Archive for the ‘Mortgage News’ Category
A Simplified Guide to FHA 203-k Rehab Financing
This loan program is for folks that would like to buy a home that needs repairs but do not want or cannot use their own funds to do the repairs after they buy. Our government wants to help you. In todays economy, there are more than ever many homes in this foreclosure market that need an owner and repair. Post foreclosure homes are often gutted out by the previous owners. They’re taking everything including the things that are bolted down; plumbling, electrical equipment and so fourth. These neighborhoods need home buyers to freshen up these neighborhoods. The FHA mortgage program allows the cost of the rehabilitation of a property to be included in the total mortgage amount. All repairs are made to the property after closing, no work prior to taking ownership. The key is the qualifying Loan To Value ratio is based on the anticipated value after the work is to be completed. Therefore, an “as is” purchase is possible, regardless of the condition of the home. In addition, 100% of the after improved value will be considered when determining the maximum loan amount.
Typically, lenders will not close on a loan until the home is in move in condition. A closing cannot take place until those repairs are completed. The 203-k plan allows for a closing to occur before the repairs or an addition is finished and the home is habitable.
This is the reason why many homes do not sell; all other financing programs will not allow the collateral to remain in poor condition while lending tens of thousands of dollars over the present value. At closing, the seller is paid the contracted amount. The realtor’s commission is also paid at that time and monies pre-determined for repairs is placed into an escrow account and paid out as the work is completed.
The ability to close “as is” opens the door for more homes to be sold and neighborhoods revitalized.
This program will help home buyers get into a home that needs work without having to pay for the cost of repairs with their own money.
You can see the 203-k guidelines here and here is a pre qualification form that does not require a social security number.
2 Choices For Down Payment Assistance
Filed under: Mortgage News | Tags: down payment assistance, down payment grant, no money down home loan, no money down mortgage
Leave a Comment We can now offer 2 choices for down payment assistance. This could come in rather handy for the folks out there that can’t save for a down payment but can afford a mortgage payment. Often, given the price for rent these days, their proposed new mortgage payment is often less than what they’re currently paying for rent.
The first choice would be a grant of 3% for down payment; 3 % of the total loan amount. For example, if the sales price on the home you want to buy is $200,000, the mortgage amount would be $194,930 including mortgage insurance and the grant amount being almost $5,900. So all you have to do is come to the closing table with a pen and a smile!
The advantages with this program is the grant money is free money and you don’t have to pay it back, ever.. Also, you can do a regular single family residence or a 2 unit. If you go with a 2 unit, you can rent it out and collect rent $. You do need a 620 credit score. If you need help with your credit score, consider credit repair. This program does allow for a pretty high debt-to-income ratio, too, 50% and does not require liquid reserves (money in the bank).
The next program requires a half percent down, this can come from a family member or friend. However, you don’t need a credit score! Although, If you’re thinking about a 2-unit, it does require a 640 credit score. No reserves required.
New Lender with Exciting Loan Programs
Howdy in the market for the right mortgage loan people! We have officially added yet another strong and dynamic lender to our network of lenders and their product line up is amazing! In a nutshell, FHA, Agency Conforming and High Balance programs, Fannie and Freddie – Blended ratios, Desk Top Underwriter Plus, Premium Freddie Access, VA, USDA, 203K Rehab loans for you fixer uppers, jumbo, Super jumbos as well as Portfolio niche FHA varieties down to a 580 score..investor flips too! Questions?
Their interest rate lock policy is very advantageous to you borrowers in that your interest rate can be locked right away after your approval for up to 55 days with underwriting turn times at 5 days and we are ready to go starting right now! We are super excited about this and are looking forward to this lender getting their fair share of our business. Bottom line is more benefits to our borrowers. Get pre qualified now home shoppers. Questions?, contact a loan officer with any questions. We have 100% access to their underwriting team and will not have to wait 3-4 days for them to get back to us! Options are good, friends. Happy home shopping and make it a great day.
Loan Modification Principle Reduction
Filed under: Mortgage News | Tags: Loan Modification, principle reduction
Leave a Comment We’ve been a lot of loan modifications lately. We do a lot of evaluations and negotiate a lot of case files. Now, we work with a lot of very nice folks that are grateful when they receive some relief from their housing payment while getting them current and out of default. Whew!..huge mouthful..
Often, because of the market, people feel that they’re entitled to a principle reduction and fortunately, on occasion, we are able to accommodate. But way more times than not, especially when their servicer is Bank of America, Wells Fargo, Indy Mac, GMAC or Chase, it doesn’t happen. Some people are only interested if we can negotiate a reduction on their principle balance and if they don’t get it, they bail from their home. In some cases, these are the same people who back in the housing glory days, cash-out refinanced their equity to consolidate their consumer and credit card debt or whatever else like there wouldn’t be any consequences. To these folks I ask, back when your house was appreciating 15-30% every year, did your bank call you and ask to increase your balance because of the market?
Cash Out for the Holidays
Look to us for your holiday needs. Get cash out to consolidate credit cards, or remodel your home. We can help you meet their financial goals om that we do offer fixed rates, arms, and 1st and 2nd lien Home Equity Lines of Credit.
There are a lot of reasons to do a Cash Out Refinance. The most common reason is to consolidate debt, in particular, credit card debt. For most Americans, holiday shopping and mounting credit card debt are synonymous.
Not only are mortgage interest rates much lower, but almost as significant is the difference in the nature of the interest. Mortgage interest is simple interest where as credit card interest is revolving compounding interest, huge difference. With credit card interest, the interest is calculated every month on the new balance that includes the new interest from the previous month. So basically, you’re paying interest on interest.
Of course this isn’t an invitation to charge up all your cards for things you don’t really need and then sink it into your home, but if you happen to have a lot of consumer debt from all the holiday shopping you had to do, we can help.
Spend wisely and have a happy and credit card debt free new year!
Asset Depletion Helps Qualify More Borrowers
This Asset Utilization Loan Program is designed for a high net worth borrower. It allows the applicant that has significant liquid assets to use those assets as income for qualifying purposes. We have developed an income calculation that can be used to determine the qualifying income. Asset Utilization is available on the Jumbo ARM loan program for the 5, 7 and 10 year ARM product. This is only available for the 30 year amortization and is not at this time available with the interest Only ARMs.
We all know that the mortgage debacle has hurt all the self employed borrowers of this great county. It has stunted the housing economy and we believe that there should be good loans for good borrowers. Our underwriter will use this program to help with the debt to income by 5% for the 30 year amortization jumbo product
This is a Great Product for the Retired or Self Employed Borrower seeking to capitalize on their assets for income to qualify. Borrowers with a salaried income can use the asset depletion in addition to your wages to help qualify you for more borrowing power!
90% Financing on Jumbo Mortgage to $4,000,000
NEW Jumbo 90% ARM to $979,250
- Portfolio Jumbo Arms to $4,000,000 by exception
- 30 YR Portfolio to $2 Million
- HomePath~Great product, get it while it lasts!
- FHA Conforming and HB
- 95% MI Condos to 4417,000 680 fico / credit score
- 90% Mi Condos to $729,750 700 fico / credit score
- Second mortgage Piggybacks to $500,000
- Jumbo-Busters – 1st and 2nd with the first at high-balance rates
Reduce a jumbo loan to high-balance, then add a Home Equity Line Of Credit or Fixed rate second and drastically reduce your interest rate.
Ex: 1st mortgage $729,750 ( per county)
2nd Piggyback to $250, 000
80% Combined Loan To Value to $979,750 total loan amount NO Mortgage Insurance
Local San Diego Credit Union Now Offers 97% Financing and 95% on Condos
Prime credit borrowers can now get more financing to work with, along with attractive Mortgage Insurance pricing.
95% allow Condos.
90%- MI factor is up to 50% lower than industry standards
*House Flips allowed subject to underwriting guidelines
97% LTV/CLTV
• Fixed and ARM product available – 5/1, 7/1, 10/1)
• 720 Min FICO / credit score
• 41% Max Debt To Income
• $417,000 Max Loan Amount
• Purchase and Rate/Term refinance available
No Income Doc Mortgage Loan to $2,000,000
We have found yet another No Income Documentation loan program, good for purchase, refinance and cash out refinance. This No Doc loan program is for CA, TX, NY, WA, MA and GA. This Jumbo loan program is available to borrowers with less than a 700 credit score with compensating factors even with a past foreclosure or bankruptcy.
CalHFA for Florida Now Available!
Howdy folks!
CALHFA FHA Program.
If you’re getting frustrated with your current circumstances. Give us a ring to see what we can put together your you. We are here to answer your questions and concerns.
For you Floridians, this program is now available for you, too, as well as all of the 100′s of other programs that we have that are available in Flordia.
You do need at least a 620 credit score. However, if you think we can help you with your credit, we do have resources and tools that might help you get into that home you’re looking at. We have reduces fees and interest rates for this program, too.
Take a look at our short Pre Qualification form. No social security number required.
If you’re a first time buyer in California, this program might come in handy if you don’t have a lot of down payment. And we also have the California’s down payment assistance program, as well. (CHDA)
Take a look at all the guidelines for this loan program.
Broker Mortgages Team
30 Reasons to Choose a Non-Agency Portfolio Jumbo Lender
I often get calls from folks that are looking for an “out of the box” loan program. They come to us for service and can actually see it because we have over 100 loan programs/guidelines that are available for your review, the consumer. Get your fill, it’s good information! We are here to help and answer your questions about your loan needs. We are a wealth of information and resource.
1. Jumbo fixed terms and ARMs
- $900,000 to 80% financing–interest only 3 and 5 year ARMS available
2. Larger Jumbo loans
- $1.2M to 60% financing (max $1,500,000 combined lien exposure)
- $1.5M to 50% financing (max $1,500,000 combined lien exposure)
3. No add to rate for loan amounts up to $1 million
4. No mortgage insurance
5. Refinances: 1 loan up to 80% financing – up to $900,000 maximum loan amount
6. Purchases: 1 loan up to 80% financing or 80% CLTV with this banks 2nd mortgage with this lender or outside 2nd
7. 1st position HELOCs (Home Equity Line Of Credit) to $350,000: great for “free and clear” properties
8. Stand-alone 2nds: HELOCs and fixed 15 and 20 year term products
9. Fixed rate lock option available on 1st & 2nd position HELOCs
10. 620 Mid score program-1st position up to 75% Max financing up to $500K
11. Cash out available-up to $200,000 cash-in-hand available up to 75% LTV
12. 3-4 unit owner occupied program
13. Foreclosures and short sales allowed
14. Rural properties allowed
15. No minimum reserve requirements up to $900,000 (excluding “Interest Only” ARMs)
16. Appraisal portal available for appraisal ordering
17. Short payoff refinances available (different than short sales)
18. Qualify with primary wage earner’s credit score
19. “To be determined” purchases are accepted (automatic 45 day lock)
20. Gift funds (unseasoned funds) are allowed for down payment on purchase loans
21. Condos up to eight stories: minimum ten units
22. Manufactured financing up to a maximum loan size of $200,000-75% financing max
23. Refinancing of construction loans to permanent financing is available
24. Acreage allowed (full value to ten acres – no value exceeding ten acres)
25. 50% maximum DTI (Debt To Income) ratio on 1st position fixed rate refinances-all other products 45%
maximum DTI
26. Submissions: email or fax submit application (quickly facilitated) for automatic 45 day lock
27. Underwriting: all conditions emailed or faxed (quickly facilitated)
28. Lender provided RESPA disclosures (quickly facilitated)
29. This loan product is in 47 states
30. Individual account executive specifically assigned to your office – service baby 
Looking For Cash-Out Options? You Don’t Have to Look Any Further!
This portfolio lender is a division of the 3rd largest commercial bank in this United States. Fortunately, we have a broker relationship with their wholesale department. We receive A+ service and support – in other words, they want to work with us in an effort to close your loan quickly. This will allow you to obtain a 2nd mortgage up to 80% of the value of your home with a 650 or greater credit score to a maximum loan amount of $350,000.
This can be a HELOC (Home Equity Line Of Credit) or a fixed rate fully amortized loan. If you opt for a HELOC at first, you can change it to a fixed rate after the loan closes. We have a no point option, too.
Terms are available from 5 to 20 Years.
Credit approval to closing docs turn times are: full lender credit approvals are 2 to 4 days, underwriting approvals are 4 to 5 days, appraisal review is 3 to 5 days and if there are any additional conditions at that point, 4 to 5 days and closing docs, 2 to 4 days. So, application to closing table, we can close in under 2 weeks total. That’s service folks!
Because we are an information resource, you can see the guidelines for this loan program and other current lender niches.
Real Estate Investors Can Now Finance 1-10 Properties Allowed Even If Non-Owner Occupied
Attention mortgage market people. Do you invest in real estate? Are some of them multi-unit properties? Perhaps you own a number of properties and would like to purchase more? Multi-Unit property up to 4 units? Batter up.
Real Estate investors, 1-10 financed properties are available, even if they are non owner occupied
With this program, you can get your rate locked for 40 days out. So if you’re in the beginning stage of your search, this allows us to secure your interest rate while you look around for the right investment property. Forward Locks available, too
So if you’re looking for an investment property for $2,000,000 or less, we have it at normal interest rates. For your SFR/Single Family Residence, condo, 1-2 unit and up to 4 units. You can do owner occupied, second home or investment real estate.
Rental income from departing residence is taken into consideration when purchasing a new primary residence.
You qualify with a 620 or higher credit score.
Local San Diego Bank Expanding Broker Base for Southern California
Local San Diego lender bringing some pretty aggressive super jumbo loan programs serving California, Colorado, Hawaii, Idaho, North Carolina, New Mexico, Oregon, Utah and Washington.
Here is a little of what they offer..
80% financing to 2 million for a purchase loan or cash out refinance, good for a condo or up to 4 units.
Interest only ARMS available for some borrowers and it’s available to the 620 and up credit score borrowers all with a 3 day turn time to final docs.
Not too bad..we’ll see if the so cal market is ready?
No Need to Pay for Mortgage Insurance Any Longer
Up to 95% Financing
Get an easy to qualify purchase loan with only 5% down and no mortgage insurance required? Yes please 
We have a lender that does all conventional product loans without the additional monthly payment or front end charge for mortgage insurance. This can help with borderline debt ratios! they’re flying off the shelves folks. Come and get.
http://www.brokermortgages.com/applications/forms/form_quall_app1.htm
Here is an email from a Wholesale Lender Rep from Fri, September 26, 2008 3:52:21 PM titled “Last chance to submit loans with Income Waiver”
Sometimes I’ll look back through my emails from over the years and see 1 that sticks out just a little bit. Names have been left out…
— On Fri, 9/26/08,
From:
Subject: Fw: Last chance to submit loans with Income Waiver
To:
Date: Friday, September 26, 2008, 10:12 PM
— On Fri, 9/26/08,
From:
Subject: Last chance to submit loans with Income Waiver
To:
Date: Friday, September 26, 2008, 11:50 AM
Account Executive:
“” Mortgage
Laguna Hills, CA 92653
Dear Brokers-
On October 6th, we will require a signed 4506-T both at submission and again at funding. We must receive your file in our office by Friday, October 3rd! or you will be subject to the new guideline. This means no more income waivers in DU/LP for Agency conforming loans.
Plese submit these loans Asap!
Agency Updates
Remember that today is the last day to register a loan under the old guidelines from some of the Fannie Mae niches per bulletin Bro 08-257. The changes that go into effect tomorrow include:
- O/O cash out LTV/TLTV/HTLTV reduced from 90% to 85% (doesn’t really affect us as we can’t get MI over 80% anyway)
- 2nd Home cash out – eliminated
- N/O/O purchase and rate/term LTV/TLTV/HTLTV reduced from 90% to75% for 1-2 units
- 6 month’s mortgage payment seasoning required for cash out refinance of original purchase money loan for all Agency products
- 6 month’s mortgage payment seasoning required for cash out refinance of a previous rate and term refinance for all Agency products
- 6 month’s mortgage payment seasoning required for a rate and term refinance of a previous cash out refinance for all Agency products
- 6 month’s mortgage payment seasoning required for a cash out refinance of a previous cash out refinance for all Agency products
- Properties previously listed for sale – no change to the timeline (must be off the market prior to application for rate and term refi’s, must be off the market 90 days prior to application for cash out refis) however, if property was listed within the last 6 months the max LTV/TLTV/HTLTV for cash out is 70%
- Continuity of obligation –
- Loans with an acceptable continuity of obligation may be underwritten and priced at normal LTV/TLTV/HTLTV. They have added the situation where a borrower is not on the mortgage, but has been on title 12(+) months and has either made the mortgage payment directly for 12(+) months or can demonstrate a relationship to the current obligor as an acceptable continuity of obligation.
- If there is not an acceptable continuity of obligation then loan must be underwritten and priced as cash out, borrower must be on title 6 months minimum and max LTV/TLTV/HTLTV is 50%.
Great News MI still available to 95%
- We have just negotiated a contract with Radian which still allows us to do 95% MI on SFR conforming loans! This is huge!
- We are also now delegated and can issue the MI certs in house.
- So for those of you that are not HUD approved…..bring on the loans!
- Please call me with any questions regarding products. If you would like to schedule an office training I am always available.
- Have a super day!
Even from September, 2008, A lot has changed, huh?
