With so many changes in the market due to the COVID-19 pandemic you may wonder, what has changed in the Mortgage world? Mortgages are still going strong, and rates are great! Many people are trying to take advantage of these low rates and refinance.
What does that mean for our purchase business? At Fairway Mortgage purchase business comes first, so although we are helping people refinance we are only two days in underwriting or less, for your client’s purchase. We can underwrite people with credit scores as low as 640 on purchase transactions.
There has been some tightening due to liquidity issues from larger institutions. For example Chase Bank tightened its credit policy to 700 fico score for all loan products including purchase loans with a minimum of 20% down. This means any lender that has a credit line with chase will be impacted due to liquidity tightening. Here at Fairway Mortgage, we set our minimum Fico score requirement at 680, for all refinances, to make sure we still have sufficient liquidity if any other large institutions follow suit with tighter Fico score requirements. Other loans that are on hold are Jumbo loans, Down Payment Assistance loans and Non-QM loans (i.e. bank statement loans or lower documentation loans).
This is one of the best times to get a mortgage in recent history. We have seen rates decrease, so that could mean your buyers have more buying power right now. NAR chief Economist Lawrence Yun believes with few listings in what is already a house shortage environment, home prices are likely to hold steady. Yun expects a strong rebound once the quarantine is lifted. Our opinion is smart home buyers should take the leap into home ownership right now.
We all look around every day and appreciate the wonderful Verde Valley as our home, and it’s easy to see why so many would like to relocate here and also call our area home. It is easy to get overwhelmed with the news these days, so if you have any particular questions about any circumstance affecting you or your buyer, we would be happy to help. We are open and working from home if you would like to discuss any questions over the phone or through a fun zoom meeting we would be happy to speak with you. Conventional, FHA, VA, HELOCs and USDA loans are still going strong! We support our local community and are here to help. We look forward to seeing everyone again soon.
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