IMPORTANT INFORMATION FOR YOUR COOPERATING BROKERS/AGENTS AND THE SELLERS THEY REPRESENT:
In the past 6 months we've seen many offers be rejected because listing agents/brokers label some listings as (NON-FHA Approved) listings. Taking these types of actions could hurt all parties, especially the clients they represent. If we were dealing with lending guidelines of the past many potential buyers had access to many lending avenues, however those days are gone. Taking these types of actions could only minimize the number of potential buyers, and in many cases reduce them to just cash buyers, which in most cases represent investors looking for a deal, which ultimately brings in a lower offer price. Some agents who believe that buyers still would have access to a regular Fannie Mae or Freddie mac lenders have forgotten that buyers with less than 20% down still would require PMI (Private mortgage insurance) which call for stricter qualifications than FHA Insurance. This has not always been the case. Although it could be very frustrating for agents/brokers to deal with the lending changes which can sometimes change often, it makes more sense to establish a relationship with an experiences FHA lender which can help the bottom line for all parties involved.
This information is provided as informational purposes and is intented to support agents while the government and lenders work through this difficult lending period.
What we have found on all levels of financing is that the lenders, government... are not just lending on a borrowers CREDIT, INCOME, AND DOWN PAYMENT, but MORE SO the PROPERTY THEY ARE PURCHASING. So no matter what type of financing a potential buyer is trying to obtain in today's market, being prepared to satisfy all lenders is the best strategy while preparing the offer and contract to purchase.......
Ron Giannamore is a Senior Loan Specialist with Mortgage Services, Inc. for the past 23 year period, specializing in government lending across the United States.