I looked at Taylor Morrison homes a couple of weeks ago and I searched online for information on their in-house financing. From the research I did, technically they didn't/don't have in-house financing at this moment. They're currently using Met Life for the financing, but in Met Life is moving away from mortgage financing. So in March of this year Taylor Morrison is going with another bank; not sure which one. Bc TM is a correspondent lender, they'll have to find another lender that would buy the loans TM processes. But that is more behind the scenes stuff. I will say that from what I've read, it's been tougher for correspondent lenders to sell the loans they package to banks, especially banks that will not take high and medium risk loans. Not all in-house lending is correspondent lending as some in-house lenders have their reserves in which they fund they loans they make.
Starting Score: EX 575/TU 534/EQ 570
@getting2work wrote:
So you're saying right now it might be more difficult to get the loan through Taylor Morrison because they are a correspondent lender? I hope it's not too difficult we are getting 10k in credits.
Not saying that. TM will approve your loan if you met there requirements. Whom they sell the loan to is another issue. You'll see that on your GFE. Someone will buy the group of loans that TM will try to sell. There's Fannie Mae and the like. But a lot of these banks don't want to are taking on alot of high to medium risk loans. Wells Fargo I believe is one of the largest buyers and the good news is that they haven't indicated any intent to pull back. However, Citigroup has indicated that they'll pull back.
As I said, this is all behinds the curtains type of stuff that the lender handles.
We are buying a brand new Lennar home and we are going through their in house lender (UAMC) for financing. We are doing an FHA loan and we are closing today. However, we also had to get approval from CHFA (our housing authority) because we are doing a special loan program through them that allows us to roll 3% of our downpayment into a second mortgage. So we only had to come up with 0.5% down which was covered by our earnest money. CHFA will be buying the loan from UAMC and servicing it for the life of the loan. If we weren't doing a CHFA loan program, my LO said the loan would be sold to JP Morgan Chase or Wells Fargo. UAMC's credit score requirements are a little stricter...the min mid fico is 660 versus 640 from a Broker I was originally going to do the loan through. We switched to UAMC because we are getting $15,500 in lender credits/incentives. $5,000 off the price of the home plus all closing costs paid and a $500 credit at closing to offset some of the costs for a Radon Mitigation System as the home has high Radon levels (12 pCi/L),
I think UAMC is really only more strict on credit score and not anything else. I have an unpaid collection from 2009 on my credit report in the amount of $1100 and it did not have to be paid. I just had to write an LOE for it. I also still have a Chapter 7 reporting on my credit report that will be removed in Aug as it was filed in 2003. I also filed a Chapter 13 in 2005 that has been fully paid, discharged, and removed from my credit reports in Oct 2012. The UW wanted info about BOTH bankruptcies and a LOE for both but I was approved with flying colors. They did tell me if my score was lower, the unpaid collection that I have would have needed to be paid but that's it! So I think you have a good chance of approval with the Builder's lender. My qualifying mid fico score was 703.
The experience was a lot less personal than with a Broker and I didn't like that. I met my LO once for Desktop Underwriting and that is it. My loan processor is in Arizona so everything was done by phone, email and fax. I put down earnest money to hold the property on 1/2. Went on contract on 1/5. And was cleared to close on 2/5. So it took a full month and we were hoping for a quicker turnaround time as we are under very short time constraints but it all worked out! :-)
I think UAMC is really only more strict on credit score and not anything else. I have an unpaid collection from 2009 on my credit report in the amount of $1100 and it did not have to be paid. I just had to write an LOE for it. I also still have a Chapter 7 reporting on my credit report that will be removed in Aug as it was filed in 2003. I also filed a Chapter 13 in 2005 that has been fully paid, discharged, and removed from my credit reports in Oct 2012. The UW wanted info about BOTH bankruptcies and a LOE for both but I was approved with flying colors. They did tell me if my score was lower, the unpaid collection that I have would have needed to be paid but that's it! So I think you have a good chance of approval with the Builder's lender. My qualifying mid fico score was 703.
The experience was a lot less personal than with a Broker and I didn't like that. I met my LO once for Desktop Underwriting and that is it. My loan processor is in Arizona so everything was done by phone, email and fax. I put down earnest money to hold the property on 1/2. Went on contract on 1/5. And was cleared to close on 2/5. So it took a full month and we were hoping for a quicker turnaround time as we are under very short time constraints but it all worked out! :-)
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! 
Last App: 4/5/13 Gardening until July 2014