Good Morning! Last year HUD waived the 90 day rule on flipping properties with FHA loans for 1 year. That year is up today – February 1st 2011. …So, unless HUD comes out with a separate announcement at a later time – we are back to having to wait 90 days before an investor can…
Good Morning!
I sent out an email on this subject about a year ago. However, I still get a lot of questions about it.
…So, I wanted to send another email out on this…
If you are torn about whether to refinance your current house – or – to list it for sale – here’s something for you to keep in mind…
Once you list a property for sale on the Multiple Listing Service – you will have to wait a period of time before you can refinance that same property.
How long do you have to wait? …The guidelines vary from wholesaler to wholesaler.
…on cash out refinance loans – some guidelines will have you wait up to a year before you can refinance.
…on a refi to lower your rate or term – you will have to wait anywhere from 60 days to six months.
Again, these are the guidelines you will face if your house is coming off of a MLS listing. …However, there are certain exceptions.
…for instance, I still have a source that will allow a refinance with one day off of a MLS listing! Not many loan officers are aware of it – but I am! …so, if you are in this situation – just give me a call.
Thanks for reading! …and, have a great week!
Brett
Good Morning!
Did you realize that in the State of Texas you can’t get cash out of your home above 80% of its appraised value?
In other words if your home was worth $100,000 – the most cash you could get out on a loan would be $80,000.
This 80% rule is a Texas law for homeowners in Texas.
…However, there is one loan that will allow you to get more than 80% of your cash out. It’s called an Owelty loan.
You can get an Owelty loan when you are getting a divorce, and one of the conditions of your divorce is that you have to pay your ex a portion of the equity in your home (even if it exceeds 80%).
I’ve done many Owelty loans. We treat them as a regular rate and term refinance (not cash out rates – which are higher).
So, if you are in this situation, or you know someone who is – and your loan officer has told you that you don’t have enough equity to cash out the ex-spouse, just tell them that you need an Owelty loan.
…or, better yet – just give me a call and I can help you!
…Oh, and I promised you some great coupons coming up this year.
Here is the first one…
coupon
Thanks for reading! …and, have a great week!
Brett
Good Morning!
Did you realize that we still do credit scores for FHA down to 600? Yes we do!
…I can tell you no one else is still doing loans down to a 600 score.
I wanted to remind you – if you or someone you know has been declined for a mortgage… don’t give up!
Come to me with your loan!
Many of the loans that I close were previously turned down by other loan officers.
There is no substitute for experience and know how – fortunately I’ve got both!
…Oh, and I promised you some great coupons coming up this year.
Here is the first one…
coupon
Thanks for reading! …and, have a great day!
Brett
Good Morning!
Were you thinking you might need a gift for the down payment when you get a mortgage?
I wanted to go over the gifting rules for FHA and Conventional loan programs…
Conventional:
· If the gift is less than 20% of the purchase price, then the borrower still has to have 5% of the purchase price from their own funds.
· The giver of the gift will have to provide bank statements that show they had the ability to give the gift.
· Gifts from a spouse or finance are not considered to be gifts, but are considered your own funds.
FHA:
· The whole 3.5% down payment can be a gift from a relative.
· The giver of the gift will have to provide bank statements that show they had the ability to give the gift.
· You can also borrow your down payment from a retirement account.
That’s it for today.
Thanks for reading! …and, have a great day!
Brett
Good Morning!
One of my clients used the credit builder product on this web site to add 27 points to her score in 60 days.
…She passed this site on to me, and I wanted to pass it on to you. Perhaps you can use it to help you.
Let me know if it works for you.
Good Morning!
Don’t look now but Fannie Mae and Freddie Mac are increasing their pricing adjustments for lower credit scores.
…and, lower scores to Fannie and Freddie means anything below a 740 credit score.
These adjustments were already high for conventional loans. …but, now it’s getting ridiculous.
I have two messages for you here…
1) Your credit score is more important than ever – and try to keep it as high as you can.
2) FHA, VA, USDA don’t have the extremely high pricing penalties that Fannie/Freddie do. …so, if you can possibly avoid using a conventional loan – please do so.
Thanks for reading! …and, have a great day!
Brett
Good Morning!
I recently closed a USDA loan on a person that was buying their second home.
USDA only allows a person to own one house at a time.
I was the third lender they tried. …and, I got the loan closed.
How? …I know the USDA guidelines.
…and, I knew under certain circumstances they will allow a person to buy another home with a USDA loan – while still owning another home.
…and, I knew which underwriting center would say “yes” to this loan.
As the lending industry continues to change, and most of the lending becomes consolidated into the big banks you will get more people doing your loans that are just hourly employees.
If there is anything “out of the ordinary” on your loan, that doesn’t fit into their “box”. …You will most likely get a decline.
This isn’t because they aren’t smart loan originators. Most likely they just won’t have any other options for you.
As we go forward into 2011 and years beyond it will be more and more difficult to find loan originators that…
1) Have a broad understanding of various loan product guidelines.
2) Have more than one option on where to place your loan.
If you are having any trouble with your loan, or you know someone who is – give me a call, or shoot me an email.
…The odds are I can help.
Thanks for reading! …and, have a great day!
Brett
Good Morning!
The conventional mortgage market has brought back their 3% down loan.
Here are some of the features you need to be aware of on this 3% down loan product…
1) Must be able to get an automated approval.
2) You need a 720 (or better) middle credit score.
3) Your debt to income ratio can’t exceed 41%.
4) Max seller contribution towards closing costs is 3%.
5) No up front MI, but you will have monthly MI.
Let me know if you are interested in this product for your upcoming purchase – and we’ll see if you qualify for it!
Thanks for reading! …and, have a great day!
Brett
Good Morning!
If you go to Bank of America or Wells Fargo for an investor loan – they will most likely tell you that they can’t finance more than 4 properties for any one borrower.
This “max four properties financed” common in the mortgage industry.
However, I wanted to remind you that I can go up to 10 properties financed on investor loans.
So, if you are an investor wanting to purchase another house – and you are running into this problem with banks not being able to finance you.
…give me a call or shoot me an email. I can probably help you out.
Thanks for reading! …and, have a great week!
Brett