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Originally Posted by BlaqK20
Thanks, that was very detailed. What do you mean by "b/c"?
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B/C is just another Tier of Mortage lending. There are Four Main Categories -
Conforming - Purchaseable by Fannie Mae or Freddie Mac - most large servicers specialize mostly in these loans. ABN-AMRO, Chase, Countrywide, are all examples of these lenders.
Portfolio - These loans are specifically held by the institution that lends the funds. The advantage of portfolio products is that often they allow for specific expections to be made - often considered "niche" products.
B/C - B/C Loans are typically for poor/no credit, but can also be used in specific circumstances where someone would qualify for a conforming loan, but for whatever reason B/C may suit them better. An example would be a 100% loan with no private mortage insurance. B/C loans typically take all the rules of conforming loans and turn them upside down - in exchange for higher rates or poorer terms.
Government - These loans (while there are exceptions) are typically used when someone wouldn't qualify for anything else. The most common government loans are WHEDA, VA, and FHA. These are the most regulated loans in the industry, and must adhere to more specific guidelines than the others. An example is handrailings - if a home does not have a handrailing in ANY area there is more than one step, it is not able to be used in conjunction with a FHA (Federal Housing Act) Loan.
Hopefully that clears things up a bit
