According to a HousingWire updated dated March 14. 2019, the nation’s major banks are continuing to walk away from FHA-backed mortgages, according to the Urban Institute’s Housing Finance Policy Center. (source: February Chartbook.)
And not only are nonbanks stepping in to take over the space, overall, they are continuing to ease access to credit. We at McLean Mortgage Corp. are certainly seeing that same trend echo throughout our Spring Market surge. Are you or have you considered using an FHA loan for your home purchase? We would love to hear from you and help you answer any questions. Call 866-545-6879 to talk with one of our loan experts.
“Bank and nonbank FICO scores reveal that nonbanks brought the Agency median FICO down four points to 726 between November 2018 and January 2019,” the Urban Institute said in an email.
The average agency FICO score for banks is high at 745, compared to 713 at nonbank lending institutions. Both show FICO requirements on the way down, but it's more pronounced at the nonbanks. Why?
Nonbanks are also more accommodating for increasing debt-to-income ratios, even as mortgage rates overall inch upward, driving up monthly mortgage payments for borrowers.
For many borrowers, old or new, this may be good news as you could find that your ability to secure a mortgage may be a bit easier. Additionally, at McLean Mortgage Corp., we don’t have a hard-stop at a 713 FICO score. We work with borrowers from all walks of life with our main focus directed at finding the best loan terms for each unique person and situation.
In a day and age full of automation, where even your purchasing power is decided by an algorithm, it is reassuring to know that you have the power of people at your fingertips. We know, now more than ever, there is a balance between the convenience of a streamlined digital experience and the reassurance of working with a trusted professional who understands your needs.
Just this week, Ellie Mae’s 2019 Borrower Insights Survey suggests borrowers still crave human interaction throughout a digitally-driven loan origination process.
“Borrowers continue to show a strong desire for more options for interaction and communication with their lender, as frequent communication across multiple channels between lenders and borrowers has increased by approximately 20% for those who took out loans within the last year, when compared to borrowers who obtained their loan in the last three to five years,” Ellie Mae writes.
Interestingly, the survey discovered communication is important for younger homebuyers, who often tend to be entering the housing market for the first time.
“Direct communication with a lender can be especially important to younger borrowers and those who are applying for a mortgage for the first time, as they can have their questions answered and feel reassured that the loan process is on track in real-time,” Ellie Mae continued.
That all being said, McLean Mortgage Corp., has the digital dashboard to create a painless process for you. We have the powerful professionals to explore all options and provide you with the best mortgage solutions. We have the flexibility to work with borrowers who may be starting over all the way through to borrowers who are moving up to their ultimate dream home. So, what are you waiting for?