Twice monthly, I write a column for the HSH.com website. HSH provides mortgage statistics and insight to businesses and individuals. One of my recent column will strike a chord with buyers and homeowners around the country.
Whether you've been denied a mortgage for the HARP program; the FHA Streamline Refinance program; the VA IRRRL program; the USDA mortgage program; or any Fannie Mae or Freddie Mac loan, get back on the horse.
You can still get your loan approved.
The article is titled "Don't Let One Denial Stop You". It's about lenders and mortgage guidelines. It reviews how bank often make their own mortgage guidelines standards, above-and-beyond what Fannie Mae and Freddie Mac, the FHA, the VA and HUD will allow.
The technical term for these tougher, more stringent mortgage standards is "investor overlay". Investor overlays are why your loan can be denied by one lender, but approved with flying colors with another.
An excerpt for the article :
Has your loan been denied by your lender? If it's because of investor overlays, you might be approved by applying to bank number two or bank number three. Don't let that first denial discourage you.
The piece talks about common investor overlays in areas such as income calculation, credit score requirements and "Days Off MLS". It even also talks about entire programs that banks won't offer because of overlay such as the 5-10 Properties Program and the HARP Refinance program.
A Mortgage Rate You Can Count On
Banks apply tens of overlays to your loan. They can change your loan approval in unexpected ways -- sometimes resulting in a "turn down". It's not you, it's them.
If your initial mortgage application was denied by a lender, give it one more try somewhere else. You can't know until you try.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Barry L. Systems Analyst
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Mohammed Y. Retired
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2015 Conforming & FHA Loan Limits
Mortgage loan limits for every U.S. county,
as published by Fannie Mae & Freddie Mac, and the FHA.