial
204. 1st Choice Mortgage
203. Wescom Credit Union
202. Coast Financial Holdings/Coast Bank
201. WaMu (Subprime)
200. First Madison Mortgage
199. Southern Star Mortgage
198. TransLand Financial
197. Secured Bankers Mortgage Company (SBMC)
196. ComUnity Lending
195. Delta Financial Corp
194. BayRock Mortgage
193. Empire Bancorp
192. Option One - H&R Block
191. Citigroup - FCS Warehouse
190. Charter One (Wholesale)
189. Wells Fargo - Home Equity
188. Paul Financial, LLC
187. Webster Bank (Wholesale)
186. Fieldstone Mortgage Company
185. Tribeca Lending Corp. (Wholesale)
184. WAMU Comm. Correspondent
183. Marlin Mortgage Company
182. Countrywide Specialty Lending
181. UBS Home Finance
180. MortgageIT-DB (Retail)
179. Edgewater Lending Group
178. ResMAE Mortgage Corp.
177. Citimortgage Correspondent (2nds)
176. AMC Lending
175. Liberty American Mortgage
174. Exchange Financial (Wholesale)
173. FirstBank Mortgage
172. Bank of America (Wholesale)
171. Diablo Funding Group Inc.
170. Honor State Bank
169. Spectrum Financial Group
168. Priority Funding Mortgage Bankers
167. BrooksAmerica Mortgage Corp.
166. Valley Vista Mortgage
165. New State Mortgage Company
164. Summit Mortgage Company
163. WMC
162. Paragon Home Lending
161. First Mariner Wholesale
160. The Lending Connection
159. Foxtons, Inc.
158. SCME Mortage Bankers (Wholesale)
157. Aapex Mortgage (Apex Financial Group)
156. Wells Fargo (various Correspondent and Non-prime divisions)
155. Nationstar Mortgage
154. Decision One (HSBC)
153. Impac Lending Group
152. E*Trade Wholesale Lending
151. Long Beach (WaMu Warehouse/Correspondent)
150. Expanded Mortgage Credit Wholesale
149. The Mortgage Store Financial
148. C & G Financial
147. CFIC Home Mortgage
146. All Fund Mortgage
145. LownHome Financial
144. Sea Breeze Financial Services
143. Castle Point Mortgage
142. Premium Funding Corp
141. Group One Lending
140. Allstate Home Loans / Allstate Funding
139. Home Loan Specialists (HLS)
138. Transnational Finance Wholesale
137. CIT Home Lending
136. Capital Six Funding
135. Mortgage Investors Group (MIG) - Wholesale
134. Amstar Mortgage Corp
133. Quality Home Loans
132. BNC Mortgage (Lehman)
131. Accredited Home Lenders, Home Funds Direct
130. First National Bank of Arizona
129. Chevy Chase Bank Correspondent
128. GreenPoint Mortgage - Capital One Wholesale
127. NovaStar, Homeview Lending
126. Quick Loan Funding
125. Calusa Investments
124. Mercantile Mortgage
123. First Magnus
122. First Indiana Wholesale
121. GEM Loans / Pacific American Mortgage (PAMCO)
120. Kirkwood Financial Corporation
119. Lexington Lending
118. Express Capital Lending
117. Deutsche Bank Correspondent Lending Group (CLG)
116. MLSG
115. Trump Mortgage
114. HomeBanc Mortgage Corporation
113. Mylor Financial
112. Aegis
111. Alternative Financing Corp (AFC) Wholesale
110. Winstar Mortgage
109. American Home Mortgage / American Brokers Conduit
108. Optima Funding
107. Equity Funding Group
106. Sunset Mortgage
105. Nations Home Lending
104. Entrust Mortgage
103. Alera Financial (Wholesale)
102. Flick Mortgage/Mortgage Simple
101. Dollar Mortgage Corporation
100. Alliance Bancorp
99. Choice Capital Funding
98. Premier Mortgage Funding
97. Stone Creek Funding
96. FlexPoint Funding (Wholesale & Retail)
95. Starpointe Mortgage
94. Unlimited Loan Resources (ULR)
93. Freestand Financial
92. Steward Financial
91. Bridge Capital Corporation
90. Altivus Financial
89. ACT Mortgage
88. Alliance Mortgage Banking Corp (AMBC)
87. Concord Mortgage Wholesale
86. Heartwell Mortgage
85. Oak Street Mortgage
84. The Mortgage Warehouse
83. First Street Financial
82. Right-Away Mortgage
81. Heritage Plaza Mortgage
80. Horizon Bank Wholesale Lending Group
79. Lancaster Mortgage Bank (LMB)
78. Bryco (Wholesale)
77. No Red Tape Mortgage
76. The Lending Group (TLG)
75. Pro 30 Funding
74. NetBank Funding, Market Street Mortgage
73. Columbia Home Loans, LLC
72. Mortgage Tree Lending
71. Homeland Capital Group
70. Nation One Mortgage
69. Dana Capital Group
68. Millenium Funding Group
67. MILA
66. Home Equity of America
65. Opteum (Wholesale, Conduit)
64. Innovative Mortgage Capital
63. Home Capital, Inc.
62. Home 123 Mortgage
61. Homefield Financial
60. First Horizon Subprime, Equity Lending
59. Platinum Capital Group (Wholesale)
58. First Source Funding Group (FSFG)
57. Alterna Mortgage
56. Solutions Funding
55. People's Mortgage
54. LowerMyPayment.com
53. Zone Funding
52. First Consolidated (Subprime Wholesale)
51. EquiFirst
50. SouthStar Funding
49. Warehouse USA
48. H&R Block Mortgage
47. Madison Equity Loans
46. HSBC Mortgage Services (correspondent div.)
45. Sunset Direct Lending
44. Kellner Mortgage Investments
43. LoanCity
42. CoreStar Financial Group
41. Ameriquest, ACC Wholesale
40. Investaid Corp.
39. People's Choice Financial Corp.
38. Master Financial
37. Maribella Mortgage
36. FMF Capital LLC
35. New Century Financial Corp.
34. Wachovia Mortgage (Correspondent div.)
33. Ameritrust Mortgage Company (Subprime Wholesale)
32. Trojan Lending (Wholesale)
31. Fremont General Corporation
30. DomesticBank (Wholesale Lending Division)
29. Ivanhoe Mortgage/Central Pacific Mortgage
28. Eagle First Mortgage
27. Coastal Capital
26. Silver State Mortgage
25. ECC Capital/Encore Credit
24. Lender's Direct Capital Corporation (wholesale division)
23. Concorde Acceptance
22. DeepGreen Financial
21. American Freedom Mortgage, Inc.
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial

As we start to focus on 2008.  I would like to get some feedback on what mortgage brokers are doing to generate business in your local areas.  Below are some ideas and current techniques that I utilize.  Please let me know if you like any of these items or have any new ideas on how to generate business in 2008.

 - Networking!

- Past Clients

- Trade Show/Home Shows

- Direct Mail

- Cold Calling

- Flyers (Realtors Office/Public Places)

- Brochures

- Yard Signs

- FTHB Seminars

- Business Cards

- Mass E-Mailings

- Ballons for Open Houses

- Interactive/Educative Website

- Financial Info. Sheets for Open Houses

- Door Hangers/Knockers

 These are the things that I am currently employing.  Does anyone have any good ideas to add?

Bank of America today announced that it will exit the wholesale mortgage business in order to devote increased energy to its expanding retail channels.

We will be fulfilling all of our contractual obligations to you and your customers. You will receive formal, written notification of the termination of our Wholesale Broker Agreement by end of day Friday, October 26 with an effective termination date of November 25, 2007. During this transition period, please be assured that our sales and fulfillment teams will continue to provide you with the exceptional level of service you've come to expect. If you have any questions during this time, please contact your account executive.

We thank you for your business and wish you continued success.

Original Posting: Numerous tips have come in regarding the apparent closure of the Whole Lending Division of Bank of America. Account Reps are already sending out farewell notices:

"It is with much sadness that I write to inform you that Bank of America has opted to close its Wholesale Channel effective December 31, 2007. This is a bank strategy to become number one in direct to consumer... do not have much information at this time but it is my understanding that all loans in the pipeline will be honored and we will continue business as usual for an additional thirty days from the date of this announcement."

Big news across most major newspapers today, B of A announced it is laying off 3,000 employees, approximately 2 percent of their workforce.

From Google News and the Associated Press:

"The job cuts, which the company said come "in light of market conditions and strategic imperatives," are throughout the bank, but the majority are in areas such as business lending, treasury services, and capital markets and advisory services, as well as support staff."

It can be rather short-sighted for mortgage brokers to think that as long as loans are closing and their commissions are paid, life is good. For a long-range perspective, they cannot afford to overlook their company's financial results.

Thus, it is critical that brokers are aware of the financial health of the company with which they work -- whether they are employees or owners of the company. Solid financial health is paramount for a company's survival in the market. Plus, a fiscally healthy company will have greater access to the financial markets and therefore will have more products available for its clientele. A mortgage company's financial performance also affects its reputation.

Brokers who understand their company's financial performance can use that knowledge to better sell the products in the market. After all, financial stability is a great seducer.

When reviewing a mortgage company's financial performance, there are many indicators within the balance sheet, income statement and cash-flow statement that lead to its profitability. Unfortunately, many companies focus only on the actual volume of loans closed during a specific period, whether a month, a quarter or a year.

When you originate in the residential market, it's easy to get by without working with banks. Your lenders may come from a host of other investment sources. But if you're preparing to enter the commercial market, it might be time to return to those banks you've been avoiding.

Banks can offer the large funds and stability required for commercial deals -- and plenty are willing to help crossover brokers succeed. It's a matter of finding the right ones and educating yourself about the products they offer. Here are five tips for getting started.

1. Develop a list of lenders

Mortgage brokers looking to test the commercial waters need to solve two issues: the primary goal of finding qualified lending prospects and also finding reliable lenders in your new area of expertise.

To start a list of reliable commercial lenders, look for banks that are prepared to work with you as a newer commercial broker. These are the ones you want on your list.

Some banks also staff business-development officers, often former mortgage brokers, who can advise you in pulling commercial opportunities from some of your current residential clients. These banks also should be on your list.

2. Learn the market

Once you decide to expand your business, obtain a working knowledge of the commercial lending process, particularly the differences between commercial and residential origination. For instance:

• Most commercial real estate transactions do not require a 1003 loan application. Many banks instead use preliminary information to create a detailed "application letter." This letter is directed to the borrowers and outlines the bank's proposed terms and conditions. This is when the bank requests authorization to perform credit and background checks, as well as third-party reports such as an appraisal and Phase I environmental site assessment.
  The letter typically includes the broker's origination fee, which will be given if the loan closes.
• Commercial lenders usually can't offer stated-income, low-documentation or no-doc programs. Full-doc is the standard operating procedure. The bank must see the specific loan amount, the purpose for borrowing, a copy of the purchase contract and three years of tax returns from the borrowers. If the collateral is a multi-tenant property, a current rent role detailing all existing leases, a previous title policy and an appraisal also are necessary.

3. Disclose yourself

As a result of the USA PATRIOT Act and "Know Your Customer" laws, brokers often are treated as the lender's customers. You must provide them some background information about your business. This usually means filling out a standard broker-information sheet that will be maintained in the bank's file along with a copy of your state broker license.

4. Watch for updates

Many lenders keep their broker network informed with quarterly marketing fliers or even monthly e-mails to describe its lending priorities. This is a helpful way to keep up with a bank's new products and guidelines. You also can watch for them at regional trade shows or monitor their Web sites to stay up-to-date.

5. Stick with it

If you are turned down while trying to close your first commercial loan, don't give up. Learn from this unpleasant experience and try again. There is no mystery to doing commercial real estate loans, but they do take hard work and persistence. The payoff, however, is worth it.

Wondering why loans are taking longer to close?  The Answer: Mortgage Bankers & Mortgage Brokers are running out of lenders to submit your deals to.

Please bare with us through this tough time!!

LENDERS THAT ARE NO LONGER IN BUSINESS:

170. BrooksAmerica Mortgage Corp.
169. Valley Vista Mortgage
168. New State Mortgage Company
167. Summit Mortgage Company
166. WMC
165. Paragon Home Lending
164. First Mariner Wholesale
163. The Lending Connection
162. Foxtons, Inc.
161. SCME Mortage Bankers (Wholesale)
160. Aapex Mortgage (Apex Financial Group)
159. Wells Fargo (various Correspondent and Non-prime divisions)
158. Nationstar Mortgage
157. Decision One (HSBC)
156. Impac Lending Group (Wholesale)
155. E-Trade Wholesale Lending
154. Long Beach (WaMu Warehouse/Correspondent)
153. Expanded Mortgage Credit Wholesale
152. The Mortgage Store Financial
151. C & G Financial
150. CFIC Home Mortgage
149. BrokerSource (BSM Financial - Wholesale)
148. All Fund Mortgage
147. LownHome Financial
146. Sea Breeze Financial Services
145. Castle Point Mortgage
144. Premium Funding Corp
143. Group One Lending
142. Allstate Home Loans / Allstate Funding
141. Home Loan Specialists (HLS)
140. Transnational Finance Wholesale
139. CIT Home Lending
138. Capital Six Funding
137. Mortgage Investors Group (MIG) - Wholesale
136. Amstar Mortgage Corp
135. Quality Home Loans
134. BNC Mortgage (Lehman)
133. Accredited Home Lenders, Home Funds Direct
132. First National Bank of Arizona (FNBA) Wholesale, Correspondent
131. Chevy Chase Bank Correspondent
130. GreenPoint Mortgage - Capital One Wholesale
129. NovaStar (Wholesale), Homeview Lending
128. Quick Loan Funding
127. National City Home Equity
126. Calusa Investments
125. Mercantile Mortgage
124. First Magnus
123. First Indiana Wholesale
122. GEM Loans / Pacific American Mortgage (PAMCO)
121. Spectrum Financial Group - Wholesale
120. Kirkwood Financial Corporation
119. Lexington Lending
118. Express Capital Lending
117. Deutsche Bank Correspondent Lending Group (CLG)
116. MLSG
115. Trump Mortgage
114. HomeBanc Mortgage Corporation
113. Mylor Financial
112. Aegis
111. Alternative Financing Corp (AFC) Wholesale
110. Winstar Mortgage
109. American Home Mortgage / American Brokers Conduit
108. Optima Funding
107. Equity Funding Group
106. Sunset Mortgage
105. Fieldstone Mortgage Company
104. Nations Home Lending
103. Entrust Mortgage
102. Alera Financial (Wholesale)
101. Flick Mortgage/Mortgage Simple
100. Alliance Bancorp
99. Choice Capital Funding
98. Premier Mortgage Funding
97. Stone Creek Funding
96. FlexPoint Funding (Wholesale & Retail)
95. Starpointe Mortgage
94. Unlimited Loan Resources (ULR)
93. Freestand Financial
92. Steward Financial
91. Bridge Capital Corporation
90. Altivus Financial
89. ACT Mortgage
88. Alliance Mortgage Banking Corp (AMBC)
87. Concord Mortgage Wholesale
86. Heartwell Mortgage
85. Oak Street Mortgage
84. The Mortgage Warehouse
83. First Street Financial
82. Right-Away Mortgage
81. Heritage Plaza Mortgage
80. Horizon Bank Wholesale Lending Group
79. Lancaster Mortgage Bank (LMB)
78. Bryco (Wholesale)
77. No Red Tape Mortgage
76. The Lending Group (TLG)
75. Pro 30 Funding
74. NetBank Funding, Market Street Mortgage
73. Columbia Home Loans, LLC
72. Mortgage Tree Lending
71. Homeland Capital Group
70. Nation One Mortgage
69. Dana Capital Group
68. Millenium Funding Group
67. MILA
66. Home Equity of America
65. Opteum (Wholesale, Conduit)
64. Innovative Mortgage Capital
63. Home Capital, Inc.
62. Home 123 Mortgage
61. Homefield Financial
60. First Horizon Subprime, Equity Lending
59. Platinum Capital Group (Wholesale)
58. First Source Funding Group (FSFG)
57. Alterna Mortgage
56. Solutions Funding
55. People's Mortgage
54. LowerMyPayment.com
53. Zone Funding
52. First Consolidated (Subprime Wholesale)
51. EquiFirst
50. SouthStar Funding
49. Warehouse USA
48. H&R Block Mortgage
47. Madison Equity Loans
46. HSBC Mortgage Services (correspondent div.)
45. Sunset Direct Lending
44. Kellner Mortgage Investments
43. LoanCity
42. CoreStar Financial Group
41. Ameriquest, ACC Wholesale
40. Investaid Corp.
39. People's Choice Financial Corp.
38. Master Financial
37. Maribella Mortgage
36. FMF Capital LLC
35. New Century Financial Corp.
34. Wachovia Mortgage (Correspondent div.)
33. Ameritrust Mortgage Company (Subprime Wholesale)
32. Trojan Lending (Wholesale)
31. Fremont General Corporation
30. DomesticBank (Wholesale Lending Division)
29. Ivanhoe Mortgage/Central Pacific Mortgage
28. Eagle First Mortgage
27. Coastal Capital
26. Silver State Mortgage
25. ResMAE Mortgage Corporation
24. ECC Capital/Encore Credit
23. Lender's Direct Capital Corporation (wholesale division)
22. Concorde Acceptance
21. DeepGreen Financial
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial

With the growing number of stories about predatory lending showing up in the media these days, your clients may be worried about becoming the next victim. And who's to say they're not in danger? Actually, as their broker, you are.

With the proper knowledge, you can recognize predatory lenders and how they operate. Once you know what to look for, take steps to reassure your borrowers that you're watching out for them. In today's market, you can't overestimate the value of making borrowers feel safe.

What is predatory lending?

Predatory lending is controversial -- even the definition is disputed.

On the extreme end of the spectrum, there are people who believe that simply offering certain loan products can constitute predatory lending. In other words, regardless of the borrower's profile, the fact that certain loan products even exist is read as evidence of predatory lending.

The more common definition, however, pertains to practices rather than products. This follows the belief that lenders and mortgage brokers have an ethical obligation to find the best loan for each individual client; therefore, breaking this code would signify predatory lending.

Making no effort to determine a client's profile before suggesting a loan product or worse, knowingly suggesting a loan product that is unsuitable for a client, would fall under this definition.

Sound the alarm

Unfortunately, many borrowers affected by predatory lending are victimized by people they know and trust. Typical predatory lenders operate in the same community as their victims.

Given this state of affairs, it can be hard for a mortgage broker to warn borrowers about predatory lending. If the broker is not part of that community or does not have a trusting relationship with the borrowers, convincing them that they are getting an inappropriate loan can be a challenge.

There are things you can do, however, that will make it easier to convince your clients that you are working in their best interests. In fact, the same practices that make you a knowledgeable mortgage broker will protect your clients from the predatory lenders in their community.

Gain your clients' trust

Borrowers need to shift their trust away from potential predatory lenders and onto you, their broker, so that they don't have to worry about being victimized.

For friends, relatives and past clients, the issue of trust is already resolved. If they didn't trust you already, they wouldn't be doing business with you right now.

But how do you build a rapport and earn and maintain the trust of new clients? Start by doing the best job you can for them in matching their needs to the loan products available to them, and then follow these tips:

1. Listen to what your clients say. People who think you understand them and the issues they are dealing with are more likely to trust you than people who think that you don't care. Listening is a great way to show your clients that you're here to help.
2. Explain things. A loan is a complex instrument composed of many different terms, which are difficult for most borrowers to understand. If you can explain the terms of a loan in a way that your clients understand, without condescension, you will almost certainly be increasing your credibility in clients' eyes.
3. Display your competence. Give your clients some understanding that you have enough knowledge to close their transaction, but watch to make sure that you don't sound arrogant or off-putting.
4. Admit mistakes. They happen. If you acknowledge and rectify honest mistakes, your clients will have more evidence that they can trust you -- especially if you can point out any mistakes before your clients do.

Don't rush in

Time is of the essence when processing a loan. But the loan will be processed more efficiently, and borrowers will be more satisfied in the future, if you spend time conducting due diligence on the loan terms before the commitment stage. One of the telltale signs of predatory lending is that borrowers must agree to loan terms and close a loan in a short period of time. Predatory lenders create this artificial time constraint for two simple reasons:

• They want to avoid answering questions that might expose them; and
• They want to prevent borrowers from shopping around because they know that there are better terms available.

The best way to stop predatory lending is to educate yourself about loan products on the market. If you're well informed about what terms the market is willing to offer your client, then you won't fall into any traps -- and the threat of predatory lenders will disappear. If you suspect a rate is out of the ordinary, don't hesitate to shop around for other quotes against which to compare it.

Knowledge of the residential mortgage market and your clients are powerful tools. They can be your best asset in fighting predatory lending and building customer loyalty.

Randy Groover is the president and CEO of the Seascape Financial Group. Seascape Financial Group is a California-licensed mortgage brokerage focused on providing debt and equity financing for commercial clients and debt financing for residential clients. Contact Groover at (650) 341-2764 or randygroover@seascapefinancialgroup.com. Visit the Seascape Financial Group Web site at www.seascapefinancialgroup.com.

Greetings!

This week, my office is doing a presentation to Realtors.  Does anyone have any advise or material on how we can get ourselves in the door and build a long term relationships?

We are supplying breakfast for the team.  We are also attending all open houses, etc.  I need some visual literature to present to the group.  Please HELP!

I look forward to your response.

Regards,

Jason

Government loan programs

FHA loans

An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the other benefits of FHA financing:

• Only a 2.25% percent down payment is required.
• Closing costs can be financed.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than conventional loans
• FICO score is not an issue with reasonable explanation.
• All programs are 30 Year Fixed for the life of the loan 
• FHA limits the amount lenders can charge for some closing cost fees
• Loans are assumable to qualified buyers.

Homeowners can apply for our Ameridream grant program up to 10% of the purchase price.  The grant will cover your down payment and closing costs.  Most borrowers are able to purchase a home with NO* money down!

VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Negotiable interest rates.
• Closing costs are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Mortgage can be taken over (or assumed) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

 * Homeowners are responsible for appraisal fees, inspection fees, homeowners insurance, etc.