One Solution For A High Debt To Income Ratio...

Good Morning!

 

Have you been told that your credit is good enough to get a loan, but your debt to income ratio is too high?

 

In other words, you either need more income or fewer bills.

 

Here is one possible solution to that...

 

A non-occupying co-borrower.   …This would be someone that goes on the loan with you, but won’t be living in the house.

 

The benefit is you can use their added income to help you qualify for the loan.

 

There are some rules on non-occupying co-borrowers you need to be aware of…

 

1) For one unit properties only.

 

2) Non-occupying co-borrower is related to the borrower by blood, marriage, or law, or

 

3) Non-occupying co-borrower can document a family-type, long-standing relationship with the borrower unrelated to the loan transaction.

 

That’s it for today!

 

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

 

Brett

 

Get Pre Approved For A Loan Here

 

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

Good Morning!

 

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

 

Get Pre Approved For A Loan Here

 

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How You Can Add A Pool To Your Home...

Good Morning!

 

Have you ever thought about adding a pool or outdoor kitchen/grill/patio?

 

Did you know we have programs that would allow you to put in a pool / outdoor kitchen/ grill/patio?

 

We do!

 

This can be done either as a purchase/add-on, or as a refinance of your existing home.

 

This program requires a 620 minimum credit score.

 

If you have any interest in this program - give me a call or shoot me an email!

 

Thanks for reading!

 

Have a good day!

 

Brett

 

Get Pre Approved For A Loan Here

 

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Who Can Give You A Gift On A Conventional Loan...

Good Morning!

 

You can get a gift to help with the down payment or closing costs on a Conventional loan.

 

There are restrictions on who can give you a gift.

 

Here is the acceptable list of who can give you a gift...

 

Relative, defined as the borrower’s spouse, child or another dependent, or by any other individual who

is related to the borrower by blood, marriage, adoption, or legal guardianship.

 

The donor may not be or have any affiliation with the builder, the developer, the real estate agent, or any other

interested party to the transaction.

 

Fiancé, fiancée, or domestic partner.  - An unrelated individual who shares a committed relationship with the

primary wage earner currently resides in the same household as the primary wage earner,

and intends to occupy the security property with the primary wage earner.

 

That's it for today!

 

Thanks for reading!

 

Brett

 

Get Pre Approved For A Loan Here

 

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How We Do VA Loans With Low Scores...

Good Morning!

 

Hope you had a good weekend!

 

Did you know we can do VA loans with credit scores under 500?

 

We can!

 

Here are some of the basic things we look for with manual underwritten VA loans...

 

1)  NO Foreclosure or BK in last 2 years.

 

2)  No Derogatory credit in the last 2 years.  So, in other words, it's ok if there's bad credit, but it needs to be older bad credit.  Two years old or older.

 

That's it for today!

 

Thanks for reading!

 

Brett

 

Get Pre Approved For A Loan Here

 

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We Have A 1% Down Conventional Loan For You...

Good Morning!

I wanted to alert you to a 1% down Conventional loan we have.

You’ll need a 700 credit score.

Max debt to income ratio of 43%.

The product is also available with no Mortgage Insurance.

If you are interested in this product please give me a call or shoot me an email.

That’s it for today!

Have a good day today!

…and thanks for reading.

 

Brett

Get Pre Approved For A Loan Here

 

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Important Differences Between Fannie and Freddie...

Good Morning!

 

When it comes to conventional loans there's Fannie Mae and Freddie Mac, and basically, that's it.

 

Here are some differences between the two that few know about...

 

1)  Lower credit score and some credit dings?  Try Fannie Mae. Fannie may now go up to 50% back-end dti on a case by case basis BUT it is still more aggressive with the DU

credit analysis than Freddie.

 

2)  More aggressive additional income calculation?  Go Freddie Mac. Freddie DOES NOT require a 2-year average and a YTD calculation for income such as bonus, overtime, tips, etc., Fannie Mae does.  Merely most recent year and YTD.

 

3)  Unpaid collections and non-mortgage charge-offs?  Go Fannie. Fannie, on a primary SFR ONLY, does not require ANY of them paid off. Freddie Mac might.

 

4)  Non-occupying co-borrowers?  Both now allow it. BUT, Freddie REQUIRES a housing history, Fannie Mae does not.

 

That's it for today!

 

Thanks for reading!  Have a good day.

 

Brett

 

Get Pre Approved For A Loan Here

 

My Previous Blog Posts

You Have To Know This Before Applying For A Loan...

Good Morning!

I touch on this from time to time, but it’s important so I want to revisit it…

One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.

This is called sourcing in the mortgage industry.

For instance, the down payment on an FHA loan is 3.5%.

If the seller is paying your closing costs – you will still have to pay your 3.5% down payment.

You can have this money in your checking account or savings account now. You can borrow it from your retirement account.

…You can even get the down payment as a gift.
…but, it’s crucial that we are able to show where it’s coming from.

I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.

If you aren’t sure where your down payment is coming from – find out now.
..before you apply for a loan.

That’s it for today.

Thanks for reading!

Get Pre Approved For A Loan Here

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Two Ways To Avoid Paying Mortgage Insurance...

Good Morning!

If you have a conventional loan, and your loan to value ratio is over 80% – you will be paying monthly mortgage insurance to the lender.

No one likes paying monthly mortgage insurance.  It’s extra money added to your payment every month, and it’s doesn’t help pay down the balance of the loan.

If you want a conventional loan and your LTV is over 80%, but don’t want to pay monthly mortgage insurance there are two ways to avoid this…

1)   One would be Lender Paid Mortgage Insurance.  We pay the MI for you.  The rate generally is .25 to .375 higher, but there is no monthly mortgage insurance.

2)  Get a piggy pack loan.  This is where we make two loans for you.  … A first mortgage at 80%, and a second mortgage at 15%.  This way you just put down 5%, and there is no monthly mortgage insurance payment.

Thanks for reading!

Have a good day

Get Pre Approved For A Loan Here

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