Author Archive

Waiting periods after Bankruptcy, Foreclosure or Short Sale


How long do I have to wait after Bankruptcy, Foreclosure or Short Sale to get a mortgage? Just like there are different ball games, each with different rules, mortgage loan products come with different guidelines when it comes to waiting periods since major derogatory credit events  : Bankruptcy, Short sale or Foreclosure. And just like you wouldn’t apply softball rules when…… Read More »

FHA versus Conventional – FHA losing ground? maybe not


FHA is a home loan program insured by HUD and in 2008, about a year after the real estate and the economy as a whole took a downward turn and Private mortgage money virtually disappeared from the industry, FHA’s market share of all insured mortgages soared to about 72% . In 2009 FHA accounted for 25% all home loan originations……. Read More »

Fannie Mae announces a new 3% down loan for 1st time homebuyers


This is great news December 08, 2014 Fannie Mae Announces 97 Percent LTV Option for First-Time Homebuyers Lower down payment enables qualified borrowers to access credit Callie Dosberg 202-752-3117 WASHINGTON, DC – Today, Fannie Mae (FNMA/OTC) announced an option for qualified first-time homebuyers that will allow for a down payment as low as three percent. Building upon Fannie Mae’s successful…… Read More »

4 ways to use PMI to beat FHA mortgage insurance with a Conventional Loan

       CONVENTIONAL Loans / FHA, VA & Conventional Related

  When you put down less than 20% of the purchase price, Conventional loans (those backed by Fannie Mae or Freddie Mac) require Private Mortgage Insurance (PMI). Before we look at ways to manage the PMI imposed on you, it’s important to know that (Conventional) PMI is a different animal to the Mortgage Insurance that comes with FHA loans. And…… Read More »

Why does the Underwriter want more paperwork?? Am I approved or what?


This is a common question asked of Lending Professionals everywhere . . whether you’re applying for an FHA, VA, USDA or Conventional home loan. We narrowed it down for you 🙂 . . . . Whenever the Underwriter asks for additional paperwork, it’s usually because of one of the following  five reasons 1/ Something you sent contradicts or conflicts with…… Read More »

VA Loans: Squeezing every dollar from that Payroll Statement for Active Duty Borrowers

       VA Loans

There are three main income entitlements listed on a Veteran’s paycheck stub, known as a “Leave & Earnings Statement”  or LES. The first one is the Base Pay and is easy to compute. However the next two, BAS (Basic Allowance For Subsistence which is supposed to offset meal costs) and BAH (Basic Allowance For Housing) are non-taxable and therefore can…… Read More »

How much can seller pay towards Buyer’s closing costs on a VA loan?

       Uncategorized / VA Loans

There’s much misunderstanding in the Lending industry, even amongst Loan Officers and Underwriters regarding how much the Dept of VA allows a Seller to contribute. The confusion arises from misinterpreting  the VA’s definition of “Seller concessions”. You see, in the VA’s eyes, the term seller concession does NOT apply to normal closing costs- it is anything other than normal closing costs…… Read More »