Dejavù.  It feels like the end of 2007, maybe the first quarter of 2008.

We are a direct lender, meaning that we underwrite, approve and fund mortgage loans right here, in this office where I am sitting right now.  That is a very comfortable place to be in this uncertain lending environment.  I mean, when a loan comes in and it makes sense, we approve it, and that borrower gets into their home.  Nice.

That said, we do not service loans.  Meaning, we close the loan, usually with a commitment from a loan servicing company to pick that loan up and mail the monthly statements and collect the monthly payments.  Why does that matter?  Well, yesterday the news hit that Taylor, Bean & Whitaker can no longer buy or service FHA loans.

Bummer.  And based on having seen this scenario play out over and again over the past 3 years, I would say that TBW will likely be closing their doors for good within hours, or days.  And this affects us because it was one outlet that we had to sell our FHA loans, and other government loans such as VA and Rural Housing Loans.

It is too bad.  I, thankfully, have other outlets to sell FHA loans, so we go on business as usual in that sense. I only had TWB as an outlet to sell my VA loans, however.  So, although as of this writing TBW is still in business and still, supposedly, taking VA loans, all that is likely to change any time now.  Which means we are setting up to sell VA loans to other outlets for servicing.  Could be 2-3 weeks before we get there, but we will have that ability again soon.

Oh, and in case you were wondering about the inner workings of an Atlanta mortgage lender even further, we only need these outlets for government and niche loans.  For the standard, conventional 30 year and 15 year fixed loans, we sell those directly to Freddie Mac, and Freddie in turn finds the servicer for the loan.  So, we are good there.  Right?

There you have it.  More information than you ever thought you would need to know about the back office workings of a mortgage lender.

We have a lot of military bases scattered across Georgia.  Fort Benning down in Columbus and Fort McPherson here near Atlanta come to mind immediately; but there are more.  Even more than several bases is the great tradition of young Georgians volunteering to serve in the military and defend our country.  Most especially now, as world events are unstable and threats to our security are growing in scope and number.

So, right now, with all that happening and while we sit in the middle of a credit crisis in the country, one good thing has happened for Veterans all over with recent changes to the VA loan guidelines.

Now, if funds are tight and a veteran’s household needs to tap into their equity for debt consolidation, to remodel or repair the home, or for any other reason, they can now to a loan for up to 100% of the home’s value, minus the funding fee that every VA loan has.  In reality, you are looking at about 97% of the home’s value as cash out.

That’s big news considering the continually tightening criteria for conventional loans.  And, it will help a lot of past and present military personnel and their families around Georgia, during these tough economic times.

If I can help you with a refinance that will help your family, give me a call.  I would be honored.

Oh, the good old days.  Back when you could breath, and get 100% financing on a home, regardless of verifiable income or credit score.

Those days are gone….almost.

I get a lot of calls from buyers, especially first time home buyers, around Atlanta who have good credit and good income, but do not have money saved for a down payment.  What can they do?  Just wait?

Not necessarily.  There are two good options for 100% financing on a home loan, right here, in Atlanta.  And, a third option that I put together with creative ways to come up with the down payment with an FHA Loan.

1.  VA Loans:  Military personnel and veterans can still do 100% financing for up to $417,000 loan amounts around Atlanta, with a VA Loan.  Great financing, easy qualifying.

2.  USDA Loans.  This is not a piece of Grade A, Top Choice Beef. (more…)