Georgia FHA Home Loans - (& Opinion)

BUT! Please don't change historical to hysterical. Before you pick up the phone and start calling around to ask "what's your rate" read this "Is Now A Good Time To Refinance?" and then let's put this into perspective as we have so many times in the past.

The Feds Do Not Set Interest Rates. The Feds set the target rate and in this case for overnight funds. There is no certainty this will affect mortgage interest rates in the next 2 hours or 2 decades. Mortgage interest rates are affected more by the yield on 30 year Fannie Mae MBS's (Mortgage Backed Securities) than any other factor. What sets the price of the FNMA30 MBS? Investor willingness to buy. The more they will pay the higher the yield and the lower the rate.

Look, I know CNN spouted off about "the government setting mortgage interest rates to 4.5%" and I said then and I will say now: the government does not set mortgage interest rates. People getting off the sofa and buying or refinancing homes does. If everyone sets around and waits on the rates to go down they never do.

Ken Cook 866-946-0120 extension 101

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THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.

EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.

Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors

Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender

Mortgage Tip #26 (Counting down to #1)

It happens. Neither the borrower nor their spouse nor both combined earn enough income to qualify for the loan they need to purchase their first, or next, home. We see this most often on first time home-buyers where one or both of the spouses do not qualify for any of a handful of reasons.

Since there are different rules for different situations and since lenders augment or modify the guidelines from Fannie or Freddie and often go over-kill on FHA I will not publish a list but rather ask you to develop a relationship with a mortgage broker or loan officer who has experience doing NO/CB loans. This is one that is easy for a novice or inexperienced agent to blow.

Here are some reasons to ask a mortgage professional about an NO/CB loan:

Occupant borrower (OB) is new in a commissioned job and only shows salary, not commission, on previous tax returnes.

OB is a first time home-buyer with limited credit (not bad credit - that still ends in a denial).

OB simply doesn't have enough income on their own to qualify for the loan amount.

Remember this: if the OB has bad credit the NO/CB will not be enough to get an approval. The NO/CB must be a relative of the OB. The NO/CB is more than just a co-signer, they are a co-BORROWER with equal liability in repayment of the loan. A late payment or missed payment or foreclosure goes on the credit of the NO/CB. If the NO/CB has assets and there is a foreclosure the mortgagee (lender) may be able to get a judgment against the NO/CB and take their assets.

Fannie Mae and Freddi Mac both allow NO/CB but make sure the program counts the income of the CB for the purpose of qualifying. With Fannie the OB must qualify on DTI on their own. Again, you need the mortgage professional, one with experience in these more difficult loans, to advise and councel.

Loans requiring NO/CBs are not for the green or low volume mortgage person. You really need to have someone who know what they are talking about. Even most lender Account Executives do not know all of the requirements and caveats of every loan program where an NO/CB is used.

There are also caveats when community assistance is being used on the mortgage.

So why did I bring up the subject if I'm not going to give answers? Actually, if I'm doing the loan, I will give answers -very specific and very correct ones. FHA, Fannie and Freddie are all different and within Fannie and Freddie the different loan programs have different parameters. Who you gonna call?

Ken Cook 866-946-0120 extension 101

TWITTER - UTTERLI - BLOGTALKRADIO - EZINE ARTICLES - KEN@NOVATION

-----

SEO SERP and Content Creation for your real estate related online success.

THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.

EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.

Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors

Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender