Posts

Can Borrowers Be On The Loan and Not On Title?

We often have “title only” buyers, or buyers who want to be on the property’s title but who do not want to be on the loan. This is often the case with spouses, where one spouse might have credit issues that adversely impact financing terms. The spouse with good credit will be the only one on the loan (assuming she has enough income to qualify on her own) but both spouses will be on title.Read More

Lender Credits For Closing Costs

LENDER CREDITS INSTEAD OF SELLER CREDITS Seller credits for closing costs are few and far between in this hyper-competitive market; merely requesting them in fact is often a deal-killer. But – we like to remind Realtors and borrowers alike that lender credits for closing costs remain a viable option for cash-strapped buyers. There are a […]Read More

Who Can Pay Closing Costs? Seller, Lender, Realtors; Happy Veterans Day

JVM Lending will be working a half day today because of the Veterans Day Holiday. We will, however, have a Mortgage Analyst “on call” all day and all weekend, per our usual practice. We frequently have transactions with closing costs as high as $20,000 with title, escrow, appraisal, underwriting fees, impounds, transfer tax, sewer lateral, […]Read More

Seller Credits: When? How Much? Do They Slow Down Transactions?

Many buyers get credits for closing costs in lieu of credits for repairs, as most people know. If credits are for repairs, underwriters will require that they be completed prior to close which could cause delays. As such, it’s easiest on the lending side for the credit to be referenced on a simple RPA addendum […]Read More

College = Job History; CD Flexibility w/ Seller Credits

Reminder #1: Borrowers fresh out of college usually do not need a 2 year work history to qualify for mortgage financing. They usually just need an offer letter and 30 days of pay. Technically, their degree program needs to relate to their employment, but lenders are pretty flexible in this regard. Reminder #2: Seller Credits […]Read More

TRID Allows Seller Credit Changes; Expect More Appraisal Reviews

A couple quick updates/reminders. Seller Credits can change any time without causing major delays** in closing. This was a surprise for us in the post-TRID environment, but changes in seller credits for closing costs do not require a new 3-day waiting period, even if they change after the Closing Disclosure (CD) is issued. ** Seller […]Read More

Closing Cost Credits to 6%; Can’t Exceed Closing Costs; No Prepaying

Closing cost credits from sellers are rare in this very competitive seller’s market, but they do come up from time to time as buyers negotiate them in lieu of repair-credits. This is a reminder that seller credits can go up to 6% of the sales price for conventional and FHA purchases. Jumbo lenders typically limit […]Read More

What To Do If Seller Closing Costs Are Too High

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