Today the federal government  announced new rules that may allow homeowners who are struggling borrowers to refinance their mortgages at today’s ultra-low rates by  reducing monthly payments for some homeowners. The goal is that the monthly savings could provide a …

Important Changes to Home Affordable Refinance Program (HARP) Read more »

What should you do then if you have a high lease payment and you are like so many debt averse Americans (that just sounds strange to be coming off my keyboard) and are de-leveraging (paying off debt and not incurring new debt) and dare I suggest, PAYING CASH for your next car (Dave Ramsey will be so proud of us both)?

Question: My partner and I are not married and only one of us is an eligible veteran while the other is not.  Can both our income be considered for the loan application? Answer: YES, as long as one of you …

Underwriting Tip – VA Loans Unmarried Applicants Read more »

All lenders will must must verbally verify employment within five (5) business days (salaried)/fifteen (15) business days (self-employed), prior to closing (Note date), as Required by Fannie Mae and FHA Guidelines. If a disaster incident occurs after the Verbal Verification …

Underwriting Tip – Re-Verification of Employment & Income Read more »

Veterans Loans The fact that a bankruptcy exists in an applicant’s (or spouse’s) credit history does not in itself disqualify the loan.  Develop complete information on the facts and circumstances of the bankruptcy.  Consider the reasons for the bankruptcy and the type of bankruptcy …

Underwriting Tip – Bankruptcy Waiting Periods – VA Read more »

A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that one year of the pay-out period under the bankruptcy has elapsed the borrower’s payment performance has been satisfactory and all required payments …

Underwriting Tip – Bankruptcy Waiting Periods – FHA Read more »

FHA Buyer Financed Closing Costs Financing of Transaction Costs for Real Estate Owned Properties (REO) Purchased under Federal Housing Administrations  $100 Down Sales Incentive Click for mortgagee letter/details  Related articles Underwriting Tip – FHA Gift Funds (theraleighmortgageguy.com) Buyers Receive up to 3.5% …

Underwriting Tip – FHA Buyer Financed Closing Costs Read more »

Due to the recent storms the Underwriters will be checking the disaster lists and requiring additional appraiser visual inspection and sign off if a subject property is in an affected area. Realtors and Buyers – make sure to check your …

Underwriting Tip – Recent Storms and Floods Read more »

FHA – In addition to normal employment verification, a borrower employed by a family owned business is required to provide evidence that he/she is not an owner of the business, documentation may include:          1. Copies of signed …

Underwriting Tip – Borrowers Employed by Family Business Read more »

FHA Underwriting Tip; FHA allows a borrower to meet the minimum statutory investment by using gift funds from either a close family member, government agency or approved non profit. FHA requires that all gift letters include the section 1010 verbiage below – …

FAQ – What is the FHA Gift Funds Section 1010 Verbiage Read more »