Sick of Overlays?

Filed under: Qualifying for a Mortgage Loan

Sick of overlay? If you aren’t in real estate, then you probably don’t know what that means. Overlays are in conventional, FHA, and VA loans (which make up more than 90% of the loans out there). These loans have base guidelines – but an overlay is when the lender makes the loan requirements even stricter.

For example, conventional lending allows for credit scores down to 620. In response to the current situation, many lenders are only accepting credit scores down to 660 or 680 right now. Other stricter guidelines might be added, such as loan to value or debt to income ratios.

Options to Avoid Overlays

We are back into a time where lenders are feeling nervous about the market. To my Realtors and other lenders out there – if you are sick and tired about hearing about overlays, then it might be a good time to connect with our team at Franklin Loan Center.

We are proud to offer loans with minimal overlays. It means that we are still able to get financing in place for homebuyers who are being turned down by other banks and lenders.

Many lenders have changed their rules and they have cut out the stuff on the “fringe” of loan approval. I’m proud of our team at Franklin because we are finding ways to get it done. We’re creative in finding ways to make it happen for our customers.

It’s hard – if there’s not a market for someone to buy these and keep the liquidity flowing, then it just doesn’t work. Franklin is keeping our pricing sharp and avoiding a bunch of the overlays that are common in the industry right now.

Give Us a Call at Franklin Loan Center

If you are having a hard time with loans because of overlays or new rule changes, please give us a call. We’d love to hear the scenario to see if there is something we can do to help. If you are a loan officer and you are sick of having to say no to buyers that would have qualified in the past, then maybe we can bring you on our team.

I’d love to talk to you to see how Franklin Loan Center can assist. Call or message me any time to learn more about your options.

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email