Wednesday, August 27, 2014

Good News from FHA

Here's some very good FHA loan news.  At the moment, when someone pays off an FHA loan by refinancing or selling their house, the borrower's current lender collects interest for the full month, regardless of when the payoff is made.  As an example, if someone pays off an FHA loan on the first of the month, they end up paying interest through the end of the month.  They pay interest for a loan they no longer have for the next 30 days. That can get pretty expensive.

Now the good news.  For all FHA loans that close on or after January 21, 2015, that is no longer allowed.  If the existing FHA mortgage is paid off on the first of the month, the borrower will no longer owe an entire month of interest on a loan they no longer have.  They will only owe interest until the payoff is made.  If it's paid off on the first, then they only owe one day of interest, not 30 days of interest.

Once in a while the new mortgage rules make sense.  This is one of those times.

Did you know that we sell our loans directly to Fannie Mae and Freddie Mac?  That means we can get our loans approved without the additional underwriting requirements that most lenders have.  If we give you a pre-approval, it's going to close.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Tuesday, August 19, 2014

Are Loans Getting Easier?

There have been a lot of articles in the press recently about some lenders relaxing their lending standards to make it easier for more people to qualify for a mortgage.  What does that mean?  Here's what you need to know:

When a lender sells a loan to a borrower, the lender needs to make sure that the underwriting guidelines (the rules that say whether you get approved or not) are met.  Once the loan closes and you move into your house, the lender sells the mortgage on the secondary market.  They sell it to Fannie Mae, Freddie Mac, Ginnie Mae, or some other smaller company. These companies then group a lot of mortgages together, and they securitize them, meaning they turn the mortgages into bonds, which are then sold to big investors.  That's how lenders keep the mortgage money flowing to borrowers.

If the lender intends to sell the loan to Fannie Mae, for example, they need to make sure that they are following the Fannie Mae underwriting guidelines, or Fannie Mae won't buy the loan from them.

The stricter underwriting standards that some lenders are now relaxing are not the Fannie Mae guidelines, but their own, self-imposed guidelines that are in addition to the Fannie Mae guidelines.  These are known as underwriting overlays because they are laid on top of the Fannie Mae guidelines, making it more difficult for a borrower to get approved for a loan.  

So some lenders are making it a little easier to get a loan, but listen to this:

We sell our loans directly to Fannie Mae and Freddie Mac, so we have NO UNDERWRITING OVERLAYS! 

What does this mean for you?  It means that we don't have any underwriting overlays to get rid of.  If we make sure the Fannie Mae guidelines are followed, we approve your loan.  We always follow the guidelines, so when we give you a pre-approval, that loan is going to close.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Wednesday, August 13, 2014

CHFA Loans Just Got a Lot Better

CHFA (Colorado Housing and Finance Authority) loans just got a lot better.

CHFA second mortgage loans for down payment and closing cost assistance now have the following terms:
  • zero percent (0%) interest
  • no monthly payments are due
  • principal balance is due in 30 years, if the property is sold, or if the CHFA loan is refinanced
  • no pre-payment penalty
CHFA loans are great for people who have little money for the down payment or closing costs, and who cannot get a gift from a relative to cover the down payment or closing costs.  They are NOT for people who have a credit score below 620.

Any questions?  Give us a call.

Did you know that we sell our loans directly to Fannie Mae and Freddie Mac?  That means we can get our loans approved without the additional underwriting requirements that most lenders have.  If we give you a pre-approval, it's going to close.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Friday, August 8, 2014

What is Fannie Mae?

Ever wonder what Fannie Mae does?  Here's what you need to know.

Fannie Mae is the Federal National Mortgage Association, and its main function is to help get money into the hands of people who want to buy a house.  They do it like this: 
  • A lender sells a loan to a consumer.
  • The lender closes the loan, and then sells the loan to Fannie Mae.
  • Fannie Mae packages many mortgages together, and securitizes them, which means they issue bonds that are backed by the mortgages.
  • Large investors (primarily foreign governments) buy the bonds from Fannie Mae.
  • Fannie Mae then has more money to buy more loans from lenders, and the lenders don't run out of money to lend to people who want to buy houses.
Fannie Mae has to make sure that people pay the loans back after they buy a house, so Fannie Mae has rules that lenders have to follow if they want to sell their loans to Fannie Mae. These are called underwriting guidelines, and they are the rules that say what credit score you need, how much you need to earn, how much money you need to have in the bank, etc. if you want to get a mortgage.

Another company that does the same thing as Fannie Mae is Freddie Mac (the Federal Home Loan Mortgage Corporation).

Fannie Mae and Freddie Mac are the two companies that get most of the mortgage money in the United States out of the hands of wealthy investors and into the hands of people who want to buy houses.

Did you know that we sell our loans directly to Fannie Mae and Freddie Mac?  That means we can get our loans approved without the additional underwriting requirements that most lenders have.  If we give you a pre-approval, it's going to close.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.


Waiting Periods After Foreclosures and Short Sales Have Changed

Changes to the waiting periods after foreclosures and short sales were announced by Fannie Mae this week.

If a foreclosure was included in a bankruptcy, then the waiting period before getting a conventional loan is now 4 years.  The former waiting period was 7 years.

Also, the waiting period after a short sale before getting a conventional loan is now 4 years.  The former waiting period was 7 years.

These changes are for conventional (non-government) loans only.  The waiting periods for FHA and VA loans remain unchanged at 2 years for a bankruptcy and 3 years for a foreclosure.

Questions about waiting periods or anything else related to mortgages?  Give us a call.

Selling our loans directly to Fannie Mae and Freddie Mac means we can get our loans approved without the additional underwriting requirements that most lenders have.  If we give you a pre-approval, the loan is going to close.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.