Posts

17 Ways to Lower Debt Ratios and/or Garner More Funds

I blogged recently about 8 Ways to Lower Debt Ratios When Rates Are Climbing – and I got numerous additional suggestions from a friend who owns a mortgage bank (Apex Mortgage) back east. Some of the ideas were so good that I felt compelled to update my blog to “17 Ways.” Several of the ideas […]Read More

8 Ways to Lower Debt Ratios When Rates Are High

With rates rising so quickly, “debt ratios” are becoming a major issue for many borrowers. Hence, I am repeating this past blog where I set out various ways to lower debt ratios in order to still qualify in a market with rising rates. Also, in case anyone is interested, I explain what debt ratios are […]Read More

How to Get a Low Down Payment: A Guide for Borrowers

For many homebuyers, the down payment is the most significant obstacle on the road to homeownership. This is why so many homebuyers are looking for mortgage loans with low down payment options when purchasing a home. We’ve outlined a few of the ways borrowers can get a low down payment and how they may be […]Read More

The New Millennial Housing Market in Texas

Millennial buyers (those born 1981-1997) have quickly entered the housing market and they are rapidly becoming the largest and fastest-growing demographic. A 2020 Realtor.com forecast gave the estimation that 51% of the housing market will be comprised of millennials, outnumbering both Generation X and Baby Boomers combined. This will be especially prevalent in Texas markets […]Read More

Legal Sources of Funds; FHA Purchase to $800,000

I received the following questions from a very seasoned real estate agent the other week: “I have a 3.5% down offer for $795,000 on my desk – A. Does FHA even go that high; and B. What are the legal sources of funds for a down payment and closing costs?” MAX FHA LOAN AMOUNTS In […]Read More

8 Ways To Lower Debt Ratios & Qualify for More

I repeat this topic from time to time b/c “Debt Ratios” weigh so heavily in our pre-approval process and b/c tight debt ratios so often prevent borrowers from buying the property they want. I explain what debt ratios are and how we calculate them in this past blog. 8 Ways to Lower Debt Ratios: Put less money […]Read More

The New Millennial Housing Market

Millennial buyers made up 34% of the housing market in 2017. Millennial buyers were the largest group that year in the housing market, with 66% of them being first-time buyers. That means nearly half of all millennial buyers are already in the housing game and have bought and sold more than one property. Those who […]Read More

Post-Close HELOC to Reclaim Liquidity; 90% CLTV

We often encourage buyers to put down 20% or more not just to avoid mortgage insurance, but also to make their offers much stronger and to allow us to close in 17 days (80/10/10 financing with two loans requires 21 days). Buyers are often reluctant to deplete their liquidity, borrow from 401ks, or access gift […]Read More

Cash to Close – Part 27; Beating The Dead Horse Again

We hit this often but it is the cause of so much confusion and delay that we are addressing it again. Lenders need to carefully estimate how much cash will be necessary to close (for closing costs, reserves and down payments), and they need to fully educate borrowers in regard to “cash to close.” Most […]Read More

Rules For Gift Funds

We have a few borrowers right now navigating the best way to receive gift funds, so we wanted to provide a few reminders. Gift Funds – a Few Rules of Thumb For FHA Loans – An entire down payment can be a gift. FHA Gifts must be “sourced;” this means that the donor or “gifter” […]Read More

Converting “Cash” to Down Payment Funds – Gifts

We frequently have borrowers with substantial sums of cash that they want to use for a down payment. They cannot simply deposit the funds in escrow or into their bank accounts b/c lenders will want to know where the money came from. Lenders prohibit the use of un-sourced and unseasoned funds in all transactions. Buyers […]Read More

Gift Funds Should Go Straight to Escrow, Not Into Bank Account

We are seeing buyers use gift funds more often than ever lately. This is a reminder that it is much easier if borrowers wait until they are in escrow before receiving gift funds. The funds can then be deposited by the donor or “gifter” directly into escrow. For conventional loans, when gift funds are deposited […]Read More

Realtor Commissions Credited for Closing Costs & Down Payment (Gift)

Realtors can credit their commissions toward recurring and non-recurring closing costs. This is well-known. What many Realtors do not know is that they can “gift” all or a portion of their commission towards a down payment as long as the buyer is a relative. Almost anybody can be a relative, however. Jay Voorhees Founder/Broker | […]Read More

Almost Anybody Can Be a Relative for “Gifting” Purposes

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

Using “Realtor Commission” As Gift for Down Payment

Realtors writing offers for relatives can credit their commissions as “gifts” for down payments. We have a pre-approved borrower right now with limited down payment funds. Her daughter is a Realtor, however, and she is going to “gift” her commission to her Mother to be used towards most of the FHA down payment. Realtors can […]Read More

“Seasoned Funds” Revisited; Looking for Seasoned Funds

We defined and addressed “Seasoned Funds” in Monday’s comments, and our trainer astutely pointed out that we missed a couple of significant sources for “Seasoned Funds.” This is especially important during tax season. This is also important b/c some loans (Investment property loans for example) allow for no gift money. Below is a list of […]Read More