How A Reverse Purchase Works...

Good Morning!

I've written about this before, but I wanted to touch on it again, because I had someone ask me about this yesterday...

I had a borrower recently use a reverse mortgage to purchase a house, and I wanted to tell you their story.

…because I think it’s a good example of a neat way to use a reverse mortgage to upgrade your home.

The borrowers were recently retired, and now living on a fixed income.

They owned their home free and clear, and lived in a small town not too far from Dallas.

Their home was worth around $150,000.

Both husband and wife decided they didn’t want to live their retirement years in their current home.

…they wanted to spend their retirement on or near a lake. …so, they found a house they liked on a near by lake for around $295,000.

They didn’t have the cash to buy the new home outright. …and, they didn’t really want to take on mortgage payments at this stage in their lives.

I suggested they use a Reverse Mortgage to purchase the home. Here’s how it worked…

They sold their current home and put down their proceeds from the sale as their down payment. Instead of getting a traditional mortgage to pay the difference between their down payment and the sales price – we used a Reverse Mortgage.

The result is they get to retire on a lake in a home worth twice what their old home was worth. They put down less than half the sales price. …and, they will never make another mortgage payment for the remainder of their lives!

Please shoot me an email or give me a call if you would like to explore how to use a Reverse Mortgage for you or someone you know.

That’s it for today!

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



Get Pre Approved For A Loan Here
My Previous Blog

95% Super Jumbo Loan...

 Good Morning!

Real quick...  Wanted to highlight an unusual product we have.

We can go up to 95% LTV with no MI to 1.5 million dollars.  This is on Purchase or Refinance.

This is unusual to have such a high loan to value ratio on a super jumbo loan.

...just in case you need one!

That's it for today!

Have a good week.

Get Pre Approved For A Loan Here
My Previous Blog

Will A Mortgage Credit Pull Hurt Your Score?...

Good Morning!

I get this question alot: “If you pull my credit will it hurt my credit score?”

The answer is not really.

When you get an inquiry on your credit it’s usually due to you applying for one of these 4 types of credit…

1) A credit check for a mortgage loan.

2) A credit check for an auto loan.

3) A credit check for a credit card application.

4) A credit check for a store credit card, or consumer loan.

Of all of these a mortgage inquiry would have the least effect on your credit.

Also, the credit bureaus recognize when you have a mortgage inquiry that you are likely shopping for a mortgage.

They give you a 14 day period of time starting with the first pull to have as many mortgage credit pulls as you want, and they will only count the first inquiry against you.

My advice is that if you are shopping for a mortgage let your loan officer pull your credit. It won’t have a terrible effect on your credit scores.

…and your loan officer can’t give you accurate numbers without it.

That’s it for today!

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

Get Pre Approved For A Loan Here
My Previous Blog

Wait Period To Get A Loan After Foreclosure...

Good Morning!

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!


Get Pre Approved For A Loan Here
My Previous Blog

Credit Tip For You...

Good Morning!

Did you realize that 15 percent of your credit score comes from the length of time each account has been open, and the length of time since the account’s most recent action?

So, it’s impossible for someone who is new to credit to have a perfect credit score.

A longer credit history provides more information and offers a better picture of long-term financial behavior.

So, to improve your credit score, individuals without a history should begin using credit, and those with credit should maintain longstanding accounts.

That’s it for today.   …Have a good day!

Thanks for reading!

Get Pre Approved For A Loan Here
My Previous Blog

Way Around Getting Rid Of Credit Disputes...

Good Morning!

Here’s one way to get a loan done with existing disputed accounts on your credit.

Does this situation sound familiar?…

You hired someone to work on your credit. Now, you have a bunch of disputed accounts on your credit report.

That’s all fine and good… Until you need to get a mortgage.

Your mortgage guy says “You need to get rid of these disputed accounts before we can get a loan done for you.”

Getting disputes removed can be costly and very time consuming. …and, often this process alone can kill your purchase transaction.

One way to get around this is to use a manually underwritten FHA loan.

FHA guidelines allow the underwriter to do a manual underwrite on your file (assuming you would otherwise qualify for the loan), and close the loan with the disputes intact and remaining on the credit.

Call me or email me if you have questions about your situation. I’ll be glad to help you!

That’s it for today!

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

Get Pre Approved For A Loan Here
My Previous Blog

Two Ways You Can 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 here 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.

That’s it for today!

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

Get Pre Approved For A Loan Here
My Previous Blog

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.

Get Pre Approved For A Loan Here
My Previous Blog