The more I speak, the more I get asked about the correlation between short sales and credit score. What needs to be analyzed is not what the impact is to their credit score BUT what the impact is to their ability to purchase in the future.
Honestly, it does not matter what the credit score is after a short sale if they are unable to qualify for a home loan.
The Fannie Mae guidelines are TWO years and FHA guidelines are THREE years for qualifying to purchase.
Stay in touch with your mortgage professional, ask them to keep you up to date on the many changes and how it impacts your business.
Saturday, February 28, 2009
Sunday, February 22, 2009
Do You Have a VA Candidate?
One key question to ask a prospective home buyer in today's market is:
• Are you (or spouse) current/retired military, National Guard or Reserves?
This question goes right to the eligibility for use of a VA loan. If the veteran is unsure if they qualify, have them contact the local VA office and see about obtaining a Certificate of Eligibility.
Remember, VA loans are 100% financing!
Make sure to work with a mortgage professional that has experience closing VA loans.
• Are you (or spouse) current/retired military, National Guard or Reserves?
This question goes right to the eligibility for use of a VA loan. If the veteran is unsure if they qualify, have them contact the local VA office and see about obtaining a Certificate of Eligibility.
Remember, VA loans are 100% financing!
Make sure to work with a mortgage professional that has experience closing VA loans.
Tuesday, February 17, 2009
$8,000 Tax Credit
The stimulus package has some changes with regards to the First Time Home Buyer Tax Credit. These changes are as follows:
The credit is for a true 1st time home buyer, meaning they have not owned a home or been on title in the previous three years.
The tax credit has been raised from $7,500 to $8,000 OR 10% of the purchase price.
The dates for qualifying for tax credit have changed. Any home purchase between January 1, 2009 and December 1, 2009 now qualifies.
No repayment is required if the home buyer stays in property for at least three years.
There are income limitations for this program, $75,000 for single tax filers and $150,000 joint tax filers.
The credit is for a true 1st time home buyer, meaning they have not owned a home or been on title in the previous three years.
The tax credit has been raised from $7,500 to $8,000 OR 10% of the purchase price.
The dates for qualifying for tax credit have changed. Any home purchase between January 1, 2009 and December 1, 2009 now qualifies.
No repayment is required if the home buyer stays in property for at least three years.
There are income limitations for this program, $75,000 for single tax filers and $150,000 joint tax filers.
Friday, February 13, 2009
Is Financing Easier Now For Investors?
Alas, some good news on the mortgage front for investors looking for financing in today’s market. Fannie Mae announced that individuals with up to 9 properties on their credit are eligible for financing, up from a limit of 3 properties.
Until recently, many investors (even those that could prove income and assets) were seeking alternative financing options due to the number of properties they owned.
Before anybody runs out and starts putting offers on investment properties, please remember that qualifying for these loans still proves difficult. Many banks continue to tighten credit, implementing higher credit score requirements. The amount of equity or down payment required may be greater as well.
As always, please speak with a mortgage professional that is up to date on the guideline changes.
Until recently, many investors (even those that could prove income and assets) were seeking alternative financing options due to the number of properties they owned.
Before anybody runs out and starts putting offers on investment properties, please remember that qualifying for these loans still proves difficult. Many banks continue to tighten credit, implementing higher credit score requirements. The amount of equity or down payment required may be greater as well.
As always, please speak with a mortgage professional that is up to date on the guideline changes.
Thursday, February 5, 2009
1st Time Home Buyer - Income
Part three of our series on 1st time home buyers will now focus on income and what factor it plays in qualifying for down payment assistance. State, county and local agencies will determine your assistance level by referring to the link below.
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/income/2008/
You would click on the state and see the 2008 Adjusted Home Limits by city.
The chart can be somewhat confusing, it goes by the income level vs the total numbers in a household. I recommend speaking with an expert on whether your 1st time home buyer has the right level of income for the assistance available in your area.
Another part of the income equation is the debt to income ratio of a prospective 1st time home buyer. The first ratio analyzed would be what is called the “front end ratio”; which is your new mortgage payment (including taxes and insurance) divided by the gross monthly income. The second ratio analyzed would be called the “back end ratio”; which is your total monthly payments (mortgage + credits cards + other loans) divided by the gross monthly income. The ideal debt ratio for a 1st time home buyer is 35/45.
Thanks once again to Susan Gould from Hope for a Homeowners. She can be reached through her website at www.Hopeforahome1.com.
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/income/2008/
You would click on the state and see the 2008 Adjusted Home Limits by city.
The chart can be somewhat confusing, it goes by the income level vs the total numbers in a household. I recommend speaking with an expert on whether your 1st time home buyer has the right level of income for the assistance available in your area.
Another part of the income equation is the debt to income ratio of a prospective 1st time home buyer. The first ratio analyzed would be what is called the “front end ratio”; which is your new mortgage payment (including taxes and insurance) divided by the gross monthly income. The second ratio analyzed would be called the “back end ratio”; which is your total monthly payments (mortgage + credits cards + other loans) divided by the gross monthly income. The ideal debt ratio for a 1st time home buyer is 35/45.
Thanks once again to Susan Gould from Hope for a Homeowners. She can be reached through her website at www.Hopeforahome1.com.
Subscribe to:
Posts (Atom)
