Non Qualified Mortgage Products
This Article On Non Qualified Mortgage Products Was Written By Senior Writer Ron Granado
There has slowly been a recent trend creeping back into the market regarding non qualified mortgage products. These products are mortgage loans not sold to the government on the secondary market place, and hence not subject to certain debt to income criteria and federal mortgage lending guidelines
the government has imposed on mortgage lenders to adhere to or be forced to pay fines and or repurchase loans.
How Do Non Qualified Mortgage Products Work
Some of these mortgages are CRA related, in other words, they require the banks to do a certain number of loans in the community they are branched in. Those mortgage loans may have the following issues: recent bankruptcy, high debt to income due to the person being self employed or the spouse cannot be on the loan due to low credit scores. One other aggressive criteria returning is the ITIN program, which allows people who are undocumented but pay taxes through a social given to them for filing purposes(usually begins with a 9 or a 5). The people who met this criteria may be able to buy with a decent down payment. Rates on all mortgages are higher than standard market, and some may be on ARM, not 30 year fixed rates. It does show Wall Street and community lending is making a comeback.
Drawbacks Of Non Qualified Mortgage Products
Some potential pitfalls to the mortgage lending market include but not limited to: rising cost of lending due to compliance. This will rise the cost to the borrower, and slow the process down for them. The CFPB(consumer financial protection bureau) answers to no one, they are heavily funded through fines and punishments they impose, and they reward whistle blowers. Spreads on bonds are very low right now, and rates have benefited as a result. Fence sitters should take comfort in borrowing money, but be aware low inventory will continue to raise prices higher than normal, so buy now before everyone else jumps in come warmer weather.
About The Author: Ron Granado
Ron Granado is a senior writer for Gustan Cho Associates Commercial And Residential Mortgage Information Center and a veteran title expert. Ron Granado is associated with Plymouth Title Guaranty Corporation based in Oak Brook, Illinois and is an expert in all areas of commercial and residential title policies and how title work. Ron Granado is a consultant to many real estate attorneys, real estate agents, mortgage professionals, mortgage lenders, banks, credit unions, and consumers. If you have any questions on property title or need the best title officer to represent your real estate transaction, contact Ron Granado on the number below. We will forward to the many articles Ron Granado will be publishing in the coming weeks. Stay tuned!!!