Correlating to Borrower With Lower Score; Paying Over Appraised Value; Not Referencing Inspections

Here are a few quick reminders. CORRELATING TO BORROWER WITH THE LOWEST CREDIT SCORE We received negative feedback from a frustrated borrower last week b/c we correlated our interest rate quote to her husband’s lower credit score (low 600s) when her score was in the 800s. We of course had no choice, as almost all […]Read More

Rent Backs; Gift of Equity; Appraisal Seasoning; 3% Down vs FHA

Here are a few “Mortgage Minders.” Rent Backs. Most lenders allow sellers to “rent back” the home they just sold for as long as 60 days. If the term exceeds 60 days, however, “owner occupancy” comes into question for the buyers. Gift of Equity. Down payments can be a “gift of equity” alone (with no […]Read More

Reminders: Brick Foundations; FHA; Rental Income; Over-Reaction

A few quick reminders: 1. Brick Foundations Are Not Deal Killers. Lenders allow for brick foundations as long as appraisers state they are “typical for the area” and appraisers are usually willing to do so. 2. FHA Loans are not harder to close than conventional loans. They are often easier and faster b/c of looser […]Read More