J. Scott Harris – MortgageXperts.com

Call us 1st to AVOID mortgage problems, Call us 2nd to SOLVE them! We close loans every day that Banks would not, or could not approve. NMLS # 375517 – Mobile 214-435-8825

J. Scott Harris – MortgageXperts.com - Call us 1st to AVOID mortgage problems, Call us 2nd to SOLVE them!  We close loans every day that Banks would not, or could not approve. NMLS # 375517  – Mobile 214-435-8825

New Fannie Mae “No Credit Score Loan” Program @ 90% LTV

Fannie Mae has made enhancements that now allow the assessment of Mortgages when no Borrower has a credit score and when not all Borrowers have a usable credit score.

 Purchase or no cash-out refinance
 1 unit property
 All Borrowers must occupy the property as their Primary Residence
 LTV, CLTV, HCLTV not to exceed 90%
 The loan must be a Fixed-rate mortgage
 High Balance Loans and Manufactured Homes not eligible
 The debt-to-income ratio must be less than 40%
 Reserves determined by DU
 Approve/Eligible Finding required

 Each Borrower must have at least 2 payment references in the US comprised of Nontraditional credit references and/or tradelines not appearing on the credit report. If 2 or more Borrowers have the same nontraditional credit reference, then the credit reference may count for each of those Borrowers.

 Each nontraditional credit reference must have at least a 12 month consecutive payment history.

 At least one Borrower must have a housing payment history as one of the credit references and have no 30-day or greater delinquency in the most recent consecutive 12 months.

 For all other nontraditional credit references excluding housing payment reference, only one credit reference may have 1 30-day delinquency in the most recent 12 months and no 60-day or greater delinquencies in the most recent 12 months.

 No collections (other than medical collections) or judgements filed in the most recent 24 months is allowed.

 Judgements, liens, collections, and charge-offs of non-mortgage accounts must be satisfied.

 Any derogatory credit references that appear on the credit report must be considered in the final underwriting decision. Nontraditional credit references cannot be used to offset a previous derogatory credit history. A Borrower with derogatory credit references such as bankruptcy or foreclosure must have re-established credit in accordance with B3-5.3-07.

 One borrower must participate in a homeownership education program before the Note Date when the credit for all Borrowers is established using only nontraditional credit references.

 

CONTACT J. SCOTT HARRIS FOR MORE DETAILS.

The KEYS to your new home are within reach!
Call us 1st to AVOID mortgage problems,
Call us 2nd to SOLVE them!

Click Here to start your quick Free Credit Analysis & Pre-Qualify Now!

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J. SCOTT HARRIS | BRANCH MANAGER
NMLS ID# 375517 (www.nmlsconsumeraccess.org)
(M) 214.435.8825 | (F) 866.343.3688
jharris@goldfinancial.com  www.goldfinancial.com  | Pre-Qualify Now

LinkedIn  |  Facebook  |  Twitter  |  JSH BLOG – News & Articles www.MortgageXperts.com

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885 E Collins Blvd Ste 110
Richardson, TX 75081

My Branch Closes FHA / VA & USDA Loans at 580+ in Texas, Oklahoma & Louisiana

Gold Financial Services is a Division of Amcap Mortgage, Ltd. NMLS #129122. Equal Housing Lender

J. Scott Harris is a Nationally Recognized Mortgage & Social Media Authority.

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Misconceptions on Student Loan repayments are hurting home buyers while qualifying… We have some Solutions…

FHA, VA & FNMA have all changed policies regarding student loan repayments and for some with large amounts of educational debt, it has limited or made it impossible for them to qualify to purchase a home.

We have identified a few solutions to help these buyers that may have been flatly rejected by other lenders or banks.  Give us a call and we can help!

 

MGIC Mortgage Insurance recently published this great article —

Why It’s Okay to Have Student Loan Debt

Why It’s Okay to Have Student Loan Debt

Click Here to read the rest of the Article

 

 

Even if another Bank or Lender has said “NO,” we will work with you until we can say “YES.”

If you have already started in our Qualification Coaching Program, call us, so we can check your progress!
The KEYS to your new home are within reach!


Call us 1st to AVOID mortgage problems,
Call us 2nd to SOLVE them!

Click Here to start your quick Free Credit Analysis & Loan App Now!

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J. SCOTT HARRIS | DIVISION VICE PRESIDENT & BRANCH MANAGER
NMLS ID# 375517 (www.nmlsconsumeraccess.org)
(M) 214.435.8825 | (F) 866.343.3688
jharris@goldfinancial.com  www.goldfinancial.com  |  Pre-Qualify Now
LinkedIn  |  Facebook  |  Twitter  |  JSH BLOG – News & Articles
www.MortgageXperts.com
GoldEmailLOGO
885 E Collins Blvd Ste 110
Richardson, TX 75081

My Branch Closes FHA / VA & USDA Loans at 580+ in
Texas, Oklahoma & Louisiana

Gold Financial Services is a Division of Amcap Mortgage, Ltd. NMLS #129122. Equal Housing Lender

 

J. Scott Harris is a Nationally Recognized Mortgage & Social Media Authority.

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TRID – Government over regulation causing lenders to shut down!

TRID Problems Led to W.J. Bradley’s Demise

Becoming the 3rd Retail Lender to halt originations in recent weeks!

By Brad Finkelstein March 16, 2016 – National Mortgage News

W.J. Bradley Mortgage Capital shut its doors after it was stuck with nonagency loans with TILA/RESPA integrated disclosure issues that it couldn’t sell.

Without specifying the Centennial, Colo.-based lender by name, David Stevens, president and CEO of the Mortgage Bankers Association, said uncertainty about how regulators will police the new borrower disclosures that took effect in October is creating friction between originators and investors.

“One of the recent announcements of a large mortgage lender that shut their doors in the last several days, I quite frankly believe it has a lot to with this, [is] the loss over a cap line with an investor. They were rejected on the nonagency side,” Stevens said Wednesday during a speech at the Regional Conference of MBAs, ongoing this week in Atlantic City, N.J.

W.J. Bradley was one of the first lenders to roll out a non-qualified mortgage loan program. But it lost its warehouse funding because it had jumbo mortgages stuck on its line of credit with TRID issues, according to a former employee of the company who spoke to NMN on condition of anonymity.

Previous attempts to contact the company were not successful and a new attempt to contact W.J. Bradley for further comment has not been returned.

A memo obtained by National Mortgage News sent by W.J. Bradley to its employees on March 13 only states the company made “a strategic decision to wind down their businesses.” It did not specify why.

Before the TRID rules took effect, lenders and compliance experts expressed concerns about the salability of mortgages with TRID defects. W.J. Bradley is the third retail lender to stop originating loans in recent weeks, joining Walter Investment Management’s Ditech Financial subsidiary and the $24 billion-asset BankUnited in Miami Lakes, Fla. However, Ditech and BankUnited remain in the origination business through other channels.

HomeReady Makes Buying A Home Easier! As FHA tightens, Fannie eases.

3Down Conventional

Fannie Mae launched a new First Time Home Buyers program called HomeReady designed to encourage home ownership.  This great new loan program is designed to compete with FHA.  For those clients looking for larger properties or that have higher credit scores, HomeReady is an excellent choice. As a home buyer, our team will provide you with all the tools and a customized analysis to ensure you are getting the best loan program at competitive rates to suit your needs.

There are many benefits for a borrower using HomeReady mortgages. Besides that it is accessible and the financing is practical here are a few more borrower benefits:

  • There is a low down payment. This is a huge perk because a down payment is a huge draw back for some people that want to purchase a home. The down payment is only 3% for loans up to $417,000 in Dallas Texas and all of Texas.
  • The down payment can come for the borrowers own funds or as a gift from a relative or fiancé.
  • HomeReady has an online home ownership education that really help buyers prepare and get ready for what is required as a homeowner. Completion of the home ownership course is mandatory.  You can start the Framework Home ownership course here.
  • HomeReady is a conventional home financing program with a monthly mortgage insurance that can be easily be cancelled as compared to FHA which currently has mortgage insurance for the life of the loan when making the minimum down payment.

There are a lot of questions concerning HomeReady loans. While it is pretty easy to get a HomeReady loan it is also important to understand all the requirements and responsibilities that come with buying a home. Here are some common concerns and questions for HomeReady Mortgages:

·       “How does a HomeReady mortgage make it easier to qualify?”

·       “Why Should I Own Rather Than Rent?”

·       “Home Much Can I Borrow”

·       “How Much Will I Save In Taxes?”

·       “Can I own any other homes with HomeReady?

·       “How Much Financial History and/or Documentation Do I Need?”

“How does HomeReady mortgage make it easier to qualify?”

The most notable difference is that HomeReady uses flexible rules to determine applicants’ debt-to income ration. With the HomeReady program you can be a little more flexible in who’s income you include in your mortgage application, which is especially helpful if you have more than one generation living in the same house.

    • Other adults living with you, like an adult child, who also contributes to the house.
    • Family and friends who might be helping you pay the mortgage, but don’t live with you.
    • Are you renting out your basement apartment to help pay the mortgage? You can count that as part of your income under the HomeReady program.

 

“Why Should I Own Rather Than Rent?”

Homeownership has many benefits. Some of them include having a home where you can do whatever you want with it, paint, decorate you name it. Besides making it your home there are greater tax deductions and you can build up your own equity, not your landlords.

“Home Much Can I Borrow”

Most lenders try to have your total debt to be less than 45% of your gross monthly income. That percentage includes the new mortgage payments, any car loans, student loans, credit card, and any other debt you have occurred.  It does not included things like cable bills, utilities, gym memberships and such. However, HomeReady does have flexible debt to income guidelines.  If you have a history of paying your bills on time, then you may qualify for higher debt to income ratios up to 50% of your income.

You also need to think personally how much debt you can live with. Take time to determine how much debt you prefer to manage and if it is an amount you can one day pay off.

“How Much Will I Save In Taxes?”

Talk with a professional CPA or tax preparer to understand your deductions but for the most part, you can deduct from your income the amount of property taxes, interest, and for 2015 the mortgage insurance (this is income determined). This can help reduce your federal income tax burden thus allowing you to pay less in taxes. This reduction in your federal and state (if applicable) taxes often times makes buying more affordable than renting.

“Can I own more than one home with HomeReady?

No, because the occupant borrowers may not have an ownership interest in any other residential property at the time of loan closing.

 

Below are some of the highlights of the major changes from previous programs like Home Possible in My Community loans

The following list highlights some of the major policy changes that have been incorporated in the HomeReady mortgage:

·       Borrower eligibility – Income limit of 80% of area median income. Eligibility is also provided for properties located in low-income census tracts with no borrower income limits, and up to 100% of AMI for properties located in high minority census tracts or designated disaster areas.

·       Underwriting enhancements – Non-borrower household income from a family member is permitted as a compensating factor to support a higher debt-to-income (DTI) ratio in DU. The lender must obtain a written statement from the non-borrower that he or she intends to reside with the borrower in the subject property or can use the HomeReady Non-Borrower Household Income Worksheet and Certification (Form 1019) that has been developed to assist lenders in capturing the non-borrower household income requirements.
o Non-occupant borrowers are permitted for qualifying purposes.
o Boarder income guidelines have been updated to provide documentation flexibility.
o Rental income from an accessory unit may be considered in qualifying the borrower.

·       Homeownership education – This is required for at least one borrower

·       Mortgage insurance – Standard mortgage insurance is required on loans with LTV ratios at or below 90%, and 25% coverage is required for loans with LTV ratios above 90% to 97%.

Buying a home is now easier than it has been in years.

Click Here to start your quick loan app Now!

 

Here’s the Bottom Line: Owning is cheaper than renting!  Even is another Lender has said NO, we can help you.

Call us to get on a path to mortgage and credit qualification that will quickly lead to your new home.


Call us 1st to AVOID mortgage problems,
Call us 2nd to SOLVE them!

We close loans every day that Banks would not, or could not approve.

Mortgage Expert
J. Scott Harris
Vice President – Mortgage Miracle Working – NMLS #375517
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Closing FHA / VA & USDA Loans at 580+ in Texas, Oklahoma & Louisiana

885 E. Collins Blvd. Suite 110
Richardson, TX 75081
24/7 Mobile: 214-435-8825
Secure Fax: 866-343-3688
Gold Financial Services, Inc. is a division of Amcap Mortgage, Ltd. NMLS# 129122


Can you finance more than 5 properties? Most banks say no, but we can do them.

In 2009, Fannie Mae rolled back a mortgage rule that prevented real estate investors from financing more than 4 properties at once. At the time, investors were limited to 4 properties financed, which included their primary residence.

Today, the maximum number of allowable, simultaneously financed properties is 10. You wouldn’t know it, though — few banks actually offer the program.

THE 5-10 FINANCED PROPERTIES PROGRAM CRITERIA

To finance a home via Fannie Mae’s 5-10 Properties program, the following criteria must be met with no exception :

  • Own between 5 and 10 residential properties, each with financing attached
  • Purchase : 25% down payment is required for 1-unit; 30 percent is required for 2-4 units
  • Refinance : 30% equity is required for all property types (1-, 2-, 3-, or 4-unit)
  • Minimum credit score must be 720
  • There must not be any mortgage lates within the prior 12 months on any mortgage
  • There must be no bankruptcies or foreclosures in the prior 7 years
  • There must be 2 years of tax returns which rental income from all rental properties
  • There must be 6 months of PITI reserves on each of the financed properties

 

Call or email us!

Scott@JScottHarris.com or 214 435 8825

 

Congress raiding FNMA coffers to pay for Unemployment Benefits Extension

The problem with a tax like this is where to get the money.  No problem.  We’ll just go to Fannie Mae and Freddie Mac.  You know, those two companies that are totally kicking ass right now making more money than any other government agency (thanks to their conservatorship), that a bunch of congress people want to tear down.  Yeah, that company.

How does Fannie Mae and Freddie Mac pay for the Unemployment Extension Tax?

A G-Fee hike of course.  Thank goodness Mr. Mel Watt has a temporary hold on it right now as he wants to evaluate it.  But, rest assured, it’s probably going to happen.  We just find it strange that the place they go to get the tax satisfied is the very place that they feel should be terminated as soon as possible.

How do you feel about future homeowners paying for the Unemployment Extension Tax?  Let us know down below.

 

READ MORE

via Homeowners to Cover Unemployment Extension | National Real Estate Post.

Fannie, Freddie loan limits to remain unchanged

The maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac is staying the same, at least for the moment.

The Federal Housing Finance Agency announced today that the maximum loan limits for Fannie and Freddie will remain at $417,000 for most areas of the country and up to $625,500 in more expensive markets. The announcement comes after months of industry protest over Acting FHFA Director Edward DeMarco’s announcement that he would lower the loan limits.

FHFA could still lower the loan limits in the middle of next year. DeMarco said last month that any change in the loan limits wouldn’t come until spring of 2014 at the earliest, and that the agency would give at least six months’ notice before making any changes.

But many mortgage professioanls don’t want to see the limits lowered at all. More than a dozen mortgage and housing industry groups have gone on record opposing the plan, and several sent an Oct. 8 joint letter to DeMarco urging him to abandon the idea.

“We believe such changes at this time would have a very disruptive impact on the availability of affordable housing credit, on our housing recovery and our economy as a whole. Not only is lowering loan limits bad for housing, we question to what extent FHFA’s authority would allow for such a change,” the letter stated.

Members of Congress aren’t so hot about the idea, either. Sixty-six House members signed an Oct. 10 letter to DeMarco slamming the plan.

“Such action by a single regulator would serve only to further tighten credit availability and thereby erode progress in our fragile housing recovery,” the letter stated. “Currently, homeownership rates are at an historic 18-year low. Mortgage credit is virtually nonexistent for middle class Americans with less than stellar credit. Unless borrowers have a credit score of 760, conventional mortgage financing will simply be out of reach.”

Members of Congress also questioned DeMarco’s authority to lower the limits in the first place, but DeMarco has remained adamant that he has the authority and intends to exercise it.

All that could change, however, if Rep. Mel Watt (D-N.C.), President Obama’s nominee to head the FHFA, is confirmed. Many observers think Watt would focus the agency more on helping struggling homeowners, and would be less inclined to lower conforming loan limits than DeMarco.

Watt’s confirmation was initially blocked by Senate Republicans, but a recent rule change means he now requires only 51 votes to be confirmed.

http://www.mpamag.com/mortgage/fannie-freddie-loan-limits-to-stay-the-same–for-now-16294.aspx