Some Good Mortgage News
We’ve got some good news about the mortgage underwriting guidelines loosening up. First, however, I’d like to extend a great big Thank You to all the people who wrote or called us in support of last week’s email, Riots & Real Estate. It is heartwarming and fills me with hope knowing that so many of you are as discouraged as we are with the current state of affairs in this country we love so much.
Here is the good mortgage news.
Effective immediately, we are once again providing down payment assistance loans through the Colorado Housing and Finance Authority (CHFA). For a couple of months, the secondary market, which is the industry term for the investors who purchase mortgages from lenders, had no appetite for down payment assistance loans. If investors aren’t buying a particular type of loan because they perceive it to be too risky (meaning they aren’t making enough money on it because the interest rates are so low), lenders pull back from selling those loans.
Now, as the economy slowly starts to get back on track, investors are once again interested in buying these loans from lenders, so we are able to offer them to our clients.
For those of you who are not familiar with CHFA loans, they are either conventional or FHA loans that come with a second, interest-free, no monthly payment loan that is used to cover your down payment. You still need to pay for the closing costs, but the cash outlay is much lower with a CHFA loan that it is with a regular loan. If you need help covering the closing costs, you can either ask the seller to pay them for you, or you can get a gift from a relative to pay them.
For information about CHFA loans, or any other type of loan, or if you need a mortgage pre-approval to purchase a house or refinance an existing mortgage, contact us today.