Good Morning!
Occasionally I like to spotlight a program that may help you or someone you know.
We have ITIN loans as low as 15% down.
An ITIN number is a number issued to an individual by the IRS, who for whatever reason can't get a social security number.
Income documentation needed on these loans is either: 1 year Tax Returns, or 1 Year W2 or 1099, or 12 Month P&L only.
That's it for today!
Have a safe and happy new year!
Brett
Get Pre Approved For A Loan Here
My Previous Blog
Good Morning!
USDA is a 100% government insured loan. Low rates, and no down payment.
However, there are geographic limitations on this program.
To see if the area you are interested in is eligible for a USDA loan - please go to this map and check it out.
Let us know if you have other questions regarding this program.
That's it for today!
Thanks for reading!
Brett
Good Morning!
Can you believe Christmas is already here?
I hope you get to spend time with those you love, and get to put a lot of memories into your memory bank.
Reminder – property tax bills are due at the end of January.
If you have a non escrowed loan and don’t have the money to pay the tax bill, or don’t want to pay the tax bill - here is a possible solution for you...
We can refinance your loan and roll in your tax bill into the new loan. This way you can get your taxes paid, and skip a couple of months payments in the process!
That’s it for today!
Have a good day today! …and, thanks for reading
Brett
Good Morning!
If you get bonus income please be aware of how the mortgage company will treat that income when you try 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
Good Morning!
Did you know when you purchase a home you can ask the seller to help pay your closing costs, prepaid taxes and insurance, and interest?
Below are the max seller help contribution limits per program...
Program: Conventional (Fannie/Freddie), owner-occupied…
1) 25% or more down payment = 9% allowed seller contribution.
2) Less than 25% down and up to 10% down payment = 6% allowed seller contribution.
3) Less than 10% down payment = 3% allowed seller contribution.
4) Fannie Mae Homepath: less than 25% down = 6% allowed contributions; 25% down or more = 9% allowed contributions.
Program: FHA
1) 6% maximum seller contribution.
Program: VA
1) 4% closing cost contribution.
Program: USDA
1) No limit to how much sellers can contribute (is limited by actual closing costs/prepaids). When a home appraises higher than the sales price, closing costs can be financed with USDA rural loans up to the difference between the sales price and appraised value.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Get Pre Approved For A Loan Here
My Previous Blog
Good Morning!
I try to do a post about this at least once a year because it's important...
My job as a loan officer allows me to have a unique perspective into people’s lives.
I can see how much money people make, and how much money they have in the bank.
I do loans for people who make less than $20,000 a year, and I do loans for people who make well over $250,000 a year.
I know times are harder now than in years past, but this post isn't about circumstances as much as a mindset.
…It doesn’t matter if you make a lot of money, or very little money – there is a common problem that I see again and again…
…Little to no savings.
This isn’t true in every case, but I see it very often.
People tend to spend what they make.
…even the borrowers I have who make a lot of money don’t tend to save their money.
My advice to you?… Pay yourself first.
Open a savings account, and before you pay any other bills – pay yourself first. …pay it just like it was a car payment or an electric bill.
…Make it a percentage of your total income.
Pay it every month. …it will build up faster than you think.
There is a special comfort that you will gain when you see that you have a comfortable cushion in the bank.
…I want that feeling for you.
This feeling of comfort will percolate into other areas of your life – less fights about money – less stress at work – happy mom and dad makes for happy kids, etc.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Good Morning!
I have borrowers ask me every day how much they need to put down to purchase a home.
Here are your minimum down payment options on the loan products currently available in the marketplace.
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 5% down for Conventional loans. There is also a 3% down for first time home buyers.
That’s it for today!
Have a good day! …and thanks for reading.
Brett
Good Morning!
There are five different possibilities as far as who can pay your closing costs on a purchase loan.
I’ll go through each one here…
1) You. …You are the borrower and you can pay these expenses yourself.
2) The seller. It’s a seller’s market right now, so some sellers are reluctant to pay closing costs. You will just have to talk to your realtor about a strategy.
3) Gift. You can get a gift from a family member to pay your closing costs. The guidelines are different with each program for gift giving – so check with your loan officer before you attempt to go this route to make sure it’s appropriate for your loan program.
4) Grant. If you have access to a state or government grant program you can use this to pay these costs.
5) Loan officer and/or realtor. You can get help with paying your closing costs and prepaid expenses from the loan officer, and the realtor can help as well.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Good Morning!
I wanted to let you know that for 2021 the Conforming Loan limits are going up.
Max Conforming Loan limit in Texas is currently $510,400, and beginning in 2021 the limit will go up to $548,250.
The advantage of using a Conforming Loan over a Jumbo loan is that the rates are lower, and you don't have to put down as much money on a Conforming Loan.
This is good for all of us.
That's it for today!
Have a great week!
Brett
Good Morning!
Happy Thanksgiving!
Here's five things you may not have known about thanksgiving...
1) Historians have no record of turkey being eaten at the first Thanksgiving.
2) Benjamin Franklin wanted the turkey as the national bird.
3) Snoopy has made the most appearances in the Macy's Thanksgiving Day Parade.
4) The first professional Thanksgiving Day football game was played 1920.
5) Each year, about 46 million turkeys are cooked.
That's it for today!
Thanks for reading!
Brett
Good Morning!
If you’re rate shopping for a mortgage – here are some guidelines for you to keep in mind…
1) Ask the loan officer for a Loan Estimate (LE). There’s always a relationship between fees / points / and rate. …You won’t know what that relationship is unless you look at a LE. (A low rate is great, but if you are paying points to get it – it may not be so great after all.)
2) When looking at the LE – focus on, and compare the mortgage fees.
3) Pay attention to the date on the LE – or rate quote. The rate market changes daily. You have to compare apples to apples. …To compare two rates generated 1 week apart is a waste of time. The rate that appears higher may actually be priced more competitively than the lower rate – depending on when the quote was generated.
That’s it for today!
Have a good day! …and thanks for reading.
Brett
Good Morning!
Have you ever wondered how much extra you would have to pay on your mortgage each month to shave off five years, or ten years, or more?
It's easy to see on the calculator on our website.
Click on it, and check it out... https://www.berkshirelending.
Hope you are having a great week!
Brett
Good Morning!
Here are some advantages and disadvantages of the USDA loan program...
Advantages of USDA: USDA loans are 100% loans. No down payment is required! Low monthly mortgage insurance. At the time of this writing the monthly MI is .35 x the loan amount divided by 12.
Flexible credit guidelines. USDA loans allow the seller to pay the borrower's closing costs and pre paid expenses (taxes and insurance) at closing up to 6% of the sales price.Disadvantages of USDA: There are income and geographic restrictions on USDA loans. Generally USDA loans are not available in large to medium sized cities. You can contact our office to see if your area is in an eligible area.
That's it for today!
Thanks for reading!
Brett
`Good Morning!
Happy Veterans Day!
Here's something you may not have known about Veterans Day...
Veterans Day originated as “Armistice Day” on Nov. 11, 1919, the first anniversary of the end of World War I. Congress passed a resolution in 1926 for an annual observance, and Nov. 11 became a national holiday beginning in 1938. Unlike Memorial Day, Veterans Day pays tribute to all American veterans—living or dead—but especially gives thanks to living veterans who served their country honorably during war or peacetime.
That's it for today!
Have a great rest of your week!
Brett
Good Morning!
I had this situation come up again last week…
Advice: If you enter into a lease option agreement don’t give cash for the option money.
The reason is when you try to buy the house down the road you will have to prove you gave the option money to get credit for it. …it’s hard to prove cash.
You can do a personal check, cashiers check, or money order. …but, don’t give cash.
That’s it for today!
Hope you had a good weekend!
Have a good day today! …and thanks for reading.
Brett
Good Morning!
I wanted to highlight an underused program in the mortgage market. …It’s Freddie Mac’s Home Possible.
Here are some highlights of this great program…
– 97% financing!
– Only .25% mortgage insurance rate! …compare to .85% for FHA and over 1% for 95% Conventional.
– No reserves required.
– Allows 3% seller contribution.
– There are income limits unless you purchase a property in an “underserved area”.
If you want a low down and very low mortgage insurance program this is a great one! Give me a call or shoot me an email to see if you qualify.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Good Morning!
Tomorrow is election day.
Do you recall what happened with mortgage rates after the 2016 election?
Mortgage rates rose rather dramatically in a short period of time.
Hopefully we won't see a repeat of this. The one wild card is the persistence of Covid-19. It continues to subdue economic growth expectations, and I personally see that tempering any dramatic swing in rates.
...I could be wrong however.
One way or the other - we are about to find out.
Happy November!
Thanks for reading!
Brett
Good Morning!
I wanted to list some of the Alternate Documentation loans we offer. These are loans for people that have trouble proving their income via traditional means (tax returns).
Very simply we take the aggregate deposits of your bank statements (can be personal or business) and use this for your income.
Variables of Bank Statement loans…
24 Months of bank statements.
12 Months of bank statements.
2 Months of bank statements.
1 Month bank statement.
The reason we offer multiple options for months is that sometimes a 12 month average won’t work as good for the borrower as one month.
We offer down payments as low as 10% on owner occupied bank statement programs.
We also offer multiple ways of calculating deposits, which is very helpful if there are issues with one calculation method.
Rates on these programs are usually only modestly higher than normal conforming rates.
Option 2: Asset Depletion
If you have no income to speak of, or at least you can’t prove your income via traditional means, or bank statements, then Asset Depletion may be an option for you.
If you have sufficient assets then we can use your assets in liu of income documentation.
We have down payments as low as 15% on Asset Depletion loans.
Option 3: Investor Debt Service Coverage
This documentation option is for non owner occupied investment properties. It requires no income documentation. We use the income from the property (rental income) for the buyers income to get the loan approved.
Option 4: No Ratio and Stated Income Loans
No Ratio is stated income and verification of assets to close the transaction. This is a non owner occupied investor loan only.
Stated Income and Stated Assets is also non owner occupied investor loans only.
We are experts at getting these loans closed and funded.
If you are needing an Alt Doc loan feel free to reach out to us with your questions, or apply now to get pre qualfiied.
If this sounds like a loan you can use to accomplish your goals then click the link below and apply.
We can usually close this loan in 2 to 4 weeks.
That's it for today!
Have a great rest of your week!
Brett
Good Morning!
I wanted to address the two most common
questions that I get regarding reverse mortgages…
Question: What happens if I die? Will the lender be taking my house?
Answer: No. After you pass away, your heirs may pay the loan balance in full with cash or by refinancing the debt and they can keep your home.
Question: What happens if the loan balance becomes greater than the value of my home?
Answer: No matter how large the loan balance becomes, you have the right to continue to live in the house. The lender cannot take over your home as long as it is your principal residence. Besides, you will NEVER owe the lender more than the value of your home. HUD will pay the shortage for you, if there is any.
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett
Good Morning!
I wanted to let you know how the major mortgage programs treat Chapter 7 bankruptcy…
FHA: 2 years from discharge date, but not less than 12 months w/extenuating circumstances.
VA: 2 years from completion date.
USDA: 3 years from discharge date.
Fannie Mae: 4 years from discharge date, or dismissal date.
Freddie Mac: 4 years from discharge date or dismissal date.
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett
Good Morning!
When it comes to bonus income there are a few things to be aware of when you are getting 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.
If you or someone you know needs a mortgage – let us know! We would love to help you out!
That’s it for today!
Have a good day! …and thanks for reading.
Brett
Good Morning!
If you intend to sell an asset, such as a boat or a car to raise money for a down payment - here’s how to structure the sale of an asset 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
Get Pre Approved For A Loan Here
My Previous Blog
Good Morning!
You may have been told by your loan officer that you have to remove the disputes from your credit before they can underwrite your loan.
Removing disputes can be time consuming and expensive.
For Conventional loans, there is really no way around this. You will have to remove them.
However, for FHA loans you don’t necessarily have to remove them.
This is true for manually underwritten FHA loans.
So, if you are getting an FHA loan, and your loan officer wants to remove the disputes (but you don't want to or don't have time to remove them). Ask your loan officer to have the file manually underwritten.
On a manually underwritten loan, the underwriter can underwrite the loan “around” the disputes. …Ignore them in other words.
That’s it for today!
Thanks for reading!
Good Morning!
I hope you had a great weekend!
If you have ever wondered if you might benefit from a Debt Consolidation loan - check this out...
I did a short video for you showing you how they work, and how they can benefit you:
That's it for today!
Thanks for reading!
Good Morning!
I wanted to spotlight a Jumbo product we have.
It's full doc only (you have to prove your income via traditional means).
Up to $3,000,000 at 70% loan to value ratio.
Up to $2,000,000 at 80% loan to value ratio.
Up to $1,000,000 at 90% loan to value ratio.
Rates in the 2's are possible on this loan with good credit.
30 year fixed only.
If you or someone you know needs help with a Jumbo loan - please give us a call or shoot us an email.
Thanks for reading!
Brett
Good Morning!
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!
Have a good day! …and thanks for reading.
Brett
Good Morning!
If you are self employed, and need to get a mortgage to purchase a house, but don't show a lot of income on your tax returns - here's an option for you...
I wanted to spotlight one of our Alt Doc programs: Alternate Documentation loans are loans that allow you to use alternative documentation to prove your income. That is, other than the traditional Tax Returns, or W-2’s and Pay stubs.
Bank statement loans
Very simply we take the aggregate deposits of your bank statements (can be personal or business) and use this for your income.
Variables of Bank Statement loans:
The reason we offer multiple options for months is that sometimes a 12 month average won’t work as good for the borrower as one month.
We offer down payments as low as 10% on owner occupied bank statement programs.
We also offer multiple ways of calculating deposits, which is very helpful if there are issues with one calculation method.
Rates on these programs are usually only modestly higher than normal conforming rates.
That's it for today!
Thanks for reading!
Brett
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 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!
Brett
Good Morning!
The Fed is to meet later today. Keep in mind, the Fed doesn't set mortgage rates. The Fed's policy rate applies to overnight loans between large financial institutions.
However, if they announce a change to their mortgage backed bond buying policy - that could affect mortgage rates.
Right now the Fed is buying a lot of bonds. For instance, if they announce they will continue to buy bonds at the current rate, or buy more bonds mortgage rates will drop.
We'll see what they do, and I'll let you know.
That's it for today!
Have a great day!
Brett
Good Morning!
I try to write about this topic at least every year or two, because it's important...
My job as a loan officer allows me to have a unique perspective into people’s lives.
I can see how much money people make, and how much money they have in the bank.
I do loans for people who make less than $20,000 a year, and I do loans for people who make well over $450,000 a year.
…It doesn’t matter if you make a lot of money, or very little money – there is a common problem that I see again and again…
…Very little to no savings.
This isn’t true in every case, but I see it very often.
People tend to spend what they make.
…even the borrowers I have who make a lot of money don’t tend to save their money.
My advice to you?… Pay yourself first.
Open a savings account, and before you pay any other bills – pay yourself first. …pay it just like it was a car payment or an electric bill.
…Make it a percentage (10%) of your total income.
Pay it every month. …it will build up faster than you think.
There is a special comfort that you will gain when you see that you have a comfortable cushion in the bank.
…I want that feeling for you.
This feeling of comfort will percolate into other areas of your life – less fights about money – less stress at work – happy mom and dad makes for happy kids, etc.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Good Morning!
If you’re rate shopping for a mortgage – here are some guidelines for you to keep in mind…
1) Get a Loan Estimate (LE). There’s always a relationship between fees / points / and rate. …You won’t know what that relationship is unless you look at a LE. (A low rate is great, but if you are paying points to get it – it may not be so great after all.)
2) When looking at the LE – focus on the mortgage fees. These are the only fees the loan officer really knows at the time he/she is creating the LE. They will just be estimating the title fees, insurance, and taxes.
3) Pay attention to the date on the LE – or rate quote. The rate market changes daily. You have to compare apples to apples. …To compare two rates generated 1 week apart is a waste of time. The rate that appears higher may actually be priced more competitively than the lower rate – depending on when the quote was generated.
That’s it for today!
Have a great Thursday! …and thanks for reading.
Brett
Good Morning!
I hope you had a great holiday weekend!
I wanted to let you know we are getting more Jumbo products back.
Once Covid hit the Jumbo market went away. You just couldn't get a Jumbo loan.
Now the product options are starting to come back. So, if you have a Jumbo loan and would like to look at a possible refi - give us a call or shoot us an email and let us take a look at that for you.
That's it for today!
Thanks for reading!
Brett
Good Morning!
I've written about this before, but I see it every day, and wanted to remind you...
Remember, from a loan perspective it’s very difficult to get a loan if you are currently in Forbearance, and the loan is behind.
Lenders will insist the loan be brought current, and removed from Forbearance before they will give you a loan.
Rates are low right now – a very good time to lock in to a low rate!
That’s it for today.
Thanks for reading!
Brett
Good Morning!
If you are planning on purchasing a house, and will be putting 5% down or less - this post is for you!
I made a short video to show you how to have a lower house payment, and pay off your house quicker
That's it for today!
Have a good day!
Brett
Good Morning!
We want to be able to use your bonus income to help you get a mortgage.
However, here are three big guidelines to be aware of for us to be able to count your bonus income:
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.
Be aware of this as you apply for a mortgage.
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett
Good Morning!
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 upfront and monthly mortgage insurance.
Conventional: There are 3% down and 5% down loan options on Conventional. No up front MI.
Good Morning!
There is a little known 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 reader's 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 when you file your taxes.
I hope you have a great day! Thanks for reading!
Brett
Good Morning!
You may not be aware of it, but last week rates increased.
This comes from a surprise announcement from conventional mortgage regulators (Fannie and Freddie or, collectively, the "GSEs") that they will collect a new fee on all refinances. Any loan that's not already very close to the closing table will be affected.
The new fee is one half of one percent of the loan amount.
The GSEs have justified this increase due to the fact that they will be paying out claims to mortgage investors on a significant number of loans in forbearance. In most cases, it was the mortgage servicers who'd been making those payments (certain loans require investors to be paid even if the homeowner is not paying).
There are a lot of people that are unhappy about this. Ultimately it hurts everyone that might be interested in refinancing. It also hurts our country. We are trying to work through a recovery, and we need as much economic activity as we can get. This will significantly damage the refinance push.
That's it for today!
Have a good day!
Brett
