Blog - JVM Lending

10 Lessons From 2014 For Self Improvement

December 31, 2014/in Our Blog, Self Education

I stole the below list from Lewis Howes – a business coach and podcast host whose business exploded last year. It is an excellent list that is well worth reading. Happy New Year from everyone at JVM Lending! My Top 10 Lessons from 2014 1. Be clear on your vision. Most of the problems people […]Read More

Commercial Use In Condo Complex Is OK

December 26, 2014/in Mortgage Industry, Our Blog

JVM Lending is open today. This is a reminder that Commercial Use within a condo complex is OK (for Fannie, Freddie, and FHA) as long as the commercial use does not constitute more than 25% of the total complex. Jay Voorhees Founder/Broker | JVM Lending (855) 855-4491 | DRE# 01524255, NMLS# 335646Read More

Economy May Be Back; Happy Holidays From JVM!

December 24, 2014/in Interest Rates, Mortgage Industry, Our Blog

Rates shot up yesterday primarily in response to a much stronger than expected Gross Domestic Product report, indicating that the US Economy is growing much faster than expected. This news sent stock prices way up and bond prices down, as investors left bonds for stocks. This is the type of news (along with strong employment […]Read More

Using “Future Rents” to Qualify

December 22, 2014/in Our Blog, Self Education

This is a reminder that “Future Rents” can be used for income to help qualify for purchases. The “Rent” must be market rent, however; it cannot be over-inflated to augment income. Lenders order “rent surveys” from appraisers to verify market rents. Lenders will only use 75% of market rents for income for conventional financing, or […]Read More

3% Down for Condos; Don’t Need FHA Approval for Condos!

December 19, 2014/in Mortgage Industry, Our Blog

Fannie Mae’s new 97% loan will finance condos! This is huge b/c in the past Fannie would only go to 95%. This means that condo complexes no longer need to be FHA approved for low-money-down financing (for loan amounts up to $417,000). Fannie actually is better than FHA b/c the down payment requirement is less […]Read More

Einstein Time vs. Newtonian Time; Too Busy? Realize You Control Time

December 18, 2014/in Our Blog, Self Education

One of our all-time favorite books is “The Big Leap.” It is an extraordinary book by a Stanford PhD about identifying “upper limits” that hold people back. We think every professional should read it. The book has another famous chapter all about time-management. The author drives home the point that we are entirely in control […]Read More

Why We Hate Paying Points (Or Think Buyers Shouldn’t)

December 17, 2014/in Mortgage Industry, Our Blog

Borrowers constantly ask if they should pay points or origination fees to buy down a loan. Our constant refrain is no, and here are the reasons why: 1. Borrowers get too little bang for their buck. In the current market, paying a point will often only improve the rate by as little as 1/8 percent, […]Read More

3% Down Conventional Is Back

December 15, 2014/in Mortgage Industry, Our Blog

Conventional Lenders are again financing purchases with only 3% down (the option was not available for about a year). The maximum loan amount is $417,000. For loan amounts from $417,000 to $625,500, borrowers still need to put down 10%. The 3% down option is better this time around b/c the down payment and reserves can […]Read More

Paying More Than Appraised Value? Why? Appraisal Not Market Value

December 12, 2014/in Appraisals, Our Blog, Real Estate

Yesterday we pointed out how borrowers with large down payments sometimes use FHA or VA financing when appraisals come in low. Several realtors asked why borrowers are willing to pay over appraised value. There are several reasons that we have observed: (1) the buyer is a 27 year social media employee with $11 million in […]Read More

When VA /FHA Clearly Stronger Than Conventional? Large Down

December 11, 2014/in Mortgage Industry, Our Blog

We often have buyers willing to take VA or FHA financing even though they have substantial funds for down payments. The reason is that they are often bidding on properties that will be difficult to appraise because of the lack of closed comparable sales (necessary to “bracket” the purchase price). In many markets it is […]Read More

Down Payment Options for Investment Properties

December 10, 2014/in Mortgage Industry, Our Blog, Real Estate

We often get questions about investment purchases, so we wanted to revisit a few unique things that everyone should know about purchasing investment properties. 1.) Lenders require a 20% down payment for loan amounts up to $625,500. Many people come to us under the impression that the minimum down payment is 25%, but Freddie Mac […]Read More

Accrued Interest on Mortgages – Arrears, Skipping Payments

December 8, 2014/in Interest Rates, Our Blog

Interest on mortgages always accrues in arrears. This means your December 1st mortgage payment covers interest that accrued in November. In contrast, a December 1st car payment will cover interest that will accrue in December. For a purchase, borrowers pay interest through the end of the month, and then skip a payment. Hence, if a […]Read More

Accrued Interest and Mortgage Payment Myths

December 5, 2014/in Interest Rates, Our Blog

We had a seller recently who insisted on closing by month-end b/c he could “not afford another payment” on his mortgage. B/c we inherited the deal from another lender 7 days before month-end, we were not able to comply with the seller’s request. The seller was utterly confused, however. Interest was accruing against his mortgage […]Read More

Mixed Use Condo Complexes with Commercial Space Are OK If…

December 4, 2014/in Our Blog, Real Estate, Self Education

Condo complexes can have commercial space and be eligible for financing as long as the commercial space comprises less than 25% of the square footage of the entire complex. If commercial space exceeds 25% of the overall space, we have a couple of portfolio lenders that will finance the projects. The rates and terms are […]Read More

Key Questions to Ask Your Lender – More Deals & Less Stress

December 1, 2014/in Mortgage Industry, Our Blog, Self Education

Loan Officers are out in force right now, vying for Realtor-relationships. Here are key questions all Realtors should ask loan officers asking for business. A strong lender should reflect well on Realtors, helping to alleviate stress and close more transactions. 1. Database to manage all referrals? Skilled database input is essential to make sure no […]Read More

$100,000 “Wall Treatment” Did Not Increase Value of Home

November 24, 2014/in Homebuying, Our Blog, Real Estate

We had a borrower years ago whose appraisal came in much lower than she expected and she was irate b/c the appraiser gave insufficient or no value to many of her upgrades and improvements. Specifically, she had spent over $100,000 on a wall treatment in her foyer. The wall treatment, interestingly, was a textured gold […]Read More

Foreign Funds Can Be Used; Paper Trail; Translation; Gift?

November 21, 2014/in Homebuying, Our Blog

It is very common for home-buyers in California to access foreign funds for down payments and closing costs. Lenders allow the use of foreign funds as long as they can be “sourced” and “paper-trailed.” This, unfortunately, is often easier said than done. It is sometimes difficult to get foreign account statements, and they often need […]Read More

On-Line Lender Horror Story – Great Quote From Realtor

November 20, 2014/in Marketing, Our Blog, Self Education

The below is a quote from a top Realtor whose borrower did NOT use JVM (b/c we told him the truth and not what he wanted to hear). “What a nightmare… The guy [the other lender] took over two weeks just to get the appraisal ordered. I think he was new and didn’t know what […]Read More

Hire An Assistant, So You Can Do What Pays & What You Love To Do

November 19, 2014/in Our Blog, Self Education

We work with numerous very busy Realtors right now. Some have assistants and most do not, unfortunately. Many Realtors without assistants are pulling their hair out right now with admin tasks, client follow-ups, inspections, vendor-conversations, and new leads (often ignored). In contrast, the Realtors we know with assistants are far more relaxed. They are able […]Read More

Great Body Language Podcast: Show Your Hands; Shake Hands

November 17, 2014/in Our Blog, Self Education

We once had a Realtor visit our office who was reluctant to shake hands, who kept his hands under the table, and who made very little eye-contact. He made us nervous and did very little business, needless to say. This is an obvious example of poor body language. Many JVM staff-members are exceedingly polite, and […]Read More

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