A special message to my friends and clients
Posted On: August 30th, 2010 by James Posted In: FHA Mortgage • Financial Health • Mortgage Rates • Portland Real Estate • Refinancing
This is my plea to all of my clients past and present. Even if we closed a mortgage earlier this year, even if you think you are upside down on your homes equity, even if you think for some reason that this recent outbreak of mortgage refinance activity will not apply to you…. you have to give me a ring, or send an email. Many of you are invested in 401(k) plans, and mutual funds, and have been taking a beating from the plunge of the stock market since 2008, well…. think of the ridiculously low mortgage rates that are currently available as a way to BENEFIT from that same down market. (Because as stock markets shrink, money goes to bonds, and when bond yields get lower, so do long term mortgage rates!) Continue Reading – A special message to my friends and clients
How Income is calculated for loan approval in 2010
Posted On: August 3rd, 2010 by James Posted In: FHA Mortgage • Mortgage Programs • Mortgages • Refinancing
The rules of the mortgage game keep changing. Ultimately, the changes are a reflection of a much more risk averse lending environment. It is increasingly difficult to get approved for a mortgage. Now, don’t get me wrong, this isn’t the end of the world, and if you have decent credit, and a stable and verifiable employment/income history you will likely be approved for some kind of financing.
The thing to be aware of now is what is considered to be “verifiable” by mortgage underwriters is certainly not what it used to be, nor what a sane person might expect it to be.
THE COMMON TYPES OF INCOME: Continue Reading – How Income is calculated for loan approval in 2010
Gift Funds for a Down Payment: What to Expect
Posted On: June 18th, 2010 by James Posted In: FHA Mortgage • Mortgage Programs
Most home buyers bring some kind of down payment to the table in a real estate purchase.
The money down can come from any variety of sources, and a very common source of funds is that of the “family gift”.
Different loan programs have different requirements when using gift funds as the down payment. Most lenders will require there to be a legitimate and verifiable family relationship between the donor and recipient. The FHA mortgage allows for the ENTIRE balance of cash due to be from a family gift, whereas conforming agency loan programs will require the borrower to have 5% of his own funds in the deal if the down payment is less than 20% (if the down payment is 20% or greater, conforming loans will allow the full balance of the down payment to be from a gift).
So here comes the tricky part – HOW TO DOCUMENT THE TRANSFER OF GIFT FUNDS
Continue Reading – Gift Funds for a Down Payment: What to Expect
The Return of PMI
Posted On: March 23rd, 2010 by James Posted In: FHA Mortgage • Mortgage Insurance • Mortgage Programs • Portland Real Estate
OK, so this is kind of exciting for all mortgage, real estate and general economic nerds. There are now not one but TWO private mortgage insurance (also known as PMI) companies who have taken Portland off their “declining markets” list!! The companies are PMI, and MGIC…. “James”, you ask… “why should I care about that?”. Well, I’m glad you asked. What it means is that buying real estate with less than 10% down just got a little more interesting.
Borrowers with top credit will now have options to buy with only a 5% down payment, and private mortgage insurance. This has not really been an option in the last 18 months, and these borrowers were all being pointed to FHA loans. And come April 5th, FHA loans are about to get more expensive as that FHA mortgage insurance is scheduled to INCREASE.
Continue Reading – The Return of PMI
Mortgage Options with Co-signers
Posted On: February 20th, 2010 by James Posted In: FHA Mortgage • Mortgage Programs
Getting qualified for a loan these days has become increasingly difficult. Particularly for those who are self employed, or otherwise have more complex income documentation problems. Since there are no more “stated income” or “no-doc mortgages” available anymore, the loan industry has reverted back to late nineties approval practices. All income must be documented, and the only acceptable income is IRS verified- meaning filed tax returns or W2 statements are the only thing we can count for a borrowers qualification.
Under these approval parameters, it is becoming increasingly common for borrowers to enlist the help of family members to act as cosigners on the mortgage. The legal term for these cosigners is “non-occupying co-mortgagor”.
Continue Reading – Mortgage Options with Co-signers
