MYTHS Busted on Active Rain!

By
Mortgage and Lending NMLS #94045

You know one of the most powerful aspects of Active Rain is how elegantly this medium brings together so many different perspectives from all walks and levels of our industry. From newbies to old hands who both have much to share about our business and business in general!

MYTH-OLOGY: On a recent post of mine, a commenter quoted an inaccurate fact that was slanted with opinion, based on that fact. While I was blissfully working with clients that day, the commenter was corrected and later graciously retracted and edited their comment. When I returned to my post later, I was discovered what had transpired from another member who communicated this to me. Cool! Folks here are amazingly generous and fair in sharing ideas and information among co-pros; it's a great place to research, test ideas and yes, check our facts. And the best part: we are among friends who respect each other and bother to let you know what's what! 

MYTH-INFORMATION: Which brings me to a conversation I had with a Realtor about a program I am feeling pretty enthusiastic about: USDA Rural Home Loans just happen to target large tracts of our tri-county area where the average income is considered inadequate to meet average housing costs. These are true 102% loans, funded by the USDA with some amazing features. While lenders charge a funding fee on top of the loan, there is absolutely no monthly mortgage insurance. And the best part: sellers can contribute any amount within reason to assist the borrower as long as the home is sound and they can afford it using standard full documentation guidelines. Credit risk and underwriting are 'make sense' make it happen. There are eligibility zones and 'average income' limits to effectively subsidize rural home ownership, but it's certainly not handout material! So...why would every Realtor and lender on the planet NOT support this a 102% program?

MYTH-QUOTE: Well, it seems some folks in Whatcom/Skagit/Island Counties (where this program is a godsend) have a wrong headed notion that I had not heard before: an esteemed competitor has been perpetuating the notion that USDA Loans have an 'equity sharing' function which means when a person sells the home they lose a percentage of their equity. Upon hearing this, I suspected the lender was either uninformed or not accredited to fund these loans. Just to be sure, I immediately contacted my 15 year veteran AE of the Rural Division of the SAME BANK as the person who quoted this factoid... and his one word reply was: myth.

MYTH-TRUST: OK, so why spread myth? You notice I didn't use the 'lie' word. I suspect, like the commenter on my earlier post, it would be literally impossible for everyone here to be in possession of the facts about every program. For starters, they keep changing!!! That's why you need folks whose business it is to know such things. So do I. Sure, things have changed a lot in the last five years (make that five months) and sure there are a lot of old hanging-on notions about very good loans because we forget and...well...who would TRUST a BROKER these days? Well, who else is motivated to tell you the truth? We don't get brownie points for leading folks on or wasting your time. I only get paid when I succeed and I only succeed by using my noggin for something besides holding my pillow down. 

MYTH-BUSTERS: In conclusion, my I suggest we use Active Rain and check our facts before being tempted to spreading myth-information among our less knowledgeable buyers and investors. Many other very good programs are MYTH-UNDERSTOOD. I know the half truths are out there. They hit me at every turn: one Realtor swore the VA would NEVER approve a home because it was old. WRONG! Not only did the VA appraiser approve the home but the value came in much higher than the sale price and he assisted in helping verify a repair was made prior to closing so it would fund on time. Another told their client that ALL Reverse Mortgages are a rip off and she was too young to get one. WRONG. Sigh.

We could all use more accurate, up to date and and useful information to become better professionals!

Any popular myths you'd like dispelled here? Bring 'em on! Blessings!

     Loannetter

susan templeton
mortgage planner
www.loannetter.com

 
 
510-LO-31434   

510-MB-24707-50145    An approved Conventional, FHA/VA/USRDA and Reverse Mortgage Broker

   © Copyright 2009  Loannetter 

Posted by

 

 

SUSAN TEMPLETON IS A LICENSED LOAN ADVISER IN WASHINGTON

NMLS# 94045

                 

 

Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. Loannetter is a private brand owned and copyrighted by Susan Templeton.

 

 © 2005-2015 susan templeton copyright

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Mortgage / Finance
Location:
Washington Whatcom County Ferndale
Groups:
Mortgages
Investors
The Art Of Marketing You
It's all about them (ThemThem)
VA Loan Group
Tags:
networking
research
factchecking

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
495,618
Richard T. Dolbeare, R(B)
eXp Realty - Wailuku, HI
R(B), ABR, CRS...Hawaii Multi-Island Specialist

Hi Susan.  I almost missed it and was leaving when I realized what you had done with your "myth-xxx".  It's real cute, good job!

Mar 12, 2009 05:13 PM #1
Rainmaker
66,965
Susan Templeton
Bellingham, WA

Thanks Richard...gotcha! Do you happen to know a Hawaian dude goes by the moniker Kaimu? Grows and exports orchids from your fair shores? ALOHA!

Mar 12, 2009 05:17 PM #2
Ambassador
553,625
Larry Story
Total Care Realty - Greensboro, NC
Total Care Realty, LLC, Greensboro, NC Real Estate

Susan there you go you can start a new group called Mythbusters just like the show on cable.

Mar 12, 2009 05:17 PM #3
Rainmaker
66,965
Susan Templeton
Bellingham, WA

Hey Larry, Since I am a luddite and don't have cable (more time to write blog posts) tell me more about Mythbusters?

Mar 12, 2009 05:21 PM #4
Rainmaker
20,266
Winston Westbrook
Westbrook National Real Estate Co - Victorville, CA

Great post Susan. Maybe you should start a real estate myth busting program on You Tube or something in that nature.  

Mar 12, 2009 06:39 PM #5
Rainmaker
407,839
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

Nicely done.  Mythbusters is a great show... you can rent the DVDs, or get them from Netflix.

Cameron Novak, Corona Real Estate Agent
Cameron Novak

Corona Short Sale Agent
The Homefinding Center
TM
Corona, California
951-212-7479

Mar 12, 2009 06:53 PM #6
Ambassador
675,958
Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Susan: Thanks for the post and update. I appreciate it! One thing you should mention. All government loans need a 620 credit score these days. That didn't used to be the case; now it is. I'm finding I'm having to do a little more credit repair these days to get people qualified. Have a great day!

Mar 13, 2009 02:27 AM #7
Rainmaker
66,965
Susan Templeton
Bellingham, WA

Thanks, Winston. I guess the power of myth is that once it is out there it is like gossip...very hard to retract! IN FACT, research studies show that when inaccurate information is put out and later corrected, the public has even less trust in the truth, as they feel an ungoing suspicion.

Mar 13, 2009 06:17 AM #8
Rainmaker
66,965
Susan Templeton
Bellingham, WA

Cool Cameron, I'll check them out. Maybe start a blog as you suggested...do you have any YouTubes to recommend?

Mar 13, 2009 07:00 AM #9
Rainmaker
66,965
Susan Templeton
Bellingham, WA

Paul, I've got a Portfolio FHA lender doing FHA down to 540 FICO and another offering 580...so consider your myth busted and send me those clients!

Great you are able to offer credit help...that's a great long term benefit and I hope your borrowers deeply appreciate your effort!

Mar 13, 2009 07:02 AM #10
Rainmaker
66,965
Susan Templeton
Bellingham, WA

Busting my own myth here:. We do have at least one FHA lender funding with NO FICO scores. Yep, have today's email to prove it! FHA has never 'required' specific FICO scores, it's a 'lender overlay'. Make sense underwriting is the key here. Not having a FICO score still means work proving credit worthiness...just sayin!

Mar 13, 2009 11:49 AM #11
Rainer
38,744
Kevin & Maryellen Garasky
KMG Mortgage Group - Kevin & Maryellen, Idaho & Washington - Coeur d'Alene, ID
KMG Mortgage Group - ID & WA

Susan - Great job here!!!!

Maryellen

Mar 17, 2009 10:46 AM #12
Rainer
38,744
Kevin & Maryellen Garasky
KMG Mortgage Group - Kevin & Maryellen, Idaho & Washington - Coeur d'Alene, ID
KMG Mortgage Group - ID & WA

p.s.  My dad always says "Use your head for something besides holding your ears apart."

Your comment made me laugh!

Mar 17, 2009 10:47 AM #13
Rainmaker
66,965
Susan Templeton
Bellingham, WA

HA, Maryellen...I had't heard that one is a long time!

Mar 17, 2009 01:25 PM #14
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
66,965

Susan Templeton

Ask me a question
*
*
*
*
Spam prevention

Additional Information