Well, the difficult loan I mentioned in a past blog, where the buyers were putting 75% down and our loan-to-value was 25%, is funding tomorrow. I had mentioned that the debt-to-income ratios were high which created a potential problem. Fortunately, the loan was approved due to some “common sense underwriting.”

Also, it seems that the company for which I work is very interested in trying to make good loans by “common sense”  standards, even though the debt-t0-income ratios might be slightly out of guidelines. Using the “compensating factors” rule, such as buyers having substantial cash reserves, these loans are being approved–especially on purchases with at least 20% down (that is assuming the buyers have very good credit.)

And speaking of purchases, a client applied for a home loan with me 12 business days ago.  They were putting 30% down, had great employment and in short, this was a very clean deal!  Escrow had to close by the end of this month. You see, they had been to another lender and had gotten the complete runaround and were very unhappy. Well, we did it!  They are signing their loan documents tomorrow.

So believe it or not, if you need to close an escrow in hurry and the deal is squeaky clean, we can do it!  That is really great news!

Things (at least for now) are looking up!