A product that Clint and I are really pushing latley is the "My Community Program" from Fannie Mae.
With the market tightening up latley, its much more difficult for those who lack the perfect situation to get financing.
Dont get me wrong, I strongly feel that only those who can truly afford a mortgage should have one. I have never been one to yell: "Bad Credit, No Credit, No Problem!"
The worst thing I could do as a Loan Officer is assist someone in setting themselves up for failure. I think I have mentioned this before, but 14% of the recently done sub-prime loans are now in foreclosure. 14%!
Unfortunatley, I am sure a large number of those could have been prevented if the Loan Officer's first priority was their client...not their pocket.
There are however, those who may not have funds for a down payment, or may have bruised credit, that can absolutley afford a home. Things are definatly more difficult for these individuals due to the recent industry changes.
Thats where "My Community" comes in.
With financing available for those with credit scores down to 575, and no down payment, it supports those borrowers who just have a few hurdles to overcome.
Its one loan, so the borrower doesnt have to deal with the stress of keeping track of two seperate mortgage payments each month.
Mortgage Insurance is required. Now before you stop reading this, listen up:
With the rates on second mortgages escalating, your likely to SAVE money by going for the MI as opposed to avoiding it with a second.
I have even better news.....
At Frontier Home Mortgage, we have discounted Mortgage Insurance Premiums due to the fact the we are Credit Union owned!
In some situations, we save borrowers HALF of what they would pay somewhere else!
Other things to keep in mind about MI: A portion of it is now tax-deductible, and when you pay down the loan to 80% loan to value...it goes away, saving you EVEN MORE.
If anyone would like more information, just let me know!
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