Aaron’s Mortgage Update
Many of you may have been reading and hearing about all of the problems with the sub-prime lenders. First, not every lender is a sub-prime lender. This type of financing is typically associated with individuals who have credit scores of 620 or less. More often then not, it involves buyers who are looking to obtain 100% financing without having to document the income and assets that are stated on the loan application. The described represents 15% of the home buying community. The problem is that the 15% accounts for 40% of the loans presently in default. What is happening now in the lending industry is that ALL lenders are experiencing loan program and underwriting guideline changes. Unfortunately, many lenders who have focused on the sub-prime market are filing for bankruptcy or closing their doors. Many people attempting to purchase or buy a home have suddenly been told that the money is no longer available (even on approved loans).
Fortunately for SCME, while we offer this product, it has not been our main source of business. We have focused on what we call the “A” paper or “prime” market in addition to being an Alt-A lender. This encompasses over 250 of our very own loan programs. SCME offers FHA, VA and First-Time Home Buyer programs, as well.
If any of you are aware of family, friends and co-workers who have been caught up in all of this, please have them give me a call. The reality is that there are still loans available in this sector. Thirty year fixed rates are below 6%! At SCME, we control the process. We are the lender. We process, underwrite and fund your loan in our office. Be assured that any referral will be handled with the utmost care and confidence. Thank you for your time.
Author Contact Info:
Aaron Johnson
http://www.scmehomeloans.com
(858) 677-2796
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