State of our lending availability for home loans during COVID-19
2020 has been a wild year to say the least! In March, April, May, and June of this year the home lending industry, tightened their belts to protect themselves from the unknown financial damage that the pandemic could cause. Lenders began tightening credit conditions by removing programs, increasing credit score standards and borrower underwriting standards. These tightening conditions affected all spectrum's of the industry in both residential and commercial, from small loans to large loans from being approved. Still while this happened, interest rates dropped, available real estate supply dropped, and pent up demand from buyers increased causing home prices to continue to rise.
Now we are in July, most states have begun reopening slowly, unemployment while still high has dropped some, interest rates are very low, and the supply of available homes for sale have gotten even less available. Lot's of federal stimulus has helped the industry and more of it looks to be coming. This has led the home lending industry to begin to loosen their belts again. Not back to where we were before the pandemic, but it is a step in the right direction. Mortgage applications are increasing with these low rates. Future increases in infections and states going back to lock-down mode, or if the Federal government suddenly stops their stimulus plan is the only way we see the lending industry going backwards again this year.
In the mean time, these are the loans we are able to offer you today. Please understand that due to so many unknown factors during this period, these options could change again.
Please call us at 772-877-2042 so we can discuss your housing purchase or refinance goals. You can also easily apply online and for free on our website by just clicking on this link:
https://www.mtgspecialists.com/loan-application
Traditional financing:
Conventional: You will need a 660 credit score.
FHA, VA, USDA: You will need a 640 credit score.
Refinance: Only rate and terms change of the refinance loan is available OR a cash-out debt consolidation refinance only is available. (This means the cash-out money will go directly to debtors for payoffs, NOT in customers hands (bank accounts). (So regular cash-out refinances where you can do anything with the money after closing are not being offered right now).
Jumbo Loans: Currently we no longer have these loans available due to COVID-19 loan standards tightening, these types of loans have not come back available for us to offer you right now. You may be able to find these at your local bank only, maybe.
Non-Traditional financing:
Starting to come back but on a VERY case-by-case basis. As always still have higher interest rates and fees than traditional lending options. But an option for our self-employed customers, low credit scores, etc.
Private Mortgages:
Still available, but again case-by-case basis.
Commercial Mortgages:
We do have a local bank that is allowing us to write quality commercial loan options for you. They are on a case-by-case basis by specific property. So if you have a commercial property that you have interest in, please call us so we can review the specific property and its potential loan options available for you.
