Trick To Getting An Approval With A Higher Ratio…

Have you or someone you know been told you don’t qualify for a conventional mortgage due to your debt to income ratio being too high?

I haven’t seen Fannie Mae give an approval for a debt to income ratio over 45% on a conventional loan in at least a year.

…So, if you are over 45% you probably were denied a conventional loan.

Here’s one strategy I use to get approvals on conventional loans with over a 45% debt to income ratio… Suggest to your loan officer that he run your file through Freddie Mac.

Freddie’s underwriting engine is a bit more forgiving when it comes to debt to income ratios.

If your mortgage guy says they don’t use Freddie Mac (many don’t), then call me! …I use Fannie and Freddie!

Note: Today is a big day for economic reports. The ADP National Employment report is due out this morning at 8:15am Eastern. Depending on the news this report will likely move the market one way or another. Good news typically equals higher mortgage rates.

That’s it for today!

Thanks for reading!

Brett

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Get A Rate Quote Here.

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Important Changes In FHA Program…

Hope you had a good weekend!

If you have disputed accounts, and you are trying to get an FHA loan here are a few things you need to be aware of…

1) If the cumulative outstanding balance of your disputed derogatory accounts is greater than $1,000 we must downgrade your file to a manual underwrite (even if you have good credit).

2) If the cumulative balance is less than $1,000 we don’t have to downgrade to a manual underwrite.

3) Medical collections are excluded.

4) All disputed accounts must have a letter of explanation by the borrower on the basis of the dispute.

5) For non-derogatory disputed accounts, including: Disputed accounts with a zero balance, with late pays aged 24 months or later, or that are paid as agreed do not have to downgrade to a manual underwrite.

News:  Several important economic reports out this week that could be market movers – including Retail Sales on Tuesday, and GDP Final on Wednesday. I’ll keep you posted on how these affect the market.

That’s it for today!

Thanks for reading!

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

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Changes Coming For This Conventional Loan…

Right now Fannie Mae has a 3% down loan product.

It’s not as widely used as their 5% down product (due to higher rate / MI), but it’s still an option.

On November 16, 2013 this option will no longer be available. Fannie Mae is doing away with their 3% down option.

There are other low down loan options: VA, USDA, FHA, etc.

Rate News…

The jobs report came in at 126k for private payroll creation. This was short of the 180k forecast. Result was a rally in the mortgage rate market yesterday.

Hopefully this keeps up, although today is a slow economic news day.

That’s it for today!

Thanks for reading!

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

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Test Results, Economic News, And Why Use HARP…

Few quick things…

1) The results of my Text vs HTML email posts is in. …HTML was actually better, so I’ll keep sending my posts HTML.

2) Two big economic numbers due out in the next two days. Existing Home Sales is due at 10am this morning – expected to come out lower. Unemployment Rate is due out tomorrow morning.

Both of these reports could move the mortgage rate market. Ironically bad news for these reports actually would keep mortgage rates low.

3) How you can refinance your conventional loan if you are upside down in your home right now… Use the HARP program.

Here are the basic requirements for the HARP 2 program:

A) The refinanced mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac.

B) The refinanced mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.

C) HARP households must also be current on the mortgage to be refinanced, and must have a strong payment history.

D) The refinanced mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan refinanced via HARP between March-May, 2009.

If your house is currently upside down on a conventional loan, and you want to refinance – please give me a call or shoot me an email. I want to help you!

That’s it for today!

Thanks for reading!

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts 

Four Reasons You Need To Use Me…

As you know if you have been getting my posts for any length of time I don’t toot my own horn that much.

     …these are mostly informational – to educate you about aspects of the mortgage and real estate industry.

However, I wanted to give you four quick reasons you really need to be using me for your mortgage…

     1) I have the best of both worlds. I am a Mortgage Banker, but I also have the ability to broker your loan if your loan is “out of the box”.

     2) I can close your loan quickly. The big banks like Wells, Chase, etc. are taking 45 to 90 days to close loans right now. I can get a loan closed in 2 weeks with a complete file!

     3) I have access to the lowest rates in the industry. There’s no reason to go with a higher rate.

     4) I can do loans other lenders can’t! Sometimes its low credit scores, or high debt to income ratios. …sometimes it’s no trade lines. So, if your current lender is having trouble – let me take a look at your loan! I can’t tell you how many of these type of loans I get closed!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

What To Expect If You Are Changing Jobs During The Mortgage Process…

I have many people apply for mortgages that have recently changed jobs.

Here are a few things to keep in mind if you or someone you know is about to change jobs and apply for a mortgage…

The underwriter will want to see your first pay check at the new job at a minimum, and often they will want to see your first 30 days of paychecks.

The underwriter isn’t trying to make your life difficult by asking for your new paychecks. …This is a common guideline in the mortgage industry.

There is one circumstance where you can change jobs and not have to supply your new pay check prior to approval…

If you continue to work for the same company, but you are just changing jobs within that company then you won’t have to produce a new paycheck.

If you have more questions on this – don’t hesitate to give me a call or shoot me an email!

Have a good day today! …and thanks for reading.

Brett

How To Get A Mortgage 12 Months After A Foreclosure Or Bankruptcy…

We are one of the few lenders that uses FHA’s Back To Work program. …If you can prove you had a significant “economic event” in your life that resulted in loss of income.

Here is how FHA describes an “economic event”:

An Economic Event is any occurrence beyond the borrower’s control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower’s Household Income of twenty percent or more for a period of at least six months. The Onset of an Economic Event is the month of Loss of Employment/Income. Recovery from an Economic Event is the re-establishment of Satisfactory Credit for a minimum of twelve months.

In order to use this program we have to prove a few things…

1) Certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control.
2) The borrower has demonstrated full recovery from the event. (good credit history since)
3) The borrower has completed housing counseling. (I can show you how to do this)

Here is what FHA wants to see on your credit since your recovery from your Economic Event…

1) No history of delinquency on rental housing payments.
2) No more than one thirty (30) days delinquency on payments due to other creditors
3) No collection accounts/court records reporting (other than medical and/or identity theft).

Here is what FHA wants to see to prove loss of employment that caused the Economic Event…

1) A written Verification of Employment (we get this) evidencing the termination date or in cases where the prior employer is no longer in business.
2) A written termination notice.
3) Other publicly available documentation of the business closure (if applies and is available).
4) Documentation of receipt of unemployment income.

Other than this FHA will want us to prove that 12 months have elapsed since the Foreclosure or Bankruptcy.

If you are in this situation, or you know of someone in this situation – don’t fret! There is hope for you!

Give me a call or shoot me an email and I’ll be happy to see if we can help you out!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.