I wanted to REBLOG this post by Jeff Belonger, FHA Loan Expert to place it on my wesites blog roll because it highlights the problem with media coverage of the real estate market.
BUYERS - Loans Are Available - even $0 down in some cases.
Anyone in the news media, please read this. No matter if you are TV., radio, newspaper, please listen up and forget about what sells !!!!!
My problem? News that is misleading or not the truth. News from sources that aren't that reliable. Stop picking Joe Wannabe who sounds like a professional in the mortgage industry or the real estate industry. Stop interviewing people that really have no clue or who are one-sided.
What ever happened to common sense? Or is your job all about just selling news that sells. Okay, don't answer that question, we know the answer. But what about standing up for what you believe in? The truth.. Use Freedom of Speech now, more than ever. Stand up to your editor....
So, what news am I pissed off about? Tom Burris wrote a blog the other day in regards to a misleading perspective from a certain reporter from Dallas, Texas. Here is the article : Real Problems for North Texas Real Estate Agents
Sure, real estate is local, but at the same time, it can be national, depending on the issues on hand. Here is an excerpt from a realtor and just her opinion.
Let me take a stab at what this realtor just said from a consumers perspective, a possible buyer or seller in regards to real estate. And then answer them as a loan officer with 16 years of lending experience.
- Yes, getting a mortgage is harder then before. Ever before? Consumer : I am dead in the water, renting for years now. Jeff Belonger aka loan officer : Maybe not. Back in the late 70's to mid 80's, you needed 20% down and rates were usually 12% to 18%. Hey, I was born in 1967, but I researched my answer. This was not an educated guess or my opinion.
- Even buyers with good credit and a good job history are finding it a little more difficult. Consumer : Do I need a 700 credit score with 20% down? Jeff Belonger aka loan officer : I think this is a blanket statement. In fact, people with good credit are being told no. Can we elaborate on that at all? Again, a blanket statement. Was it because ....
- the house was in a declining market?
- was it because the loan officer only had limited knowledge or limited mortgage products? Were they not FHA approved, hence they couldn't do FHA loans?
- even buyers with good credit. Please define good credit. Are we talking about 700 credit scores? 800 credit scores? Never late once? With FHA loans, I can still go down to a 500 credit score. But reality says that it would be a make sense loan with a 580 credit score and less than perfect credit. Understanding credit for FHA loans
- Gone are the days of 100% loans.... buyers are being asked to put more down. Consumer : I can barely save a few thousand dollars a year, with gas prices and food prices being so high. Jeff Belonger aka loan officer : As mentioned in this blog, rent vs buying - knowing your mortgage options, there are still a few programs that allow for 100% financing.
And here is the excerpt from the same article from a Texas loan officer in regards to mortgages.....
Half? Isn't half 50 percent? Half of how many? Where did these potential buyers come from? A bad lead source? The newspaper? My whole point with that, since I consider myself a true stats and numbers guy..... people are still qualified. People still can buy a home and get a mortgage. Sure, a conventional mortgage can be much harder with 10% or less down and or credit scores under 680. But you still have FHA mortgages, in which FHA has been around since 1934. Please read, FHA loans aren't that bad as mentioned...
How lending can be misleading? I closed 10 loans just in 2008 that were told by other lenders that they were qualified and or approved to buy a home. All 10 consumers found me on the internet, ranging from Florida, Virginia, New Jersey, and Pennsylvania, because the day prior or the day of closing, they were told they couldn't help them buy. I closed all 10 loans and there was nothing illegal about them. In 60% of them, I just needed to get their credit in order. Deleting some bad accounts, getting the correct explanation letters in hand, and the proof. 3 of them were denied at the end, because the lender said that certain things would not be allowed by FHA. WRONG.... it wasn't allowed by that particular lender, for whatever reason. We closed them because we met FHA's guidelines.
Great example... I just received an e-mail yesterday from a potential buyer in Arizona that said her current lender would not allow her dad to co-sign, known as a non occupant co-borrower. Because her loan is a FHA loan and because he currently has an FHA loan. Again, wrong and misleading information. Yes, you can't have two FHA loans at the same time. But that is if you have a FHA mortgage on your current property and you now want to upgrade to a larger home, using FHA financing. This is still allowed, but it follows some different rules. But the two examples mentioned aren't 2 in the same. It comes down to knowing your mortgage programs. And if you don't know, you ask. Unless your lender makes up their own rules and guidelines.
Okay, getting off topic. But as you can see with the examples above, most of the statements made in the media regarding real estate and mortgages are just formed opinions. The media needs to interview true professionals that have the experience, the knowledge, and many of whom have been in this business for over 10 years. Those who have been in 'up and down' markets, understanding that it comes down to educating each other properly, not recklessly. You just can't throw statements out there without dissecting the statements involved.
Summary and CHALLENGE : Americans as a hole have endured many different things in the last half century or so.
- The assassination of John F. Kennedy
- The landing on the moon
- The assassination of Martin Luther King
- The bombing in Oklahoma City
- The start of the gulf war
- 9-11 - The whole attack on the World Trade Center
- The war on terrorism
- The mortgage meltdown/mortgage mess
- The real estate crisis
Well, this is one time when we need to use are creative skills and marketing skills to get the clear message to the public. Why don't we use Active Rain as that media outlet and join hands from state to state. Please read below for my idea...
Bright Idea : Why don't we all get a hold of our local media outlets. Why not ask them to view what we write about. Ask them for an interview, to tell the real story in regards to the real estate market. And not just someone sulking in their pudding, hoping things get better. Let's spread the word that there is plenty of money to lend. Let's use the Active Rain community like never used before.
Okay, to take this one step further. Why not use this blog as the start of several links. Why don't you, as a real estate blogger, write your own blog on what you see and know. Then come back and link it in here. Telling us your name and what market and state that you are from. And take that post of yours and send it to TV and to your local newspapers, linking it back to this post. What do we have to lose!!
CHALLENGE to the MEDIA : If you read this post, please don't hesitate to call me or anyone else. Are you afraid to publish the truth? Someone that will give more detail than just a blanket statement. If the negative, misleading news continues, there might not be enough people to pay for the news. Did you know that the real estate market ignites our economy in several different areas? You kill that and you could possibly kill America. Sounds harsh? Sounds way out of bounds? Do you want to take that chance?
- FHA Loans - Conventional Loans - VA Loans -
Experience & Knowledge at its BEST !!!
For more information on FHA loans, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2008 by Jeff Belonger