Side Benefit To Stock Market Tanking...

Good Morning!

The stock market looks like it may be down again today due to the Corona virus scare.

That's not good if you have money in the stock market.   ...However, there is a side benefit when he stock market behaves in such an erratic manner.

Money flows out of the stock market and into the bond market.   ...and, due to this mortgage rates tend to improve.

...and, they are improving.

So, if you were considering refinancing - now is a good time to take a look at this.

Shoot us an email or give us a call if you want to take a look at lowering your rate / payment / or mortgage term.

That's it for today!

Thanks for reading!

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Sourcing Your Down Payment...

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.

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 today!  …and thanks for reading.

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100% Financing For This Program...

Good Morning!

People forget there is a great 100% financing mortgage program other than VA.

...it's USDA.

There are two main restrictions on the USDA program.

1)  Geographic.  This program is designed for outer suburbs or rural areas.  Here is a link to a map so you can see if the area you are interested in is eligible...

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfpd

2)  Income.  You can make too much money as a family to qulify for this program.  Here is a link to see if you qualify for income limits...

https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state

This is a government insured low interest program.

Let us know if you are interested in this great program.

Thanks for reading!

Brett

 

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How Mortgage Companies Treat A Deed In Lieu...

Good Morning!

I get asked about “Deed In Lieu” sometimes.

A Deed In Lieu is where you beat the mortgage company to the punch… …and give the mortgage company back the house before they have a chance to foreclose.

People ask me how a Deed In Lieu would affect their credit.

I tell them that it would be treated the same way a full foreclosure would – from a mortgage perspective anyway.

…in fact, if you have a “Deed In Lieu” show up in the mortgage history on your credit report – it might as well say “Foreclosure”.

You will have to wait a period of time before you would be eligible for a new mortgage.

…here’s what you’re looking at for seasoning on a foreclosure:

Fannie Mae/Freddie Mac: 7 years.  (Sometimes you can get automated approval after 4 years)

VA: 4 years.

FHA: 3 years.

That’s it for today!

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

 

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Mortgage Rates Right Now...

Good Morning!

Normally when the stock market is going strong (like it is now) money flows out of he bond market into the stock market, and as a consequence mortgage rates tend to rise.

However, the mortgage rates have been holding low in spite of this stock market rise.

Some are saying its because of the Corona-virus fears, and that may be true.

Whatever the reason - mortgage rates remain low right now.

...so, if you are thinking about refinancing, or purchasing now - it's a good time to take advantage of it.

That's it for today!

Thanks for reading!

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Spouse Has Good Income, But Poor Credit...

Good Morning!

I get asked this question allot by borrowers…

“My spouse doesn’t have very good credit, but can I use her income on my loan application?”

Answer: “No.”

If we ad the spouses income, then we have to take his/her credit too. In fact, they would become an equal borrower on the loan.

If you are in this situation, and need more income on your loan to get approved – give us a call or shoot us and email.

There are other possible ways to add income, and we can explore these with you.

That’s it for today!

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

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Max Limits On Seller Paid Closing Costs...

Good Morning!

In some markets I see sellers are willing to pay at least some of your closing costs.

Here is a breakdown of the maximum seller help amounts by loan 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.

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