NW Indiana Loan Guy Blog

Looking over a rate sheet today, I found something very interesting. Low Rates! Rates the lowest I have ever seen for an FHA loan.

If you would have called today, I could have locked you in at……. 4.5% with ZERO points on a purchase or refinance. That does NOT require a 750 credit score or 20% down. That is a 621 score with 3.5% MAX down.

How about this… Looking to purchase? How would you like a 3.5% FHA loan. That too was available today with only 3.5% down and a 621 credit score at ZERO points.

Very rarely will you hear me pitching low rates, as that is not my style. I tell my clients that the rate is only the third or forth most important aspect of the loan behind the monthly payment and how much they need to bring to closing. I do NOT want to get rate shopped, as I am not a commodity.

I provide my clients with the BEST loan option, not the “LOWEST RATES or I’ll eat my hat” garbage. The Right loan product at the Right time for the Right client almost always saves them money in the long run. Don’t believe me? Let’s compare Good Faith Estimates from a reputable lender (not some fly-by-night scam artist who jacks up the costs and refuses to honor the GFE the day of closing). NO BS, no hidden costs. It’s all upfront!

OK… down from my soapbox.

In this new kingdom, credit is king! Our FHA lenders who WERE writing loans with 580+ credit scores have now decided that there is too much risk in that and have increased the minimum score requirements to 620. While a couple lenders are still accepting 600 scores, look for them to join the pack soon.

This all the more reason to work with an experienced mortgage lender AND to start the application process before you start looking at homes to purchase, especially if you do not have pristine credit. That gives you time to clear up credit issues that may be hurting your credit score and reducing your chances of getting a loan.

Heard a bad joke today, but I have to share it…

Q:    Hey, what do you call a borrower with a 619 credit score?

A:    A renter!

While not really funny, it’s true. If you are ready to take advantage of some great home prices and low interest rates for buying and refinancing, call me right away, especially of you have less-than-perfect credit.

Scott

PS: Ask me about our NO money down loans such as VA and USDA Rural Development, as well as low rate FHA loans and 203(k) rehab loans

PPS: If you have less-than-perfect credit, USCCRA may be able to help. The associations attorneys are experts at helping clients improve their credit scores. Check out the benefits of membership and get $300 in FREE gasoline.

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