How To Buy A House Using A Reverse Mortgage...

 Good Morning!

 

Did you know you can use a reverse mortgage to buy a house?

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
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Can You Be Too Old To Get A Mortgage?...

 Hello!

The other day I had a borrower ask me if they could apply for a 30 year mortgage even though they were 78 years old.

I can see why they asked this question. …The odds are they may not be around for another 30 years.

Just so you know… It’s against the law for mortgage companies to discriminate against a mortgage applicant for being older.

Even if you were 90 years old you could still apply for a 30 year mortgage.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

 

Get Pre Approved For A Loan Here
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Waiting Period On Foreclosure For Traditional Loan Programs...

 Hello!

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 wait can be less.

Freddie Mac – 7 years from completion date, or if you can get an automated approval sooner, the wait can be less.

That’s it for today!

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

Brett

 

Get Pre Approved For A Loan Here
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Two Credit Tips For You...

 Hello!

Here are two quick credit tips for you…

1) 30% of your score is made up of the ratio between your available credit vs your actual balances on revolving credit accounts (like credit cards).

You don’t want to charge these accounts over 50% of the available balance, and its even better if you can keep it under 30% of the available balance.

2) 15% 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 long standing accounts.

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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How To Sell A Physical Asset To Raise Money To Buy A House...

 Hello!

I’ve Touched On This Before, But I Had This Come Up The Other Day, And Thought I Might Touch On It Again.

When You Sell A Personal Asset Such As A Car Or Boat To Raise Money For A Down Payment To Buy A House Here Is What You Will Need To Show The Underwriter To Use The Funds…

• The Ownership Of The Asset (Proof – Such As A Car Or Boat Title)

• The Transfer Of Ownership Of The Asset With Its Sale, Such As A Bill Of Sale Or A Statement From The Purchaser

• The Receipt Of The Proceeds Of The Sale, Such As A Deposit Slip, Bank Statement, Or Copy Of The Purchaser’s Check

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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How A 1099 Loan Works...

 Hello!

Did you know we have 1099 loans?

In other words if you get a 1099 at the end of the year we can just use your 1099's to prove income.

No tax returns or pay stubs needed.

Some details on this mortgage:

Loan Amounts: $100k minimum to $5 million maximum.

 

Credit Requirements: 640 FICO Minimum.  Must be current and not currently in bankruptcy proceedings.

 

Loan To Value Ratio up to 90% (680 score required for 90%)

If you or someone you know needs a loan like this please contact our offices to get ready to go.

That's it for today!

Thanks for reading!

Brett

Get Pre Approved For A Loan Here
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Make Sure Of This One Thing Before You Try To Buy A House...

 Hello!

I’ve covered this before, but I think it’s worth repeating…

Before you go out house hunting make sure you have enough money available to get your house closed.

…I know it sounds simple, but many people don’t realize the amount of funds they will need available to get into a house.

Here is a simple breakdown of your out of the out of pocket costs you could expect by loan program.

1) VA: 100% loan. No down payment.

2) USDA: 100% loan. No down payment

3) FHA: Minimum 3.5% down payment.

4) Conventional: 5% minimum down payment. (There is also a 97% conventional option for first time home buyers).

…but you can expect more out of pocket than just the down payment. There are two other costs you can expect to pay when you purchase a home…

1) One is prepaids. This is pre paid interest, taxes, and insurance. Typically your prepaids will run 1% to 2.5% of a sales price.

2) Then there’s your closing costs… Typically closing costs (from all entities – title, appraisal, mortgage, survey, etc.) will add another 1% to 3% to a sales price.

Be prepared for these additional costs. However, there are a couple of ways to help you lower the closing costs and prepaid expenses.
The best way is to ask the seller to help you.

If the seller refuses to help you pay your closing costs and pre paids – there are other ways to get this done. Contact me and we can discuss some options for you.

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

Brett

Get Pre Approved For A Loan Here
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Check Out This Podcast I Was A Guest On...

 Hello!

I was recently on my friend Viktor Taushanov's Podcast.

We talk about...

1)  What governs interest rates.

2)  How to shop for rates.

3)  Difference between a Pre Qual and Pre Approval.

4)  And, my book that I recently wrote.

You can watch it here:  https://youtu.be/j5mn2XmrB-g

That's it for today!

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
My Previous Blog

How To Get A Loan With Foster Care Income...

 Hello!

If you receive money from the State or a County sponsored organization for providing foster care for children you can use this money as income to get a mortgage.

Foster care income is considered acceptable stable income as long as the borrower has a 2 year history of providing foster care services.

To prove this income we would need…

• Letters from the organizations providing the income.

• Copies of the borrower’s signed federal income tax returns that were filed with the IRS, or

• Copies of the borrower’s deposit slips or bank statements that confirm the regular deposit of the payments.

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