FHA Mortgages - FHA Mortgages - FHA Mortgages - Part 1 of 2
Are some lenders and loan officers just shooting craps with your mortgages?
I think so..... Experience and knowledge don't always have to be a
prerequisite to help you with a mortgage. Now, don't get me wrong,
knowledge and experience could be the key to your mortgage closing. But
what about common sense? Shouldn't it be on the list also?. Why do I say this?
Just
a week ago, I received a phone call from another lender in Alabama. Her
question was about the down payment assistance programs and if I new
any investors that did these with conventional financing. My first
question to her was, why aren't you pursing this as a FHA mortgage?
Her main response was that the back end ratio to qualify was too high.
I asked, how high. She said 47%. Okay, in reality, depending on the
loan, I can sometimes get this approved on a FHA mortgage
anyhow. But I went over this with her with a fine toothed comb. Read on
to see what I suggested which saved this client over $150 a month.
This loan officer had a client with a 623 credit score on a conventional mortgage. By going conventional, the interest rate was going to be about 5/8% higher than a FHA mortgage. Just by lowering the rate 1/2%, the payment would be much lower, which would have lowered the debt-to-income ratio to under 45%. By doing this, this particular client would then have no problem qualifying for a FHA mortgage. And one more thing to keep in mind, the mortgage insurance would be lower monthly also. Here is a good example of comparing conventional mortgages to FHA mortgages.
The bottom line is to make sure that you are not only dealing with a
lender/loan officer that can do FHA mortgages, but that individual is
someone that can think outside the box.
And you might want to review these red flags. Mortgages & Real Estate -- Consumers need to be aware of these Red Flags !!!!!
In Part 2 : I will explain in more detail and give examples of FHA mortgages compared to conventional mortgages. I will also show you that FHA Jumbo mortgages will be even more cheaper than either a jumbo mortgage or doing a conventional mortgage with a 2nd mortgage to stay under the conventional caps.
Author of this blog : Jeff Belonger
e-mail : jbelonger@ihmci.com
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