http://lenderimplode.com/ is tracking the ‘who’s still standing’ amongst subprime lenders
The Alt-A market is feeling some of the same pressures…. Loan guidelines are changing daily….. so much so that it is hard to keep up with what can and cannot be done.
The good news is…. the ‘Full-Doc’ loans are ok… the people who can verify income and a little money in the bank have much less foreclosure rates.
But, the ‘Stated-Income’, ‘Stated-Assets’, ‘No-Doc’, ect loans are the ones that can no longer get 100% financing. It is even harder if the loan is for a non-owner occupied property. So, if you cannot verify income and assets, you should be able to get a hold of enough cash for 5% -10% down payment.
The market is changing…. people may have to downsize on their dream homes and put a little money down. But the market will come back some once the foreclosure rate comes back.
Tom Burris
www.DallasLoanGuy.com
We have seen the writing on the wall. Now, the hammer has dropped. Many subprime lenders tightening up their loan guidelines and 100% financing for subprime borrowers is getting harder to find.
How should Real Estate agents respond?
1. Align yourself with loan officers who have access to FHA/My Community loans.
2. Ask your lender if they have access to the ‘Community Reinvestment’ loans offered by the large banks.
3. Become the trusted advisor. If you have a client with credit challenges, help them get educated about credit. A good starting point would be having them preview my free e-book titled “About Credit’. http://www.dallasloanguy.com/docs/about_credit.pdf . Although this is just a start, it will give your clients a good foundation of knowledge to build upon.
4. Beware of the credit repair companies…. who are more interested in collecting fees for credit repair than they are in DOING credit repair.
5. Be mindful of where your referrals are coming from. You may want to reconsider how much of your marketing dollars go to the referral sources that send you subprime business.
6. Talk to your lender. Don’t be caught off guard by tightening loan guidelines. Get the clients prequalified as early as possible.
The world is not coming to an end…. but there are going to be some clients who could qualify last year that will not be able to get a loan this year. Don’t let this be an excuse for a lack of business….. arm yourself with the tools to weather the changes.
http://www.dallasloanguy.com/