Thursday, November 04, 2021

FHA Approved Condos (NEVADA)

FHA loans are the most popular loan program for first-time homebuyers. Borrowers can take advantage of down payments at little at 3.5% and they allow for more lenient credit guidelines. Since home prices are steadily creeping higher, first-time homebuyers gravitate towards condos and townhomes, but find out quickly that it can be quite difficult to find condos that are on the FHA approved list for FHA financing.

Single family homes do not need to be approved by FHA like condos and some townhomes, so if you are looking to use an FHA loan on a single family home, your good to go!

Here is a quick list of the FHA approved condominium communities. Please keep in mind this is subject to change and expire, we will do our best to stay up to date with the FHA approved list. If you are ever in question, best to contact us first!

Acacia (also known as Altair at Green Valley)
Affinity in Summerlin - BRAND NEW condos & townhomes
Canyon Willow
Canyon Willow Pecos
Club Marbella
Decatur Mountain Villas
Duck Creek Village
Echo Bay
Echo Glenn
Elan
El Parque
Garden Terrace in Summerlin
La Posada in Summerlin
Mar-a-Lago
Mariposa
Newport Lofts
Pacific Deerfield
Pacific Legends West
Red Hills in Summerlin
Solana Del Mar at Painted Desert
Turning Point at Painted Desert
Serenade in Henderson
Winchester

If you have any questions about an FHA approved condominium, feel free to contact us.

Aundrea Beach-Greco
Mortgage Advisor, CMPS
NMLS 333739
702-326-7866
info@aundreabeach.com
www.AundreaBeach.com

Click to view the Clark County FHA approved condos: https://entp.hud.gov/idapp/html/condo1.cfm

Tuesday, August 24, 2021

Bank Statement Mortgage Programs For Self-Employed [2021]

Mortgage Options When You’re Self-Employed

Applying for a mortgage can be daunting when you're working for someone else, but even more so when self-employed although it doesn't have to be that way. Lenders will be considering the same things such as your credit score, assets and ability to repay.
Because you are self-employed, there is some additional documentation required, however it doesn't have to e a hindrance as long as you are prepared.

Bank Statement Mortgages

This mortgage is an excellent option for a self-employed individual looking to Purchase or Refinance a Home and cannot provide "Traditional" Income documentation i.e., 2 yrs Tax Returns to qualify. Unlike most mortgage programs, the bank statement mortgage allows you to use your Bank Deposits instead of traditional income documentation. This Program is centered around the Self-Employed Entrepreneur, who generates income that may not be fully reflected on their Tax Returns.

How Bank Statement Mortgages Work

These mortgages are Portfolio mortgages that are not connected to any Government Agency. Approvals are heavily focused on your Bank Deposits into your Business or Personal Bank Accounts, coupled with a deep understanding of your Business's industry. How long you have been in Business, and how you derive your income. The focus is to understand your "Business."

What Documents Do You Need To Provide?

While underwriting standards will vary lender to lender and the type of loan you’re getting, the same types of documents are likely to be required. Here’s an overview of some of the common documentation needed.

Up to 90% LTV on personal and business with no MI
12 month personal and business bank statements
640 Credit Score
2 years self-employed required
No tax returns required
Loans up to $3 million

This product allows personal or business bank statements to calculate income without requiring tax returns.

Available for purchase and cash-out or rate-term refinance

Primary, second home, or investment properties
- Single Family, townhomes, or condos
12 or 24 months business or personal bank statements required
- Additional documentation will be required for qualifying income and loan approval

If you’re self-employed and eligible, it’s still a great time to apply for a home loan or refinance. Rates are incredibly low and expected to stay that way. Our Bank Statement mortgage program is the perfect option for self-employed borrowers who need an alternative method to show the true cash flow of their business. Borrowers do not have to own 100% of the business.

Aundrea Beach-Greco

Mortgage Lender, CMPS

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

#HomeLoansForEveryone #AundreaBeachGreco #AundreaBeach #thebeachgrecoteam #AdviceMatters #Mortgage #Mortgages #MortgageLender #MortgageRates #Realestate #Home #Refinance #Equity #Loans #Credit #CreditRepair #LasVegas #Nevada #Investment #Properties #Homebuying #HomeForSale #DreamHome #NewHome #Homeloans #Finance #BuildWealth #FinancialFreedom

Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Wednesday, June 23, 2021

RefiNow - Fannie Mae's Latest Refinance Option [2021]

More than 2 million families could benefit from a refinance, but have not taken advantage of it for one reason or another. This new refinance program is for lower-income borrowers with conforming mortgages, who could benefit from lower interest rates and payments.

The RefiNow loan option, which is available since June 5, 2021 is for qualifying homeowners with a Fannie Mae-owned mortgage.

You can determine if Fannie Mae owns your mortgage by checking Fannie Mae’s Loan Lookup Tool.

To qualify for RefiNow, homeowners must have:

A Fannie Mae-backed mortgage secured by a 1-unit, principal residence;
A current income at or below 80% of the AMI (not the income as of origination of the original loan); FNMA AMI Income Lookup Tool
Not missed a mortgage payment in the past six months, and no more than one missed mortgage payment in the past 12 months; and
A mortgage with a loan-to-value ratio up to 97%, a debt-to-income ratio of 65% or less, and a minimum 620 FICO score.

RefiNow helps homeowners by:

Requiring a reduction in the homeowner’s interest rate by a minimum of 50 basis points and a savings of at least $50 in the homeowner’s monthly mortgage payment.
Providing a $500 credit from Fannie Mae to the lender at the time the loan is purchased if an appraisal was obtained for the transaction. The lender must pass the credit to the homeowner.
Waiving the 50 basis point up-front adverse market refinance fee that Fannie Mae otherwise charges to lenders on balances at or below $300,000.

Those who qualify would see their monthly mortgage payment reduced by at least $50 and their interest rate lowered by 50 basis points (0.50%) or more.

For example, if your current interest rate is 3.5% and you qualify for Fannie Mae’s RefiNow program, your new interest rate would be 3.0% or possibly lower.

Some borrowers could also receive a $500 credit to cover the home appraisal. And the adverse market refinance fee — which charges 0.50% on loans of $125,000 or more — may be waived.

With a typical refinance, these types of waivers and guaranteed reductions are not available. Any reductions in rate or payment are directly tied to the borrower’s qualifications — their credit score, debt-to-income ratio, home equity share, and more.

With RefiNow, low-income homeowners will have a unique chance to refinance with guaranteed savings and reduced upfront costs.

Should you wait to use the RefiNow program?

There’s no perfect time for your refinance, every situation is unique, but for lower-income borrowers, the FHFA’s new initiative just may be worth looking into.

With the guaranteed rate cut, reduced monthly payment, and waived fees, the savings could be significant.

If you’re worried about interest rates rising, you should consider applying for your refinance now.

Our team will guide you on the best move for your financial situation.

Take advantage of a new refinance program. Check it out now!

Reach out if we can help!

Aundrea Beach-Greco

Mortgage Lender, CMPS

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Monday, June 21, 2021

First lien HELOC to Buy or Refinance a Home | CMG's All-In-One Loan

The All In One Loan

Mortgage interest can be one of life’s biggest financial obstructions. The All-In-One Loan was developed by combining banking functionality with home financing into one dynamic instrument, borrowers are able to save tens of thousands of dollars and years off their loan.

WHAT IS THE ALL IN ONE LOAN?

Designed after popular programs around the world, the All-In-One Loan is the nation’s first transactional offset type-mortgage program.

Home financing and banking combined:

Deposits lower your loan’s principal
Funds remain available for expenses
Interest is calculated on the average daily balance
This lowers the monthly interest payments
Tens of thousands of dollars can be saved over the life of the loan
Mortgage freedom can be achieved in half the time or less

At CMG Financial, we are proud to offer our clients the All-In-One Loan. Unlike a traditional mortgage, the All-In-One is a first-position home equity line of credit. Lines of credit are unique because of their flexibility, allowing you to apply as much money as you desire toward the balance without losing access to your funds. Like a traditional line of credit, you only pay interest on the outstanding balance. The All-In-One Loan provides 30-year access to home equity dollars, has a great low rate, and no hidden fees or required balloon payment.

Additionally, the All-In-One Loan works just like an ordinary checking account. Yes, home finance and personal banking are bundled together! This revolutionary design allows you to use your everyday cash flow to offset your loan’s balance and save mortgage interest without requiring a change to your budget.

Deposits made into the All-In-One Loan pay down principal first and remain available 24/7 through the banking features. The loan comes with ATM cards for all users of the account, secured online bill-pay, unlimited check writing, direct deposit and bank-to-bank wire transferring. Your monthly interest payments are computed on each day’s ending balance, so even as you withdrawal money from your account for regular expenses, your loan’s daily balance is kept lower for longer - and that equates to less interest being charged than with a conventional mortgage.

In effect, you avoid having to pay more interest on your loan using your regular cash flow than what you could typically earn on those dollars in a regular checking account. Less of your money spent on monthly mortgage interest means more of your money left over to help you meet other financial objectives.

Call today to learn more about the All-In-One Loan and take a tour using our All-In-One simulator.

Aundrea Beach-Greco

Mortgage Lender, CMPS

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Friday, June 18, 2021

Self Employed Trying To Get a Mortgage? Use an Asset Depletion Loan

How an Asset Depletion Mortgage Works

To understand an Asset Depletion Loan Program, you must first understand what Asset Depletion is in general. Asset Depletion, which is also known as Asset Dissipation, is what you get when your liquid assets are calculated using a specific formula to provide you with monthly income for qualifying for a mortgage. The income may also be added to any additional monthly income currently being received. This method of qualifying helps you obtain a mortgage loan when you have limited sources of employment income, but substantial assets.

Asset depletion mortgages are good for borrowers with relatively minimal income or no verifiable employment but significant assets such as funds in a bank, investment or retirement account. Examples of potentially applicable borrowers include the self-employed, retired (or almost retired) and wealthy.

The specific mechanics of an asset depletion mortgage vary by lender and program but they generally work the same way. Lenders use a formula to calculate the income that could be generated by depleting a borrower’s liquid assets over a fixed period of time and use that income to determine a borrower’s ability to qualify for a mortgage. The term “asset depletion” is used because the lender assumes that the borrower could sell, or liquidate, his or her assets over time to pay for the mortgage.

The income derived from the asset depletion formula is added to other income the borrower may earn such as employment wages or social security to calculate the debt-to-income ratio the lender applies to determine what size mortgage the borrower can afford. A borrower may have significant assets but if the lender’s asset depletion formula does not yield sufficient income the borrower may not qualify for the desired loan amount. Borrower debt-to-income ratios for asset depletion mortgage vary but generally range between 40% and 45%. Please note that if a borrower generates significant income from his or her assets, such as from dividends, then that income may be subtracted from the asset depletion income so there is no double-counting. In this scenario, the dividend income is still used to help the borrower qualify but it is not considered part of the asset depletion equation.

It is important to highlight that with an asset depletion mortgage the borrower is not actually required to sell any assets over the course of the loan. Additionally, the borrower is not actually pledging any assets as collateral for the mortgage so they are not tied up or restricted after the mortgage closes.

Loan guidelines and pricing vary by lender so it is important to check if this program is offered by your lender and compare multiple proposals to find the best asset depletion mortgage that best meets your goals and needs.

Asset eligibility varies by lender but in general most liquid assets are eligible. Examples include:

Checking / savings accounts
Investment account with stocks, bonds, mutual funds, ETFs
Money market account
Certificate of deposit (CD)
Retirement accounts such as 401(k), IRA, SEP, KEOGH may be considered depending on the borrower’s age and any penalty applied for accessing funds in the account. Some lenders may give a borrower partial or no credit for assets in retirement accounts if the borrower is not of, or near, retirement age

There are two basic approaches to determine asset depletion income as outlined below. Review the examples below and be sure to confirm the approach a lender uses to calculate asset depletion income before moving forward with your application.

Approach 1:

Borrower eligible net assets divided by 360

Approach 1 Example
Borrower eligible net assets after down payment and closing costs: $1,000,000
Monthly income from asset depletion: $1,000,000 (eligible net assets) / 360 months = $2,778 in monthly income
Some lenders may use a variation of this formula and apply a 20% - 30% discount to eligible net assets

Approach 2:

Eligible net assets plus an investment return divided by 85 minus the borrower’s age

Approach 2 Example:
Borrower eligible net assets after down payment and closing costs: $1,000,000
Return on investment applied to assets: 5.0%
Borrower age: 65
Monthly income from asset depletion: $1,000,000 (eligible net assets) @ 5.0% (rate of return) / 240 (85 - 65 (borrower's age) = 20 years * 12 months per year) = $6,600 in monthly income
Please note that calculating the additional monthly income from the assets is similar to calculating the monthly payment for a mortgage. For example, for $1,000,000 million in assets at a 5% rate of return over twenty years, the monthly income is $6,600. $6,600 is also the monthly mortgage payment on a $1,000,000 mortgage with a 5% interest rate and 20 year term
This approach is beneficial to the borrower because it applies an investment return to the borrower's assets
Lenders, however, may use different rates for return on investment which can significantly impact a borrower's asset depletion income
This approach is also favorable to older borrowers while being disadvantageous to younger borrowers because it divides the income by a greater number of months

Typically primary or secondary / vacation residences are eligible for the Asset Depletion program and some lenders may also require more than the typical 20% down payment depending upon the property and occupancy. Borrowers must typically have a minimum credit score of 700 or higher to qualify for an asset depletion mortgage. To demonstrate proof of assets, borrowers are required to provide current and historical monthly account statements in addition to standard personal financial documents such as tax returns and pay stubs, if applicable. Most lenders do not require borrowers to move their assets to the lender in order to qualify for an asset depletion mortgage.

As you can see, assets can in fact assist you in getting a mortgage when proof of income is low. Asset Depletion loans vary in many forms an depending on your situation. For this reason, your interest rate, loan type, and fees will all be determined after all the calculations of your assets.

Give us a call today to discuss all of your mortgage loan options.

Aundrea Beach-Greco

Mortgage Lender, CMPS

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

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#HomeLoansForEveryone #AundreaBeachGreco #AundreaBeach #thebeachgrecoteam #AdviceMatters #Mortgage #Mortgages #MortgageLender #MortgageRates #Realestate #Home #Refinance #Equity #Loans #Credit #CreditRepair #LasVegas #Nevada #Investment #Properties #Homebuying #HomeForSale #DreamHome #NewHome #Homeloans #Finance #BuildWealth #FinancialFreedom

Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Wednesday, June 16, 2021

🔥Hot Market🔥 Low Appraisal and Appraisal Gap Strategies for Nevada [2021]

Everyone knows the real estate market is crazy hot right now. This often leads to concerns about appraisal issues. What if the appraisal comes in low? Do I really need to “make up the full difference” with cash? What if I don’t have an appraisal contingency, is that safe? Do I have any other options? With the drastic increase in prices and values trying to play catch up, there is inevitably going to be appraisal shortfalls, and we have to have discussions around appraisal shortfalls with clients.

To answer some of these concerns, we are going to highlight a few of the real life options that are out there other than “you have to make up an appraisal shortfall by paying the difference.”

If you have more than 20% down, and want to know how that can impact the appraisal, read SCENARIO 1 about Dan and Sue.

If you have 20% down, and want to learn how you can leverage your down payment to bypass the need for an appraisal entirely, read SCENARIO 2 about Tom.

If you have less than 20% down, and want to learn how we use up-front MI when the appraisal comes in short because you're unable to make up the difference, read SCENARIO 3 about Eric and Leslie.

SCENARIO 1

Dan and Jane were looking to buy their first home in CA in the $1m to $1.1m range. The conforming high balance loan limit the Los Angeles county in 2021 is $822,375. When they spoke with us, one of the things they learned is that that “jumbo” loans (loans over $822,375 in those counties) sometimes have higher rates, are harder to qualify for, and close slower (making them less appealing to sellers and listing agents in this hot market), compared to conforming high balance loans, so Dan and Jane decided to put enough down to get the loan amount to $822,375 or less. Instead of 20% down, they put down just enough to get the loan amount exactly at that limit. Click here for current California county limits. We referred Dane and Jane to one of our local Realtors, so their Realtor already knew “the deal,” so we went over what this means for them.

This means that at some price points, they have automatic appraisal gap coverage. They were thinking of offering to buy a home for $1,075,000, after having their Realtor run a comparable market analysis (CMA) with them to show them what the home is likely to sell for. $1,075,000 – $822,375 = $252,625. That was their intended down payment, it works out to about 23.5% down. Further, they were worried the appraisal might come in a little short. In fact, the appraisal could come in as low as $1,027,000, and it wouldn’t have any impact on their financing. That’s because 80% of $1,027,000 is <$822,375, and that’s all they want to borrow anyways. When Dan and Jane put their offer in, there’s no risk that including a provision that they will “cover” an appraisal gap down to $1,027,000 will impact their cash to close, their interest rate, their fees, or anything else. After being preapproved to start the house hunt, Dan and Jane checked in with us to customize their $1,075,000 offer thusly, and they beat out a few dozen other offers, including one that was later disclosed to me to be for $1,100,000 ($25,000 higher!) that did not have such a provision attached to it. In the end the property appraised for exactly their offer price (this is almost always the case), and they’ve since closed on their purchase, but the zero-risk appraisal gap coverage is what got their offer accepted in the first place. Click here to get preapproved, so you can take advantage of this sort of insight when working with your Realtor to craft your offer, and click here if you’re a Realtor who isn’t getting this sort of strategic support but think it could help your clients out.

SCENARIO 2

Now let's look at Tom's successful home purchase. This one is fairly straightforward, and Sacramento price points and scenarios have become normal to us since the start of the Pandemic, due to Bay Area folks fleeing to Sacramento. He had his eyes on a single family home in a subdivision with lots of other similar single family homes; he’d already had his offers rejected by 4 previous sellers, he wanted this house and to be done with it. After reviewing a CMA with their Realtor, it was determined that the home would likely sell for around $560,000 even though it was listed for $490,000 (“listing low” is a common strategy in California). Tom had a strong down payment, good credit, a good job, and wasn’t looking at a unique property, so he was a good candidate for a possible appraisal waiver. An appraisal waiver is when the automated underwriting system (AUS) determines that there’s sufficient data in existing appraisals already on record to support the contract price, meaning no appraisal is required. Tom, good planner that he is, let us know two days ahead of time that he would be putting in an offer for something in the mid-500s on that property. We ran the AUS at $570,000 and determined that an appraisal would be needed. We ran it again at $525,000, and got the appraisal waived. We played a little bit of whack-a-mole and established that $540,000 was Tom’s max purchase price without requiring an appraisal. Tom’s Realtor called the listing agent, and gave them a choice: “Would your seller client like an offer for $540,000 with no appraisal required, or would your seller client like a $560,000 offer with an appraisal that could very well come in low, perhaps even lower than $540,000?” In the end, Tom’s offer was accepted at $540,000, which is $20,000 less than he was actually willing to pay, and below the CMA! When no appraisal is required, closing can happen remarkably fast. If you’re curious what artificial intelligence has to say about a specific market, you are more than welcome to play with one of our AI tools for free.

SCENARIO 3

Finally, let’s go over Eric and Leslie's first home purchase. In their case, the appraisal did come in under asking price. The home they purchased had an amazing back yard and the appraiser was unable to find market data from closed comparable sales justifying the contract price of $725,000. No such data existed, since no other homes in the area had yards that big! They were planning on putting 15% down on this purchase, which would have been $108,000, financing the remaining. Unfortunately, the appraisal came in at $700,000, and they didn’t have an extra $25,000 just sitting around! We gave them a few options to consider using mortgage insurance as appraisal gap coverage. Whenever you put less than 20% down, you'll have mortgage insurance. So, one option was paying one-time mortgage insurance, rather than paying it monthly. The loan amount and interest rate would have remained the same, the monthly payment would have been reduced by $57 per month, and the insurance policy would have been a one-time cost added to closing (note that $6,885 MI fee is a lot smaller than $25,000). This wasn’t a particularly appealing option, so we explored others that are similar to the one presented. The option that Eric and Leslie ended up going with was to restructure the loan to 10% down. Now at 90% LTV loan, the monthly mortgage insurance went up from $57 per month to $100 per month which covered the appraisal gap and got to keep $13,750 in their pocket, this isn’t overall that terrible of an option. We can never guarantee appraisal results, but we’ve got all sorts of solutions that you probably didn’t know existed. Let’s touch base and talk about how to hedge your bets. If you want to go over the basics of PMI from a high level, reach out we can go over it in detail with you.

We went over 3 different real life scenarios. The first scenario was Dan and Jane who were already putting down more than 20%, which comes with implicit built-in appraisal gap coverage up to a certain amount, and they were able to use that to increase their offer. The second scenario was one where not needing an appraisal at all is what got Tom the accepted bid and for $20,000 less than he would have been willing to pay. And lastly, Eric and Leslie's home situation where they used one-time upfront mortgage insurance as both appraisal cap coverage and to reduce their down payment.

You’ve got questions? We have answers: Click here to set up a time to chat, or click here to start your mortgage preapproval application.

Aundrea Beach-Greco

Mortgage Lender, CMPS

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Mortgages for the Self-Employed | Explore Self-Employed Mortgage Options

Being a self-employed entrepreneur is a great accomplishment. You've worked hard to get your business up and flourishing while doing something you're passionate about. They say if you do something you love, you'll never work a day in your life. As large share of U.S. home buyers are self-employed, getting mortgage-approved can be a bit more challenging than using traditional income, however the extra hurdles are nothing self-employed buyers can’t overcome.

Self-employed mortgage borrowers can apply for all the same loans ‘traditionally’ employed borrowers can. There are no special requirements that make it harder for self-employed people to get a mortgage, since you’re held to the same standards for credit, debt, down payment, and income as other applicants.

The part that can be tough is documenting your income. Proving your cash flow as a business owner, contractor, freelancer, or gig worker can require more paperwork than for W-2 employees.

If you know what to expect and have the right paperwork in order, being self-employed shouldn’t get in the way of your plans to buy a home.

Self-employed mortgage rules

Most mortgage lenders require at least 2 years of steady self-employment before you can qualify for a home loan. Lenders define “self-employed” as a borrower who has an ownership interest of 25% or more in a business, and who is not a W-2 employee.

If you’ve been self-employed for less than one year, you’re not likely to qualify for a home loan.

Types of mortgages for self-employed home buyers

Today, lenders can accept personal tax returns, business tax returns, and even bank statements as proof of your ability to repay the loan.

The trick is figuring out which strategy will make it easiest for you to get approved.

Standard mortgage options

The standard mortgage loans available to all home buyers are also available to self-employed borrowers. These include conventional loans (backed by Fannie Mae and Freddie Mac), FHA loans, VA loans, USDA loans, and jumbo loans.

All of these major loan types require at least two years of self-employment history to qualify.

However, many lenders and loan programs are flexible. You can often get approved with only one year of self-employment history, as long as you worked 2 prior years in a related field and earned a comparable or greater income.

The best mortgage for you will depend on your goals.

For instance, do you have good credit, 20% down, and want to avoid mortgage insurance? Then a conventional mortgage is best.

A government-backed loan (FHA, VA, or USDA) is often better if you need looser eligibility requirements.

FHA loans allow a credit score as low as 580 and are even more flexible about credit history. If you qualify for VA or USDA financing, no down payment is required.

Bank statement mortgages

Often, the big challenge for self-employed borrowers is not whether they can get a mortgage but how much they can get approved for.

That’s because mortgage lenders only count taxable income for your mortgage qualification. And self-employed owners tend to write off as many of their business expenses as possible.

While large write-offs can save you money at tax time, they might hurt your home buying qualification.

When a lender looks at your tax returns, your income could look smaller than it really is. And that means you might qualify for a smaller loan amount. Enter the bank statement loan.

Bank statement mortgages were created as an alternative solution for self-employed home buyers with large tax write-offs. Instead of qualifying based on your tax returns, these loans allow you to qualify using ‘real’ income shown on your bank statements.

Bank statement lenders typically look at your past 12-24 months’ worth of bank statements to find your average monthly income, which could be greater than the income shown on your tax returns.

However, there’s a downside. Bank statement loans are considered non-qualified mortgages (Non-QM loans). As such, they’re not available from all lenders and often have significantly higher rates than the standard mortgage loans discussed above.

Portfolio lenders

Most mortgages are originated by lenders and then sold to investors through the secondary market. However, there are some lenders — so-called ‘portfolio lenders’ — who keep some of their loans after origination.

Because such mortgages are not being sold to investors, they do not have to meet investor or program requirements. Instead, the bank can make its own standards for borrowers.

Portfolio lenders are often more open to the self-employed, be sure to ask your loan officer about self-employed mortgage options.

Asset Depletion

Asset depletion is a method for calculating monthly income by dividing a borrower’s total assets by a set number of months. The borrower is not required to cash in their assets as they're only used to demonstrate an ability to make the mortgage and housing payments.

Borrowers who use an asset depletion program to qualify do not need to show any source of income or employment. They can instead rely on asset depletion calculations based on a combination of cash, retirement, and investment monies divided by 360 payments. Assets are generally qualified with 100% of cash accounts and 70% of retirement and investment accounts (100% of retirement funds may be used if the borrower is over 59 ½ years old).

For example, if a 45 year old borrower has $2,000,000 in liquid assets, and another $1,000,000 in retirement and investment funds, then their qualifying monthly income would be $7,500 ($2,000,000 + $700,000 = $2,700,000; divided by 360 = $7,500).

Asset-rich individuals who are unable to provide a qualifying employment history or sufficient income may find this as an ideal solution. However, not all loan programs allow asset depletion as an acceptable income source.

Please call us today to learn more about self-employed loan options and whether any of these methods will work for your specific transaction.

We are here to help!

Aundrea Beach-Greco

Mortgage Lender, CMPS

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

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Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Monday, June 14, 2021

How To Buy A Home With No Money Down in 2021

You may wonder how much you'll need as a down payment to purchase a home and it's less than you may think. A no-down-payment mortgage allows first-time home buyers and repeat home buyers to purchase property with no money required at closing, except the standard closing costs.

As the name suggests, a no-down- payment mortgage is a home loan you can get without a down payment. A down payment is the first payment you make toward the home, and it’s due when you close on that home loan. Lenders calculate your down payment as a percentage of the total amount you borrow.

There are currently two types of government-sponsored loans that allow you to buy a home without a down payment: USDA loans and VA loans. Each loan has a very specific set of criteria you need to meet in order to qualify for a no-down mortgage.

Options For A No-Down-Payment Home Loan

Let’s take a look at how you can get a USDA loan or a VA loan, the two loans that allow you to buy a home without a down payment in 2021.

USDA Loans 2021

A USDA loan is a loan backed by the United States Department of Agriculture. The government offers USDA construction loans and USDA loans to encourage development in rural and suburban areas. You can get a USDA loan in a rural area with $0 down.

Both you and your home must meet a few criteria to qualify for a USDA loan. First, your home must be in a rural or suburban area. Check out the USDA’s map of eligible areas to find out if your home qualifies. On this map, anywhere outside of an orange zone qualifies as a rural area. In addition, your home cannot be a working farm, it must be a single-family unit and you must live in the home as your primary residence.

You also need to meet a few financial requirements to qualify. The combined gross income in your household cannot be more than 115% of the median income of the county your home is in. Your debt-to-income ratio shouldn’t be higher than 45%, and you must have a FICO® Score of at least 640.

VA Loans 2021

You may qualify for a VA loan if you’re an active-duty service member, member of the National Guard, veteran or the spouse of a deceased veteran. VA loans are backed by the Department of Veterans Affairs and are another option if you want to buy a home with no down payment. VA loans allow you to pay a one-time VA funding fee that’s 2.3% of your loan value in lieu of mortgage insurance. For each subsequent use of a VA loan, the funding fee with no down payment is 3.6%.

In order to qualify for a VA loan, you must meet any one of the following service requirements:

Served 90 consecutive days of active service during wartime
Served 181 consecutive days of active service during peacetime
Served for more than 6 years in the National Guard or Reserves or at least 90 days under Title 32 orders, with at least 30 of those days being consecutive
Be discharged by reason of service-connected disability
Be the spouse of a service member who died in the line of duty or from a service-related disability

In addition to service requirements, you should have a credit score of at least 600 to get a VA loan.

If you meet the requirements and can qualify for a USDA or VA loan, not having to pay an enormous down payment is definitely an advantage, especially if you still have to pay closing costs. Avoiding or reducing your down payment means you have more savings to fall back on when emergencies arise.

Government-backed USDA and VA loans can allow you to buy a home with no money down. The fact that these loans are backed by the federal government allows lenders to be more lenient with down payment and credit requirements. Both you and your home must meet the guidelines to qualify for a mortgage, and you must meet service requirements with a VA loan.

You may also be able to get an FHA loan or conventional loan with a low down payment. A government-backed FHA loan with 3.5% down, which is a great option if you have not so great credit.

Today’s mortgage rates are low and it's a great time to buy a home. And many low-down-payment mortgages have below-market rates thanks to their government backing; this includes FHA loans (3.5% down) and VA and USDA loans (0% down).

Just remember that different lenders offer different rates and programs, so you’ll want to compare them to find the best deal on your low- or no-down-payment home loan. You can get started right here. www.iLendLasVegas.com

Down Payment Assistance (DPA) Resources

Check your DPA eligibility: https://bit.ly/Down-Payment-Eligibility

Reach out if we can help!

Wednesday, June 09, 2021

Can I use an FHA loan for a Manufactured home or Mobile home?

FHA Rules for Manufactured / Mobile Homes

FHA loans offer low down payment options and less than perfect credit scores to qualify for a mortgage. The FHA guidelines for both mobile homes and manufactured homes have loan limits plus foundation and appraisal rules that must be followed.

FHA eligible manufactured homes must be occupied as a primary residence and must have been built after June 15, 1976 on a permanent foundation. These homes are regulated under the rules known as Federal Manufactured Construction and Safety Standards and must be labeled accordingly. Each home must be classified as real estate and must have a HUD certification label attached.

The unit must have been built to the manufactured housing construction safety standards as evidenced by having a small, red metallic label attached to it. Any unit without this label is unacceptable. If it has been removed, it cannot be reattached to make it acceptable for FHA insurance.

Manufactured homes are often sold and transported in sections to be assembled on-site. According to FHA rules, a manufactured home differs from a new construction project because of the nature of its assembly. New construction homes are built "on-site."

FHA defines a manufactured home as "a structure that is transportable in one or more sections. In traveling mode, the home is eight feet or more in width and forty feet or more in length."

To be eligible for FHA financing and for the lender to obtain FHA mortgage insurance, the manufactured home must meet the stated criteria and the floor space cannot be smaller than 400 square feet.

The FHA minimum down payment is 3.5% up to the maximum FHA lending limit for your county.

Reach out to get pre-approved or if you have any questions!

CMG Financial

8337 W. Sunset Road, Suite 300

Las Vegas, NV 89113

Office (702) 777-1306

Get Pre-Approved: www.iLendLasVegas.com

Aundrea Beach-Greco

Mortgage Advisor, CMPS

NMLS 333739

(702) 326-7866

info@aundreabeach.com

www.AundreaBeach.com

Monday, April 19, 2021

Down Payment Assistance is Available in Nevada (Updated for 2021)

When buying a home, the down payment is simply the amount of money you are putting towards the purchase of your home. For example on a $200,000 home, 20% down would be $40,000. That's no small amount to have or save up.

Wouldn't it be nice to get some down payment assistance? Check out our eligibility finder.

Despite what you've heard, a 20% down payment on a home is NOT necessary. Here’s why:

The 20% Down Myth

The myth of the 20% down payment requirement has been circulating since the housing crisis back in 2010. Access to credit tightened, even to responsible buyers who had the income to buy, but lacked a large down payment, faced the same challenges. Thankfully, the lending landscape since then has improved.

Low down payment options have been around for decades. In fact, data shows that low down payment loans with sound underwriting are just as successful for investors as loans with large down payments.

However, putting down 20% down isn’t necessarily a bad thing. It may be the right choice for you if you have the funds. It gives you 20% equity position in your home and helps you avoid paying for monthly private mortgage insurance.

Don't Get Sidelined Watching Housing Costs Rise

At the same time, saving for 20% down is keeping many buyers on the sidelines. That coupled with the high demand is rapidly increasing home prices, making it harder and harder to save for the down payment. The goal posts keep moving farther away while you’re trying to do all the right things.

There are plenty of ways for buyers to make themselves more competitive in a tight market. One is using a low down payment loan, along with down payment assistance. This way, you can leverage and diversify your other investments so all your money isn’t in one asset—your home.

What Are Your Options?

Wait and save. I read an article that it’s estimated to take the average person 14 years or more to save for a 20% down payment. That’s more than 14 years for your pay rent and see home prices and interest rates rise, too. And 14 years later, you’ll have zero equity in the place you live, wiping out your next generation’s wealth-building potential.

Find down payment assistance programs. The majority of DPA programs provide down payment and closing cost assistance, helping with some or all of your costs. There are about 2,300 homeownership programs available across the US, including grants, forgivable loans, below-market first mortgages, tax credits and more.

The average down payment program benefit across all programs is more than $7,500. Just remember that both the home and the homebuyer must qualify for the program so do your research early.

Get pre-approved with a low down payment mortgage. There are several options for buyers today. Keep in mind that you can layer down payment programs with these loans.

FHA loan: Popular with first-time homebuyers, it allows a 3.5% down payment minimum.
VA loan: If you are a veteran or member of the U.S. military, look into a VA loan which offers 0% down.
USDA loan: Eligible in rural and suburban areas, it offers 0% down.
Home Possible: Freddie Mac’s low down payment loan allows down payments of 3% to 5% and flexible sources of funds for down payments.
HomeReady: Fannie Mae’s new loan program that allows a 3% minimum down payment for first-time buyers.
Conventional loans with private mortgage insurance: Allows 3% down payment minimum. PMI will be required if you put down less than 20%. However you can get rid of the PMI once you’ve accrued over 20% equity in your home down the road.

You are Unique - “No One Size Fits All”

For home loans, there’s not a “one size fits all” or right choice for everyone. Like you, your finances and home buying goals are unique. That’s why it’s important to secure your home financing before you tour that dream home.

Begin by investigating your options early: talk to an experienced local lender to get pre-approved, search for homeownership programs in your area and talk to your real estate agent.

Let us know how we can further assist you. Our DPA eligibility tools can help you find DPA options that you might be eligible for.

Best wishes to a successful homebuying journey!

Aundrea Beach-Greco

Mortgage Lender, CMPS

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Wednesday, February 17, 2021

When can I remove PMI on my mortgage?

What is PMI (private mortgage insurance)?

First, a little background: PMI is typically required on conventional loans where the borrower puts down less than 20% of the property’s contract price. (The term “conventional” refers to any loan that’s not part of a government program).Ultimately, PMI protects lenders if you default on the loan. If — for any reason — you’re unable to keep up with your mortgage payments and the property goes into foreclosure, PMI will help to cover the balance of the outstanding loan when the home is sold at auction. Most homeowners who carry PMI have borrower-paid private mortgage insurance, which they pay as an additional monthly fee with their mortgage.

Homeowners Protection Act of 1998

As you build up your home equity, there are several paths to removing PMI. Under rules outlined by the Homeowners Protection Act (PMI Cancellation Act) of 1998 or HPA, you should be able to initiate PMI removal once the principal balance of your mortgage drops to 80% of the original value of your loan. The HPA gives you the right to remove PMI from your home loan in two ways. You can get “automatic” or “final” PMI termination at specific home equity milestones, or you can request the removal of PMI when you reach 80 percent home equity.

3 Ways to get rid of PMI

Option 1: Pay down your mortgage for automatic or final termination of PMI.

Under the HPA, the mortgage lender or servicer is required to drop your PMI when one of two things happens: The provider must automatically terminate PMI when your mortgage balance reaches 78 percent of the original purchase price, provided you are in good standing and haven’t missed any scheduled mortgage payments.

Option 2: Request PMI cancellation when mortgage balance reaches 80 percent.

Instead of waiting for automatic cancellation from your lender, you have the right to request that the servicer cancel PMI once your loan balance reaches 80 percent of the home’s original value. If you’re making payments as scheduled, you can find the date that you’ll get to 80 percent on your PMI disclosure form or request it from your loan servicer. Make sure the PMI cancellation request to your lender in writing.

Option 3: Refinance to get rid of PMI

When mortgage rates are low, you might consider refinancing your mortgage to save on interest costs or reduce your monthly payments. At the same time, refinancing might enable you to eliminate PMI if your new mortgage balance is below 80 percent of the home value. It’s a double dose of savings.

The refinancing strategy works if your home has gained substantial value since the last time you got a mortgage. For example, if you bought your house four years ago with a 10 percent down payment, and the home’s value has risen 15 percent since then, you now owe less than 80 percent of what the home is worth. Under these circumstances, you can refinance into a new loan without having to pay for PMI.

With any refinancing, you’ll want to weigh the closing costs of the transaction against your potential savings from the new loan terms and eliminating PMI.

Your PMI rights

Homeowners who pay for PMI should be aware of their rights under the Homeowners Protection Act. This federal law, also known as the PMI Cancellation Act, protects you against excessive PMI charges. You have the right to get rid of PMI once you’ve built up the required amount of equity in your home. Lenders have different rules for cancelling PMI, but they have to let you do so.

Before you sign a mortgage with PMI, ask for a clear explanation of the PMI rules and schedule. This will enable you to accurately track your progress toward ending the PMI payment. If you feel your lender is not following the rules for eliminating PMI, you can report your complaint to the Consumer Financial Protection Bureau.

Aundrea Beach-Greco

Mortgage Advisor, CMPS | NMLS 333739

CMG Financial | NMLS 1820

8337 W. Sunset Road, Suite 300, Las Vegas, NV 89113

(702) 326-7866

info@AundreaBeach.com | www.AundreaBeach.com

www.AundreaBeach.com