If you are a mortgage broker in today’s economy, you know how hard it is to get loans closed. The reason being is that a majority of the loan companies mainly dealt with sub-prime loans. Most of the sub-prime loan companies have gone out of business.
So is it still hopeless for mortgage brokers or are there still certain loans that can still make money in this economy? In this article, I want to take a look at three different loan types that today’s mortgage broker can utilize that do not involve sub-prime. A personal loan is another option. A personal loan is money that you receive from a bank and you can use that money to consolidate your mortgages and pay off your debts according to your financial condition.
FHA Loans
One non-sub-prime loan a mortgage broker can do is FHA. FHA loans usually have nothing to do with your credit score. Anyone can usually obtain this loan if they meet certain qualifications. Here are the qualifications for an individual to get this loan. You have to be a first time home buyer. You can not have bought a house with in the last five years. This is good for most young couples who are just getting started. You have to have paid your rent early or on time for at least 2 years and you can not be buying too many houses according to your income bracket. Most mortgage brokers that do these types of loans make a pretty hefty commission. The easiest way to find individuals for this type of loan is to target apartment complexes.
Reverse Mortgage
Reverse mortgages are also a great thing for loan officers in today’s economy. A reverse mortgage is when the mortgage company actually pays the person who owns the house monthly payments. These types of loans are usually good for the elderly crowd. The qualifications for this loan are simple. They basically have to own their home free and clear or have a lot of equity inside their home. Now with this particular loan, your credit score is a factor. Anyone with low credit scores will not be able to qualify for this loan. The best way to advertise for this type of loan is in the newspaper and print magazine.
Refinance
The last thing that loan officers can focus on refinances. These are some of the easiest loans to close. There are two types of refinances. There are a rate and term refinance and there are cash-out refinances. The main qualifications for this type of loan are a credit score and also equity in a property if it is a cash-out re-fi. The best way to get this type of loan is to go through old files with high rates and give them a call. Most of the business that you need is already in your file cabinet. You can also advertise in your local paper or print magazine to get new clients in.
There you have it. Three loans that mortgage brokers can still do in today’s economy. Go ahead and give it a try and I wish you all the success in your career.