Last week was another interesting week in the mortgage business. The new FHA higher mortgage insurance premiums have kicked in. This is causing confusion for your clients and I want to help clear things up. The confusion is that many lenders are now saying that FHA is too expensive compared to a conventional loan with mortgage insurance. The problem with that statement is that while it is true in some instances, it is false in others.
I heard 4 times last week from clients that they were told by a lender that FHA was not a good choice for them due to higher costs. After analyzing their loans, 3 of the four benefited by sticking with a FHA loan over a conventional loan. The nice thing is the 4th client qualified for 3% down conventional and we could offer her that product. (good thing we are one of the handful of lenders with 3% down conventional financing. We also have 5% down conventional down to a 620 FICO score).
The bottom line is that each clients unique situation will be need to be reviewed whenever they go under contract. It is more important that ever that your clients are working with a lender that not only offers all options available in the market, but that they also taking the time to see what makes the most sense for your clients. It is not one-size fits all like many lenders now think it is. My team and I will continue to take the time to help your clients pick the most effective financing solution.
Todd Bookspan, MBA (MLO - 218342)
The Bookspan Baker Team
Cobalt Mortgage, Inc.
602.522.9494
To view available San Tan Valley AZ Homes and Queen Creek AZ Homes, go to http://www.QueenCreekRealEstateSolution.com
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