Posts

Be Nice to/Prepare for Appraiser

Agents, please see the comment below from one our best and most seasoned appraisers: “Real Estate Agents who don’t understand this will have appraisal issues far more often than an agent who does understand this: Agents or a homeowner being friendly, helpful, and accommodating to the appraisers makes a HUGE difference. When I see a […]Read More

FLIPs Still OK; Seller Credit Too Large – We Charge Extra & Rebate $

FLIPs. We still get questions about FLIPs. A FLIP is only a concern IF the property was bought and re-sold within 90 days. If it re-sells more than 90 days after it was previously purchased, there are no issues. BUT, we still have lenders that allow “FLIPs” for both FHA and Conventional financing, so it […]Read More

Party Over? Home Path Financing – NO Appraisal Required

The “MBA” (Mortgage Brokers Association) released a report stating that they expect rates to trend upward from now on and to settle out over a point higher next year. They did the same thing last year, and were wrong, but we still take their predictions seriously. Fannie Mae Home Path financing is offered by most […]Read More

Non-Occupant Co-Borrowers; As Is – Reminder (Do NOT ref. Reports)

A Couple Reminders: As Is Purchase Contracts should have NO references to ANY reports of any kind. We continue to get “as is” deals that reference reports somewhere in the contract, and invariably, the lender requests the report and we have to get work done prior to close. Non-Occupant Co-Borrowers (parent co-signing for a child, […]Read More

ANNUITY Loans; Buy Annuity to Show More Income

We have a cash-rich borrower right now with very high debt ratios. All she needs to do is buy a small “Annuity” that matures more than 3 years from close of escrow, and she’ll easily qualify for the loan she wants. These Annuity based loans are a great way for cash-rich borrowers to garner low […]Read More

90% LTV for High Balance; Seasoning for Foreclosures and BKs

90% LTV High Balance Loans: Conventional High Balance Financing to $729,750 is available with Mortgage Insurance to 90% LTV in most areas. This has been the case for several months now. Credit Seasoning: FHA financing can be obtained: (1) 2 years from a Bankruptcy; (2) 3 years from a Foreclosure; and (3) immediately after a […]Read More

Do Not Report “Dispute” to Credit Bureaus – Just Endure the Error

Fannie Mae no longer allows loans to close if a borrower has a “Dispute” on his credit report. This used to not be an issue, as Fannie and most lenders turned a blind eye to a “Dispute” on a credit report. “Disputes” arise when borrowers see something reported in error on their credit report and […]Read More

“Short Refinancings”; DU Refi Plus

We get questions constantly in regard to “upside down borrowers” who want lower rates but who also want to maintain their credit. Option #1: Du Refi Plus – If a borrower has a Fannie Mae loan, he can refinance into a new Fannie Mae loan with No Mortgage Insurance even if his loan-to-value ratio is […]Read More

Asset Loans for Down Payments (instead of liquidation)

We have many borrowers and “donors” (parents giving money to their kids) who are very reluctant to liquidate stocks or other assets either b/c values are currently so low, or because they want to avoid the major tax consequences. There are numerous companies that offer short term, low rate and inexpensive loans against stock and […]Read More

Getting Condo Complexes FHA Approved

We get inquiries constantly regarding whether or not Condo Projects are FHA approved. With FHA so dominant in today’s market, such approvals are extremely valuable. While we are able to get some complexes approved ourselves, the process can be complex and cumbersome. This is why we now recommend that Realtors and HOAs, interested in FHA […]Read More

See YELP; Use YELP

YELP is an on-line rating and review service that a surprisingly large number of consumers use nowadays before engaging a service or a product. We use it extensively ourselves, and most of our clients use it. We recommend it highly b/c we now get and keep a lot of business solely b/c of our positive […]Read More

Do NOT need 30% Equity Cushion in Departing Residence

There is a concern among many of our Realtors about the necessity of a 30% “Equity Cushion” in a borrower’s departing residence (the “departing residence” is the house a buyer is moving out of). Such a cushion is NOT a necessity. The 30% Equity Cushion is only a requirement if we need to use the […]Read More

Return of Sound Alt A (Stated Income) Loans Delayed

Our Pricing Engine, by the way, is an on-line database that lets us instantly compare approximately 30 of our 45 lenders after we input a particular loan scenario. Such Engines are invaluable in today’s mortgage arena because there are so many parameters that influence pricing or rates. These parameters include Loan-to-Value Ratios, Credit Scores, Impounds, […]Read More

Keep Payments Current Until Short Sale Closing Date!

Homeowners looking to short sale their home should NOT skip or miss payments, if possible. We beat this dead horse often, but it comes up so often we want to drive home the point again. First of all, lenders are not more likely to accept a short sale proposal if you are behind on payments. […]Read More

Far More REOs

Today Citi is leading the charge again, after getting completely out of the market yesterday. Today rates improved initially because jobless claims came in higher than expected; again, such signs of economic weakness typically portend lower rates. BUT, we just received several “price change for the worse” announcements from some of our lenders. So we’ll […]Read More

Broker Loans are 10% of Total Business – Good for Us and You

In any case, many analysts now expect rates to remain low through 2011. The percentage of total home loans originated by Mortgage Brokers has fallen to only 10.1%. This is extremely good news for us and our clients for several reasons. Brokers used to originate the vast majority of all home loans, but many of […]Read More

Why Housing Will Come Back – Forbes.com Article

We have been suggesting that housing is now a good investment for several reasons, including: (1) prices are much lower; (2) can lock in very low interest rates; (3) investment properties now yield great cash flow; and (4) real estate is a great inflation hedge. A recent Forbes.com column called “Why Housing Will Come Back”, […]Read More

Follow Ups: Too Much Service; Successful Short Sales

We mentioned a borrower who kept her payments up to date while negotiating a short sale yesterday, and several Realtors questioned us as to whether or not it was true. It is in fact very true, and she is an interesting case. The borrower is a well-off, highly polished and highly professional woman who negotiated […]Read More

Short Sale – Keep Payments Current Until Short Sale Date

A Short Seller (people who sell their homes for less than they owe against the home) can get FHA financing right after a short sale IF they keep their payments current right up to the date of the short sale. This is big news from FHA, as there used to be at least a 2 […]Read More

Nordstrom’s Values

We got lectured by a 30 year old Nordstrom’s manager recently about the importance of service. She has been through 4 Realtors, but she is now in contract. We asked her how she finally settled on a Realtor, and she said very sternly: “At Nordstrom’s we ALL go the extra mile for customer service no […]Read More

Housing as Inflation Hedge

We remain less concerned b/c this week was the start of Rosh Hashanah, and a surprisingly large percentage of traders honor the holiday. And that could well-explain the temporary lull in demand, according to one of our more astute market analysts. If rates remain higher all next week, we will then get concerned. We read […]Read More

We Are Happy to Review Other Lender’s Loans – We Know We Can’t Win Them All

We are happy to review the quotes of other lenders just to let you and your client know if they are getting the best possible financing. We are extremely strong with respect to FHA and Fannie Mae rates because of our many wholesale sources. But we know we cannot win them all. Here are several […]Read More

Tale of One City: LA – Best of Times; Worst of Times

Forbes Magazine tracks Real Estate Appreciation for the 500 Most Expensive Zip Codes in the US. In the most recent issue Forbes showed the “Five Biggest Losers” and “Five Biggest Gainers” year over year from 2008 to 2009. What was interesting is that LA had One of the Top Five Losers, as well as Two […]Read More