How Gov. Shut Down Will Affect Mortgage Business…

Good Morning!

I hope you guys had a great Christmas!

Quick note on how the government shut down may affect you if you are currently in the mortgage process…

One of the last conditions completed on most loans is a validation through the IRS’s system to verify the income documents (tax returns / w-2’s) given to your loan officer are the same ones that were received by the government.

It’s really a quality control condition.  

This validation process looks like it wil be shut down during the government shut down.  …So, if you are under a closing dead line it could affect you.

Hopefully the shut down won’t last that long.

That’s it for today!

Thanks for reading!

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Ways to deal with closing costs when you refinance...

Good morning!

When is it best to roll closing costs into a refinance loan?

Keep in mind there are three ways to handle closing costs on a refinance loan…

1) The borrower can pay them out of their pocket at closing.

2) The mortgage company can pay them by charging a higher rate.

3) We can keep the rate low and roll the closing costs into the loan.

Generally...

If you are planning on staying in the home over 4 years – it’s not a bad idea to roll closing costs into the loan.

If you are planning on selling your home within the next 4 years – it’s not a bad idea to let the mortgage company pay your closing costs and going with a bit higher rate.

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

Brett

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A Short Video That Will Bring A Tear To Your Eye...

Good Morning!

 

Christmas is almost here!

 

You have my best wishes for you and your family.

 

I'm a sucker for inspirational stories.  ...and, I love books from Simpletruths.com

 

Here's a short two minute video about giving called "The secret to living is giving."

 

I'll admit it brings a tear to my eye when I watch it.  ...but, it'll put you in the Christmas spirit!

 

https://vimeo.com/99078648

 

Thanks for reading!

 

Brett

 

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Loan Waiting Periods For Bankruptcy And Foreclosure...

Good Morning!

I wanted to give you the basic waiting periods for Bankruptcies, Foreclosures, and Deed in Lieu and Short Sales for FHA and Conventional loans.

Waiting periods for FHA:

Bankruptcies: 2 years. …Note, if there was a mortgage included in the BK, you need to determine when the property was subsequently foreclosed to make sure the loan meets those parameters.

It’s possible to get a loan while your in Chapter 13 Bankruptcies with at least 12 months of clean pay history, and permission from your trustee.

Foreclosures, Deeds in Lieu and Pre-Foreclosures (short sales): 3 years

Waiting periods for Conventional:

Chapter 7 Bankruptcy: 4 years

Chapter 13 Bankruptcy: 2 years from discharge, 4 years from dismissal

Multiple BK Filings: 5 years if more than one filing in the past 7 years

Foreclosure: 7 years

Pre-Foreclosure/Deed in Lieu: 2 years @ 80% LTV4 years @ 90% LTV7 years above 90% LTV

Note: You need to have established good credit history after the bankruptcy / foreclosure.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

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Some Bonus Income Tips For You...

Good Morning!

 

Here are three things you need to be aware of for us to use your bonus income to get a mortgage…

1) We can’t use bonus income or overtime income unless you can prove you have been receiving this income for 2 years.

2) The employer has to indicate that the bonus or overtime income will likely continue.

3) We will use a two year average of bonus and/or overtime income. So, if you got alot this year, but not last year then we will have to use an average of both years.

That’s it for today!

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

Brett

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New Conventional Loan Limits...

Good Morning!

 

I wanted to let you know the maximum Conventional loan alimit for Texas increased from $453,100 to $484,350.  This happened November 28th.

 

This is good because Conventional loans have lower interest rates and down payment requirements than Jumbo loans, which is the next step up.

 

Thanks for reading!

 

...and, have a great day!

 

Brett

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Who Can Give A Gift On An FHA Loan?...

Good Morning!

 

FHA gift questions come up often.

 

I wanted to give you the rules on FHA gift giving. Here ya go…

 

Acceptable gift donors for FHA loans…

 

1) Borrower’s relative.

 

2) Borrower’s employer or labor union.

 

3) A close friend with a clearly defined and documented interest in the borrower.

 

4) A charitable organization.

 

5) A governmental agency or public entity that has a program providing home ownership assistance.

 

Unacceptable gift donors for FHA loans…

 

1) The seller.

 

2) The real estate agent or broker.

 

3) The builder or an associated entity.

 

Gifts from these sources are considered inducements to purchase, and must be subtracted from the sales price.

 

That’s it for today!

 

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

 

Brett

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Who Can Give A Gift On An FHA Loan?...

Good Morning!

 

FHA gift questions come up often.

 

I wanted to give you the rules on FHA gift giving. Here ya go…

 

Acceptable gift donors for FHA loans…

 

1) Borrower’s relative.

 

2) Borrower’s employer or labor union.

 

3) A close friend with a clearly defined and documented interest in the borrower.

 

4) A charitable organization.

 

5) A governmental agency or public entity that has a program providing home ownership assistance.

 

Unacceptable gift donors for FHA loans…

 

1) The seller.

 

2) The real estate agent or broker.

 

3) The builder or an associated entity.

 

Gifts from these sources are considered inducements to purchase, and must be subtracted from the sales price.

 

That’s it for today!

 

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

 

Brett

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How To Get A 97% Loan Without Paying Mortgage Insurance...

Good Morning!

 

Did you know that we do piggy back loans up to 97% loan to value ratio?

 

We do!

 

A piggy back loan is where we do two loans – one at 80%, and a second up to 17% simultaneously.

 

You would put down 3% in this scenario, and we would finance 97%.

 

The advantage to a piggy back loan over a single loan is that you don’t have to pay the private mortgage insurance that comes with conventional loans over 80% LTV.

 

You will be surprised how much money you can save by using piggy back financing compared to single loans with MI.

 

Give us a call or shoot us and email and we'll show you how much money you can save!

 

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

 

Brett

 

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Thanksgiving Fun

Good Morning!

I hope you had a great weekend!

Considering this is Thanksgiving week, I thought we would have some fun with Thanksgiving trivia…

1)  Did you know the first Thanksgiving lasted 3 days?  It was celebrated much earlier than our current celebration, possibly in late September.

There were about 50 European settlers and around 90 native Americans who attended the 3-day feast.

2)  Which president was the first to give a turkey a presidential pardon?   …Ronald Reagan

John F. Kennedy was the first president on record for unofficially sparing a Turkey in 1963.

But it wasn’t until the Reagan administration in 1987 that a turkey was given an official presidential pardon as a joke.

Despite it being a joke, the turkey was spared and put into a petting zoo. In 1989 George H.

Bush made it an annual tradition and each president following him has carried on the tradition.

3)  What meat did the native Americans bring to the first Thanksgiving?   Deer (venison)  After they arrived, some of the Native Americans went out hunting and brought back five deer to give to the governor, the captain, and others.

That’s it for today!  Thanks for reading.

Have a great Thanksgiving!

Brett

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Low Credit Score Cash Out Loans...

Good Morning!

In Texas the cut off for Cash Out loans, or Texas Home Equity loans is 620.    ...for most lenders.

We can do Texas Cash Out loans down into the low 500's for a credit score.

So, if you have lower credit, but need a cash out loan - give us a call or shoot us an email.

That's it for today!

Thanks for reading!

Brett

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How You Can Buy A House With A Reverse Mortgage...

Good Morning!
I touch on this every now and then, because I want you to know it's possible to purchase a home with a Reverse Mortgage, and how it works.
I’ll give you an example.
Let’s say you are 65 years old. You want to buy a $200,000 house.
You have $110,000 to put down on the house. However, you don’t really want a mortgage payment.
You can put down your $110,000.
Get a reverse mortgage for $90,000.
…and, you will never have a mortgage payment for the remainder of your life (as long as you stay in this house).
With reverse mortgages the older you get the more loan you can get.
Here is a chart of the age of the youngest borrower vs the percentage of loan to value ratio you can borrow.

Youngest Age	Principal Limit
90+	0.75
89	0.739
88	0.729
87	0.719
86	0.709
85	0.699
84	0.69
83	0.682
82	0.674
81	0.665
80	0.657
79	0.648
78	0.64
77	0.631
76	0.622
75	0.614
74	0.606
73	0.599
72	0.591
71	0.583
70	0.576
69	0.569
68	0.562
67	0.556
66	0.549
65	0.542
64	0.536
63	0.53
62	0.524

Of course you can also get a reverse mortgage to get cash out of your existing home.
If you or someone you know needs a reverse mortgage give me a call! We are reverse mortgage experts!
That’s it for today!
Have a good day! …and thanks for reading.
Brett

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Creative Way To Come Up With Down Payment On A House...

Good Morning!

 

If you want to buy a house, but you’re short on cash in the bank here’s an idea.

 

You can sell an asset to generate cash for a down payment. …such as a boat, car, etc.

 

Here’s how to structure it for a mortgage…

 

You must create a bill of sale reflecting the date of sale, asset to be sold, and the sales price.

 

The buyer’s and seller’s signatures are required on the bill of sale.

 

Copies of all checks, and deposit slips are also needed.

 

A picture of the item sold is also helpful.

That’s it for today!

 

Have a good day! …and thanks for reading.

 

Brett

 

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Getting A VA Loan After Bankruptcy Or Foreclosure...

Good Morning!

 

 I want to go over the VA guidelines for Foreclosure, and Bankruptcy.

 

Here ya go…

 

VA

 

 

Short Sale

Deed-In-Lieu of Foreclosure

Foreclosure:

 

2 years from completion date

If extenuating circumstances exist – 12 months from completion date with re-established credit

Note: If the occurrence was on a VA loan, the veteran may not have full entitlement available for the new loan.

 

 

Bankruptcy Chapter 7 or 11:

 

2 years from discharge or dismissal date

Note: If bankruptcy was result of a business failure, provide evidence that;

Applicant obtained permanent position after business failure

No derogatory credit prior to self employment

No derogatory credit subsequent to bankruptcy

 

 

Bankruptcy Chapter 13:

 

2 years from discharge or dismissal date

A minimum of 12 months of payments have been made, all payments have been paid satisfactorily and Trustee or Bankruptcy Judge has approved

 

That's it for today,

 

Thanks for reading!

 

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History Of The Jack-'o-Lantern...

Good Morning!

 

Since today is Halloween I'll dispense with mortgage stuff for today.

 

...Instead, here is the history of the Jack-'o-lantern.

 

According to the History Channel...

 

The legend is of a man named Jack. Jack invited the devil for a drink.

 

Jack did not want to pay for his drink, so he made a deal with the devil.

 

The devil turned himself into coins, but instead of paying for the drink, Jack kept the coins.

 

Later freeing the devil, he promised to change him back if he did not steal his soul.

 

Upon his own death, God would not let Jack into heaven because of his past and the

devil would not let him into hell.

 

Instead, the devil gave Jack a piece of coal, which Jack placed into a turnip. The legend goes that Jack used the turnip and coal to

light his way as he looked for a final resting place. The original jack-’o-lanterns in Ireland were carved out of turnips or potatoes.

 

 

Have a fun and safe Halloween!

 

 

Thanks for reading!

 

 

Brett

 

 

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Tax Bills Come Out This Time Of Year...

Good Morning!

This is the time of year counties are sending their property tax bills out.

 

There are two issues I see every year with regard to property taxes. …Issues that put people in tough spots.

 

1) Some people just don’t have the money saved up to pay their property taxes. …They might have had the money, but had to use it on an emergency. …or any number of other things.

 

2) Some people that have an escrow account on their mortgage – but their mortgage company didn’t collect properly. This often results in an arrearage… Which means your payments go way up until the escrow is caught up.

 

If you are in either one of these situations – there’s usually an easy fix for it. …Refinancing.

 

We can often refinance someone in either one of these situations, and we pay the property taxes through the new refinance loan.. …Not only that, but usually at a lower rate and payment than they have now.

 

Please let me know if you have more questions about how this refinance works.

 

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

 

Brett

 

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Giant Loan With Low Down Payment...

Good Morning!

 

Sometimes I like to spotlight a particular product we offer.

 

Today it's a high loan to value Jumbo Loan.

 

We have a 95% loan to value Jumbo loan up to $1,500,000!  It's unusual to find such a low down payment on such a high loan amount.

 

This product requires a 720 credit score.

 

We only need one year of tax returns for self employed borrowers.

 

...Or, two years of W-2's and a pay stub.

 

There is no mortgage insurance on this loan!

 

If you or someone you know needs a loan like this - give me a call or shoot us an email.

 

That's it for today!

 

Thanks for reading!

 

Brett

 

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If You Rent Do This...

Good Morning!

If you are a renter how do you pay your rent?

Would you like to purchase a home someday?

If so, please keep this in mind… How you pay your rent is IMPORTANT!

When you apply for a mortgage the underwriter will most likely want you to be able to prove you paid the rent.

If you rent from an apartment complex it’s a bit easier to do. We can just get them to fill out a verification of rent form.

However, if you rent from an individual – you must PROVE you paid the rent.

That means we will need cancelled rent checks. …If you pay your rent with cash – DON’T!

Start writing checks for rent!

If you pay with money orders then put your paycheck in a bank account, then every month draw out the money for the money order – and keep the money order receipts!

…but the best is to write checks for rent!

That’s it for today!

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

Brett

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Who Can Give A Gift On An FHA Loan...

Good Morning!

 

I wanted to touch on when gifts are allowed (and not allowed) on FHA loans as well.

 

Here’s who can’t give you a gift on an FHA loan…

 

The gift donor may not be a person or entity with an interest in the sale of the property, such as the seller, real estate agent or broker, builder, or any entity associated with them.

 

Gifts from these sources are considered inducements to purchase and must be subtracted from the sales price for mortgage calculation purposes.

 

Here’s who can give you a gift on an FHA loan…

 

Your parents or immediate family.

 

The realtor can give you a gift if the realtor is your immediate family.

 

You can also get a gift from a legitimate grant program (city, county, state, or national).

 

Have a great day! Thanks for reading!

 

Brett

 

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Jumbo Texas Cash Out Loans Down To 660 Credit Score...

Good Morning!

 

Did you know we do Jumbo Cash Out loans for Texas owner occupied homes with credit scores down to 660?   ...And, at 80% loan to value ratio!

 

When you need a Jumbo Cash Out loan most lenders will cut you off if you have less than a 700 credit score.

 

Not us.  We got you!

 

So, if you or someone you know is in this boat - give us a call or shoot me an email.

 

Have a great day, and thanks for reading!

 

Brett

 

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Minimum Down For Different Loan Programs...

Good Morning!

 

One of the most common questions I get from borrowers is “How much will I have to put down to get a mortgage?”

 

Here are your minimum down payment options on the loan products currently available in the market place.

 

Loan Programs…

 

VA loan: No down payment necessary. No monthly MI. This is the best loan going if you can qualify for it.

 

USDA: No down payment necessary. Low monthly MI. Mainly for rural areas or outlying suburbs. Has geographic and income restrictions.

 

FHA: The minimum down payment is 3.5%. Great rates, has up front and monthly mortgage insurance.

 

Conventional: You will need 3% down for Conventional loans.

 

That’s it for today!

 

Have a good day! …and thanks for reading.

 

Brett

 

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How Credit Can Affect Your Payment...

Good Morning!

Have you ever wondered how credit affects your mortgage payment?

Most people know your credit affects the rate you get on your loan.
…and, your credit can even effect the amount you pay for Home Owners Insurance.

However, there is another part of your payment that your credit also effects. …Your mortgage insurance payment on Conventional loans.

Let me give you some examples of how your mortgage insurance rates can vary due to credit score.

These numbers are based on a $100,000 loan at 95% loan to value ratio.

MI Payment Chart…

Credit Score Range	MI Payment Amount
> 760	$45
720 to 759	$51.6
680 to 719	$74.17
620 to 679	$95.83

The lesson here is protect and monitor your credit as much as you can. Keeping your scores up can save you alot of money!

That’s it for today!

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

Brett

 

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Little Used 3% Down Loan...

Good Morning!

Did you know we have a Conventional loan product with just 3% down?   ...and, you only need a 620 credit score to get it.

It’s a great product to use when purchasing a home!

One thing to keep in mind on this program is the maximum seller help (with closing costs and prepaids) is 3%.

If you would like to see if you qualify for this program just shoot me an email or give me a call. …I’ll be happy to help you!

 

That’s it for today!

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

Brett

 

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How You Can Have Less Stress In Your Life...

Good morning!

 

No mortgage talk for today...

 

They say the average person can only remember about 7 things in short term memory at any one time.

 

Once number 8 comes in something drops off the back and you forget about it.  That's when your eyes pop open in bed at night when you remember the thing that you forgot earlier.

 

It creates a lot of stress if you don't have a way of capturing these "to do's, and other important things" that you try to keep in short term memory.

 

If you want to reduce the amount of stress in your life come up with a reliable way of capturing these "to do's" when they pop into your head.  It can be paper and a pen, a checklist on your cell phone, etc.

 

Once your mind sees that you have a reliable way to capture these "to do's" it will relax, and you will have less stress.

 

Happiness is having a clear uncluttered mind.

 

That's it for today!

 

Have a good week!

 

Thanks.

 

Brett

 

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The Divorce Loan...

Good Morning!

If you are getting a divorce, and you have to pay your spouse their share of the equity of your home don’t use a traditional Texas Home Equity loan to do it.

Use an Owelty loan to get the cash out of your home instead.

The advantage of using an Owelty Loan over a Texas Home Equity loan is that we treat them as a regular rate and term refinance (not cash out rates – which are higher).

You can also get above 80% of the value of your home with an Owelty Loan, and you can’t go above 80% with a Texas Home Equity loan.

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 us a call and we can help you!

That’s it for today!

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

Brett

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What To Do If You Can't Get A Loan Right Now...

Good Morning!

If you are wanting to purchase a home, but you aren’t able to qualify now – here’s what you need to do…

1) Isolate the reason you can’t get a mortgage now. (We can do this for you).

2) Make a plan to solve this problem.

If credit is the reason you can’t get a loan now – you need to know exactly where you are now.

…and, you need to know where you need to be for a loan.

We would like to help you create a plan.

I’ve seen many success stories of borrowers that had a plan to follow and did whatever it took to execute that plan. In a matter of a couple of months to six months, they are usually ready for a loan.

…not only that. It gives a person confidence and purpose when you have a clear goal, and a plan to achieve that goal.

So, contact us and we'll help create a plan for you. …and the best part is that we do this as a free service to you!

That’s it for today!

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

Brett

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Give Yourself An Advantage When You Make Your Offer To Buy...

Good Morning!

 

Hope you are well!

 

The real estate market (at least in most areas of Texas) is slowing down a bit.

 

Property is not appreciating quite like it was.  Homes are sitting on the market longer, etc.

 

In this market you need every advantage you can get as a buyer.

 

If you are thinking about buying a home in the near future I recommend you go ahead and get a TBD (to be determined) approval.  This is a legit full underwriting approval of your file before you find a home.

 

This will carry much more weight when you make an offer on a home, and increase the odds of your offer being accepted.

 

...and, when you do find a house we can close quickly because you are already approved!

 

If you want to get this done, let us know.  It's easy and we can do it quickly for you.

 

That's it for today!

 

Thanks for reading!

 

Brett

 

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When It's Not In Your Best Interest To Refinance...

Good Morning!

 

This may sound funny coming from a mortgage guy, but sometimes it's not necessary to refinance your mortgage to reduce the number of years left on your mortgage.

I have to tell people sometimes that it just doesn't make sense to refinance. The drop in rate isn't significant enough to warrant the costs of the refinance.

...but, what do these people do when they want to refinance to reduce the number of years on their mortgage?

One simple thing you can do is simply pay more each month on your current payment.

I'll give you an example...

On a $100,000 30 year mortgage - if you just add $120 to your payment every month you will pay your mortgage off in 20 years.
a

...If you add $250 to your payment on a $100,000 30 year mortgage you would pay the mortgage off in 15 years.

That's it for today!

...by the way, if you know of someone needing to be prequalified for a mortgage loan - I appreciate your referrals!

Thanks for reading! ...and, have a great day!

Brett

 

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When It's Not In Your Best Interest To Refinance...

Good Morning!

 

This may sound funny coming from a mortgage guy, but sometimes it's not necessary to refinance your mortgage to reduce the number of years left on your mortgage.

I have to tell people sometimes that it just doesn't make sense to refinance. The drop in rate isn't significant enough to warrant the costs of the refinance.

...but, what do these people do when they want to refinance to reduce the number of years on their mortgage?

One simple thing you can do is simply pay more each month on your current payment.

I'll give you an example...

On a $100,000 30 year mortgage - if you just add $120 to your payment every month you will pay your mortgage off in 20 years.
a

...If you add $250 to your payment on a $100,000 30 year mortgage you would pay the mortgage off in 15 years.

That's it for today!

...by the way, if you know of someone needing to be prequalified for a mortgage loan - I appreciate your referrals!

Thanks for reading! ...and, have a great day!

Brett

 

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One Time Close With VA...

Good Morning!

 

Did you know we have a One Time Close program with our VA loans?   ...We do!

 

One Time Close (OTC) is a program that allows you to buy land and build a house all in one transaction.  ...Only one close for everything in other words.

 

...So, if you are a veteran and want to build a house let me know.  I'll give you an idea how this program works.

 

That's it for today!

 

Have a good day, and thanks for reading!

 

 

Brett

 

 

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