Monday, February 28, 2011
Tuesday, February 22, 2011
Raise you credit scores
Wouldn't it be nice if you could just ad an account to your credit report and it automatically has a 2 year PERFECT pay history?
Well, you can AND it is 100% legal.
Authorized user accounts are the only legal way to back-date your credit reports and add past positive credit history.
An authorize user is when a family member calls their existing credit card company and ask to have you added as a user. This allows you to use the card, but you are not required to have your credit pulled to qualify for the account.
What does happen is that once you become an authorized user the account is then added to your credit profile. And YOU receive the full benefit of the long-standing positive pay history account.
This means your credit scores goes up just as if you had a 2 year perfectly paid account on your credit for years. And the impact to your scores is immediate and substantial.
You must be added to a FAMILY MEMBER'S account only. The new score model FICO 08 will NOT give you credit unless the account is linked to an immediate family member.
And make sure you get added to a long-standing account, with positive credit history, and that the creditor does report authorized user accounts on the credit report.
Get added as an authorized user today for a nice credit score increase and to insure you have a healthy credit profile and healthy financial future.
From my buddy TY.
Well, you can AND it is 100% legal.
Authorized user accounts are the only legal way to back-date your credit reports and add past positive credit history.
An authorize user is when a family member calls their existing credit card company and ask to have you added as a user. This allows you to use the card, but you are not required to have your credit pulled to qualify for the account.
What does happen is that once you become an authorized user the account is then added to your credit profile. And YOU receive the full benefit of the long-standing positive pay history account.
This means your credit scores goes up just as if you had a 2 year perfectly paid account on your credit for years. And the impact to your scores is immediate and substantial.
You must be added to a FAMILY MEMBER'S account only. The new score model FICO 08 will NOT give you credit unless the account is linked to an immediate family member.
And make sure you get added to a long-standing account, with positive credit history, and that the creditor does report authorized user accounts on the credit report.
Get added as an authorized user today for a nice credit score increase and to insure you have a healthy credit profile and healthy financial future.
From my buddy TY.
Friday, February 18, 2011
Credit scores why 30% is the magic number See what Ty says on credit
When it comes to your credit report 30% is a magical number.
All credit scoring models rate your scores higher if your accounts have less than 30% balances in relation to their high credit limits.
This includes your credit cards, car loans, mortgages, and all other accounts including installment loans.
This is also why your credit scores will go DOWN when a new mortgage or car loan reports on your credit. And as you pay those accounts lower each month your scores steadily increase.
So if you REALLY want to spike your credit scores, pay down your credit card accounts so the balances are lower than 30% of your limits.
OR, simply call your creditors to apply for a credit limit increase. You can also get approved for higher limit accounts to help increase your scores.
The secret is to keep the balances below 30% of the credit limit to insure you have a healthy credit profile and healthy financial future.
Ty Crandall
Elite Credit
(877) 346-1010
ty@elitecreditinc.com
www.PerfectCreditFast.com
All credit scoring models rate your scores higher if your accounts have less than 30% balances in relation to their high credit limits.
This includes your credit cards, car loans, mortgages, and all other accounts including installment loans.
This is also why your credit scores will go DOWN when a new mortgage or car loan reports on your credit. And as you pay those accounts lower each month your scores steadily increase.
So if you REALLY want to spike your credit scores, pay down your credit card accounts so the balances are lower than 30% of your limits.
OR, simply call your creditors to apply for a credit limit increase. You can also get approved for higher limit accounts to help increase your scores.
The secret is to keep the balances below 30% of the credit limit to insure you have a healthy credit profile and healthy financial future.
Ty Crandall
Elite Credit
(877) 346-1010
ty@elitecreditinc.com
www.PerfectCreditFast.com
Tuesday, February 1, 2011
Flipped homes
Re: Conventional Flip Policy
IMPORTANT NEWS…
Background: Property flip transactions refer to the process of purchasing an existing property,
then immediately reselling it for a profit. Property flips are not necessarily illegal unless the
transaction includes an act of fraud or misrepresentation such as an inflated appraised value.
Property flip transactions most often, but not always, involve distressed properties acquired at a
discounted price, then resold at an increased sales price to an uninformed buyer. To provide
some clarity around the underwriting of loans that may be flips, FAMC has implemented the
policy described below effective immediately.
Indicators: There are several indications that are common to property flipping. Loan files with
property flipping indication(s) will require a higher level of scrutiny during the loan review.
Some examples of indicators include (but are not limited to):
• Several ownership changes within a few months reflected on title or in Core Logic report.
• The appreciation of the subject property exceeds the typical appreciation in the market.
• The seller recently acquired the property for a significantly lower price, or there have been
several transfers of the property according to the tax assessment records.
• No real estate agent is involved in the transaction.
• The property was recently in foreclosure, or acquired at an REO sale at a considerably lower
sales price.
• Parties to the transaction are affiliated or related by birth or marriage.
• Owner listed on the appraisal and/or title does not match the property seller on the sales
contract.
• Sales contract has an unusually large earnest money deposit held by the property seller.
• Unusual fees or credits are reflected on the HUD-1.
• Title commitment references other deeds to be recorded simultaneously.
• Property seller is a corporation such as an LLC.
• Comparable sales used in the appraisal report are properties involving the same seller
and/or the same real estate broker as the subject property in an attempt to artificially inflate
the market.
Page 2 of 2
Exceptions: Examples of acceptable property flip transactions usually are as follows:
• Sales of properties by a US Government agency of single family properties pursuant to
programs operated by these agencies, state or federally chartered financial institution,
mortgage insurer, or federal, state, or local government to a buyer intending the occupy the
property as a primary residence.
• Property sales by relocation agencies or employers related to employee relocations.
• Sales of properties that have been substantially improved through legitimate and verified
renovations since the property was acquired by the seller. Any increase in the sales price
over the seller’s acquisition cost should be representative of the market given the
improvements made to the subject property.
Policy: Property flip transactions will be considered by FAMC for conforming loan amounts on
Owner-occupied, single-family detached residences only as follows:
• Properties acquired by the seller within the last 90 days are acceptable provided the
increase in the sales price is less than 20% and the LTV is less than 80% (see chart below).
• Properties with a sales increase of 20% or more must have been owned by the seller for a
minimum of 91 days prior to the date the borrower entered into the contract for purchase of
the subject property (see chart below).
• If the sales price has increased 20% or more since the most recent purchase, the
underwriter must determine if the increase can be justified.
o If the value increase is due to recent renovations or improvements, the appraiser
must supply interior photos of the renovations and comment on the cost of the
Repairs/renovations and likely contribution to the value increase.
o Receipts, building permits and/or signed contracts must be submitted.
• The property seller must be the owner of record.
• Loans requiring mortgage insurance must be submitted to the MI Company for
underwriting and approval. FAMC will not delegate MI on these loans.
• A complete/full appraisal is required regardless of AU feedback.
• Loan must not reflect any interested-party characteristics.
From one of our Lenders policies
IMPORTANT NEWS…
Background: Property flip transactions refer to the process of purchasing an existing property,
then immediately reselling it for a profit. Property flips are not necessarily illegal unless the
transaction includes an act of fraud or misrepresentation such as an inflated appraised value.
Property flip transactions most often, but not always, involve distressed properties acquired at a
discounted price, then resold at an increased sales price to an uninformed buyer. To provide
some clarity around the underwriting of loans that may be flips, FAMC has implemented the
policy described below effective immediately.
Indicators: There are several indications that are common to property flipping. Loan files with
property flipping indication(s) will require a higher level of scrutiny during the loan review.
Some examples of indicators include (but are not limited to):
• Several ownership changes within a few months reflected on title or in Core Logic report.
• The appreciation of the subject property exceeds the typical appreciation in the market.
• The seller recently acquired the property for a significantly lower price, or there have been
several transfers of the property according to the tax assessment records.
• No real estate agent is involved in the transaction.
• The property was recently in foreclosure, or acquired at an REO sale at a considerably lower
sales price.
• Parties to the transaction are affiliated or related by birth or marriage.
• Owner listed on the appraisal and/or title does not match the property seller on the sales
contract.
• Sales contract has an unusually large earnest money deposit held by the property seller.
• Unusual fees or credits are reflected on the HUD-1.
• Title commitment references other deeds to be recorded simultaneously.
• Property seller is a corporation such as an LLC.
• Comparable sales used in the appraisal report are properties involving the same seller
and/or the same real estate broker as the subject property in an attempt to artificially inflate
the market.
Page 2 of 2
Exceptions: Examples of acceptable property flip transactions usually are as follows:
• Sales of properties by a US Government agency of single family properties pursuant to
programs operated by these agencies, state or federally chartered financial institution,
mortgage insurer, or federal, state, or local government to a buyer intending the occupy the
property as a primary residence.
• Property sales by relocation agencies or employers related to employee relocations.
• Sales of properties that have been substantially improved through legitimate and verified
renovations since the property was acquired by the seller. Any increase in the sales price
over the seller’s acquisition cost should be representative of the market given the
improvements made to the subject property.
Policy: Property flip transactions will be considered by FAMC for conforming loan amounts on
Owner-occupied, single-family detached residences only as follows:
• Properties acquired by the seller within the last 90 days are acceptable provided the
increase in the sales price is less than 20% and the LTV is less than 80% (see chart below).
• Properties with a sales increase of 20% or more must have been owned by the seller for a
minimum of 91 days prior to the date the borrower entered into the contract for purchase of
the subject property (see chart below).
• If the sales price has increased 20% or more since the most recent purchase, the
underwriter must determine if the increase can be justified.
o If the value increase is due to recent renovations or improvements, the appraiser
must supply interior photos of the renovations and comment on the cost of the
Repairs/renovations and likely contribution to the value increase.
o Receipts, building permits and/or signed contracts must be submitted.
• The property seller must be the owner of record.
• Loans requiring mortgage insurance must be submitted to the MI Company for
underwriting and approval. FAMC will not delegate MI on these loans.
• A complete/full appraisal is required regardless of AU feedback.
• Loan must not reflect any interested-party characteristics.
From one of our Lenders policies
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