Who Can And Can't Give A Gift On An FHA Loan...

 Hello!

FHA gift questions come up often.  This is where the buyer would get a gift to help in purchasing a home.

I wanted to give you the rules on FHA gift giving. Here ya go…

Acceptable gift donors for FHA loans…

1) Borrower’s relatives.

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.

Brett

 

 

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How To Get A Loan If You Filed An Extension On Your Tax Return...

 Hello!

What do you do if you are in the process of applying for a loan and you have filed an extension on your taxes?

(assuming your loan officer is asking for tax returns for  underwriting)

Your loan officer asks you for your most recent tax return, but you can’t give it to him or her because you filed an extension.

Easy! …You give your loan officer the extension you filed, plus your previous two years tax returns.

Now, if your extension shows you owe money to the IRS the underwriter may ask you to show proof you paid this money. Keep this in mind.

That’s it for today!

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

Brett

 

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How A Delayed Cash Out Loan Works...

 Hello!

If you purchased a home using your own cash, and now would like to pull your cash back out – we can do that.

This type of loan is called ‘delayed financing’  …and, you can get your cash back out of the house.

In fact, we do this type of cash out loans up to three million dollars.

…so, if you are in need of a loan like this – shoot us an email or give us a call.  We can help!

That’s it for today!

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
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The Other 100% Financing Program...

 Hello!

You might be surprised to know that there are many realtors out there that are unaware of the USDA program.

If you are looking for a home in the outer suburbs or in a rural area make sure your realtor knows about this great 100% financing program.

Here are some quick bullet points on the USDA program…

Up to 100% of the Appraised Value – Total LTV of 102% –

No Down Payment Required

No Cash Reserve Requirement. No cash contribution requirement

Unlimited seller concessions

Unrestricted gifts, not necessary to document source, no seasoning

First time home buyers allowed, but not limited to first time home buyers

Completed Short Sales are NOT regarded as a foreclosure or negative credit.

Collections over 1 year may not need to be paid (cannot be a pattern and depends upon credit score).

Non-traditional credit may substitute for lack of credit history

If you have more questions about getting qualified for this program just shoot me an email or give our office a call.

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

Brett

 

Get Pre Approved For A Loan Here
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Are You ITIN Status? We Have Loans For You...

 Hello!

Did you know we have programs to help ITIN borrowers?

An ITIN borrower will live and work in the U.S., but will not have formal U.S. residency status.

Here are some features of our ITIN loans...

No Social Security Number Needed

 

Loan Amounts Now Up To $1.5M

 

Primary Residences, Second Homes & Investment Properties

 

1 or 2 Years Full Doc, 1099, Business or Personal Bank Statements

 

4 Year Work History Required

 

Credit Scores as low as 660

 

Up to 80% LTV

So, if you or someone you know could benefit from this, just contact our offices and we will be happy to help you out.

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
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Quick Look At How Your Credit Score Is Compiled...

 Hello!

I wanted to give you a quick breakdown of how your credit score is calculated by the credit bureaus…

35% – Payment history
The credit bureaus look at your payment history on all your accounts; the length of your positive credit history and how long you have gone without a negative item; whether there are any severe unpaid debts like bankruptcies or foreclosures; and the number and severity of delinquencies in your credit history.

30% – Amounts Owed
Too many credit accounts and a high ratio of credit balances to credit limits can affect your score. Also affecting your score is the amount of debt on each account and the level of debt paid off on term accounts.

15% – Length of Credit History
Longer credit histories result in higher scores. Important factors incorporated into credit scores are: length of credit history, length of time specific accounts have been open, and the duration of time since each account was last used.

10% – New Credit
Credit scores track consumers who suddenly take on new debt and potentially overextend themselves, by checking to see when the last time a consumer opened an account and how many accounts were opened and by looking at the number of inquiries on the consumer’s credit reports.

10% – Types of Credit Used
The type of credit you have plays an important role in determining your credit score. A “healthy mix” of installment loans (mortgage payment, auto loan) and revolving credit from banks is considered better for your score.

That’s it for today!

Have a great day.

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
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A New Reverse Mortgage Product...

 Product Spotlight:

If you or someone you know have thought about getting a Reverse Mortgage, you or they may have run into a problem...

If you have a more expensive home it's hard to get a Reverse Mortgage.

99% of all Reverse Mortgages are done thru FHA.

The problem is, if your home is worth more than one million dollars FHA won't give you credit for that value.

In the State of Texas the max value FHA will give your home is $970,800. So, in other words if your home was worth 1.5 or 2 million dollars or more, FHA will only do a Reverse based on a 970k value.

Consequently the loan amount may not be high enough to pay off your underlying mortgage if you have one. This kills a lot of loans.

I wanted to let you know we have a new Reverse Mortgage product to add to our product line. And, this one goes up to a $4,000,000 loan amount.

If you have a more expensive home, and were thinking about getting a Reverse Mortgage, let us know and we can get you some numbers to look at on your home.

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
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Know How Much Money You Will Need To Close On A House Ahead Of Time...

 Hello!

I’ve written about this before, but it’s important, so I wanted to touch on it again.

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

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

Here is a simple breakdown of your out of the out of pocket costs you could expect from the 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, or 3% down (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 prepaid interest, taxes, and insurance. Typically your prepaid will run 1% to 2.5% of a sales price.

2) Then there are your closing costs… Typically closing costs (from all entities – title, appraisal, mortgage, survey, etc.) will add another 1.5% 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.

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

Take Advantage Of This No Down Program...

 Hello!

If you are looking for a home in the outer suburbs or in a rural area make sure your realtor knows about this great USDA 100% financing program.

-Up to 100% of the Appraised Value – Total LTV of 102% –

-No Down Payment Required

-No Cash Reserve Requirement. No cash contribution requirement

-Unlimited seller concessions

-Unrestricted gifts, not necessary to document source, no seasoning

-First time home buyers allowed, but not limited to first time home buyers

-Collections over 1 year may not need to be paid (cannot be a pattern and depends upon credit score).

-Non-traditional credit may substitute for lack of credit history

-Repair Escrow financed in loan up to $10,000 or 10% of loan

That’s it for today!

Have a good day! …and thanks for reading.

Brett

 

Get Pre Approved For A Loan Here
My Previous Blog