It is first quarter of 2019 and I am starting to see a lot of similar programs that got us in the mess we were in 2007. That was one of the worst economic times we can recall. The financial crises of 2007 was caused by Hedge funds, banks, and insurance companies. Hedge funds and banks created mortgage-backed securities which in turn caused the 2007 banking crisis, the 2008 financial crisis, and the Great Recession. It created the worst recession since the Great Depression.
It caused homeoweners to go into foreclosure or seek help via short sale. Bad lending practices allowed inexperienced, unqualified home buyers to buy not one property but the ability to buy multiple. You couldnt lose then by owning a property as values kept skyrocketing and "equity" kept getting built up until the very end of 2006. Soon the inflated and bogus market caught up to these homeowners with negative amortization loans and short term arm mortgages that came due. Banks stopped lending and approvals came to a halt.
Being a Real Estate broker, Mortgage NMLS licensed, and an investor I get emailed constantly from new lenders with their new programs.. Here are some programs from a lender to take a look at:
- 30yr FIXED or ARMs with 10yr Interest Only option for all 3 Portfolio Programs, here are some highlights below.
- LTVs to 95% with no MI to $1M - OO
- LTVs to 85% with no MI to $2.5M - OO
- DTI allowed to 53% on Primary & 2nd home
- Full Doc = Only 1yr of income docs for both W2 or S/E Bank statement programs (co-mingled funds allowed)
- Expanded Credit - FICOs down to 500 (1 day out of foreclosure, BK or short sale)
- NOO qualify on subject rents alone – no ratio / no income to 80% LTV
- Asset Depletion income – simply divide net assets by 120 months
- Lender Paid comp options from 1.00% to 2.75%
- SFR, Townhouse, Condo, Non-warrantable condo, 1-4 Unit
- Stated income: Non-Owner 1-4 Units 80% LTV, FICO score only (No Income Docs Req)
I don't know good programs? Or masked to be similar programs to ones in the past? Maybe underwriting is more strict to qualify? Either way lets all hope we can have Banks/Lenders create great products that allow great flexibility but not to an economical cost like the one that affected us in 2007!
If you or anyone you know is in a bad situation with their property and need to sell your house fast, contact me Sell My House Fast.
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