home mortgage for Townhome or Rowhouse

Think You’re Buying a Townhome/Rowhouse?….Think Again.

In the world of real estate transactions involving condos and townhouses, if it looks like a duck, talks like a duck and walks like a duck…sometimes it’s not a duck. Frequently enough, some home buyers want to split hairs between single family residence living and the condo life. They make a slight compromise on privacy for the sake of limited maintenance. They seek a larger floorplan perhaps. There are many reasons but in the end, they seek a townhome or row house. Excitedly, the purchase agreement is executed, the inspection is scheduled and it’s often at this point, . . …

How Underwriters View Owner Occupied Vs. Non-Owner Occupied Transactions

There are many times when a homebuyer truly intends to occupy a home as a primary residence only to be told by a mortgage underwriter and subsequently their loan officer that their claim of having the intention to occupy a property as a primary residence was not adequately credible. This often happens when a property purchase is being made while another property is being retained. The consequence of a decision on the part of the underwriter to not agree with a homebuyer’s intent to occupy a property as a primary residence can lead to larger down payment requirements and inferior …

How to Refinance Your LLC Properties’ Mortgages into Your Own Name

Attempting to navigate the process of refinancing mortgages out of the name of a LLC and into your own name with a conventional mortgage can be a lot like walking across a minefield with a blindfold on.  Perhaps one of the main reasons for this is that the guidelines that affect these transactions have trickled out here and there, over a long period and have been amended periodically.  Here is a summary of guideline considerations to take into account when considering refinancing your investment property loans from a LLC into your own name: Are LLC’s eligible to be refinanced from …

Long Term Mortgage Rate Forecast Going Into Winter Market

As the winter weather hits or threatens to hit, many people who have actively or passively been searching for a home ask, “Should I just postpone the idea until spring?”  There are many reasons to either wait or hasten the purchase of a home.  If you happened to be considering mortgage rates as one variable in your decision, we thought that we’d share the one reliable forecasting model that we follow for long term mortgage rate forecasts: Mortgage Rate Forecast for 30 Year Conventional Loan 30 Year Conventional Mortgage Rate. Percent Per Year Average of Month. Month Date Forecast Value …

How to Improve Your Credit Prior to Buying a Home

iLoan recommends iQualifier as a powerful credit analytics tool to show you the way. If you’re looking to pre-qualify for a home and want a lower rate or better loan program, iLoan recommends iQualifier to enable you to analyze your credit history with the same tools that lenders and credit agencies use. Additionally, it takes you beyond that analysis demonstrating how different financial decisions may affect your credit in the months ahead. iQualifier can help you: • Better understand your credit standing • Improve your financial decision making • Achieve your financial goals (& target credit score) • Save money …

Top Three Reasons to Feel Good About Buying a Home in the Twin Cities

It doesn’t happen very often where, in a compact period of time, I see a wealth of reliable data released that shed such sunny light on the decision to buy a home in the Twin Cities but lately that has been the case.  If you’ve been contemplating such a decision, here are 3 great reasons to feel good about your decision and its timing in ascending order. Reason 3: CNBC Ranks Minnesota as a Top State for Business. CNBC’s announcement may seem boring, and it definitely is, but from the perspective of a homebuyer or homeowner, it’s critical.  This is …

Today’s Rate vs. Today’s Rates – Mortgage as a Second Language

The mortgage industry is almost cruelly filled with nearly impossible jargon.  Most of it is inconsequential from the consumer’s perspective and only serves to make communication easier for industry insiders.  However, when it comes to the concept of choosing an interest rate from your lender par rate, buy ups, buy downs, discount points and lender credits are a must know. Definitions: Today’s Rate – “Today’s Rate” is a myth perpetrated as a reality.  It is something the mortgage lending industry came up with because it’s an intellectually condescending industry that doesn’t believe that its clients can do math or understand …

Your Monthly Housing Payment Beyond Principal Interest Taxes and Insurance: Utilities

Nobody wants to be house poor.  Therefore, understanding what your mortgage payment will be when buying a house is only part of what should be considered when contemplating one’s housing costs.  Getting quotes on phone service, security systems, internet and cable are easy enough but utilities like heating and cooling costs can be a little trickier.   Taking these costs into consideration is important though because miscalculation can lead to unexpected payment shock.  Should that payment shock occur, it’s often too late to do much about it so it’s necessary to be proactive. Some of the required seller disclosure items are …

The iLoan Lock and Shop Program

Many buyers are concerned about rising mortgage rates and the implications on their plan to buy a home or sell their home and then buy another home.  The frequent question is, “Can I lock in my interest rate before I find my home?”  Typically one can’t do this until they have a fully executed purchase agreement and this amplifies a homebuyer’s fear prior to going under contract to buy their dream house.  Now, with the iLoan Lock-N-Shop program, this fear can be put to rest. Here’s an outline of how it works: The lock may be for 60 or 75 …

Fannie Mae Increases Down Payments on MyCommunity® and Standard Loans

In another backward-thinking move, Fannie Mae has very subtly announced that they will be increasing their down payment requirements by decreasing their maximum Loan to Value Ratios for MyCommunity® mortgages and for standard mortgages on 1-unit primary residences effective on or after the weekend of November 16, 2013.  The previous allowed down payments were at 3% based on a Loan to Value Ratio (LTV) of 97%. The difference between 95% LTV and 97% LTV financing may sound slight but on a macroeconomic level, it’s huge.  It will postpone purchases for multitudes of buyers; particularly first time homebuyers who might find …

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 & …

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 …

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 …