Overlays: Your Worst Enemy

What good are leads if they cannot get approved for a mortgage?

Did you know FHA allows debt-to-income ratios (DTI) above 50%? Many lenders cap their loans’ DTI to 50%, and that is fine. The troubling part is that it is too common for a loan officer to say “FHA” does not allow the DTI, versus the correct statement of “the lender I represent” does not allow that DTI.

In short, a denial at one lender does not equal a denial at the next.

An Overlay Is Your Worst Enemy

Are your buyers getting turned down at pre-approval or during the loan process due to a lender’s overlay (click here for more on overlays)? These are so common that most realtors do not realize the amount of deals they lose as a result of overlays.

An overlay can be a credit score, flip transaction, debt to income, times since a short sale and more. By having more underwriting outlets, we collectively have no overlays. This allows you to sell more without wondering if an otherwise qualified buyer was denied due to the wrong lender selection.

 A Couple Specific Examples of No Overlays

1.         No debt-to-income restrictions – VA can be up to 59%
2.         Minimum credit scores are 550 for FHA

If you want to learn more about how our “no overlay” system can help you, then give us a call or fill out the short form below. It’s your first step to selling more homes.

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