Loans Mortgage Lenders answers:

Please ignore the poster by the name of MOM, she consistantly posts incorrect mortgage information and will eventually get sued for doing so without a license.

Yes, you can do an FHA mortgage; no it does not have to be a HUD home. FHA requires 3.5% down, but with your credit rating you may want to consider a conventional mortgage. You can get a conventional mortgage with 5% down, you don’t need 20% as “Mom” states. A conventional mortgage is usually the better option if you qualify as the PMI is lower. FHA mortgage have “MIP” not PMI and there is a difference. The FHA MIP is more expensive, has to stay there for at least 5 years and also has an additional 1% up front fee.

Have a qualified loan officer show you both programs side by side and please don’t take advice from unlicensed people, they can steer you in the wrong direction and cost you money.

Loans Mortgage Lenders answers:

Yes you can borrow 95% plus capitise the LMI in Australia. Effectively this is borrowing it as well. You cannot include the stamp duty with a 95% loan. In other words you need about 9% of the purchase price to be able to buy. 5% as a saved deposit and the other 4% to cover purchasing costs.

There is one 95% mortgage available that allows you to get a credit card for $20k at the same interest rate as the home loan as part of the package. The money on the card can be used at settlement which means you can borrow most of the stamp duty as well, depending on how much it is for your purchase.

The exception to this is if you have a guarantee from your parents to back you up. Then you can borrow 105% with no LMI required.

Loans Mortgage Lenders answers:

Lender mortgage insurance and stamp duty can be funded in the current home loan as long as the total amount of lending is below the bank criteria.

For example,

Majority of the bank allow you to borrow up to 95% of the property. Therefore it can include the lenders mortgage insurance and stamp duty as long as the total lending is only 95% of the property. It can also include any settlement fees that you have as well.

You just got to understand that by adding it into your home loan, the repayment is higher and you’ll be paying interest on it throughout the duration of the loan

Loans Mortgage Lenders answers:

I am at a loss as to how you were rejected while in escrow. Once you have reached that stage you are in a position to sign loan docs and closing is about to take place.

The norm for proving income is 2 years of employment with the same employer or in the same career field. This is accomplished by providing W-2 forms, federal income tax forms and in rare cases proof of employment letters sent by the mortgage lender.

It looks as if you would need to find a competent mortgage loan officer as you are getting conflicting stories from the ones you have tried to get pre-approved through.

I hope this has been of some benefit to you, good luck.

“FIGHT ON”

Loans Mortgage Lenders answers:

If you would like the loan, i would take it.

Loans Mortgage Lenders answers:

Hi there. I can help.

Www.HomeLendingMadeEasy.com

Loans Mortgage Lenders answers:

Because they made a HUGE profit off it. Its all about the allmighty dollar. Credit card companies dont care if they are charging an old lady 30% interest b/c she was one day late on her payment, whats the difference. All of a sudden, the mortgage lenders are supposed to “care” about the consumer, but no other corporations do. Doesnt make sense. People want to blame others, not take the heat for the fact that they really couldnt afford the 500,000 dollar home with a 50,000 income in the first place. People WANT things, dont care how. But, then, blame everyone else when the crap hits the fan. Thats what is wrong with the world today.

Loans Mortgage Lenders answers:

We’re in a correction that will last at least the next several months which has the potential of becoming a bear market for the next year or two. The problem looks like its not contained as major foreign banks have recently acknowledged related investment losses and mutual funds are selling profitable investments in emerging markets in favor of security of US dollars/treasuries. Even the chinese government has come out to say they believe in the safety of the US dollar. All debt is being repriced not only bcas of subprime mess but bcas debt from already announced LBOs will soon hit the credit market as well. Classic case of over supply. Future M&A will have to be driven by cash but in an economic slowdown, you would think most would preserve cash until they see a light at the end of the tunnel (i.e. Some competitors may not survive a bear market/recession).

As for ur question re reits, the following article may shed some light. Further evidence the mortgage market is shaky.

Loans Mortgage Lenders answers:

Angelo Mozilo is the CEO of Country Wide under investigation…

Loans Mortgage Lenders answers:

Hi I am a real estate agent. Most sub prime lenders are not going bankrupt but because the media was making a big deal about the largest sub prime lender filing bankruptcy. I must have seen that same news event told at least 22 times.

Also one would think, after watching the t.v. News, that folks who bought homes and used a sub prime lender are all going into foreclosure. The facts and data clearly show some are but most are not. In fact, most customers who used sub prime services are making their payments just fine.

As a real estate agent I’ll tell you the truth and reality of the matter is that Subprime doesn’t mean people with horrible credit or only high risk people.

Sub prime means “the majority” of people in the United States. Facts show that the majority of folks in the U.S. Would, if they wanted to buy a house, have to go to a sub prime lender as their FICO scores are not meeting the requirements the banks have now.

In fact the reason the market shot up like it did was “because” of sub prime loans.

People that could never get a house were now qualifying and so you had buyers coming out of the woodwork.

Then as the market hit its peak the banks tightened their requirements and so you saw a slowing of the market.

Most folks think, incorrectly so, that what happened was the steps below.
Step 1. Banks had sub prime loans being offered.
Step 2. Buyers used these loans and it lowered the home values
Step 3. The market then had a crash

The above steps is what the media seems to be perpetuating but its just hogwash because in reality it is the subprime market that caused real estate values to sky rocket.

In reality here is what happened.
Step 1. Banks loosened up their requirements
Step 2. This put a flood of buyers, previously not able to buy, into the market place.
Step 3. With demand being more than the supply, it’s simple economics 101 what happened. Properties became more scarce and so prices shot up
Step 4. Buyers continued buying and prices started to slowly level off. From May of 2006 to about November 2006 they leveled off.
Step 5. Then here is what happened. The banks then tightened their requirements as they saw that values were leveling off. Banks don’t really want to lend money when property values are on the downward motion so they tighten up their qualifications to get very low risk buyers.

That’s what they did. Well that shut out most, not all, but most of the buyers in the pool waiting to buy. Now they couldn’t qualify. Even houses that were in escrow started falling out because the buyer now could not qualify.

That is the true facts of what happened. So when folks on the news or media open their mouths they really don’t know what they are talking about.

Ask me, I was there. I know.