FHA Credit Scores & All about FHA loans & mortgages !!!!

ERIC.... . thank you very much for those polite words. I need to practice what I preach.. and I tell people, keep pushing me and I'll have to lie or mislead you like the others. And I just won't do it..

In regards to the condos and FHA approvals, I'll do a blog on this over the weekend. It gets semi complicated.thanks

MARLENE.... . thanks.. I hope many see this. I am getting tired of those blogs telling everyone that it will be changed across the board. That is so wrong and misinformation. As I mentioned, lenders don't make the change across the board between themselves, HUD or congress would do this.

FRAN.... . I would believe it that you hear that in many professions. But it's easy for me to relate to that when talking about the mortgage industry and loan officers would tell the borrower that they would try for the lower rate for them. You have to be kidding me.  Obviously they aren't explaining how the market works and how rates work... and the lock-in procedures then. That is so misleading... thanks

KATERINA.... .  It basically comes down to the reason because those lenders don't know how to process loans and probably because many of them are probably brokers, which means that the company that they are selling those loans to has to underwrite it... and those companies are behind in time frame. But I even know some brokers that can do FHA loans quickly also.  45 days is way too long, even when I use to swamped.

CHRIS.... . it just drives me nuts. I know people make mistakes, but much of that was on purpose. It's basically called a bait and switch. And to say that you are a small company with little overhead in the mortgage business, cracks me up. Sure, some can cut corners, but it wouldn't lower rates by a 1/4%, that's for sure. On a $200,000 loan, that is another $1,000 in profit in many cases. Besides, you still have rent and processors. A banker has underwriters and closers... but they also get extra percentages on the back end, to usually compensate for these costs.  thanks for your feedback.

JANICE.... . I already replied to your e-mail. I basically said that you can use the rental income from the 2nd half of the duplex to help qualify. But when it comes to 3 units & 4 units, the property must be self-sufficient. Keep me posted if you need any help.  thanks

GWENN..... . it actually could be call the okay, the ugly, and the ugliest... lol   I have never had to educate consumers more just in 2009 than I have in all of 2008. And I did a lot of explaining and educating in 2008. I was talking to another loan officer today, who said that he thought all the turds left the business already. This industry will always have those that lie, bait & switch, or mislead. It's just the nature of this business to have loan officers around that just don't care.

Overall, as you stated in your Countrywide example, we must always educate. Not everyone will listen to us, but when we step in and try to help, and then things go wrong, we are still the bad guy many times. This business can be a lot tougher than what many think. The problem is that they compare it to selling cars at times....thinking that if it doesn't go well, that you can give new floor mats or extend a warranty. Those aren't really freebies, because if I am buying a great car, the warranty isn't going to mean as much to me as it would if I had to lower someones rate or absorb the fees. That's another long story and I am just venting. Sorry that we couldn't talk much today, but glad that you called.  thanks

NICK & TRUDY.... . thank you very much and thanks for stopping by.

ERICA.... . thank you, I am extremely happy about it. ANd I would love to talk to you about it, because I have plans with it, to be able to include certain realtors with it. PS.. what happened to you last week?  you pwe me now... lol  I'll explain later...

REBECCA.... .  lol... I am laughing because I need to do that and a few other networking things...  I am so behind on that stuff. I just have two basic links in all my e-mails and I need to do a campaign. Maybe we can talk about it later.. thanks

MARK..... .   hhhmmmmm.... I actually have one lender that I can still go to 500 on.... but here is the issue, we don't underwrite the loan, so I lose full control. Hell, there are lenders that can go to 600 and they still drop the ball at the end. In regards to the scenario that you sent me and with that 565 credit score... or 556...  you had a 68% LTV... those are just things I am not going to right about. That is a 1 in a million type of loan. Most others won't fit something with less than a 580, not in today's market. I have a competitor that promised a client of mine with a 535 credit score, that they could do the deal and it's been 35 days now... and she has a 86% ltv...   and a late in the last 12 months on the mortgage. It just won't happen in today's market. Again, another reason why I won't put out there that I can still go down to 530 and or 500... and because those could change at a blink of an eye. I use that for a back up.  thanks the feedback.

TONY.... . there are so many that think FHA is the next subprime.. that really ticks me off. It's those same people that sold subprime over FHA, because it was easier and quick, but the borrower could have gotten a better rate and terms.  Sad, but it happened.

KRISTINA.... . thanks for the compliments. I know many of us think like this. Just this past week, I have been after a borrower that I did their purchase for 14 months ago. They have a 6.5% rate and they tell me that they trust me. I got them from blogging and then they tried another lender that was giving them 7%, yet told them that I couldn't get them 6.5%.  Well, 14 months later, they want to do a cash out of 8k and their payment is still going to be about $40 cheaper...  I locked them in, but they played around for a few weeks. Well, they called me up and said that they will now go with me and that they had to be upfront with me. They have a niece that is a processor for a loan officer and they finally got a GFE. They not only were charging a 1/2 pt more than me, but $1,700 in fees. Well, it's a shame, because I had to add another 1/4 of a point onto their fees now, to extend my rate lock. But hey, now they should really trust me, right?  lol  This is my 2nd loan with them and they have shopped me a total of 3 times. That should be a very good record.

MARYANN..... .  Yes, things are changing rapidly.  And the good ones will stay on top of these changes. And if I am not sure, I ask....  thanks..  in regards to how to bookmark a blog?  Right below my blog, before the comments, you will see an envelope, the word bookmark, and a red flag. Just put your cursor over bookmark and click on it.. it will bookmark it for you and put it in your bookmark section.  thanks

SHELLEY.... . my pleasure and I am glad that this helped some. Thanks for the kind thoughts...

JAY.... . there will always be someone that wants to hear what they want and just because someone else told them so. Sometimes it's a tough lesson to learn.  thanks

ALICIA....  I need to know a little more than that. I am assuming that this is a purchase?  Or is a refinance.  What state are you in?  Please e-mail me at jbelonger@ihmci.com  thanks, jeff

PAGE....  first off, ALL lenders will use the lower middle score of two borrowers. So your previous loan officer lied to you on that. Yes, many lenders have gone to 600 and 620, but your loan officer lied a 2nd time. Because most investors that I know, when they did make the credit score change, as long as it was assigned a FHA case number prior to the change, they gave most mortgage companies about a month to close the loan.  That was just an excuse to use, because even if the credit scores didn't change, they weren't going to be able to do your loan. This is just my assumption. I did see one company make a change and only give like 2 days to close and 10 days to fund, but still, I would bet there was something else that would have kept you from closing. My main suggestion, when you do get your scores up, to use someone else, not your last loan officer. I could always recommend someone. But to prove my point, they would have received an updated letter from that investor that raised the credit scores and you would see what I was talking about. Overall, she said she tried everything just to keep you calm and to keep your trust. You should hear all the excuses that I hear.  But it's easiest when you can blame it on the credit scores.

On another note, you can e-mail me at jbelonger@ihmci.com to give you some good ideas to get the credit scores up.  But I need to know more about your credit information to give you the correct advice. thanks