The phrase “think outside the box” certainly is relevant in the real estate industry these days.
For the last 10+ years, mortgage lending has essentially lived “in the box” from a guidelines standpoint and overall approach to risk.
The risk tolerance pendulum is now swinging back the other way.
It won’t be long before YOUR clients are asking about these new products!
Think outside the Government insured Lending box
Forget “qualified mortgages”. You know all about Fannie, Freddie & HUD products.
Here are a few of the new eye-popping programs lenders are rolling out to the market:
- 95% No MI Jumbo
- Bank Statement Programs
- Asset depletion programs (qualify on the value of depleting stocks and bonds without having current income)
- No Ratio on Investment Property
- More than 10 properties owned
- Foreign National
- Mixed use (commercial and residential)
- Non-warrantable Condo, Condo Tel
- Investor Loans down to 620 credit
Many of these programs have potentially big uses here in metro New Orleans. We’ve already seen a big interest in the jumbo product, bank statement and investor programs.
How do you see these new programs impacting your business?
Exercising a Healthy Dose of Caution
An entrance of new lending products to the market doesn’t mean we want to build a business around risky lending practices.
Rather, my suggestion would be that we take the time to understand the new programs and evaluate which ones make sense for us as long-term real estate professionals.
These products are creating a serious buzz in the industry, and the last thing you want is to get blindsided by a potential buyer asking about these products before you know the details.
Let’s schedule a time to talk and go over the changes together. I guarantee you it will be time well spent!