>> PURCHASES or REFINANCES

In this every changing market we are working in right now, it is the non-conforming sector that is experiencing the lion's share of the turmoil and changes.  Investors are having to re-evaluate all of the risk factors that are associated with these programs and reprice everything accordingly.  In some case, programs are being discontinued. 

This is being caused by the delinquency and foreclosure rates associated with all of the high risk programs that we have seen over the past 3-4 years.  These programs have included Option ARMS (Negative Am programs), Interest-Only payment programs, High LTV programs for Stated Income Borrowers and more. 

Investors have been betting on property values continuing their past appreciation levels year over year, which has not been happening of late.  Property values in most markets have actually experienced a correction or decrease in values. This combined with rising ARM renewals have increased payments for most mortgage holders and have made it hard for them to make their payments or sell their properties.

The end result of all of this is the investment brokers have to price in additional risk on these types of loans. Translation, the larger lenders that are holding mortgages in their pipelines are now being offered below par pricing for notes that have already closed on instead of above par pricing.  So if XYZ Company has $300 million they need to sell on the secondary market and $100 million is non-conforming notes, instead of receiving $101 million as they have in the past years/months, they are being offered $97 million or something similar.  Most companies can not afford this hit and are going out of business thus creating this liquidity crunch.  With this, those investors that are strong enough to withstand this short-term crisis are pulling programs and increasing rates to make up for some of this added risk based pricing.

First Choice Financial Corp continues to offer non-conforming and alternative credit programs.  In some cases, max ltv's have been reduced, credit score requirements have been raised and/or interest rates are higher.

Pre-Approvals can take up to 24-48 Hours.