Tag Archive for: loans

Danger Of Waiting For Rates To Fall; Foreclosures Shoot Dangerously High; What’s A Recert of Value?; Actual DSCR Rates

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The 10-Year Treasury yield shot way up today – unexpectedly. The reasons? Higher oil prices sparking inflation fears, and a move into stocks and out of bonds (flight from “safety” into “risk assets”). I bring this up because we have well over 100 borrowers in our database who easily qualify for no-cost refinances that would save them thousands of dollars – but they don’t want to execute because they are convinced rates will fall further. Sigh…Read More

12-Month Bank Statement Loans! Cost Of Waiting To Lock A Rate; Trump Can’t Have It Both Ways

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We now have a loan that only requires 12 months of personal bank statements for income verification. This is such a big deal because it is another indication of how flexible the non-QM market is getting. This loan uses the aggregate of deposits into a personal account for income. Other bank statement loans require 24 months of statements, business statements, and/or expense ratio calculations (that limit income). This loan also allows for credit scores as low as 620 and down payments as small as 10%. It is an excellent loan for self-employed and gig-economy borrowers whose tax returns (or even W2s) don’t adequately reflect all of their income.Read More

Fannie Mae Yanks Their 620 Minimum Credit Score Requirement; Time To Celebrate?

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We have been crushing the dreams of homebuyers all week… And – it’s not because we want to or because we’re doing something wrong. It is solely because we are telling them the truth: Fannie Mae’s removal of its 620 minimum credit score requirement will not help about 98% of borrowers with scores under 620.Read More

Using Liquid Assets To Qualify For Loans (Asset Depletion)

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Rates climbed again today, and the reason is interesting. I explain more with my rate quote below. I blogged a few weeks ago about the expansion of DSCR loans, which allow investors to qualify with rental income only: Hoovering Up Sunbelt Rental Properties With DSCR Loans. DSCR loans have become significantly more flexible and prevalent due to the substantial expansion of the overall “Non-QM loan” market over the past few years.Read More

10 Things First-Time Buyers Should Know

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We hired a full-time condo expert away from Chase Bank, and he does nothing but help us analyze condo projects for eligibility and financing options.Read More

Algorithm Lending Is Returning, Thankfully! (5-MINUTE HELOCs ARE HERE)

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Prior to 2008, mortgage lending relied very heavily on algorithms – which would have worked beautifully if ONLY home values had gone straight up forever and if interest rates fell forever.Read More

SELLER-Paid 2-1 Buydowns vs. LENDER-Paid 2-1 Buydowns – What’s The Difference?

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Our lender-paid 2-1 buydown offer is a huge hit. We had 170 requests for 2-1 buydown finance flyers last week alone, and our phones are ringing off the hook (or whatever you say nowadays when you get a lot of calls; maybe this… “we’re getting a large number of electronic indications that customer humans actually want to communicate verbally with JVM humans”).Read More

FHA Single-Unit Approvals For Non-Warrantable Condos

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In December, I wrote this blog: This Is Huge: FHA Spot Approvals Work For Non-Warrantable Condos. Well, I’m hitting it again because it has become even “huger.” Read More

Shocking: Real Estate Agents Are Acting As Loan Officers Too

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One of the biggest and most unexpected boosts to my business came from a competitor: E-Loan. Founded in the late 1990s, they were the first major entity to embrace online mortgage lending.Read More

Buying As An LLC; Income Limits – Beware! Comparing Loan Estimates

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I took calls from borrowers on Saturday to help the team during a very busy weekend and… promised interest rates that don’t exist. The reason: I was offering first-time homebuyer credits that did not exist because the borrowers had too much income.Read More

DANGER! Appraisal Waivers Can Disappear!

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I recently blogged about the increasing occurrence of Appraisal Waivers. If a particular property is already in Fannie Mae’s or Freddie Mac’s database, it could be eligible for an Appraisal […]Read More

“Uberization” Of Everything Is Inevitable; Be Ready; Lending?

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From ride-sharing to finance, technology is disrupting industries everywhere. Lending and real estate will be no exception. The key to thriving is expecting disruption and preparing to adapt.Read More