Quick Tips On The Mortgage World

Monday, February 23, 2015

New Mortgage Rules Coming August 1st…

If there is one thing for certain in life it’s that the Federal Government likes to make new rules.

I wanted to give you a “heads up” on more rule changes coming down the pike in the mortgage world…

On August 1 of this year there are new RESPA – TRUTH IN LENDING rules going into place.

They will be consolidating the Truth In Lending statement, and the Good Faith Estimate into a new form called a Loan Estimate.

They will also be consolidating the Truth In Lending statement and the HUD-1/1a Settlement Statement into a new form called the Closing Disclosure.

I know you couldn’t stand to wait another minute for this important information. …so, I thought I would get it to you as soon as possible.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

New Mortgage Rules Coming August 1st…

If there is one thing for certain in life it’s that the Federal Government likes to make new rules.

I wanted to give you a “heads up” on more rule changes coming down the pike in the mortgage world…

On August 1 of this year there are new RESPA – TRUTH IN LENDING rules going into place.

They will be consolidating the Truth In Lending statement, and the Good Faith Estimate into a new form called a Loan Estimate.

They will also be consolidating the Truth In Lending statement and the HUD-1/1a Settlement Statement into a new form called the Closing Disclosure.

I know you couldn’t stand to wait another minute for this important information. …so, I thought I would get it to you as soon as possible.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

Thursday, February 19, 2015

How Various Loan Programs Treat Foreclosure…

I wanted to quickly go over the waiting period various loan programs have for Foreclosure.

FHA – 3 years from completion date. Exceptions with extenuating circumstances are allowed.

VA – 2 years from completion date with an automated system refer.

Fannie Mae – 7 years from completion date, or if you can get an automated approval sooner, the the wait can be less.

Freddie Mac – 7 years from completion date, or if you can get an automated approval sooner, the the wait can be less.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

Monday, February 16, 2015

Little Known Income Rule For Self Employed Borrowers…

There is a little know rule Fannie Mae has regarding self employment income. I see it being enforced more and more, and if you are self employed you should be aware of it.

It’s regarding the borrower’s proportionate share of income or loss. Here is the actual guideline…

“The Borrowers proportionate share of income or loss is based on the borrowers percentage of capital ownership in the business as of the end of the year as shown on IRS Form 1065, Schedule K-1. The Lender can only consider the borrowers proportionate share of the business income or loss after making the adjustments to the business cash flow analysis discussed below. Business income may only be used to qualify the borrower to the extent it is supported by a documented, stable history of distributions. “

The readers digest interpretation is this… If your reported K-1 income is not proportionate to your share ownership of the business, that income is at jeopardy and may not be allowed.

Something to keep in mind as you prepare to file your taxes.

I hope you have a great day! Thanks for reading!

Brett

Thursday, February 12, 2015

How To Buy A House From A Relative With No Money Down…

Did you realize that when buying a house from an immediate family member – the buyer doesn’t have to come out of pocket for a down payment with an FHA loan? (As long as it’s a owner occupied residence for seller and buyer.)

…this is because the guidelines allow the seller to “gift” equity to the buyer.

So, the 3.5% down payment on an FHA loan can be a gift from the seller. …in addition to this, the seller can also pay the buyers closing costs, and pre paid expenses (taxes and insurance).

Neat, huh!

That’s it for today!

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

Brett

Monday, February 9, 2015

How To Get A Mortgage When You Owe The IRS…

Of all the posts on my web site the one for how to get a mortgage when you owe the IRS is the most clicked on.

So, for those who this might apply to… I happily repost it here…

Many people don’t think it’s possible to get a mortgage if you owe the IRS back taxes.

I’m happy to tell you that it is possible, and this is how you do it…

1) If you owe the IRS back taxes you have to take the initiative and make a payment plan with the IRS right away.

Generally, if you make a payment plan right away with them they won’t file a lien against you.

If you wait and do nothing with your balance owed to the IRS – then the IRS will place a tax lien against you and at this point you may not be able to get a mortgage.

2) If you have a history of making payments on your IRS back taxes for 6 months without any late payments then you can get a mortgage with me (assuming you qualify otherwise).

My underwriter will treat this payment as he/she would with any other installment loan.

If you are in this situation – give me a call and I can most likely help you out!

…or, to get a mortgage right now just fill out this simple application.

I hope you have a great day! Thanks for reading!

Brett

Wednesday, February 4, 2015

How To Remove A Borrower From An FHA Loan…

I get asked sometimes if a borrower can be removed from a loan on a non-credit qualifying FHA Streamline Refinance.

There are only two ways to do this… Death or divorce.

If neither of these apply to you and you still want to remove a borrower from your FHA loan you can do it, but it would have to be a full credit qualifying refinance loan.

That’s it for today!

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

Brett