FHA vs Conventional? Is one really slower?

I had an interesting coversation with a client yesterday. The clients are making offers on properties and the listing agent made it clear that - FHA offers were not going to be accepted. It reminded me of a classic Blazing Saddles scene where everyone is accepted except for the Irish (rough language kids). Now at first glance this could be perceived as racist and I am sure some would make that arguement that it is. However, the truth is the uneducated Realtor makes that assumptions themselves.

The methaphor is clear, that there is a preconceived belief that FHA loans are harder and slower to close than a conventional loan. As an Origintor that does both, I can tell you that any loan can be difficult and it makes relatively no sense what product is necessarily chosen.

Of course there are exceptions, most notably condominiums. There are cases where a project is not HUD approved and as such cannot typically be financed with FHA funds.

But other than that, Realtor should educated themselves about the FHA process which is much more streamlined that in years past, and as a FHA approved lending institution, I have first hand knowledge that HUD or the local HOC's have little involvement in the FHA lending process once a lending institution is approved.

So stop limiting the real estate recovery and sell to FHA borrowers!

Support Small Business? History of Credit

You may not realize it but not only are you probably receiving poor service from your big bag of...I mean Big Bank, but you are also hurting small business (Big Bank Article). Smaller direct lenders and mortgage brokers can typically offer more attractice programs and pricing along with providing better overall service.

It sound strange to think a small company that may actually sell your loan to a big bank could offer terms better than that same big bank. But it's true. Smaller lenders and brokers have found ways to cut costs and create better operating efficiencies than their bigger counter-parts and in many cases pass those savings onto the consumer.

So next time you thing about a refinance - give the little guy a try!

Also, If you are interested in FICO scores... and how the hell they became so damn important - read this post.

Waiting Periods for Significant Credit Events

I received a good amount of positive feedback on my post regarding waiting periods after significant credit event such as BK, Foreclosure, Short Sales etc. So for those that missed it, please click the link and share with whomever you like. Please keep in mind many factors other than these affect the ability to receive an approval for a new home purchase and its best to consult a certified mortgage banker such as myself.

Waiting Periods for Significant Credit Events