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Most people have multiple trade lines, so they never become an issue. When they do become an issue is with a lot of first time home buyers. Sometimes these borrowers are living at home for free, so they cannot verify rent, and they not have a car, to show that debt as a trade lines. They may also have only 1 or 2 credit cards. I don’t want this to come across as a bad thing, because having little debt is a good thing. I just want to explain how it will apply to the approval process. The ban... Read Full Post

Like I have mentioned before on this site, the new laws have made a 45 day settlement a requirement. Before 30 days was very doable, but with the HVCC and HERA, 45 days is the norm. With the HVCC, you order the appraisal thru an AMC, Appraisal Management Company, and they are taking anywhere from 5 to 15 business days, from the time they receive the order. I will not even get into all of the problems the AMC and HVCC are causing, besides there turnaround times. With HERA, the new truth-in-len... Read Full Post

I know the title may throw some people off, but it’s true, they are back in the game. First, the rates are very attractive, they are in the low to mid 4’s with Zero points. They also are starting to offer them with the interest only option. I believe a lot of lenders filled their portfolios with fixed rate mortgages over the last year and they are looking to diversified it by offering super low ARM rates. I do not like when people make bold statements, because I believe that each borrower... Read Full Post

I have heard a lot of questions about the 8k tax credit from the Economic Stimulus Package. I wanted to give some information regarding the tax credit. As always, feel free to contact me with any questions or scenarios. The 8k is not a down payment grant, it is truly a tax credit that will apply next spring when you file your 2009 federal taxes. There a few guidelines that need to be met; the purchase has to close by 11/30/2009. It is for first time home buyers. FTHB is someone who has NOT ow... Read Full Post

A hot topic for brokers is the HERA laws. They are the laws requiring a re-disclosure of Truth-In-Lending documents if your APR increases by an 1/8 of a percent, or .125%. After seeing it in effect for a few weeks, I can say that doing your due diligence is a must! Each bank has applied their own specific twists, which could easily delay settlements. The law only applies to a 1/8 increase, it does not apply if the APR decreases by an 1/8. Most brokers are estimating 30 days of pre-paid intere... Read Full Post

A little while back Fannie Mae and Freddie Mac passed a rule that they would not buy loans for borrowers who owned more than 4 properties. That is still the case, but you may be able to find a bank that provides their financing under their portfolio program, which means they keep those loans. Since they are not sold to Fannie or Freddie, they can apply their own guidelines to them. The reason I bring this up, is because we have a bank that offers financing for investment properties. They will... Read Full Post

The FHA Streamline program is still a great option for home owners already in an FHA loan. You don’t have to be in an FHA loan for 1 yr, the guideline states that as long as FHA has bought your loan you are eligible for the streamline program. One change that has occurred is that all banks are now requesting a minimum FICO to be eligible for a streamline. That minimum score is 620. Most banks still do have “hits/bumps” for scores under 660. They are usually tiered from 620-660. FHA Jumb... Read Full Post

Right now the is an option for 100% financing, and that is the USDA loan. It is a government loan, and it has a lot of great advantages. It is a 1-piece loan with NO MI. The max loan amount is 417k. There is no minimum credit score required, and the eligible properties are based on the zip code it is in. This loan used to be for rural properties, but now, more properties are eligible because it is based on the population of the zip code. I think the best advantage is that it does not fall und... Read Full Post

HVCC update… I would like to run into Mr. Cuomo, while I am driving!!!!!!!!!!! This is without a doubt, the worst thing that has happen to the mortgage industry. A lot of good appraisers are out of business, because these AMC’s only care about getting rich. AMC’s are the Appraisal Management Companies. They receive orders, give them to the appraiser who will do it for the cheapest price and collect the difference they charge the borrower. Their service is as good as their ethics…SUCKS... Read Full Post

Once a very popular product, they have pretty much become non-existing. Once people could go to 100% with 80/20’s and or use their seconds to payoff debt, make home improvements, etc. Now a days, it is very rare to find a bank that will offer a second. The remaining ones that do offer seconds will only go to 80-85 CLTV (Combined-loan-to-value). The will all require full documentation and most likely order an appraisal. They also qualify the borrower on the full drawn amount of the HELOC. Wh... Read Full Post