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Is getting a loan through a savings bank different than through a mortgage company?

Just curious if savings banks have to follow the FHA/Fannie Mae guidelines too, or if they can make local decisions.  My three years after short sale is up in August of 2012, but was hoping to find someone that might be willing to do a loan in May of 2012, as our lease will be up then and the owner of the property is hesitant to do month to month. 
  • December 02 2011 - Kansas City
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Answers (5)

What you are asking for is a portfolio lender. Portfolio lenders use common sense underwriting and will do exceptions. But when it comes to a previous short sale, foreclosure or BK their guidelines are more stringent than those you mentioned.

Happy funding, Rudi
  • December 03 2011
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When we are representing Buyers, we give our clients 3 lenders whom we trust.  They are free to choose whom they like, theirs or others they want.  That said, we do tell our Buyers that one lender is a mutual savings bank that portfolios certain loans.

  • December 03 2011
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After working with so many clients, I have found a difference.  Seems like the majority of clients are happier with a local lender Vs a big box bank.  Seems like the performance, response, and keeping to what they promise are more in the local lender's favor.  Every one has an opinion, after working with so many clients, seeing the different lending options first hand, I would work with a local lender.
Good luck.

Spirit
  • December 03 2011
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Community banks often have portfolio products, which means that they service and fund their own loans and thus can be more flexible with who they approve.

Yes, when they intend to resell the loan they will need to follow fannie/freddie guidelines. 

However, I have obtained loans from community banks (which offered a portfolio product) personally, and have directed clients to do so, when that was the best option. 
  • December 03 2011
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Savings banks, credit unions, community banks, etc can make loans and not underwrite to typical gov't loan guidelines. That is not common as they may want to sell loans at some time in the future.
You will need to do the leg work to find a source.  You can start your inquiry with "do you underwrite according to Fannie/Freddie guidelines" when you make contact with mortgage loan dept.
  • December 03 2011
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