Are Mortgages Still Available?

Ever since the Treasury Department took over Fannie Mae and Freddie Mac in early September millions of people are wondering “are mortgages still available?” The resounding answer is YES! If the following statements describe you and your situation, mortgages are still available for you—

· You have been employed for the last 6 months.
· Your earnings from work are by salary or hourly pay.

· If you receive commissions, you have received them for at least 2 years.

· If you are self-employed you have been so for at least 2 years and you can prove your net income with your tax returns.

· You can “round up” at least $1,000 (legally of course).

· Your credit score is 580 or higher (if your credit score is below 580, I can help you improve it).

So, you may be thinking that I must be describing only awful sub-prime loans are still available. Far from it! Sub-prime loans are basically non-existent anymore.

The loans I am talking about are FHA loans, which are insured by the government. FHA loans are great loans for both first time buyers and repeat home buyers. What are the benefits of a FHA loan?

· Fixed rate loan terms of 15-30 years providing you with peace of mind.

· Great interest rates—if your credit score is less than 740 almost always a FHA loan will give you a lower rate than a conventional loan from Fannie or Freddie.

· Only 3% down through end of 2008. In January this increases to 3.5%.

· Only need a 580 credit score to be approved.

· Much cheaper mortgage insurance than on a conventional loan.

· Down payment can be gifted to you or lent to you by a family member.

· A co-borrower such as a parent who will not live in the home is allowed.

· Down payment assistance loans are allowed.

· No hefty pre-payment penalties.

FHA loans have come back “en vogue” in the last 15 months with many mortgage professionals. For me they have always been “en vogue” as I HATED doing sub-prime loans for two reasons. First, they are bad loans for my clients. Second, don’t even get me started about how these sub-prime lenders treated me and my clients before closing. I would blow a gasket! Ugh!

This is why I have only closed 6 sub-prime loans in nearly 11 years and hundreds of FHA loans in that time. It’s all about doing what is best for my clients and my own sanity.