Eugene Loan Guy

In a continuing effort to answer questions that effect many people that come into our website, I have picked out a new one. This question has to do with qualifying for a mortgage loan when you have had late payments on your mortgage in the past two years. Even though this question is from a different geographical area, I think it will probably concern people in the Eugene/Springfield, Lane County, Oregon.

Help Me Understand The New Mortgage Rules. Why Is It So Hard To Get A Loan?

We have tried to get a loan and have been turned down by fha, freddie mac and local banks,and the reason is that we were late on our old mortgage several times over the last 2 years after i lost my job.That i understand but what i cant understand is that was for a 1500.00 a month payment and our new loan will be around 300.00.We have 100,000 in cash from the sale of our home and are looking at homes outside the charlotte area for about 140,000 to 160,000 and can not find anyone to give us a loan.We have no car payments no credit card debt and my wife makes 48,000+ a year and a fica score of 585…. any body have a answer or know a mortgage person that can help?we have already went thru 3 brokers…HELP

It is interesting that this question came up, because I was just reading that in a recent Federal Reserve survey, things aren’t getting harder. This came from the AP:

WASHINGTON (AP) – A new Federal Reserve survey says most banks aren’t erecting new hurdles for people and businesses to get loans. It is one sign that credit problems are easing.

Even though banks aren’t imposing new restrictions on most loans, they aren’t ready to ease the tough loan standards put in place during the financial crisis. The Fed says: banks “have yet to unwind the considerable tightening that has occurred over the past two years.” (Emphasis added)

The big part of this announcement is that banks are not lessening the controls enacted after the mortgage meltdown. They just are getting any tighter and that is good news.  Now, in the case of this buyer, they got caught in a problem area that happened after the tightening. Their credit score is very low and they have late payments on their mortgage (that probably contributed to the low credit score.) In a perfect world, the bank would recognize the low loan to value would make this a safe loan. However, the lenders had put minimum FICO score requirements in place that cannot be overridden. The only way to get over this hurdle is to outlast it. Credit scores improve over time if payments are made on time. So, in this case, make your payments on time and wait.

If you have questions about what you need to do to qualify for a loan, contact me (Fred Chamberlin) at 541-342-7576/541-221-3455 cell or e-mail me. I know the programs and can help you get ready for that important purchase if you aren’t ready right now. Mortgage loans are my business and I know my business. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401.