This Article Is About The Roles Of Fannie Mae And Freddie Mac In The Mortgage Industry: What Are Roles Of Fannie Mae And Freddie Mac? The main role of both of these mortgage giants is to provide liquidity in the mortgage markets. Fannie Mae and Freddie Mac purchase mortgages from lenders. Lenders use their warehouse […]
This ARTICLE Is About Warehouse Line Of Credit Used By Mortgage Bankers: Understanding How Warehouse Line Of Credit Works In The Mortgage Process is important in understanding the overall mortgage loan process. Both mortgage bankers and mortgage brokers are licensed professionals. Loan officers who work at mortgage banking companies and mortgage broker companies need exactly […]
This Article Is About Types Of Wholesale Mortgage Lenders And Loan Program Guidelines: Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans. Gustan Cho Associates Mortgage Group has a hybrid mortgage business platform. GCA Mortgage are also mortgage bankers, correspondent lenders, and mortgage brokers. […]
This Article Is About Government Versus Conventional Mortgage Guidelines: Government Versus Conventional Mortgage Guidelines: Many homebuyers often get confused when shopping for a mortgage about the difference between government versus conventional loans. Government loans are for owner-occupant primary homes. You cannot finance second homes or investment properties with government mortgages. Conventional loans are not backed […]
California is one of the top states that got affected by the Great Recession of 2008. Many California residents lost their jobs, businesses, and homes. California is also the largest state in the continental United States and has one of the highest home prices.
Conventional Loans also referred to as Conforming Loans are not guaranteed and/or insured by the federal government. Conventional Loans need to conform to Fannie Mae and/or Freddie Mac Mortgage Lending Guidelines. The reason it needs to conform to Fannie/Freddie is that lenders sell conforming loans once its funds on the secondary market to Fannie Mae or Freddie Mac. If the loan does not conform to Fannie/Freddie Guidelines, Fannie/Freddie will not purchase them.
First-time homebuyers normally do not have to worry about reserves when buying a home. The only thing first-time homebuyers have to worry about is the down payment and closing costs. The closing costs are generally covered with the seller’s concession by the home seller. However, sellers’ concessions are difficult to get during a bidding war and/or during a hot hosuing market.
All mortgage loan programs require a maximum front debt-income ratio and back debt to income ratio. However, conventional loans do not require a front debt to income ratio. VA loans do not have a debt to income ratio requirements. Lenders can have lender over lender overlays on debt to income ratios.
There is no reason why a pre-approved borrower should ever get a last-minute mortgage denial by a mortgage underwriter. The main reason why borrowers get a last-minute mortgage denial is because the borrower was not properly qualified by the loan officer.