Atlanta GA Mortgages' Blog: All Categories

FHA is temporarily lifting their 90 day flipping rule.  This is huge for investors.  You may be thinking, what does FHA have to do with an investor?  Often foreclosures are in such bad shape that people can’t get traditional financing on these properties.  Investors will come in, pay cash and fix these properties up and try to sell them as fast as possible.  Acquiring, rehabilitating, and reselling to prospective homeowners normally takes less than 90 days.  With the tightened credit market and almost inability to get a second mortgage or mortgage insurance, the only option for buyers is often FHA loans.  Now buyers can obtain an FHA loan and buy a newly rehabilitated home without having to wait 90 days.  This will allow investors to buy homes faster and…

We don’t know for sure, but there has been a lot of rumbling about minimum credit scores going to 640.  Most of us remember not too long ago when they went from 580 to 620.  There were a few companies that took the plunge and raised their minimum to 620.  It wasn’t too long after that the market followed.  There are few companies left that allow for scores under 620, and the ones that do typically charge higher rates or simply can’t close the loan.  So far, only a handful of mortgage companies have changed their minimum to 640, but they are major mortgage companies.  We are also hearing that some of the other major mortgage companies are discussing the possibility. 

So, what do you do?  First of all, you need to check your pipeline.  Do I have potential…

If you are considering a conventional loan and putting down less than 20%, then chances are you will have mortgage insurance.  Not long ago, that was not a big deal.  Your lender clears your loan, sets up the mortgage insurance and you’re ready to close.  Not anymore…  Now the underwriter clears the loan and sends your file to the mortgage insurance to underwrite again!  So your mortgage company says you are ok to close, but the mortgage insurance company turns you down!  And guess what, they are extremely picky.  They are declining loans left and right.  From my experience, 2 out of 5 are declined.  It seems most are declined based on the appraisal.  They use excuses like:  “The home is too improved for the area”, or “Too many foreclosures nearby”, or how…

Most people are aware of USDA loans or have at least heard of them these days. This program is a government insured
home loan program for low-to-moderate income borrowers, looking to purchase a home in a rural development area. 
Because of the demise of downpayment assistance programs, USDA Loans are more popular than ever. With a USDA loan, you can get 100% financing with no mortgage insurance and a very competitive rate.

The income restrictions on this program made it hard for people to qualify in the past, but on April, 20th 2009, that all changed.  In Georgia, the income limit was raised to $70,750.  When people think of rural housing, they typically think of farm land and livestock, but this is not always the case.  In fact, one eligible area in…

Over the past several years I have noticed a change in client behavior.  They now seem to know a great deal about mortgages, products and especially interest rates.  In fact, most of the time they are calling me and quoting rates.  I attribute all of this to the internet.  Thanks to internet contributors, there is now a wealth of information available at the click of a button.    I have noticed that clients are spending weeks, sometimes months in an “Education Stage,” learning everything they can before they contact an agent or loan officer.

Since the environment has changed, I have to change.  I want to be the one helping educate these future buyers.  In the past I have depended on my referral partners to refer buyers to me.  With the new environment, I…