Isn't this the craziest thing?

Is this the craziest thing?
Banks are doing the dumbest things lately.
For example. I have a borrower who has $30,000 saved up. He wants to use some of it for a down payment. But he can't qualify for the program. You see the guidelines for the program say they will only loan him 95% if only he doesn't have any money. He has to show nothing and that he is going to borrow the money from somebody else. No isn't that dumb? They won't do a home loan for somebody that has saved the money but, will loan it to somebody that hasn't.

Another example is the My community program. They will loan 95% if you are under a certain income. But my borrower makes too much money. He makes over $70,000 a year. The guidelines say he can't fit into that program, believe it not he makes too much money!!! No isn't that dumb, they will put somebody into a loan if they make a little bit of money. They will stretch their finances, but NO DON'T EVER LOAN MONEY TO SOMEBODY THAT MAKES TO MUCH EACH YEAR. Now isn't that dumb.

Another example is my buyer wants to buy a house for $181,250 and put 5% down. We got such a great deal that other comparable homes in the were selling for more. The home was brand new, and appraised for more than the selling price. It appraised for $190,000. 4.6% more than the purchase price. You are going to love this one. The bank has to deduct 5% from the loan amount because Detroit is a declining market. The appraiser did his job right and even though the bank is letting other appraisals slide. (Everybody knows Detroit and other areas around the country are declining markets)

So they will only loan 90% on a person that has money saved, has a down payment, makes good money, has great credit scores, and the house value is greater than the purchase price.
But they will loan 95% to people that make less, have less saved and No money for a down payment. ISN'T THAT DUMB.... Try explaining this whole scenario to the guy that was turned down. I don't understand it, how can the borrower.

And we wonder why there are so many foreclosures around the country. They make it hard for a good credit risk person to get a loan and loan the money out to higher credit risks. You have to love it.

To top it off I sent this to a bank official that denied this loan and wouldn't do it.... He laughed about it. He basically said rules are rules. That's why we survive.

I sent the loan to a different bank first thing this morning and got an approval for the loan. Quicker service, less grief, and nicer. My client is happier with this new bank and their ability to give him the 95%.
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