Everyone wants to know when life is going to get back to normal, when we’ll be able to go out of our houses, when we’ll get back to work and when will real estate get back to normal.
Right now, the entire world has been disrupted. That is no truer than for those of us trying to make loans for people who want to purchase a home, or refinance their current home. Due to the coronavirus pandemic, our industry has been upended, and the myriad of funding programs once previously offered have been scaled back.
As previously reported, the number of loan products available have been reduced to conforming loans. Given the unprecedented unemployment rates, lenders are only approving loans for borrowers with uninterrupted employment. Conforming loans are sellable in bundles to Freddie Mac and Fannie Mae and are less risky for lenders. You can check your county to find the requirements of conforming loans in your area.
We are optimistic that things will return to normal after we get back to work. Maybe not immediately, but sooner than the typical time frame the mortgage industry takes to respond to the rest of the economy. And I think I can say with confidence that we’re all ready for it to get back to normal.