Finally Some Relief

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We are finally seeing a loosening of the underwriting standards coming from some mortgage bankers. There are many lending sources offering alternatives to the standard rigorous Fannie – – Mae/Freddie Mac underwriting guidelines, such as:

  • Last year’s tax returns instead of the last two year’s tax returns
  • Bank Statement Loans instead of the standard full doc Tax Returns/ W2’s, etc.
  • Loans to LLC’s as borrowers
  • Jumbo Reverse Mortgages
  • Asset Depletion Loans to supplement other income for borrowers strong in liquid assets, but weak in income
  • Interest Only Loans
  • Aggressive Lines of Credit
  • Loans based on the amount of rents collected on a property/Debt Service Coverage Loans
  • Non-Occupant Co-Borrowers allowed to bolster the debt ratios
  • Gifts allowed for the down payment and closing costs
  • Jumbo Reverse Mortgages

Lending guidelines tightened up during and after the Mortgage Meltdown. But the guidelines are now stepping back to being semi-reasonable again. Many common-sense alternatives have re-appeared to help out consumers with good credit, solid down payments, and/or ample equity in their homes. It is always a good idea to run your scenario by an experienced mortgage professional if you think you have a safe lending scenario for a lender, rather than assuming you don’t qualify. The creative solutions out there today have not been this strong for over a decade now. We look forward to helping you navigate the current lending maze out there.