Friday, January 28, 2011
Friday, January 21, 2011
Buying a home and seller is paying closing and other, be careful
Contributions exceeding six percent of the sales price or exceeding the actual cost of prepaid expenses, discounts points, and other financing concessions as well as other inducements to purchase, result in a dollar-for-dollar reduction to the sales price before applying the appropriate LTV ratio. LTV Homes loan to its value
These inducements include decorating allowances, repair allowances, moving costs, and other costs as determined by the appropriate HOC. (HOC =Home owner concessions) We also require dollar-for-dollar reductions to the sales price for excess rent credit, as well as for gift funds not meeting the requirements.
Personal property items such as cars, boats, riding lawn mowers, furniture, televisions, etc., given by the seller to consummate the sale result in a reduction to the mortgage. The value of the item(s) must be deducted from the sales price and the appraised value of the property (if not already done so by the appraiser) before applying the LTV ratio.
However, certain items, depending upon local custom or law, may be considered as part of the real estate transaction with no adjustment to the sales price or appraised value necessary. These items include ranges, refrigerators, dishwashers, washers, dryers, carpeting, window treatments, and other items as determined by the jurisdictional HOC. That office determines if these items affect value and are considered customary.
Replacement of existing equipment or other realty items by the seller before closing, such as carpeting or air conditioners, does not require a value adjustment provided no cash allowance is given to the borrower.
In addition, if the seller or builder of the property agrees to pay any portion of the borrower's sales commission on the sale of the borrower's present residence, the amount paid by the seller or builder is an inducement to purchase and must be subtracted dollar for dollar from the sales price before the LTV ratio is applied.
Similarly, a borrower not paying real estate commission on the sale of a present home constitutes a sales concession, if the real estate broker or agent is involved in both transactions and the seller of the property purchased by the borrower pays a real estate commission exceeding that typical for the area. In these situations, the amount paid by the seller above the normal real estate commission is considered an inducement to purchase and must be subtracted from the sales price of the property being purchased before applying the LTV ratio.
These inducements include decorating allowances, repair allowances, moving costs, and other costs as determined by the appropriate HOC. (HOC =Home owner concessions) We also require dollar-for-dollar reductions to the sales price for excess rent credit, as well as for gift funds not meeting the requirements.
Personal property items such as cars, boats, riding lawn mowers, furniture, televisions, etc., given by the seller to consummate the sale result in a reduction to the mortgage. The value of the item(s) must be deducted from the sales price and the appraised value of the property (if not already done so by the appraiser) before applying the LTV ratio.
However, certain items, depending upon local custom or law, may be considered as part of the real estate transaction with no adjustment to the sales price or appraised value necessary. These items include ranges, refrigerators, dishwashers, washers, dryers, carpeting, window treatments, and other items as determined by the jurisdictional HOC. That office determines if these items affect value and are considered customary.
Replacement of existing equipment or other realty items by the seller before closing, such as carpeting or air conditioners, does not require a value adjustment provided no cash allowance is given to the borrower.
In addition, if the seller or builder of the property agrees to pay any portion of the borrower's sales commission on the sale of the borrower's present residence, the amount paid by the seller or builder is an inducement to purchase and must be subtracted dollar for dollar from the sales price before the LTV ratio is applied.
Similarly, a borrower not paying real estate commission on the sale of a present home constitutes a sales concession, if the real estate broker or agent is involved in both transactions and the seller of the property purchased by the borrower pays a real estate commission exceeding that typical for the area. In these situations, the amount paid by the seller above the normal real estate commission is considered an inducement to purchase and must be subtracted from the sales price of the property being purchased before applying the LTV ratio.
Thursday, January 20, 2011
New Job looking for a mortgage
New Job and a Mortgage ?
If a borrower is about to start a new job and has a guaranteed, non-revocable contract for employment that will begin within 60 days of loan closing, the income is acceptable for qualifying purposes. The lender also must verify that the borrower will have sufficient income or cash reserves to support the mortgage payments and any other obligations during the interim between loan closing and the start of employment. (This condition may be appropriate for situations such as teachers whose contracts will begin with the new school year, or physicians who will begin residency after the loan is scheduled to close.) However, if the loan will close more than 60 days before the borrower's employment begins, the loan is not eligible for endorsement until the lender provides a pay stub or other acceptable evidence that the borrower has begun the new job.
If a borrower is about to start a new job and has a guaranteed, non-revocable contract for employment that will begin within 60 days of loan closing, the income is acceptable for qualifying purposes. The lender also must verify that the borrower will have sufficient income or cash reserves to support the mortgage payments and any other obligations during the interim between loan closing and the start of employment. (This condition may be appropriate for situations such as teachers whose contracts will begin with the new school year, or physicians who will begin residency after the loan is scheduled to close.) However, if the loan will close more than 60 days before the borrower's employment begins, the loan is not eligible for endorsement until the lender provides a pay stub or other acceptable evidence that the borrower has begun the new job.
Tuesday, January 18, 2011
FHA and Flat roofs
FHA no longer mandates automatic inspections for flat or unobservable roofs. In the appraisal report the appraiser will note any evidence of deterioration of roofing materials (missing tiles, shingles, flashing). Deteriorated roofing materials include those that are worn, cupped, or curled. If the roof is not observable, the appraiser will look for and include in the appraisal report any telltale signs of roof problems on the interior, such as damage or water stains to the ceiling area of a room or closet. The appraiser must note in the appraisal report that he/she could not adequately observe the entire roof area (state which area(s) were unobservable). Based on the information reported by the appraiser, the lender's underwriter will determine whether or not a roofing inspection is required.
Hope this is helpful..
m/will
Hope this is helpful..
m/will
Thursday, January 13, 2011
FHA and business Expences
Don’t overlook expense accounts and auto allowance for potential income. Here is what you need to look for:
– The income is only the amount that exceeds the expense.
– For expenses refer to Form 2106, from the IRS 1040 Form for the last 2 yrs.
– Verify from employer that the payment will continue for 3 years.
• Verification can be via a letter on company letterhead
• When there is a loss, this must be counted as a debt.
– Depreciation may be added back
– The income is only the amount that exceeds the expense.
– For expenses refer to Form 2106, from the IRS 1040 Form for the last 2 yrs.
– Verify from employer that the payment will continue for 3 years.
• Verification can be via a letter on company letterhead
• When there is a loss, this must be counted as a debt.
– Depreciation may be added back
Wednesday, January 12, 2011
Selling a car and needing a Mortgage loan.
Wednesday:
When selling an Asset (such as a Car…) the following is needed to properly paper trail the transaction.
– Need proof of ownership of asset
– Acceptable third party verification of market value could be a NADA or Blue book valuation
– Documentation of transfer
– Receipt of funds
When selling an Asset (such as a Car…) the following is needed to properly paper trail the transaction.
– Need proof of ownership of asset
– Acceptable third party verification of market value could be a NADA or Blue book valuation
– Documentation of transfer
– Receipt of funds
Tuesday, January 11, 2011
FHA Loans
FHA Loans Did you know?
Child support is grossed up to 125% of amount received by several lenders.
This is a sticking point with some loans and as long as the support is court ordered and shown as deposited in the repository this may be a life saver if your bordering an a debt to income qualifying stand point.
Child support is grossed up to 125% of amount received by several lenders.
This is a sticking point with some loans and as long as the support is court ordered and shown as deposited in the repository this may be a life saver if your bordering an a debt to income qualifying stand point.
Thursday, January 6, 2011
Behind on your Mortgage and do not know where to turn
This is a very informative Video.
It may take some time, however worth sharing or looking at.
http://www.knowyouroptions.com/ways-home#http://www.knowyouroptions.com/ways-home#
It may take some time, however worth sharing or looking at.
http://www.knowyouroptions.com/ways-home#http://www.knowyouroptions.com/ways-home#
FHA Loans can we have 2 of them
Principal residence – 1 FHA loan allowed per person, except when the applicant has an FHA property and wants to buy a 2nd owner-occupied FHA property due to:
– Relocation – not within reasonable commuting distance
– Increase in family size – current home Loan to its Value is 75% or less as established by an appraisal
– Vacating a jointly owned property (non-occupying co- applicant) generally 1 FHA per person
– Family member has co-mortgage for another family member
For more information give us a call 904-298-3015 we even answer our phones and return all calls in the same day if called in before 5PM.
– Relocation – not within reasonable commuting distance
– Increase in family size – current home Loan to its Value is 75% or less as established by an appraisal
– Vacating a jointly owned property (non-occupying co- applicant) generally 1 FHA per person
– Family member has co-mortgage for another family member
For more information give us a call 904-298-3015 we even answer our phones and return all calls in the same day if called in before 5PM.
Tuesday, January 4, 2011
Some tips on rental income from a room mate
First Tuesday of 2011
Income from roommates in a single-family property to be occupied as the borrower's primary residence is not acceptable. Rental income from boarders is acceptable if the boarders are related by blood, marriage, or law. The rental income may be considered effective income if shown on the borrower's tax returns. Otherwise, the income only may be considered a compensating factor and must be documented adequately by the lender.
See more tips
Income from roommates in a single-family property to be occupied as the borrower's primary residence is not acceptable. Rental income from boarders is acceptable if the boarders are related by blood, marriage, or law. The rental income may be considered effective income if shown on the borrower's tax returns. Otherwise, the income only may be considered a compensating factor and must be documented adequately by the lender.
See more tips
Monday, January 3, 2011
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