Tag Archive for: mortgage financing

Seller-Financing Horror Show; Know When To Walk Away, Know When To Run…

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One of our seasoned listing agents just received a seller-financing request that is so crazy, brazen, risky, and awful – that I had to blog about it. Fannie Mae and Freddie Mac guarantee mortgage financing scenarios that no commercial bank would ever offer. These include low-down-payment scenarios (10% or less), weak-credit scenarios (scores under 680), and high-debt-ratio scenarios. This enables cash-starved and less-established borrowers to buy homes – but it also, of course, artificially inflates demand and housing prices (a topic for another blog).Read More

Can A Half-Completed Remodel Get Financing? Why Homes Were So Much Cheaper In 1950

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In 1950, the median home price was $89,300 (adjusted for inflation), and it was only 3x the average income. The median home price today is a whopping $430,000, and 7x the average income. BUT – an average new 1950 home was a 983-square-foot plywood box, with two tiny bedrooms, one bath, no AC, and a tiny garage (if you were lucky).Read More

First-Time Home Buyers Guide to Loans: Idaho

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Idaho adds an extra layer of excitement to the adventure. Known for its expansive natural beauty, friendly communities, and a cost of living that's inviting to many, Idaho stands out as an idyllic setting for laying down roots. This guide is tailored specifically for Idaho first-time home buyers, offering essential insights into navigating the Idaho housing market, understanding the variety of Idaho home loan programs, and settling into the distinct Idaho lifestyle. If you're searching for houses for sale in Idaho, you're not just looking for a place to live, but a place to thrive. Let's explore the steps and strategies to make your dream of Idaho homeownership a reality.Read More

Hard Money Loans: Are They Worth It?

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Hard money loans are an easy and fast financing option, but they are not for everyone. Here is everything you need to know to decide if they are the right option for youRead More

Why Loan Officers Don’t Use Their Own Company For Financing; No Loan Officer Models

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Prior to the 2008 Mortgage Meltdown, ironically, a major source of business was other loan officers coming to me for mortgage financing. They came to me back then for several reasons: 1) My rates were lower than theirs because of my model and the volume discounts I had negotiated; 2) I was notoriously honest, and 3) They knew I would not share any of their financial information.Read More

Mortgages For DACA Status Recipients

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DACA borrowers who apply for an FHA loan will need the following items to qualify. The FHA requirements for DACA recipients are largely the same for applicants regardless of DACA status, however, there are a few specific items that the DACA status borrower will need to provide in their FHA mortgage application.Read More

The Requirements To Purchase A Home With A Mortgage

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Are you considering buying a home and plan on using a mortgage loan to help finance your purchase? If so, there are some requirements you should be aware of before you start the process. Buying a home is a significant investment that most often requires mortgage assistance to finance such a large purchase. To secure a mortgage, you will need to be pre-approved and meet the specified requirements. Read More

Returning To Work After Layoffs; Job Seasoning

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If borrowers return to the same job or a similar job in the same industry, they will be able to qualify for conforming (Fannie/Freddie) financing 30 days after they return to work, in most cases, with 30 days worth of paystubs.Read More

Are Mortgage Lenders Better Than Banks?

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There are many reasons why choosing a local mortgage lender to buy or refinance a home is best. Working with a trusted local mortgage lender can ensure that homeowners get the highest level of customer service and the best deal when applying for a loan.Read More

Bankruptcies Up; How Long Do They Have to Season for Mortgage Financing?

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In another indication that we are at the tail end of a business growth cycle, Bankruptcy (BK) filings are increasing even though the economy remains relatively strong. BK filings were […]Read More

Income Taxes Owed Is OK; Tax Liens Must Be Paid Though

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This is a quick reminder that borrowers can still obtain mortgage financing even if they owe income taxes.  But, a payment plan with the IRS must be in place. For FHA, […]Read More

Myth: Self-Employed Borrowers Only Need 1 Year of Income

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It’s a common myth that self-employed borrowers need two years of income to qualify for financing. In many cases, one year of tax returns is enough, especially for strong borrowers with good credit and a down payment.Read More

Appraised Value Higher than Contract Price? Irrelevant

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We are financing a condo purchase in Newport Beach and the appraisal came in $13,000 over the contract price. This was a big surprise, given the strength of the current […]Read More