The FHA 1 Year Waiting Period After Short Sale, Bankruptcy or Foreclosure – Back to Work

Where was this three years ago?  Better late than never I suppose.  FHA is now insuring loans to homebuyers who have experienced an Economic Event (Short Sale, Bankruptcy, Deed in Lieu of Foreclosure or Foreclosure) in the past and can document that (1) their certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control, (2) the homebuyer has demonstrated full Recovery from the event and, (3) the homebuyer has completed housing counseling. FYI, in the event of a short sale, this is for buyers who DID have late …

Planning Your Home Purchase With a Mortgage Recast

Often times, seemingly in a fantasyland, home buyers might want to buy their new home first non-contingent on a home sale and sell their retained home shortly after moving into their new one without a financial inconvenience.  They might want to do this to get a better price due to negotiating from a position of strength or it might simply be a matter of logistical convenience.  Whatever the reason, the difficulty arises when they want to use the equity from the home that they’d be selling to achieve a lower payment on their mortgage for their new home.  Most would …

Principles of Locking or Floating Your Mortgage Rate

At some point during the application process, your mortgage rate needs to be locked in.  This short video will provide you with the basics regarding “locking” or “floating.”  For more information, follow our interest rate forecasting page or call your loan officer for details.  Enjoy the show! Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is …

Tell a Veteran to Miss a Payment to Qualify for a Short Sale and You May be Up Against the CFPB

Statistically, over half of the Consumer Finance Protection Bureau (CFPB) complaints to the Office of Servicemember Affairs (OSA) have to do with mortgages.  Of these, 58 percent of them had to do with loan modification, mortgage collection practices or foreclosure . . . and yes . . . short sales would fall under this category.  While this is a broad range of complaints, I’d like to focus on servicemembers with Permanent Change of Station (PCS) orders and how they relate to short sales. For Realtors processing short sales on behalf of servicemembers, they’ll want to know that the CFPB is …

The Only 10 Reasons a Lender Needs Tax Returns for a Fannie Mae Mortgage

Giving a pound of flesh in income and asset documentation has become the norm but it’s likely that unjustified lender paranoia has led them to ask for a bit too much of their clients.  My recent rant on this issue concerned verifying large, non-payroll deposits but now my rage has turned to the simple request of tax returns.  I’m not talking about FHA loans, VA loans, RD loans or Freddie Mac loans (although if you’re curious about Freddie, see attached), because if you’re looking for one of these, you’re going to be asked for a lot of paperwork.  I’m just …

Different Mortgage Types and What They Mean to Buyers and Sellers in a Competitive Market

This podcast outlines the differences between Minnesota mortgage pre-approvals and how they affect purchase transactions.  Homebuyers and home sellers can learn the risks and benefits of each different type and how they relate to their transaction.  This is essential information for understanding the implications of your choice on loan type for your purchase in a seller’s market.  If you’re a seller, it’s essential for understanding the risks and advantages of accepting an offer that comes with one type of mortgage financing vs. another. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & …

You’re A First Time Homebuyer? So What!

I know, my headline may be a little offensive to some, but I had to get your attention. This is going to be well worth your 4 minutes to learn a few things about first time homebuyers and first time homebuyer programs. I’m sure you have heard of Toys R Us and Babies R Us, right? Ever heard of Entitlements R Us? Nope.  It doesn’t exist.  And I’m going to break the notion that just because you are a first time homebuyer, that you are entitled to those programs or any down payment assistance. (besides, entitlements are only for the government). …

Dual Agency in Minnesota

Reblogged: Deanna Wyman There is a commonly held belief that every Realtor’s dream is to handle both sides of a transaction-a practice known as dual agency. An unfortunate number of people are under the impression that this practice is a great idea. Well, I’m here to tell you that dual agency isn’t actually worthy of its reputation. In fact, I try to avoid it at all costs. Even if it means turning down a potential business, I’ll refer a client to another agent in order to best represent the client I’m already working with. Think about it, the listing agent …

A Permanent Extension of the Private Mortgage Insurance Deduction?

The tax deduction on private mortgage insurance has been bounced around like hot potato ever since 2007. The problem with the lack of predictability in tax deductibility of mortgage insurance is that when people are make decision on which of the four types of mortgage insurance they want on their loan, it’s typically with long term considerations in mind.  This lack of certainty has turned some mortgage insurance decisions into guesswork.  To date, the tax code has provided no long term predictability to aid the consumer in this important and difficult decision. With the help of Senators Debbie Stabenow and Mike …

Your Rental Rate: Too High, Too Low – Rent vs Own Home Calculator

Every time we read an article online about taking a more analytical approach to deciding whether or not to buy a home, you’ll always get comments about how “personal” or “emotional” the decision is but if you’ve found this page, that’s not why you’re here.  You’re looking for a “left brain” experience and you’re going to get it. When analyzing a decision on a move, it’s important to know the variables, have all the tools and take the whole decision under consideration.  It can be frustrating poking around all over the internet to find these facts, tools and calculators so …

Verifying or Sourcing Large Deposits for Your Mortgage – Make Sure You’re Not Being Asked for Too Much

In the last 4 years, an effort has been made on the part of mortgage lenders to ensure precise accuracy on income, liabilities but also on making sure that their money is really their money.  Consequently they look for “Indications of Borrowed Funds.”  One such indicator of potential borrowed funds is a large and irregular deposit on a bank statement and, when found, they can lead to the Spanish Inquisition of Letters of Explanation and documenting the origins of these funds.  When this guideline originally came out, it arrived without much clarity so naturally everyone took the strictest interpretation of …

Homebuyers: Thinking About A Lowball Offer? Think Again.

 If you are under the impression that the Minnesota real estate market is still a buyer’s market, it may be time to put away the bell bottom hip huggers and burn the flower power polyester pullover.  Okay, that may be dating back a bit too far but you get my point.  Let’s time warp to 2013. Long gone are the days of putting in a lowball offer and hope it sticks.  It won’t and it doesn’t anymore.  I know, I know…your friends, family and colleagues who purchased homes just a few years ago still boast that they got their home …

If You’re Going to Claim to “Owner Occupy” Your Home, You Better Mean It

More and more, people are finding that their intent to occupy a home when getting a mortgage may not mean what they think it means.  More and more, loan officers are also finding out that it may not mean what they think it means.  One of the Mortgage Loan Officer national testing questions asked what intent to occupy meant and the correct answer, for testing purposes, was that the buyer would have to move in within 60 days.  Now, both on refinances and on purchases, it’s becoming important to know how long one will be staying there as well. While …

When it Comes to Your Credit Report, Be Yourself.

It’s important in life and in mortgage lending that you be yourself.  Accordingly, when your loan officer is presenting you and your loan application to an underwriter, you do everything you can to be as accurate and honest as possible.  You take a detailed loan application and cough up unending amounts of documentation so, . . you’re good right?  Actually, there’s a 25% chance that’s not quite right. One in four consumers found an error in a credit report issued by a major agency, according to a study by the Federal Trade Commission.  Five percent found errors that could lead …

Buy a Home Now vs. Wait – Who Needs a Forecast for that?

Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. works cooperatively with other real estate agents across the United States in attempting to find ready, willing and able buyers for homes …

Fannie Mae Requirements for Investor and Second Home Borrowers with Five to Ten Financed Properties

Most lenders will restrict the number of properties an investor can finance to a total of four properties.  This restriction was recently loosened to allow for up to ten financed properties.  There are unique restrictions regarding credit score, Loan to Value (or LTV) and reserve requirements that make getting them funded very difficult. Here are a couple of bullet point guidelines you’ll need to be aware of: No foreclosures in the preceding 7 years No late mortgage payments within the last 12 months 6 months of mortgage payments in need to be in reserves for each other second home or …

Gaining an Edge With the Best Homebuyer Education

This episode of the Twin Cities Real Estate Radio Show covers comprehensive homebuyer education and wraps it up in a bow called DoorSteps. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, …

5 Things I Wish All Homebuyers Knew Before Getting Their Mortgage

A good mortgage loan officer is like a financial psychiatrist for residential housing.  Years of training and experience are packed into our minds for the purpose of reacting correctly to buyers’ financial profiles, stories and desires.  The moral of the story?  All those years of training and experience are an empty value unless you put your entire buyer profile, story and set of desires before your loan officer.  Not doing this is like buying a 600 dollar phone and only using ten percent of its features. A good mortgage loan officer is not a peddler of a financial commodity (I …

New Minnesota Housing Mortgage Loan Programs – not just for First Time Homebuyers!

Through the Minnesota Housing Finance Agency (MFHA), the State of Minnesota offers eligible homebuyers loans with subsidized interest rates and mortgage insurance for low-to-moderate income homebuyers, that is correct, it is not just for first time homebuyers anymore! Start Up is the new Minnesota Housing statewide mortgage loan program for low-to-moderate income first-time homebuyers.  Click here for detailed information on Start Up (first-time homebuyer loan program). Step Up is a new Minnesota Housing loan program for non-first-time homebuyers to purchase or refinance a home.  The program offers affordable fixed-rate loans and access to down payment and closing cost loan options …

iLoan Puts its Money Where its Mouth is for Veterans Using VA Loans

For a long time, we’ve been trying to figure out what we can do for our VA clients besides being highly trained, offering superior interest rates, and providing high-touch service.  We had talked about doing something more for some time now and finally thought we should get off our laurels and get ‘er done. For any military veteran or Foreign Service worker who chooses to do his or her Veteran’s Administration insured mortgage with iLoan, there will be no cost for the appraisal.  This is a value of between four hundred and five hundred fifty dollars which; a minor sacrifice …