FHA Portfolio Program Helps Borrowers

By
Mortgage and Lending with Washington Financial Group, Inc

FHA remains the hottest product in our market. With the high loan to values on purchases and refinances the mortgage insurance company's, commonly known as PMI are not approving many conventional loans with a 5% down-payment. That is when FHA comes in and is continuing to be the winner.

I have a portfolio FHA lender that is approving and closing loans. The big difference is the FICO score. On the portfolio product the acceptable FICO scores are: 560 minimum for a rate and term refinance, and 580 minimum for a purchase.  Maximum debt to income ratios are: 40/45 with no reserves, 40/47 with 3 months reserves, 40/49 with 6 months reserves. They must have a perfect mortgage or rent history for the previous 12 months. We can use a verification of rent in lieu of canceled checks.

Downside is no gifts allowed for down-payment. Interest rates are a bit higher. Today's rate on this product is 5%, 30 year fixed.

Standard FHA Loans gives us the better rate if the FICO score is 620 or higher. Todays rates are 4.50%  The portfolio loan is a half point higher.

I hope this will give you a better opportunity in selling homes. One more tool!!!!!!

 

 

 

 

Comments (6)

Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

Sounds like a very good lender that is making some exceptions.  Good luck on gettimg some more borrowers

Apr 15, 2009 11:48 AM
Pattie Bigford
Washington Financial Group, Inc - Allyn, WA

I do not have a license in Michigan, but if you contact some brokers in your area you might find someone that has the product. It can help you make some sales:)))

 

Apr 15, 2009 11:56 AM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

Patti, Welcome to active rain.  Keep blogging good information.  Tell about your cancer fights.  Make your blog personal, stay positive on your blog, tell everything you can about mortgages for your area and you will get leads.  It may take six months but once real estate agents realize you are for real they will use you.  Good luck

Apr 15, 2009 01:29 PM
Valerie Spaulding
Windermere Peninsula Properties~Allyn~Belfair~WA - Belfair, WA
Allyn-Belfair-Hood Canal-Local Expertise!

Excellent information Patti!  Thank you for posting it. There are loans out there, we just have to make people realize it. Lots of great deals on homes!!!  Russ is right too!  Keep on blogging!

Apr 15, 2009 02:03 PM
Pattie Bigford
Washington Financial Group, Inc - Allyn, WA

Russ, thank-you for your kind positive advice. I am still getting used to using Active Rain. You will see more from me, Thank-you!!

Apr 15, 2009 03:06 PM
Pattie Bigford
Washington Financial Group, Inc - Allyn, WA

Val, I'm with you on people realizing it. Prices are right, loans are good, rates are good, the tax insentive is great. All in all we should have borrowers lining up:))

Apr 15, 2009 03:13 PM