Why FHA Condo Financing Is Important

Why FHA Condo Financing Is Important & FHA Financing Is absolutely important piece of a condo project.

FHA Condo Financing. First a little bit about FHA financing in general. Some of these may not apply to all buyers but one or more reason is likely to affect most.

The reason that affects most people is that the FHA rates for fixed rate mortgages are the lowest of all programs. FHA loans are guaranteed by the Federal Government. In all my years as a loan officer and owner of Homes And Loans the mortgage company the most common concern for buyers and borrowers is “what is my rate”? People want to shop for the best rate. The reason is legit. The lower the rate the lower the payment as well as the less you pay for interest over the life of the loan.

FHA financing, the guarantee by the government brings a buyer the lowest rate.

Next, purpose of the loan is to provide a second chance to those a lenient second chance for a credit glitch in their lives. It could be bankruptcy, careless credit behavior, new borrowers with limited credit history who may have a problem in the past. The underwriting rules for an FHA borrower are more lenient than conventional. Typically you can carry a little more debt. More common is the fact that if you have had no credit 30 day late reporting for the last 12 months your credit will qualify. Recovering and buying after a bankruptcy requires a shorter waiting period than conventional.

Credit requirements are more lenient.

An extremely valuable FHA feature is the reverse mortgage. I have written in a positive way about reverse mortgages. I am aligning myself to collaborate with a great company and an experienced loan officer. You can find these articles by clicking the category reverse mortgages in the blog piece if his site. So many people have an initial fear of a reverse mortgage, and they shouldn’t. When one has all the facts it’s an easy decision to make. FHA Condo Financing is important.

Reverse mortgages  are an important part of FHA financing.

FHA has a low down payment feature. (3.5%) Yes there are non FHA products that have 3% down programs. But if you compare the interest rate of those programs you will find them less attractive. Some of those programs offer no mortgage insurance  options, but look carefully as they raise the interest rate to make up for the insurance premium. FHA Condo Financing is important.

As you have likely observed I have been adding a lot of info about the condominiums in Salt Lake City. I do have more to place on this site. I will now start to add additional data  as well as more properties. FHA approval and allowing pets are the next items of information I will add. Pets are a common questions..

To wrap this up FHA also has a strict approval policy. If you as a condo owner or buyer see that a property is FHA approved you will know that they have reviewed  important details about the HOA. They analyze the financial condition, are there too many not paying their dues? Do the minutes of the HOA meetings disclose problems?

If for no other reason than stability of the HOA in general warrants going to the effort of the every two year process of an FHA approval. FHA approval sets a standard that I believe warrants all condo projects should be seeking. FHA Condo Financing is important.

I have posted on my site the contact info for a loan officer that includes the FHA reverse mortgage as part of her mortgage practice, Jynae Bird. I highly recommend that you contact her should you have any interest. I welcome to be the one to refer her to you, and my experience as a large mortgage company owner and years of experience as a bank and mortgage company loan officer give you me as an advocate. I will be glad to participate in your quest to know more. Jynae can be contacted by phone and 801-368-9344 or jbird@primeres.com. Prime Residential is an amazing company, you get them and Jynae.

Posted on January 16, 2018 at 5:34 pm
Larry Cragun | Category: Mortgages | Tagged

Real Bad Advice Radio Advertisement

Real Bad Mortgage Advice Radio Advertisement

Today I listened to a radio ad that I want to address. It truly is Real Bad Advice On A Radio Advertisement. The ad invites you to use the radio ad mortgage lender, buying the ad instead of using one referred by the real estate agent. It touts strengths of the advertising as being impeccable and superior. It suggests a better interest rate as a possibility. Real Bad Mortgage Advice Radio Advertisement

I was in the mortgage side of the business for much of my career. I went from loan officer for a bank, to being licensed with other banks and mortgage companies. I ended this side of the business as owner and CEO of one of Washington States, largest volume mortgage companies.

The advice was bad advice for two important reasons.

1- shopping rates is a suckers game. Interest rates fluctuate at least daily and several times a day in certain market conditions. You do not lock your rate on a shopping call. The first bank I worked for ran a Sunday ad quoting their rate. They had to have the quote in on Wednesday before. People started ringing the phone on Monday AM and it was a nightmare. The rate in the paper was no longer valid. I hated it and refused to play the game.

2- This is an extremely important reason that it was Real Bad Advice On A Radio Advertisement. When you speak with a lender or loan officer that runs radio ads the relationship is between you and that loan officer. It’s a one on one relationship. If they mess you up, don’t deliver as promised they lose you.

The ad was asking you to discard the loan officer referred by your lender. Think about it. If this referred loan officer messes you up he or she puts a steady flow of referrals at risk. Their responsibility is to more than you. The loan officer receiving referrals from an agent that can provide a lot of business will go overboard, even in busy times to not mess you up.

Now having been there and even overseeing hundreds of loan officers I have seen a lot, may be even seen it all. Crashes with peoples loans happen. In busy times lenders can get too busy. They have no control how much business comes through the door each day. They have a fixed number of staff and the loan officer only has so many hours a day, even if working long hours. You definitely want to be the preferred, real estate agent referred client.

Some examples of crashes: they forget to ask for all the documents that are needed, they are slow in ordering your appraisal, the rate they promised just went away because they were slow to lock it, there are many as it is a business with a lot of detail.

The worse one I remember was with now defunct Washington Mutual Savings and Loans. An agent brought a client to me with the statement that I was competing against WAMU. The buyer had the rate quote in writing and all I had to do was beat it and I would have the loan. In checking things out I said that there was no way that rate was possible, it was way too far under the market. FYI rates from lender to lender vary very little. I not only didn’t get the loan against what I believed was a fake rate I made the agent angry. A few weeks later the agent and client came to me for help. It was time to close and the rate was way way way higher than quoted. This was a not too uncommon of a problem back then and the government has made it more difficult to have this severe of a problem, but it can happen. I still had an angry agent friend but there was little that I could do to help at this point.

A more typical problem these days is when a local real estate Principle Broker had a transaction that couldn’t close at the last minute due to a lender saying the buyer qualified for the loan and at the last minute the loan was denied. His words, “all too often the loan officer says they qualify when the app is taken, yes they qualify throughout the process, and at the last minute, sorry they don’t qualify”.

These are only a couple of examples. It truly is Real Bad Advice On A Radio Advertisement to move people from an agent referred lender to one that advertises for your business. Even if you are getting a refinance, either use the lender that you had a successful experience with or call a real estate agent for a referral. In the later case make sure the loan officer is aware of how they referred.

This advice also applies to responding to web site lenders. I have had situations where I had to warn internet found lenders that if they weren’t going to honor the commitment they made that I will help their upset client make a complaint to the State Attorney General. It’s a sad way to get action. More often than not the issue is not meeting a closing deadline. I hate to add to my list of no no lenders local savings and loans and banks. I tell my clients that I have had  and seen so many bad experiences with them that I may not want to be their agent. It for similar reasons of the problems with internet lenders with one unique one, in that with some of these you get to talk to a different bank employee all throughout the process and trust me that is really not good.

There are two lenders on this site you can count on. But more importantly, if you are buying a home, use the lender agent refers you to. You will be the priority client and that is what you deserve.

Ignore this: Real Bad Advice Radio Advertisement.

Larry K Cragun Windermere Real Estate

Residential And Condominium Specialist

Posted on January 11, 2018 at 4:57 pm
Larry Cragun | Category: Larry K Cragun, Mortgages | Tagged , ,