Posts

Can’t Ignore Spouse’s Bad Credit If “Benefited” From Debt/Home

It is well-known that FHA underwriters look at both spouses’ credit even if only one spouse is buying a property. Hence, a spouse’s recent foreclosure or short sale can prevent another spouse (who might have perfect credit) from getting FHA financing. This happens often in fact. In these situations, we often turn to conventional financing […]Read More

LTVs for Investment Property Purchases & Refi’s

We get asked over and over about minimum down payments for investment properties. Many buyers have the misconception that they have to put 25% down; that is not the case. For investment property purchases with loans under $417,000, borrowers can put down as little as 15%, but the rate and the PMI are so high, […]Read More

Job Changes OK in Most Cases; Rules for New Jobs

Job Change OK: We have a pre-approved borrower with very tight debt ratios looking for a property. She asked us if it would be OK to accept a new job in the same field, but with $15,000 more in salary. She thought a new job would jeopardize her pre-approval, when it actually just makes her […]Read More

Adjusting Self Employment Income to Qualify – Must Average TWO years

Every year during “tax season”, we have self-employed and landlord borrowers coming to us and asking “how much income do I need to qualify…”. They then try to adjust their income tax returns accordingly. These borrowers will show fewer deductions on their tax returns in order to increase their income enough to qualify for their […]Read More

“Stated Income” Program Is Asset-Based

We still get constant inquiries about “Stated Income” programs. There are no true “stated” programs. The only options are “hard money” loans, requiring 30% down and a rate of about 10%, or our Asset Based loans. We have a program that imputes income by amortizing liquid assets over 30 years. A $1,000,000 stock portfolio, for […]Read More

Impressed Realtor Loved How We EDUCATE All Buyers

Earlier this week, a 73 year old Silicon Valley Realtor called our office because he represented one of our many pre-approved buyers. He was sharp, well-educated and articulate, and he has been in the business much longer than most of our employees have been alive. After he told us how things are, and how things […]Read More

Order “Fresh Credit” On Day of Short Sale

And because these borrowers will never miss a payment up to the short sale date, they can still buy a new home the next day with FHA financing (as most know). But because short sales (once reported to credit bureaus) can lower credit scores as much as 100 points, it is essential to run a […]Read More

Using Rental Income to Qualify for More Properties

We have a client who works for the post office with an income of just over $50,000 per year. Despite his limited income, he was able to purchase multiple properties with mortgages. He is able to take advantage of real estate investment opportunities b/c he can use the rent on the properties he buys to […]Read More

Homebuyer’s Assistance Programs Not That Great

We have buyers frequently looking to access “Homebuyer’s Assistance” or “Down Payment Assistance” programs offered by various cities and other non-profit entities. These are programs where a portion of an FHA down payment (usually 3%) is either gifted or loaned to the buyer at a very low rate. We often discourage these programs because the […]Read More

“Consumer Credit” Scores Not the Same as “Mortgage Credit” Scores

Borrowers frequently pull credit reports from various internet or consumer sources and then tell us that their credit scores are much higher than the scores we pulled. This is because there are many different models used for credit scoring, depending on the industry or entity requiring the scores. The credit scoring models or criteria employed […]Read More