Despite historically low interest rates, many financial institutions have tightened lending standards, making it harder to obtain a mortgage for a lot of people who had their eyes set on homeownership in the near future. This blog post will discuss why that is and what we’re doing to navigate these times of uncertainty while paving the way for our customers to finance a home of their own, even amidst the coronavirus pandemic.

Why It May Be Tougher to Get A Mortgage 

COVID-19 sent markets across the globe into a tailspin as unemployment rises and uncertainty looms. This led our nation’s lenders to become increasingly risk-averse as the possibility of forbearance and mortgage defaults became more likely. The response was to tighten the restrictions on loan programs. This was done, in part, by requiring higher credit scores and down payments than would have previously been necessary. Some programs, such as those that aren’t backed by Government-Sponsored Enterprises (GSEs) like Fannie Mae®, have been temporarily scrapped altogether. Along with difficulties in originating mortgages, the underwriting guidelines by the GSEs have changed as well. With more stringent guidelines, it’s understandable to become discouraged at the thought of obtaining a mortgage. Silverton has worked tirelessly to provide new and creative options to clear the way combined with some of our tried and true originals. 

How We’re Adjusting to Help Our Borrowers 

While we have our unique tried-and-true programs that you can’t find just anywhere, such as our Silverton Secure+ that allows you to secure a mortgage before you even find a property and down payment assistance programs to help alleviate the upfront costs of buying a home, we’ve rolled out several new programs designed to keep homeownership within reach for those who want it.  

Unlike many other lenders, we’re continuing to offer FHA and VA loans with a 600 minimum credit score. This gives potential borrowers more options as they explore which program is right for them. For those who choose to take advantage of their VA status with Silverton, they’ll also enjoy the benefit of no lender fees, which means up to $1,295 in savings for our nation’s veterans.  

We understand that millions of people across America are in need of affordable housing along with flexible financing. With our MH Advantage® program, borrowers have the option to purchase both traditional manufactured homes and CrossModTM homes, which are a hybrid of site-build and manufactured homes and offer improved interior and exterior features. This translates to a beautiful home with a competitive mortgage. If you’re interested in making improvements to a home you’re looking to purchase or already own, our Construction-Permanent Rehab Loan may be the perfect fit. It has two phases, the renovation/build phase, and the permanent phase. Specifically, once home improvements are complete, your loan is converted to the permanent phase of the mortgage. This means one loan and one closing, saving you time and money.  

What It All Means for You 

By working to maintain a clear path to homeownership for our borrowers, it is our hope that the current climate doesn’t deter those who are serious about buying a home of their own. The mortgage industry has changed in response to COVID-19, but it doesn’t mean that your goals aren’t attainable. At Silverton, we’re committed to finding ways to work around the current restrictions and still give our customers the same great service that we always have. Our loan originators are ready to sit with you and review your circumstances in an effort to help you get to the closing table. With a consistent 98% satisfaction rating from our customers, we’re dedicated to making the mortgage process as smooth and stress-free as possible, just as we’ve always done. If you’d like to learn more about what programs we offer, and which may work best for you contact one of our loan originators, and let’s start a conversation.  

All loans subject to credit approval.   

CrossMod™ is the trademark of the Manufactured Housing Institute.  

MH Advantage® and Fannie Mae ® are the trademarks of the Federal National Mortgage Association.   

Silverton Mortgage is authorized to originate FHA and VA loans, but is not an agent of, or affiliated with, the U.S. Government.