Minnesota Mortgage Blog

Mortgage backed securities have fallen out of favor on Wall Street!

Investors once thought these securities were safe with predictable returns…not so! Over the last 5 to 6 years the lenders grossly under estimated their loan risks and exposures. (This created the 100% interest only, non-owner occupied loan!) As long as investors are reluctant to buy mortgage backed securities due to perceived risks, the cycle of funds stops and lending comes to a halt.

To regain investor confidence, lenders have raised their lending criteria significantly creating a new pool of higher quality loans with greater acceptance on Wall Street. Raising FICO score requirements and increasing down payment requirements is just a couple of ways they are improving loan quality.

The pendulum is in constant motion in this industry; presently, it has swung far to the conservative side. As market conditions and confidence improves it will swing to the middle and lending policies will ease again!

Feel free to email me your mortgage scenarios for quick answers for all your mortgage questions!

Joe Cook

President

Water Street Mortgage Corporation

Direct: 612-701-9927 Toll Free: 1-800-444-8914

email: joecook@waterstreetmortgage.com

Yes it is true.  Water Street Mortgage Corporation is again offering 100% Financing.

FHA backed loans allow for grant or gift funds to create the 3% down payment requirement! Many programs exist for the 3% grant or gift money but the simplest I’ve found is The Nehemiah Program.

The Nehemiah Program is truly a “No strings attached” deal! No repayment, No recapture period, No minimum length of ownership, Not just for first time buyers!

How does it work? FHA allows for seller paid closing costs up to 6%. The Seller agrees to cover 6% of the buyer’s expenses. 3% covers the down payment and the other 3% cover their closing costs and prepaid expenses! As long at the buyer qualifies for a FHA loan, they automatically qualify for the Nehemiah program; it’s really that simple!

Other benefits! Often, the buyer is short on cash or cash reserves. With this program they create cash reserves by keeping their cash in their bank account…. making it easier to qualify for the FHA loan! How great is that!

Use this program as a great opportunity to make your client’s dreams come true…a new home!

Feel free to email me your mortgage scenarios for quick answers for all your mortgage questions!

Thanks

Joe Cook

President

Water Street Mortgage Corporation

Direct: 612-701-9927 Toll Free: 1-800-444-8914

email: joecook@waterstreetmortgage.com