As a real estate agent you need to know the products out there for the buyer. I mean loan products. Everyone and anyone could buy a home during the heyday! Now there are really only a few loan programs:
- The government regulated (Fannie Mae/Freddie Mac, FHA, VA)
- The In-House loans (credit unions and local banks)
- Lastly “Hard Money”
The government regulated loans such as FHA are regulated – pretty heavily. The banks and underwriters are worried they may approve a loan incorrectly and get pounced on by the regulators. This is likely to relax in the coming months and years, though there are some shrewd enough to make such loans appear stronger in offers today.
More in-house loans are being done by credit unions and banks and can appear stronger in offers. These are not regularly done by Fannie/Freddie or FHA or VA. They are irregular loans such as lots of acreage, farms, etc. Local knowledge is really needed for these types of loans.
Hard money is something that has come into its own. There is little bureaucracy, deals can be approved and closed in just a few days, there’s no red tape as to qualifications and rates are improving with the hot real estate market. Basically considered “all cash”, such loans are extra strong and can be used to purchase or refinance dump property, bad credit borrower, irregular income borrower, large cash out borrower, Bridge loans, etc.
As you have seen, the housing market values are only going up, but still the current prices are too good to miss out on…so realtors now, more than ever, need to be extra shrewd when helping Buyers’ submit strong offers and also match them with a really good Lender who is extra shrewd.
And to that I say, “Thank goodness for shrewd agents and lenders!”