How Forbearance Will Affect You Getting A Mortgage...

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Good Morning!

When congress passed the Covid-19 help plan one of the things they did was that they eliminated the burden to prove a hardship in order to file a Forbearance on your Mortgage.

Some people that filed for Forbearance were truly in a hardship and needed it.  Others weren’t in a hardship, and just wanted to skip some mortgage payments.

I wanted to tell you what you will run into if you are trying to purchase or refinance a house using a new mortgage – if you filed Forbearance.

Fannie and Freddie released a statement on May 19th stating that borrowers are eligible (if they filed Forbearance) if they are current on their mortgage, and they continued to make their payments during the forbearance.  

(Which no one will do if they are in Forbearance),  or the forbearance is finished and the borrower has made 3 consecutive payments on time.

So, in other words you won’t be able to get a Conventional Mortgage if you filed a Forbearance, unless you continued to make your mortgage payments during this time.

We are still waiting to see how FHA will treat the new Forbearance guidelines.

That’s it for today!

Thanks for reading!

Brett

Get Pre Approved For A Loan Here
My Previous Blog

Forbearance Numbers...

Good Morning!

When congress enacted the help for Covid-19 aide, one of the things they did was to waive the "proof of hardship" to apply for forbearance on a mortgage.  This was a giant mistake.

While many have real hardships others don't, and still apply for the forbearance.

Case in point this survey result from Lending Tree...

With the number of homeowners under forbearance plans nearing 10 percent of all of those having a mortgage, a Lending Tree survey indicates that most of those borrowers did not actually need the help. One quarter of the homeowners surveyed by the company said they had applied for forbearance because of a COVID-19 hardship, and of those, 80 percent were granted one. However, only 5 percent said they wouldn't have been able to pay their mortgage without forbearance.

That's it for today.

Thanks for reading!

Brett

Get Pre Approved For A Loan Here
My Previous Blog

We Still Have Active Alt Doc Loans...

Good Morning!

I wanted to let you know that even though most of the Alt Doc programs are on "hold" due to the Pandemic - we still have active Alt Doc programs, and are still doing these loans.

For the record - Alt Doc programs are loan programs that use alternative documentation to prove income (such as bank statement deposits).

So, contact us if you have questions on these.

That's it for today!

Thanks for reading!

Brett

Get Pre Approved For A Loan Here
My Previous Blog

How Long You Have To Wait After Chapter 7 BK To Get A Loan...

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.

With Fannie and Freddie - if you get an automated approval in the underwriting engine with less than 4 years out on a BK, then we can do the loan.

That’s it for today!

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

Brett

Get Pre Approved For A Loan Here
My Previous Blog

 

 

 

 

 

Purchase Applications Starting To Improve...

Good Morning!

Purchase applications are down 19% from last year at this time.  Of course, this is due to the Covid-19 outbreak.

However, the good news is purchase applications have increased for the third week in a row.  I think this will continue to improve as people get back to work.  We are coming into the peak buying season.

I hope you and your family are well!

That's it for today!

Thanks for reading!

Brett

Get Pre Approved For A Loan Here
My Previous Blog

It's Possible To Purchase A Home Using 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

Get Pre Approved For A Loan Here
My Previous Blog