Three Loans for Today's Mortgage Broker

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. Lets begin.

FHA Loans

One non sub-prime loan a mortgage broker can do are 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 to much house according to your income bracket. Most mortgage brokers that do these type of loans make a pretty hefty commission. The easiest way to find individuals for these type of loans 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 type 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 are refinances. These are some of the easiest loans to close. There are two type of refinances. There is a rate and term refinance and there are cash out refinances. The main qualifications for this type of loan is credit score and also equity in a property if it is a cash out re-fi. The best way to get these type of loans are to go through old files with high rates and give them a call. Most of the business that you need are 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.