@VALoanMaster wrote:
Hi jmhoops,
That's interesting considering the whole point behind the Home Ready program is to make home ownership affordable to moderate income borrowers. The PMI coverage required is lower & they eliminate a lot of the rate hits so the rate is usually lower compared to a standard conventional loan. Genrally if a lender isn't very familar with a program they will try & talk you out of it even if it's a better option for you.
Feel free to PM me for more info or help.
^^^This is so true. It is one of the reasons I think people should shop their mortgages. Instead of saying they don't have a particular program, they trash the program to the prospective borrower! Or they say the program is something else or has other attributes.
Also, the LO's that aren't helpful blame guidelines when the actual issue is a lender overlay. We see lots of examples of overlays being called "FHA guidelines" or "Fannie Guidelines" when they aren't and lenders jerking applicants around for many weeks or months because they don't want to do the loan, not because the loan can't be done.
It is similar to the issue by the poster now in this forum where her lender said that she can't do conventional unless her score is 700 (or greater) for a conventional loan and it is well known that it can be done at 680 and cost less than an FHA. It actually can be done at a lower score, but 680 is usually the breakpoint. So rather than the LO telling her it is a lender overlay, she says it is because of guidelines.
Or Chase not wanting to do FHA loans but rather than telling you that, they have you make application and turn you down in 30 days! It is a waste of time, effort and money.
It is a real shame that the LO's that do this are so prevelant in this business - but not all of them are that way. Find a LO that will work with you and if they can't do it because they don't have that program - admit it to the borrower. Then you know you have an honest LO.
