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October 1, 2008

On the Other Hand: Chase Pushing FHA Loans

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While the airwaves are abuzz with talk of how no one other than the most credit-worthy being able to get a mortgage now, we were surprised to have this pitch from Chase land in our Inbox a few minutes ago. Good to know the days of 3% down are still alive and well!




Posted by Brownstoner at 2:13 PM | Comments (12)
Categories: Market

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Yipppeeee! Sign me up

Posted by: Fast Freddy at October 1, 2008 2:32 PM

As someone who has just been declined by Chase last week I found this surprising.

Chase was willing to give the loan but we were declined by the mortgage insurance company for the pmi because the property was in 1) a disressed market 2) husband's score of 704 was too low.

The same thing happened with 2 other institutions:
Everyone is doing the bait and swith: they all say yes and decline us at the end of the process.

Posted by: formerPH at October 1, 2008 2:48 PM

I get these all the time from JPM Chase. I recently made a large withdrawal to pay my contractor and the branch manager asked me if I wanted to take out a home equity loan instead. I was floored.

Posted by: 11233 at October 1, 2008 2:51 PM

The home equity was available because you had a lot of cash on hand. You didn't need the credit.

If you didn't have the cash on hand and you needed the credit, it would have been a different thing.

Your cash on deposit acts as reserves for multiple loans. Chase would much rather give you a loan and retain the cash deposits rather than have you withdraw it.

Posted by: Ozymandius at October 1, 2008 3:13 PM

Disressed market + non-perfect credit = no home purchases for 10 years.

Who's hand should I shake for this?

Posted by: DizzyNYC at October 1, 2008 3:20 PM

Distressed market + non-perfect credit = no home purchases for 10 years.

Who's hand should I shake for this?

Posted by: DizzyNYC at October 1, 2008 3:20 PM

Ozy - of course they wanted to make money on the spread between my interest earned and their interest charged. No thanks on that. I'll keep earning the interest without paying the interest. I was just surprised that, in this climate, someone was actually looking to do a deal.

Posted by: 11233 at October 1, 2008 3:24 PM

Go and apply and you will fnd out what it takes to get the 3% down at the advertised rate. You had better had a great creidt score, the assets to back it up, the income to support it, and fully document all of it. Which of course is a good thing! Social promotions in the education system turned out illiterate high schoool grads. Social distribution of the credit system got us into this mess.

Posted by: ou812 at October 1, 2008 4:32 PM

Oh yeah, and the appraisal doesn't get jacked this time and the house had better be in good shape.

Posted by: ou812 at October 1, 2008 4:34 PM

"Everyone is doing the bait and swith: they all say yes and decline us at the end of the process."

More like gold panning: Dish, keep the gold remnants, discard the sand. Who knew that 704 would be sand? I'm a 750 but it looks like I have no choice but to wait this thing out.

Posted by: DOW8000SP800 at October 1, 2008 4:46 PM

> Social distribution of the credit system got us into this mess.

Right. I'm sure it had nothing to do with the securitization of "assets," massive overleveraging and a lack of regulatory oversight.

Posted by: SnarkSlope at October 1, 2008 4:46 PM

34 years ago, when I bought my house, FHA [and VA] mortgages were the only kinds most banks would consider. The trouble back then was that Brooklyn brownstones [and old houses, in general] did not meet the standards required for these loans. Has that changed?

Posted by: Bob Marvin at October 1, 2008 5:16 PM

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