Stated Income Home Loans are Back

Stated income loans have a bad rap and were abused during pre-recession as lenders and loan officers mis-used the product for borrowers that couldn't really afford the payments.  It doesn't make sense a maid or cab driver can afford an $800k home, right?!?  It caused some drama that's for sure.  

In this healthy economy, the "stated income" and "bank statement" loans have resurfaced.   They are not like they used to be though and the criteria is different.  They aren't just giving anyone with a high FICO score a stated income loan just because...  It's a non-QM, outside Dodd-Frank product for specific needs. 

In a nutshell, you'll need good credit, 25% or more to put down, reserves, and be able to verify and source all assets. It can be great for tip earners of all types, entertainers, commission only earners, independent contractors, etc...

Give me a call 702-326-7866 if you want to learn more or see if you fit the criteria. 

Otherwise you can apply online at www.iLendLasVegas.com

Aundrea Beach-Greco 

NMLS 333739

Biggest Lender Guideline Changes Since Recession

Fannie Mae announced guideline changes as of 7/29/17.

Did you know... The No. 1 reason that mortgage applicants get declined for a home loan?
Yes, you guessed it... debt-to-income ratios (DTI)!

Great news!! One of the biggest changes today from Fannie Mae is they are raising allowable debt-to-income ratios to allow for more people to qualify.

Here are some of the new changes: 

DEBT TO INCOME

Fannie Mae is now looking to allow more homeowners to enter the market as it increases its DTI limits from 45% to 50%.

DTI is a borrower’s total amount of debt, including credit cards, student loans, auto loans and mortgages, versus their total income. 

 - What does that mean for you?

In an example... if someone made $10,000 gross income per month, they could qualify for a total outlay of $4500 including the proposed new mortgage but now with the new guidelines, they can go up to $5000 per month. That's $500 more dollars - that's HUGE!

* Effective for new loan files submitted on or after the weekend of July 29, 2017.

DISPUTED CREDIT TRADELINES

For example, a loan application with a disputed tradeline that received an Approved recommendation from DU® will not be required to submit further documentation on the said disputed tradeline.  In the past we had the client get the "dispute" verbiage removed and then do a rescore or repull.  Not always a favorable outcome.  

ARM LOAN TO VALUE (LTV) RATIOS

Fannie will align the following ratios of an adjustable-rate mortgage with that of a fixed-rate mortgage: (a) LTV or loan-to-value, (b) CLTV or combined loan-to-value, and (c) HCLTV or home equity combined loan-to-value, of up to 95%.

SELF-EMPLOYMENT INCOME: 

Fannie has an updated documentation requirement to verify self-employment income. Currently we require 2 years personal and business tax returns, however it is expected that more could qualify for one year’s worth of personal and business tax documents.  This will be on a case by case basis but opens up more options for the self-employed and entrepreneur.

If you were turned down for debt ratios being too high in the past, now is the time to re-apply and see where you stand.  Rates are low and it's a great time to buy.

Contact us today! 

Aundrea
702-326-7866

www.iLendLasVegas.com

Delayed Financing: Recoup Your Money Right Away

Buying a home for cash might seem a little out of the realm for most people, but if you have the funds and are in a competitive market, it may be the way to go.  You can now get most of your cash back within 24 hours... In the past, at least 6 months would have to pass before the you could refinance the property with a cash-out refinance. Today, the wait is strictly 24 hours – which means the borrower can recoup his money right away.

How it Works

If you purchase a home in cash and want to recoup your funds then you can apply for the Fannie Mae Delayed Financing program. This program allows you to take out a loan on the home you just paid for gaining some of your capital back. There are restrictions on how much you can take out, however, and of course, qualifications that must be met.

Qualifications Required

Fannie Mae Delayed Financing can be used on a variety of different types of properties. Primary, secondary, and investment homes are all eligible for this financing. Where the differences come in is how much of the equity can be taken out with this cash out refinance. If you are living in the home as your primary residence, you can take out up to 70% of the equity of the home, If the home is a second home or investment, you are only allowed to take out 60% of the equity with the cash out refinance. If this is an investment property, you are not allowed to have more than 10 properties in order to qualify, although some lenders will maximize that number at 5 properties.

In addition to standard loan qualification guidelines, such as meeting the minimum credit score and debt ratio requirements for the loan, the Fannie Mae Delayed Financing program has a few other stipulations:

• You cannot have purchased the home from a relative, friend, or co-worker. You must have what is called an arms’ length relationship with the seller, basically meaning you did not know the seller.
• The cash used to purchase the property must be able to be sourced. The lender needs to know that you used your own money to purchase the home.
• If you used money from another loan, such as a Home Equity loan, the cash taken out of this home’s equity will need to be used to pay off that home equity loan before you are given any of the cash from the loan.
• You must provide the CD from the closing showing that you did, in fact, purchase the home.
• The title company will perform a search on the property to ensure that there are no existing liens on the property before you close on the loan.

Advantages of the Fannie Delayed Financing Program

The Delayed Financing Program offers buyers a valuable advantage; they are able to make a cash offer on the home. Most sellers are much more willing to take a cash offer than one with a financing contingency, which means you get the home faster. In a competitive market, that could be a huge competitive advantage. If you have the funds to purchase the home right away, you can do it, knowing that you will get your cash back in a few short weeks after the approval for the Delayed Financing Program goes through. It also allows buyers to purchase a property that would otherwise never get financing. With a little work and a little capital outlay, the buyer can eventually get a large portion of his cash back, enabling him to purchase other investment properties or invest his money in other ways.

As with any loan, you will have to meet certain requirements, but the Delayed Financing Program is available in all 50 states. If you are curious if you would be eligible for the program, talk to a lender before making the cash offer, just so you know where you stand. If your credit is in disrepair or you have a high debt ratio, you may not qualify until you work on your finances. Once everything is on the up and up, you may be a great candidate for this program, allowing you to jump right into real estate investing.

Let us know how we can help!

Aundrea
702-326-7866
www.iLendLasVegas.com

Get an Extra $1500 Bonus to Buy a House with NV Home is Possible Program

Get bonus money on top of bonus money—for a limited time...

Until September 1, 2017, get an extra $1500 towards your down payment and closing costs. This is in addition to the money you can already receive through Home is Possible. What a great time to buy a house!  (Please note that this extra money is for conventional loans only, and maximum income limits apply.)
Established by the state of Nevada in 2014, Home Is Possible helps homebuyers just like you to get up to 5% of the home loan value. That's thousands of dollars for a one-time fee of just $675. When you qualify, you can use that money for your down payment or closing costs.
Yes, really!
So what are the highlights of the Home Is Possible program? Here’s a handy dandy list.

Key Benefits: 

• Non-repayable money up to 5% of the loan value
• Usable for down payment and closing costs
• Attractive 30-year interest rate
• No first-time homebuyer requirement
• Financing available for manufactured homes
• Statewide program

Program Requirements

• Qualifying income below $98,500 
• Home price below $400,000 
• Minimum credit score of 640 
• Homebuyer must live in home as primary residence 
• Homebuyer education course required 
• Must meet standard underwriting requirements
• One-time fee of $675

If you love the benefits and meet the qualifications, the next step is to find a Home Is Possible qualified lender and get pre-approved. They’ll help you get thousands of dollars in bonus money, courtesy of Nevada Housing Division and our Home Is Possible program.

Let's get YOU into a home today!  Call me!

Aundrea 

702-326-7866
www.iLendLasVegas.com

3 Steps To Challenging A Low Home Appraisal During A Mortgage Transaction

Don’t Let a Low Appraisal Ruin Your Real Estate Transaction

In any residential real estate deal, there’s a lot riding on the home appraisal. If you’re selling a home, a low appraisal can make it difficult to get what your home is worth. If you’re purchasing and the appraisal comes in under contracted price, then you may not be able to secure financing.

For refinancing, a sub-par appraisal can result in higher interest rates or having private mortgage insurance premiums. It may even prevent the refinance from going through at all. Fortunately, you can challenge a low home appraisal. Talk with the experts and then follow these steps.

Get a Copy of the Appraisal

Before you can dispute the appraisal, you’ll need to know how and why the appraiser undervalued the home. By law you are supposed to receive a copy of the appraisal, so if you don't have it handy, ask your real estate agent or mortgage lender to get a copy of the appraisal for you. Reviewing it with them will give you useful insight into why the appraiser valued the home the way he did.

Do A Comparison

In the appraisal, you’ll find a list of similar homes to yours that the appraiser used to value your home. Sometimes, you may find that many of the homes on the list aren’t really comparable at all. Some may have smaller lots or lower square footage. Others may be in poor condition or lack similar upgrades and amenities. You may also find that the appraiser compared your home to sold listings in nearby, but less desirable neighborhoods or school districts.

Search for Comparables

Between you and your realtor, you should be able to come up with a list of additional comparable properties for the appraiser to consider for a re-valuation purpose. It may just be that the appraiser didn’t fully understand local market conditions or didn’t do the proper research or was just swamped with work - he is human.

Sell the Sizzle

It’s possible that the appraiser may have missed certain details about the house during the initial evaluation. For example, he/she may not have taken note of the upgrades - renovated kitchen, remodeled bathroom, or eco-friendly AC system. Make a list of as many upgrades as you can come up with, and have that ready to present to the appraiser.

State Your Case

Before ordering a second appraisal (if the lender will allow it), see if you can get the previous appraiser to reconsider their report. Don’t just give them your opinion; back it up with the data you’ve gathered. And who knows - They may see things your way and be willing to re-value the property.

Get a Second Opinion

If the appraiser simply won’t consider your request for a re-value assessment, and you feel strongly that the home’s value is higher than assessed then you may want to consider getting a second appraisal (if the lender will allow it). 

You may be able to demand a second appraisal from the mortgage lender. If granted, the bank will send another appraiser to inspect the property.  It will come out of your pocket, but it could turn a stalled real estate transaction into a success.

Best of Luck!

Whether you’re buying, selling, or refinancing a home, we hope you reach out to experts in your market to help you get the appraisal you need to get the deal done. Oh, and if you’re currently looking for a mortgage, we’re here for you!

Cheers-

Aundrea

Contact us today 702-326-7866

www.iLendLasVegas.com

Canceling Your FHA Mortgage Insurance

HOW TO GET RID OF YOUR FHA MORTGAGE INSURANCE TODAY!

An FHA loan was a great strategy for you at the time.

The good news is that you can cancel your FHA mortgage insurance today.

There are two methods of removing your FHA mortgage insurance, commonly known as FHA MIP.

Method #1: Check your Loan Balance - Get Rid of FHA Mortgage Insurance

• The loan is in good standing

• The loan was opened prior to June 3, 2013

• You’ve paid your loan for 5 years if you have a 30-year loan. If you have a 15-year loan, there’s no 5-year minimum.

• Your loan balance is at or below 78% of the last FHA appraised value, usually the original purchase price.

Method #2: Make a Plan to Refinance out of it - Get Rid of FHA Mortgage Insurance is a Great Financial Decision

You can request cancellation of your FHA mortgage insurance when you meet certain requirements.

If you bought a house with a 30 year FHA loan some years back, you may be eligible call your servicer to cancel your FHA PMI today. If your loan balance is 78% of your original purchase price, and you’ve been paying FHA PMI for 5 years, your lender or service must cancel your mortgage insurance today — by law.

While a low balance is a sure-fire way to cancel FHA mortgage insurance, it can take a while to get there. On a 30-year fixed FHA loan, it could take you about ten years to pay your loan down to 78% of the original purchase price. If you’re not quite there, continue making payments for a few more years, or make a one-time principal payment.

Once you hit the magical 78% loan-to-value ratio, you can potentially start saving hundreds per month, and keep your existing FHA loan and interest rate intact.

Cancelling FHA mortgage insurance is also possible by refinancing into a conventional loan. It’s often the quickest and most cost-effective way to do it. And it can be the only way to do it if you opened your FHA loan on or after June 3, 2013, when FHA mortgage insurance became non-cancellable.

With today’s rising home values, homeowners might be surprised how much equity they have. With a refinance, you can use your home’s current appraised value rather than the original purchase price.

Consider Replacing FHA mortgage insurance with conventional PMI

Conventional private mortgage insurance, or PMI, has to be paid for just two years, then is cancellable. Converting your FHA mortgage insurance to conventional PMI is a great strategy to reduce your overall cost. Conventional PMI is usually much cheaper than FHA mortgage insurance, and you can cancel it much more easily.

You can often refinance into a conventional loan with as little as 5% equity.

When your new conventional loan balance reaches 78% of the home’s value, you can cancel conventional PMI. Some lenders and servicers will even let you cancel when you reach 80% of your home’s current value.

In as little as two years, you could be rid of mortgage insurance forever. Compare that with a minimum of five years for FHA, and a maximum of 30 years if your FHA loan was opened after June 3, 2013.

Get rid of FHA mortgage insurance with a loan that doesn’t require PMI

If your home has about 20% equity based on today’s value, you can cancel your FHA mortgage insurance using a conventional refinance, often within 30 days, and you can start today.

You might have more equity than you think. Some areas of the country like Phoenix and Las Vegas have seen 20% to 30% appreciation over the past few years. Use your new-found equity to discontinue your FHA mortgage insurance. Refinance into a new loan that does not require mortgage insurance of any kind, and do it immediately.

For instance, if you purchased your home for $200,000 with an FHA loan, and the home is now worth $250,000, there’s a good chance you can remove your FHA mortgage insurance now.

Check with us to see if you qualify to remove your FHA mortgage insurance.

When you’re buying a home, you’re mainly focused on getting into a place where you can set down roots and build a solid future. You probably weren’t too concerned about the FHA PMI costs at that time.

But now that you’re settled in, it’s time to think about getting rid of FHA mortgage insurance. These high monthly costs could and should be going into savings, a child’s college fund, or toward loan principal.

Don’t delay. Even if you’re not able to cancel your mortgage insurance today, let's make a plan for how you’re going to do it in the future.

Ten or twenty years down the road, you’ll be glad you did.

Homeowners who want to eliminate their FHA mortgage insurance should lock in a refinance before rates rise.

It’s possible to keep a similar rate or even drop your rate when you refinance out of an FHA loan. You could save a lot of money every month in interest and mortgage insurance.

Contact us today!  A quick phone call will determine your savings, and it's free to find out!702-326-7866www.iLendLasVegas.com

What credit score do I need?

Buying a home? Do you know the lingo?

Buying a home can be intimidating if you are not familiar with the terms used during the process. To start you on your path with confidence, we have compiled a list of some of the most common terms used when buying a home. Freddie Mac has compiled a more exhaustive glossary of terms in their “My Home” section of their website. Annual Percentage Rate (APR) – This is a broader measure of your cost for borrowing money. The APR includes the interest rate, points, broker fees and certain other credit charges a borrower is required to pay. Because these costs are rolled in, the APR is usually higher than your interest rate. Appraisal – A professional analysis used to estimate the value of the property. This includes examples of sales of similar properties. This is a necessary step in getting your financing secured as it validates the home’s worth to you and your lender. Closing Costs – The costs to complete the real estate transaction. These costs are in addition to the price of the home and are paid at closing. They include points, taxes, title insurance, financing costs, items that must be prepaid or escrowed and other costs. Ask your lender for a complete list of closing cost items. Credit Score – A number ranging from 350-800, that is based on an analysis of your credit history. Your credit score plays a significant role when securing a mortgage as it helps lenders determine the likelihood that you’ll repay future debts. The higher your score, the better, but many buyers believe they need at least a 780 score to qualify when, in actuality, over 55% of approved loans had a score below 750. Discount Points – A point equals 1% of your loan (1 point on a $200,000 loan = $2,000). You can pay points to buy down your mortgage interest rate. It’s essentially an upfront interest payment to lock in a lower rate for your mortgage. Down Payment – This is a portion of the cost of your home that you pay upfront to secure the purchase of the property. Down payments are typically 3 to 20% of the purchase price of the home. There are zero-down programs available through VA loans for Veterans, as well as USDA loans for rural areas of the country. Eighty percent of first-time buyers put less than 20% down last month. Escrow – The holding of money or documents by a neutral third party before closing. It can also be an account held by the lender (or servicer) into which a homeowner pays money for taxes and insurance. Fixed-Rate Mortgages – A mortgage with an interest rate that does not change for the entire term of the loan. Fixed-rate mortgages are typically 15 or 30 years. Home Inspection – A professional inspection of a home to determine the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, foundation and pest infestation. Mortgage Rate – The interest rate you pay to borrow money to buy your house. The lower the rate, the better. Interest rates for a 30-year fixed rate mortgage have hovered between 4 and 4.25% for most of 2017. Pre-Approval Letter – A letter from a mortgage lender indicating that you qualify for a mortgage of a specific amount. It also shows a home seller that you're a serious buyer. Having a pre-approval letter in hand while shopping for homes can help you move faster, and with greater confidence, in competitive markets. Primary Mortgage Insurance (PMI) – If you make a down payment lower than 20% on your conventional loan, your lender will require PMI, typically at a rate of .51%. PMI serves as an added insurance policy that protects the lender if you are unable to pay your mortgage and can be cancelled from your payment once you reach 20% equity in your home. For more information on how PMI can impact your monthly housing cost, click here. Real Estate Professional – An individual who provides services in buying and selling homes. Real estate professionals are there to help you through the confusing paperwork, to help you find your dream home, to negotiate any of the details that come up, and to help make sure that you know exactly what’s going on in the housing market. Real estate professionals can refer you to local lenders or mortgage brokers along with other specialists that you will need throughout the home-buying process. The best way to ensure that your home-buying process is a confident one is to find a real estate professional who will guide you through every aspect of the transaction with ‘the heart of a teacher,’ and who puts your family’s needs first. Let us help you!

FHA vs CONVENTIONAL LOANS