Residential Mortgage Loans

CAN I GET A MORTGAGE WITH JUDGMENT OR DO I NEED TO FILE BANKRUPTCY?

Can a gift of equity be used to pay off debt on an FHA purchase

Can anyone tell it possible that I have property in USA and can get mortgage here in UAE?

CAN I GET HOME LOAN WITH 580 FICO CREDIT SCORE? AND IF SO, WHERE CAN I GET APPROVED. MOST LENDERS WANT A 620 CREDIT SCORE.

Can a gift of equity cover not just down payment/closing costs, but paying off an auto loan at closing to get my son’s DTI to qualify?

Can switching to an extended payment plan with student loans help with DTI vs using the 1% with a graduated payment or IBR plan? Will underwrites allow this change?

Can Borrowers Qualify For Mortgage With Lawsuit During Mortgage Process?

Can You Get Denied For Home Loan With Good Credit?

Does it make a difference if it is a private student loan VERSUS government student loans? What if I have private student loans versus government student loans delinquent or in collections.

Does all installment Loans with 10 or less payments exempt from debt to income ratios?

Do mortgage lenders look for enough cash to cover preapproval amount of the cost needed for the down payment and closing costs of the home in contract?

• This discussion was modified 8 months, 1 week ago by  Gustan Cho.

Can part-time income, overtime income, bonus income be counted to qualify for loan?

CAN SOCIAL SECURITY INCOME BE GROSSED UP? HOW MUCH CAN SOCIAL SECURITY INCOME BE GROSSED UP ON FHA LOANS? HOW MUCH CAN SOCIAL SECURITY INCOME BE GROSSED UP ON VA LOANS? HOW MUCH CAN SOCIAL SECURITY INCOME BE GROSSED UP ON USDA LOANS? HOW MUCH CAN SOCIAL SECURITY INCOME BE GROSSED UP ON CONVENTIONAL LOANS? HOW MUCH CAN SOCIAL SECURITY INCOME BE GROSSED UP ON JUMBO LOANS? HOW MUCH CAN SOCIAL SECURITY INCOME BE GROSSED UP ON NON-QM LOANS?

Can I Get A Clear To Close In 2 Weeks Or Less?

WHAT IS QC AND WHY IS QC MORTGAGE UNDERWRITING AFTER A CLEAR TO CLOSE?

What is the debt income ratio requirement for FHA loan and conventional loan?

What constitutes a mortgage loan application? How does the mortgage loan application work? What is an “application” that triggers an obligation to provide a Loan Estimate? What is the loan estimate? What are the rules and regulations on the loan estimate and how does the process work?

What is the timeline from pre-approval to clear to close?

WHAT IS THE TIMELINE FOR A CLEAR TO CLOSE?

CAN YOU PLEASE EXPLAIN THE AUTOMATED UNDERWRITING SYSTEM.

WHAT IS REFERRED/ELIGBLE PER DU FINDINGS?

WHAT ARE FORWARD REVERSE MORTGAGES? WHAT IS THE DIFFERENCE BETWEEN FORWARD MORTGAGE AND REVERSE MORTGAGE.

What is the Truth in Lending in Mortgages. What was the truth in lending created for. What is the true purpose of the Truth in Lending Law? What is the background of TILA? What is the purpose of the Truth in Lending Act as implemented by regulation Z?

What are the middle score requirements for usda and conventional, to keep manual underwriting from occurring? What kind of reserves will each require? Without down payment added, how much will closing costs be on a 200k home? Is it possible to get into a home via usda and never pay anything? Do you offer down payment assistance in Kansas? Sorry for the wall of questions.

What’s the minimum credit score and debt-to-income ratio required to get the best rates on a mortgage loan.

I want to know how a lender credit from the mortgage lender works. I heard that mortgage lenders can offer a lender credit towards closing costs.

What are lender overlays by mortgage companies. What is the differences between a conventional loan and government-backed mortgage loans. What does it mean if a mortgage loan is backed by the government. Are conventional loans backed by the government? What are common lender overlays on FHA, VA, USDA, and Conventional loans.

What is the purpose of TRID? What is TRID in the Mortgage Loan Process? What Are The Requirements of a TRID Loan? What Are The 6 TRID REQUIREMENTS? WHAT ARE THE RULES FOR TRID COMPLIANCE?

I have been in the mortgage and real estate industry since 1998. I have been running my mortgage branch for over ten years. During my tenure, I have worked with hundreds of wholesale mortgage lenders. Out of the hundreds of wholesale lenders I have worked with and thousands of loans my team has closed, I find Equity Prime Mortgage the most efficient of all lenders I have worked with. Hands down, it is the best wholesale lender for government and conventional loans with no overlays. EPM is the only wholesale lender in the nation that serves the underdog: The best lender for FHA and VA loans with credit scores down to 500 FICO, manual underwriting, and helping countless families be able to purchase a home during Chapter 13 Bankruptcy payment plan without the bankruptcy being discharged.

My team has been working with EPM since 2018, and to this day, Equity Prime Mortgage remains our wholesale lender of choice. Out of 210 wholesale lending partners in our wheelhouse and network, EPM, hands down, is the best lender I have worked with, am working with, and will always work with. No other wholesale mortgage lender comes close. From our wholesale account representative to the disclosure desk and processing team, underwriters, closing department, and last but not least, the management and executive team, the professionals at EPM have been there for the customer and loan officers. I realized that not all wholesale lenders are alike.

Far from it. When you first deal with Equity Prime Mortgage, any loan officer and branch manager will find out it is no secret that the company has a solid foundation. This is due to the leadership at EPM. Any successful company running as smoothly as Equity Prime Mortgage is not by accident. It all starts from the top down, the rank and file. It is the people that make a great team. The combination of the great teams in a company makes it great. It is the leadership that makes a great company a greater company year after year. I am a firm believer in positive criticisms and not compliments. With positive criticism, you strive to get better. However, EPM has been a Godsend to our team and thousands of loan officers. The team at Equity Prime Mortgage is our silent, unrecognized heroes.

I wanted to share how much we appreciate everyone at EPM. Due to EPM, my team and I have grown exponentially year after year. We are now licensed in 48 states and growing year after year. Amazing is an understatement for the professionals at EPM. Fast disclosures, processing, and underwriting, excellent communication with all areas of the process from underwriting to the closing, and an account rep who is always there to answer a question or assist in getting the loan through. And some of the best pricing in the industry. I highly recommend Equity Prime Mortgage to anyone. If you own a mortgage company, branch manager, or loan officer, you MUST get approved to do business with EPM. I have been in the mortgage industry a long time, and it is obvious that EPM spent time developing their systems and used mortgage professionals in the development process. From the time of submission to issuing your own CD to drawing your own doc instructions, their systems make sense, are efficient, and, despite TRID, you can get loans closed in 30 days or less.

I would like to thank the support and ops staff, our one and only superstar account representative Christian, the processing and underwriting team, the division managers, the professionals who run the closing desk, upper management, and the owners. There are no words to express our gratitude for being our heroes in helping our borrowers, and their families make the dream of homeownership a reality. God Bless.

gustancho.com

Best Wholesale Mortgage Lenders For Non-Prime Loans

Gustan Cho Associates looks out for their borrowers by having strong relationships with the best wholesale mortgage lenders for non-prime loans

Refinancing your mortgage can be confusing. It’s not always easy to decide if you should refinance or keep your current loan. You need to do some research, get advice, and compare your options. The right time to refinance depends on your situation. Before you decide, make sure to – Get the expert advice.

• Look at your current financial situation.
• Use a refinance calculator to compare options.
• Understand the pros and cons of refinancing.
• Learn the steps and fees involved.

When Do Most Homeowners Decide to Refinance?

Most people refinance to get a lower interest rate with another lender. Other reasons include when their fixed-rate term is ending or every 3 to 4 years, even with a variable rate. By then, their loan balance might be lower and property value higher, making it a good time to look for better rates or flexible options. Some refinance if their lender won’t release equity for buying an investment property or for debt consolidation to combine debts into a home loan at a lower interest rate.

How to Know if You Are Eligible to Refinance

• Owe less than 80% of property value: Your mortgage should be less than 80% of your property’s value to avoid paying Lenders’ Mortgage Insurance (LMI).
• Variable rate: You can refinance every 6 months, but each application will add an inquiry to your credit file.
• Refinance from low doc to full doc: If you had a low doc mortgage but now have enough income evidence, you might qualify for a standard home loan with a better interest rate.
• Refinance out of a bad credit loan: If your Loan-to-Value Ratio (LVR) is 80% or less and your credit has improved, you can refinance a bad credit home loan back to a major lender.

Refinance Your Home Loan in Easy Steps

1. Understand the Situation: Refinancing can be challenging. Check out our refinance guide to help you get closer to paying off your loan faster and for less money.
2. Know Your Savings: Contact our mortgage experts to see how much money and time you could save by refinancing.
3. Apply for a Refinance: Schedule an appointment with a Home Loan Experts mortgage broker by calling 1300 GET LOAN or book a consultation. We’ll help you choose the best loan and handle all the details for you.

How Frequently Should I Refinance My Home Loan?

It depends on your financial situation and goals. If it’s your family home and you’re not planning to move, consider refinancing at the end of your fixed term. If you have a variable rate, you can refinance anytime. This is useful for investment properties when you want to access equity to grow your portfolio.

Does It Make Sense to Refinance During a Fixed Term?

Yes, you can refinance during your fixed term, but you might have to pay break costs. If you can recoup these costs within two years, it might be worth it. Use the refinancing calculator to compare costs and savings. Talking with an experienced mortgage broker can help you fully assess your financial situation.

Alternatives to Refinancing

Refinancing can be costly and time-consuming. Here are some alternatives:

• Negotiate with Your Bank: Call your lender to see if you can get a lower interest rate or fix your repayments.
• Extend Your Loan Term: Consider extending your loan term to reduce repayments.
• Switch to Interest-Only Repayments: This can temporarily reduce your repayments, freeing up cash flow.

Keep in mind these should be considered short-term solutions as they can make your mortgage more expensive in the long run.

Not Sure When is the Right Time to Refinance?

Our refinance checklist will help you gather all necessary documents. We can assist you in running the numbers to see if refinancing makes sense for you. Call us at 1300 GET LOAN or book a consultation call to speak with one of our home loan refinance specialists.

Frequently Asked Refinancing Questions

When should I consider refinancing?

• When interest rates are falling
• Your home’s market value has increased
• You want to renovate or invest

What documents are required?

• Recent pay slips
• Tax assessment notice
• Pay confirmation letter
• ID documents (driver’s license, passport)
• Financial and credit documents

How long does the process take? Usually, it takes between two and four weeks.

Does refinancing affect the credit rating? Yes, refinancing is seen as a credit application and can lower your credit score if done often.

What are the costs to refinance? You might need to pay break fees, application fees, and closing costs.

How frequently can I refinance? There’s no rule, but some lenders might want you to wait a few months after closing on a loan or after refinancing.

Is refinancing and topping up your loan the same thing? Refinancing means switching to a new loan, while a loan top-up means increasing your existing loan.

Who should I refinance with? Different lenders offer different options based on your situation. Our mortgage experts can help you find the best option.

Who Pays for Lenders’ Mortgage Insurance?

In Australia, if you’re buying a house with a small deposit (less than 20% of the home’s price), you might need Lenders Mortgage Insurance (LMI). This insurance protects the lender if you can’t make your mortgage payments and they have to sell the house for less than what you owe. Usually, it’s the homebuyer who pays for it, not the bank. Think of it as an extra cost to help the lender feel secure about giving you the loan also feel free to reach out.

How is LMI Calculated?

LMI is primarily calculated based on the loan-to-value ratio (LVR), which is how much of the house’s value you’re borrowing. The higher the LVR, the more expensive the insurance. Other factors, like the size of your loan, also play a role. Typically, you can pay LMI as a one-time fee upfront or include it in your loan repayments. Different lenders have their own methods for calculating it, but they all consider similar factors like the amount you’re borrowing and the property’s value.

Can LMI Be Avoided?

Yes, you can avoid paying LMI by saving up a deposit of 20% or more of the home’s price. This makes you less risky to lenders. If saving that much isn’t possible, you might still avoid or reduce LMI by:

• Saving more to borrow less.
• Getting a guarantor, like a family member, to back your loan.
• Finding lenders offering no LMI deals for certain professions or conditions.
• Negotiating with your lender if you have strong finances.

Is LMI Transferable Between Loans or Properties?

No, LMI isn’t transferable. If you switch loans or buy a new property, you’ll likely have to pay LMI again if your deposit is less than 20% of the new property’s price. Each new loan application requires an evaluation of your borrowing amount and property value to determine if LMI is necessary.

What Happens to LMI If I Refinance?

When you refinance your mortgage in Australia, the LMI you paid on your original loan usually doesn’t carry over. If your new loan is more than 80% of your property’s value, you might need to pay LMI again. Each new loan application involves a fresh assessment of your borrowing needs and property value.

Does LMI Protect Me If I Can’t Make My Loan Payments?

No, LMI does not protect you if you can’t make your loan payments. It protects the lender. If you default on your mortgage and the lender sells your property for less than what you owe, LMI covers their losses. It doesn’t provide any financial help to you if you’re struggling with payments.

How Can I Reduce the Cost of LMI?

You can reduce the cost of LMI by:

• Saving more upfront to borrow less and lower the LMI cost.
• Shopping around for lenders with cheaper LMI rates.
• Getting a guarantor to avoid LMI altogether.
• Negotiating with your lender if you have a strong financial profile.
• Looking for special deals or discounts for certain professions or areas.

Are There Any Tax Implications with LMI?

For most people, there aren’t any direct tax implications with LMI. You usually can’t claim it on your taxes like mortgage interest. However, if LMI helps you get a bigger loan, you might pay more mortgage interest, which is tax-deductible for investment properties. If the property is used to earn income, the LMI cost might be deductible. It’s best to consult a tax professional for personalized advice.

How Do I Know If I’m Getting a Fair LMI Rate?

To ensure you’re getting a fair LMI rate:

• Shop around and compare rates from different lenders.
• Understand how your loan amount, deposit, and property value affect the rate.
• Compare multiple quotes to find the best deal.
• Consider the overall mortgage package, including interest rates and fees.
• Seek advice from a mortgage broker or financial advisor.

Can I Pay LMI Upfront or Does It Have to Be Capitalized on the Loan?

You have two options:

• Pay the full LMI cost upfront to reduce overall interest.
• Include the LMI cost in your loan amount and pay it off over time with your regular repayments.

What Factors Affect the Cost of LMI Apart from the Loan-to-Value Ratio (LVR)?

Other factors that affect LMI cost include:

• The loan amount: higher loan amounts usually mean higher LMI premiums.
• Property type: certain property types may be considered riskier.
• Your credit history: a good credit history might result in lower LMI rates.
• Loan term: longer loan terms can increase LMI costs.
• The lender’s LMI provider: different providers have varying rates.

Is There a Difference in LMI Rates Between Owner-Occupied Homes and Investment Properties?

Yes, LMI rates for investment properties are generally higher than for owner-occupied homes. Investment properties are seen as riskier because of potential rental income fluctuations and the borrower’s financial stability. This difference in rates should be considered when calculating the overall cost of purchasing an investment property.

Can LMI Be Refunded If I Pay Off My Mortgage Early?

No, in Australia, LMI is typically non-refundable. Once you’ve paid it, you can’t get a refund, even if you pay off your mortgage early.

What Are the Alternatives to Paying LMI for Low-Deposit Borrowers?

Instead of paying LMI, consider:

• A family guarantee, where a family member uses their home’s equity to secure your loan.
• Government schemes like the First Home Loan Deposit Scheme (FHLDS) for first-time buyers.
• Special offers from lenders that waive LMI if you meet certain conditions.

In a Nutshell

Understanding Lenders Mortgage Insurance (LMI) in Australia is essential for homebuyers. Knowing who pays for it, how it’s calculated, and ways to reduce costs can help you make smarter choices when getting a mortgage. By exploring these FAQs, you’ll feel more confident managing LMI and finding the best deal for your situation.