How To Get A Mortgage While Making Payments To The IRS For Back Taxes…

Of all the blog posts I’ve made over the years this one particular post gets searched for and read more than any other…

…So, I wanted to touch on it again here to remind you that it is possible to get a mortgage if you owe the IRS back taxes.

Here is what it takes…

1) If you owe the IRS back taxes you have to take the initiative and make a payment plan with the IRS right away.

Generally, if you make a payment plan right away with them they won’t file a lien against you.

If you wait and do nothing with your balance owed to the IRS – then the IRS will place a tax lien against you and at this point you won’t be able to get a mortgage.

Once a public record lien shows up on your credit – you will have to pay off the entire amount and settle the lien before you can get a mortgage.

2) If you have a history of making payments on your IRS back taxes for 12 months without any late payments then you can get a mortgage with me (assuming you qualify otherwise).

The underwriter will treat this payment as he/she would with any other installment loan. (such as a car payment)

If you are in this situation – give me a call and I can most likely help you out!

That’s it for today!

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

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

Only 3% Down Up To $417k On This Loan Product…

Here’s an easy way to put down only 3%, pay no up front Mortgage Insurance, and get a very competitive rate…

…It’s Fannie Mae’s 97% purchase product!

Here are some of the important features of this product…

1) Owner-occupied primary residence only.

2) Minimum 720 FICO score.

3) 3% down payment must come from the borrower’s own funds.

4) 1-unit attached and detached single family residence, attached and detached PUDs.

5) Purchase and rate/term transactions.

6) Maximum DTI 41%.

7) 15, 20, 25, and 30-year loan terms.

8)  No up front MI (like you would have on FHA).

9) Loan amounts up to conforming limits (417k in Texas).

This is a great product.

If you meet the credit criteria listed above, and you only want to put 3% down on a house – then call me and I can help you with this.

That’s it for today!

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

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

How You Can Get Mortgage Insurance With A Higher DTI…

Did you know that it is possible to get mortgage insurance on a conventional loan with a debt to income ratio higher than 45%?

…it’s true!

For a long time you couldn’t find an MI company willing to write mortgage insurance on a conventional loan with a DTI higher than 45%.

Now there are some companies that will.

…However, the caviat is that you must receive an Approve / Eligible on the file when it’s run through the automated underwriting engine.

Nowadays this is a little more tricky than it used to be. Fannie Mae has tightened their underwriting in their automated engine.

Sometimes it’s hard to get an Approve / Eligible with a DTI over 45%. However, it can be done.

So, if you have a debt to income ratio a little over 45%, and you have been told it’s impossible to get MI with your DTI – that’s not necessarily true.

Tell your mortgage loan officer to run it though the automated underwriting engine and see if it will give him or her an approval.

If they do get an approval they should be able to do the loan. If they can’t give me a call! …I may well be able to help you!

That’s it for today!

Have a good day today!  …and thanks for reading.
Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

Presidential Fact And Mortgage Closing Cost Tip…

In honor of President’s Day here’s a little known presidential fact…

Did you know Lincoln had a premonition he would be killed?

It’s true! …Not long before he was assassinated, Lincoln spoke of a dream where he heard someone weeping in the White House. When he found the room it was coming from, he asked who had died. He was told it was the president. He approached the coffin to peer in and saw his own face.

Mortgage Tip:

People ask me all the time if they can roll in their closing costs when they buy a house.

The short answer… No.

You can do it with no problem on a refinance, but not a purchase loan.

…but there is an indirect way to do it on a purchase loan.

The best way to roll closing costs into your purchase – is to ask the sellers to pay your closing costs. …the way you do this is to make it part of your contract offer.

…they will either say “yes” or “no” to your request for them to pay closing costs. …so, right here you have a 50/50 shot at it.

If they say “no” – it’s still not over. …you can just offer to add the closing costs to the price of the home (as long as it will appraise) – and then ask the sellers to pay them. …they will usually say “yes” to this.

That’s it for today!

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

Brett

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.

This Tax Deduction Can Turn An Approved Loan Into A Denial…

This is a topic I’ve touched on before, but I wanted to address it again here because I just saw it crop up again. It can be a loan killer… I wanted to make you aware of certain deductions on your tax return that can hurt you when it comes time to get a loan. The deductions you take on Schedule A for “unreimbursed job expenses” will come out of your adjusted gross income as a direct deduction of your income. This deduction would be things like job travel expenses, union dues, job education, etc. I’ve seen some rather large deductions in this category over the years – and sometimes it’s meant the difference between loan approval and denial. So, if you know you will be applying for a loan in the next couple of years – be aware of how this “unreimbursed job expenses” deduction will impact your overall income. That’s it for today! Have a good day today! …and thanks for reading. Brett To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application. To sign up for my weekly mortgage quick tips – CLICK HERE.

It’s About To Get More Difficult To Get Approved For FHA…

FHA is making it harder to qualify for financing if you have lower credit scores.

Starting April 1st, 2013 with Mortgagee Letter 2013-05 FHA has revised its guidelines for manually underwritten loans.

Here are three things you need to know about this update from FHA…

1) Manual underwriting is required for loans with a credit score less than 620 and a debt to income ratio greater than 43%.

2) Any compensating factor used to justify approval of a loan that exceeds ratios must also be supported by documentation.

3) Energy Efficient Mortgages may still be approved with a debt-to-income ratio up to 45% without compensating factors.

Note: It’s still possible to be able to use an automated approval with scores less than 620, but the debt to income ratio must be less than 43%.

If your scores are in the lower 600′s, and you have been considering purchasing a home then I would recommend you take action now. …because if you wait until April it could be more difficult for you to purchase!

That’s it for today!

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

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

The Best HARP Program In The History Of Ever…

Would you like to refinance your home, but you owe more than your home is worth?

If your home loan is held by Fannie Mae then there is hope for you to refinance your home.

You may have heard about the HARP program. HARP allows you to refinance your mortgage at loan to value ratios above the normal maximum limits for LTV.

Most lenders offer HARP.

However, not many offer HARP with no overlay guidelines!

…But, I do!

Here are a few of the highlights of this program…

1) No minimum credit score required!

2) No max LTV on fixed rate loans!

3) 1 to 4 units (owner occupied, or NON OWNER OCCUPIED)!

4) No maximum LTV!

5) Subordination of eligible junior liens without a max combined LTV – for all occupancy types!

6) No limit on the number of financed properties!

7) Available on manufactured homes!

So, if you have a Fannie Mae loan, and are currently upside down on your home – give me a call or shoot me an email! …I just might be able to help you out!

That’s it for today!

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

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

Starting April 1st You Will Pay More For This Loan…

FHA has confirmed it’s changing it’s MIP. …again.

Starting April 1st of 2013 there are two big changes that will go into effect.

1) The annual FHA is going up. (Can be as high as 1.55%)  …This is up from the max rate of 1.25% now.

2) If you are putting down less than 10% on an FHA mortgage you won’t ever be able to get rid of your annual MIP on an FHA loan. It will be on the loan for the life of the loan no matter the loan to value ratio.

The reason FHA is making these changes is that FHA’s reserves have dropped below the $2 for every $100 insured threshold – mandated by congress.

FHA loans MIP rates really fall into two categories.

 …loans that were originated before June 1, 2009, and loans that were originated afterwards.

If you are refinancing a loan that was originated before June 1 of 2009 here are the MIP rates you can expect…

Up front MIP = 0.01%.

Annual MIP =

15-year fixed rate mortgage with loan-to-value of 78% or less : No annual MIP required

15-year fixed rate mortgage with loan-to-value greater than 78% : 0.55% annual MIP

30-year fixed rate mortgage, all loan-to-values: 0.55% annual MIP

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If you are refinancing an FHA mortgage originated after June 1 of 2009, or purchasing a home with a new FHA mortgage these will be your MIP rates…

Up front MIP = 1.75%

Annual MIP =

15-year loan term, LTV less than, or equal to, 78 percent : 0.45% annually

15-year loan term, LTV greater than 78 percent, less than 90 percent : 0.45% annually

15-year loan term, LTV greater than 90 percent : 0.70% annually

30-year loan term, LTV less than, or equal to, 95 percent : 1.30% annually

30-year loan term, LTV greater than 95 percent : 1.35% annually

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Right now FHA will allow you to remove your annual MIP if you have paid MIP for 5 years, and the loans size is less than 78% of the home’s original purchase price or appraised value.

However, now FHA will remove annual MIP after 11 years if your beginning LTV is 90% or less.

If you are only making a 3.5% down payment, the FHA will assess MIP for the duration of the loan’s term.

Currently, the FHA removes the annual mortgage insurance requirement for homeowners who have paid mortgage insurance for at least 5 years, and whose loan size is less than 78% of the lower of a home’s original purchase price or appraised value.

Going forward, the FHA will remove annual MIP after 11 years for homeowners whose beginning LTV is 90% or less.

For everyone else, including those making a 3.5% down payment, the FHA will assess MIP for the duration of the loan’s term.

That’s it for today!

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

Brett
To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.