Blog - JVM Lending

FHA Not ONLY For 1st Time Buyers; Who Uses FHA Financing?

June 19, 2014/in FHA, Our Blog

FHA Financing is not just for first time buyers. FHA financing can be used by anybody who does not currently have an FHA loan. FHA financing is best for borrowers with limited cash, tight debt ratios, and/or credit issues. FHA is the most forgiving type of financing when it comes to all of these issues. […]Read More

Almost Anybody Can Be a Relative for “Gifting” Purposes

June 18, 2014/in Mortgage Industry, Our Blog, Self Education

We repeat this often b/c such a large proportion of our borrowers purchase properties with “gift funds” for down payments and closing costs. A “donor” or a person gifting funds can be almost anybody, including an aunt, an uncle, a sibling, a parent, or a grandparent. Lenders do not verify the authenticity of the relationship. […]Read More

Condos: Owner Occ Ratios; Litigation OK?

June 16, 2014/in Mortgage Industry, Our Blog

We are repeating a few Condo guidelines again b/c we get asked so often. Owner Occupancy Ratios for Condos are irrelevant if a borrower is an owner-occupant. The condo complex can have 20% owner occupancy rate, for example. This is the same case for borrowers seeking FHA financing; if the complex is FHA approved, the […]Read More

What To Do If Seller Closing Costs Are Too High

June 13, 2014/in Mortgage Industry, Our Blog

We recently received a purchase contract with a $600,000 price, and $26,000 in seller-credits. The issue? The $26,000 seller credit exceeds our $19,000 estimate of closing costs (closing costs are “high” b/c they include impounds and Oakland transfer taxes). The credit is $7,000 too large. Note: Seller Credits can be used towards any closing costs […]Read More

DU, AUS, LP; “Manual Underwrites” Alternative Credit

June 12, 2014/in Mortgage Industry, Our Blog

Yesterday, we mentioned a borrower who could not qualify for mortgage financing b/c he had no credit. There is an exception, however, that we did not mention for brevity’s sake. The borrower will likely qualify for FHA financing with a “Manual Underwrite” and “Alternative Credit.” 99% of lenders will NOT approve a loan unless it […]Read More

Don’t Close Out Credit Cards; Open Accounts = Higher Scores

June 11, 2014/in Our Blog, Self Education

We recently pulled credit for a highly responsible borrower who makes great money, has no debt and pays cash for everything. The issue? He closed out all of his credit accounts, and cannot qualify for mortgage financing. Lenders require at least two to three “open” trade-lines or accounts on a credit report. Trade-lines include credit […]Read More

CRM Software Is an Absolute Must; Pays for Itself Very Quickly

June 9, 2014/in Marketing, Our Blog

In 2008, we spent $65,000 on a Customer Relationship Management (CRM) software program and it paid for itself within a year. The CRM program allows us to (1) organize ALL of our client contacts and data in one source; (2) contact ALL of our clients constantly with a single click; (3) track all of our […]Read More

“Un-Sourced” Deposits On Bank Statements – Less of a Pain Now

June 6, 2014/in Mortgage Industry, Our Blog

Reminder: The Fed is still buying $1.6 billion of mortgage-backed securities every day. With overall mortgage volume down, this enormous “artificial” demand by the Fed is also what is keeping rates low (not just a weak economy). After the 2008 “meltdown,” Fannie and Freddie went overboard with their demand for minute conditions that often frustrate and […]Read More

Missing Floor Coverings & Issues In Foreclosed Property

June 5, 2014/in Homebuying, Our Blog

We have a borrower trying to buy a foreclosure with condition issues that include missing floor coverings, missing cabinet doors, and a missing stove. Whether or not repairs have to be made prior to close has to do with: (1) are the issues “health and safety” related; and (2) is a “built in” item missing. […]Read More

Can Use 75% of Rents for Income; 85% for FHA

June 4, 2014/in Homebuying, Our Blog

We discussed rental income in previous blogs and had questions in regard to how much of the rental income we can use. For a refinance, we use the income from the Schedule E on a borrower’s tax returns, irrespective of market rents. We can add back “non-cash” expenses like depreciation. For conventional purchases, we use […]Read More

Using Rental Income to Help Qualify for Purchase; Market Rent

June 2, 2014/in Homebuying, Our Blog

Buyers can use future rents to help qualify for purchases whether they are buying single family or two, three or four unit properties. * Borrowers can use the market rents, and not actual rents, for income in most cases. * Borrowers buying a 2 to 4 unit property as owner-occupants can use the market rents […]Read More

Unlimited Rate, Payment, Closing Cost Scenarios = Our Job

May 30, 2014/in Our Blog, Self Education

We had borrowers leave their loan officer and come to us (they found us on YELP) a few months ago because their loan officer was too busy to provide them with payment and closing cost scenarios. As they shopped for properties, their needs, qualifications and price ranges were changing, and as a result, they needed […]Read More

Financing “Fixers;” What to Look For? Avoid? Options?

May 29, 2014/in Homebuying, Our Blog

When it comes to buying “fixers” in relatively poor condition, either FHA or Conventional financing can be used. As long as there are no glaring condition issues (major leaks, sloping floors, water damage, etc.), and as long as no reports or issues are referenced in the MLS or the contracts, “fixers” can be financed. And […]Read More

FHA Financing for “Fixer;” Save Cash For Repairs; Refi Later

May 28, 2014/in FHA, Our Blog

We sometimes have buyers, with ample cash, use FHA financing to buy total “fixers” and then use their cash savings (from the smaller down payment) for improvements. Once their improvements are done, they come back to us and use their much higher appraised value to do a no-cost refinance into a conventional loan. For example, […]Read More

FHA Loans Do Not Take Longer Than Conventional

May 23, 2014/in FHA, Our Blog

We are frequently asked by Realtors if we can close FHA loans as fast as conventional loans, and our answer is always the same: “of course.” FHA loans do not take longer to close than conventional loans if a lender has well-trained staff. It is a myth that FHA loans take longer. There are few […]Read More

Closing Cost Credits Too Large? What To Watch For & Do?

May 22, 2014/in Homebuying, Our Blog

Yesterday, we mentioned that closing cost credits can equal 6% (or even 9%) of the purchase price. Hence, for a $500,000 purchase, it is completely acceptable to have the seller credit $30,000 for closing costs, from a lender’s perspective. Issues arise when closing cost credits exceed actual closing costs. This often happens when there are […]Read More

Closing Cost Credits Can = 6%; 2% for Investors; Commissions Too

May 21, 2014/in Homebuying, Our Blog, Self Education

Sellers can credit up to 6% of the sales price, in most cases, as a credit for ALL closing costs – including non-recurring and recurring fees. This includes transfer taxes. Closing cost credits should just be for “closing costs” and not for “non-recurring costs” only. Many people think closing cost credits cannot exceed 3%, but […]Read More

FHA Properties Do Not Have To Be In Better Condition; Misconception

May 19, 2014/in FHA, Our Blog

We continue to hear Realtors express concern about whether or not properties are in good enough condition for FHA financing (as opposed to conventional financing). This is a misconception left over from years ago when FHA properties needed to have all Section I work cleared. We address this often, but FHA financed properties do not […]Read More

“Gross Income” For DTI Calculations; Adjusting W4; Tax Benefits

May 16, 2014/in Mortgage Industry, Our Blog, Self Education

Most people know that lenders only look at “Gross Income” when evaluating Debt-to-Income (DTI) ratios. In other words, lenders evaluate a borrower’s income before taxes are taken out. This sometimes makes no sense to borrowers b/c the payment they qualify for leaves them so little extra cash left over after they make their payment…IF they […]Read More

Appraisal Comes In Low? Options

May 15, 2014/in Appraisals, Our Blog

“Remember all those smart folks who said rates were going higher this year? Well, so far they’re dead wrong”This quote is from Rob Chrisman’s mortgage blog: “Remember all those smart folks who said rates were going higher this year? Well, so far they’re dead wrong” Here are a buyer’s options when an appraisal comes in […]Read More

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