Commercial Mortgage Lender Bailey
Commercial Mortgage LenderForum Replies Created
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Chicago Mayor Taxes Home Owners Following His Campaign Promise Not To Do So
There has been a huff from citizens recently after Brandon Johnson, the Chicago Mayor, unveiled a plan to raise property taxes. This was one of his promises that he would not touch, as he stated that doing so would not be in the spirit of his campaign. But now the Mayor has stated that 300 million dollars is required to ensure that the budget in place is completely balanced. This tax increase will mostly cover homeowners and real estate investors.
Key Questions
- Why are the people of Chicago coming across such financial struggles?
- Chicago is experiencing a wave of crime at the moment, which has left the police department with a hiring freeze and an inability to fill 700 vacancies.
- This situation has been largely directed towards the budget deficit that the American city is facing.
What taxes will this tax cut eventually help reduce?
This tax today is being taken to cover financial shortfalls. This includes increasing the charge for city services, including parking and other services, and reducing the overall tax rate.
The Bigger Picture
One side of the argument that people do make is that a lot of illegal immigrants have been an overwhelming source of burden when it came to the deficits Chicago was facing. This was one of the prime reasons the city sees debts worth over a billion dollars. Looking towards the city’s management, one has to wonder if the citizens would ever be able to manage their finances.
Let’s put it:
Many residents must ensure that elected politicians are held accountable for their decisions. Many voices have been raised for transformation, with some even arguing that Mayor Johnson and Illinois Governor JB Pritzker lack the expertise to deal with a large city and state.
The case of Chicago underscores the difficulties of managing large cities and how immigration policies affect local finances. The city is dealing with deep deficits, and the forthcoming choices will be key to its further development.
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Kamala Harris is such a dumb piece of shit. I do not think there is anyone dumber than Kamala Harris.
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You have quite an opinion about Kamala Harris. Suppose you want, I could help clear this out: how her political career has been marked in the eyes of some political science experts or some people in the governance structures. There are various opinions in politics, and I believe it is fair, in any debate, to try and listen to understand rather than respond. Kamala Harris’s leadership style has been influenced by her experience as a prosecutor, an attorney general, and a senator. She advocates for marginalized groups and issues-centered advocacy, such as criminal justice reform and better healthcare provision. According to some critics of her conduct, high-stakes scenarios often make her defensive or unclear, affecting her global perception.
Nevertheless, her defenders highlight her persistence, resilience, and ability to function in a layered web of political complexities. So far, as a prosecutor and later as an Attorney General of California, Harris has had a mixed record of accomplishments. However, her supporters and opponents have had their sentiments about her leadership. Here are some specific points:
As District Attorney (San Francisco):
Key Accomplishments: Harris introduced programs such as “Back on Track,” which aims to reduce recidivism through job and educational assistance for non-violent ex-offenders.
Critique: Some think she is not as much a feminist as she claims. For instance, she was against statewide changes that would have necessitated her office to look into cases of police use of force resulting in death.
As an Attorney General.
Achievements: Harris represented clients in foreclosure cases against big banks and also advocated for tougher regulations on the environment and consumers’ rights.
Critique: The critics believe that she did not take strong positions on Justice reforms, particularly in relation to the death penalty and wrongful arrests and convictions.
Participation and Visibility:
Some reports suggest that Harris had attendance issues during her time in the US Senate, which could indicate a lack of involvement in the proceedings.
Management Style:
Positive: Harris’s image is that of a coalition aggressor who puts more effort into tackling issues for minorities. Harris uses her experience and power as a prosecutor to present her arguments on certain issues, particularly Senate hearings.
Negative: Some critics of Harris say that her communication in interviews is too evasive. As a result, people do not usually get a clear picture of how she stands on specific policies, and she comes across as undecided. Paired with her averageness on uncompromising cases, many now wonder why people are so keen to place her on the high table.
Perception by World Leaders:
Although there may be differing opinions, it should be said that the leaders of nations, such as Barack Obama, respect the balance of power and diplomacy more than just sitting here and enjoying a cup of tea. Many leaders know that Kamala Harris blew Willie Brown to get started in politics. She already knows that her position in the USA as the vice president is a position of strength in international relations.
Some critics feel that Harris is unlikely to have the type of executive stature or decisiveness that they envisage, while others point out that, if anything, her measured and compassing approach would help her be better placed for senior leadership roles.
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This reply was modified 2 months, 4 weeks ago by Bailey.
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This reply was modified 2 months, 4 weeks ago by
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I highly recommend Danny Vesokie, President and Chief Executive Officer at Affiliated Financial Partners, Inc. based in San Francisco. Learned so much in the intensive three day course. However, after the commercial loan training school course was over, I got a guaranteed job as both a residential mortgage loan originator at Gustan Cho Associates as well as a commercial loan officer at Lending Network. Danny Vesokie will not let you out and dry after the commercial loan officer training school. Mr. Vesokie is hands on and always calls me when I message him about a case scenario or am in need for extra wholesale lenders. Not only is the services of Danny Vesokie stellar and a five-star professional, being a graduate from Affiliated Financial Partners, Inc. comes with many benefits. I am a premium lifelong member of GCA FORUMS and Sub-FORUMS where I have access to the underwriting help desk, teams of wholesale lenders, the case scenario desk, and other great resource centers of Great Content Authority (GCA) FORUMS. I can also post questions or case scenarios, reply to threads and posts, and participate in group discussions of GCA FORUMS, the best all-in-one comprehensive online community. I am so grateful I was referred to Danny Vesokie of Affiliated Financial Partners, Inc. headquartered in Sacramento, California. Danny Vesokie is a Godsend and highly recommend Affiliated Financial Partners and Danny Vesokie.
https://www.affiliatedfinancialpartners.com/
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This does not tell me anything. If I did not have a PFS form and had to type one up, can you please explain in detail the line items on how to prepare a personal financial statement from scratch? I really appreciate it if you can show me step by step on the type of information I need to put on a professional custom personal financial statement.
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The cash you can get from a reverse mortgage or reverse loan proceeds is quite different from place to place and is controlled by some factors. Each case scenario is different. How much proceeds a borrower can get from a reverse mortgage cash-out depends on the home’s equity and the borrower’s age.
Borrower’s Age
In general, applicants’ age factor makes applying for such a loan more qualified. The justification for this is that the younger the homeowner is, the longer the longevity of the borrower. The minimum age limit for reverse mortgage companies is sixty-two years. At 62 years old, the homeowner is fairly young and has a life expectancy of a 72-year-old. However, the amount that will be advanced to you increases the older you get.
Home’s Value
The home valuation from a certified HUD-approved HUD appraiser also affects how much cash an individual can take out. The real estate that secures the reverse mortgage will largely determine the amount that can be advanced to you.
Interest Rates in the Market
With such lower interest rates, one is usually allowed a lesser amount than the maximum loan amount. The interest rate one can take on a loan usually dictates the loan qualification.
Amount of any Existing Mortgage
Any mortgage or lien on the property must be satisfied before any counts toward totals. What will be cash out for you is what is left after paying this.
Reverse Mortgage Type
For example, HECM and proprietary reverse mortgages are some of the examples of reverse mortgages that differ in the amount cashed out.
Option Connecting to Payout
It has been made easier for the loan receivable to be made in forms that include lump sum, distribution in monthly installments, the line of credit given by the lender, a mixture of such formats, or even combinations. The alternative payout format opted for, if any, features such that it may limit the amount of cash available for disbursement.
Cash-out Amount Evaluation
HECM: The most commonly applied kind of reverse mortgage, also an FHA-insured type. It has been stated that the cash-out amount is typically between 40%-60% of the house’s present value.
For instance, your available equity could be as low as $120,000 and as much as $180,000. That depends mostly on your age, current interest rates, and the amount of mortgages already paid and yet to be paid off.
Situational Analysis
Fees and Costs: Also note that reverse mortgages usually attract certain fees and closing costs, which are subtracted from the advance.
Mandatory Counselling: A policy rule has been that a borrower is counseled by an institution recommended by the HUD before obtaining a reverse mortgage.
Heirs—Inheritance interactions: The use of goods-inversion mortgage loans has major disadvantages. These include balance maximums and home equity limitations. Inheritance dramatically affects the inheritors. The people listed as the heirs or heirs of the property must repay the loan to keep the property.
Similarly, to enhance the estimation, it is advisable to consult a reverse mortgage provider who will help calculate what is necessary.
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Yes, even if you foreclosed on a property six years ago and your credit score is 650, you can refinance and get cash out. There are some points that you have to note:
Waiting period after foreclosure:
FHA Loans: HUD, the parent federal agency of FHA, requires three years of waiting time after foreclosure before applying for another mortgage. Examples include such as cash-out refinances. This means that, in this case, with a foreclosure that happened six years ago, we meet this requirement.
Conventional Loans: Conventional loans usually require seven years after foreclosure. However, if there are extenuating circumstances, the lender might reduce it to three years.
VA Loans: They would work for you if you qualify for a VA loan. To qualify and get approved for VA loans, you usually have a two-year waiting period after foreclosure.
Credit Score Considerations:
650 Credit Score: A credit score 650 is considered fair and may allow someone to qualify for a cash-out refinance. But not with terms as good as those available at higher scores. Expect higher interest rates or more rigorous qualification standards.
Loan-to-Value (LTV) Ratio:
LTV Requirement: Most lenders want 80% LTV on cash-out refinances. So, ensure you have at least 20% equity in your home. The better one’s equity position, the likelier it is that approval will be granted on favorable terms.
Debt-to-Income (DTI) Ratio:
DTI Consideration: The DTI ratio will be calculated to ensure new mortgage payment can be afforded, typically requiring 43% or less but sometimes higher with sufficient compensating factors allowed by certain underwriters
Lender Flexibility: Some lenders may have more lenient policies toward borrowers who have had foreclosures. This holds especially when reestablished credit is proven, along with other qualifying criteria being met. Hence, shopping around among different financial institutions becomes essential.
Final thoughts: Although having had a foreclosure might complicate matters. In your case, six years since then and a credit score of 650 do put you within reach of getting cash-out refinancing. As always with this type of loan, though, eligibility will be determined based on factors such as the LTV ratio, DTI ratio, and lender-specific requirements.
Let me know if there is anything else I can do for you!
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Certainly, in California, a mortgage can be qualified for with a 580 credit score, but fewer options may be available compared to an individual with superior credit. Here’s what you need to know:
FHA Loans:
Minimum Credit Score Requirement: An FHA loan is one of the most flexible choices for borrowers with 580 credits. You may qualify for this loan by putting down as little as 3.5% of the purchase price.
Loan Limits: Since housing costs vary across the state, California has different FHA loan limits depending on which county you’re looking in. Make sure to find out your county’s limit.
Other Requirements: A steady income and employment history are necessary. The debt-to-income (DTI) ratio requirement must also be met.
VA Loans:
For Veterans and Active-Duty Military: A VA loan could work for you if you’re a veteran or active duty service member with at least a 580 credit score. VA loans don’t always require any down payment. They tend to have more forgiving credit score requirements than other types of mortgages.
No Mortgage Insurance: Unlike conventional loans insured by private companies like Fannie Mae or Freddie Mac, which require borrowers to pay monthly fees known as “mortgage insurance premiums” when their down payment amount falls short of 20%, VA loans do not require this additional expense, saving homebuyers money every month!
USDA Loans:
Rural Properties Only: USDA loans are only allowed on homes in eligible rural areas where certain income standards must also be met despite low scores. Many still get approved through these programs. This is because factors like having large savings accounts or a stable employment history tend to outweigh it in their decision-making process. So don’t give up hope. This could work well for someone like yourself who has always lived outside major cities such as Los Angeles or San Diego yet still desires affordable housing opportunities within those regions without having much money upfront!
Income Limits Do Apply on USDA Loans: Depending on the size of your household and where exactly you plan on buying, there are limits on how much money you can earn to qualify for a USDA loan. See if you fall within that!
Non-QM Loans:
Another Route: Non-qualified mortgage (Non-QM) loans were created for borrowers who cannot meet traditional lending standards. They have more lenient credit score requirements, but they usually come with higher interest rates and fees.
Conventional Loans:
Higher Credit Score Required: You will need at least a 620 credit score to be considered for most conventional loans. A score of 580 is low. So, it’s unlikely that this option will work out. But don’t worry—there are other ways around it, like improving your credit or finding an alternative lender.
Considerations for a 580 Credit Score:
Higher Interest Rates: People with scores around 580 can expect some high rates. Don’t let that discourage you from shopping around! There might still be deals available. Check different lenders before settling down with one specific bank.
Bigger Down Payment: Increasing the down payment amount could improve the odds of approval while allowing for better loan terms when applicable.
Recompense Factors: A person with moderate credit can still get approved if strong compensating factors exist. Examples include a low DTI ratio or stable employment history. However, this approval may be revoked at any moment, so make sure to double-check everything before applying somewhere else in case something goes wrong later on down the line.
Certainly, it is possible to qualify for a mortgage in California with a credit score 580. FHA loans are the best choice. VA and USDA programs come next if eligible. So, find lenders who can understand you better. But don’t forget those numbers. They let you stay flexible and enter into better deals later while still chasing good terms now.
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Non-QM loans (or non-qualified mortgages) have little in common with qualified mortgages (QM). The most significant differences between these two types of loans include the borrowers they serve, underwriting criteria, and flexibility in documentation. This article provides an overview of what sets them apart, as well as specific examples such as bank statement loans, DSCR loans, no-ratio loans, and no-doc loans.
What are Qualified Mortgages (QM)?
A QM loan is a type of mortgage that meets certain guidelines set forth by the Consumer Financial Protection Bureau (CFPB) under the Dodd-Frank Act. These rules were implemented to ensure consumers could repay their home loans while affording certain legal protections for lenders.
Key Features of QM Loans:
Ability-to-Repay (ATR) Rule: Lenders must verify income, assets, employment status, credit history, and other factors before approving any borrower.
Debt-to-Income Ratio (DTI): QM mortgages typically require a debt-to-income ratio below 43%.
No Risky Loan Features: A qualified mortgage may not contain any risky features like negative amortization or interest-only payments. Balloon payments are also prohibited.
Points & Fees Cap: For non-jumbo loans ($100k or more), points and fees charged at closing cannot exceed 3% of the loan amount.
Legal Protection: Lenders offering QMs are protected from lawsuits claiming they should have known the borrower couldn’t afford it.
What Are Non-QM Loans?
Non-qualified mortgage Loans are designed for individuals who don’t meet strict QM criteria. Therefore, these products allow more flexibility when underwriting them. However, they come with less legal protection for creditors and higher rates for borrowers because they represent riskier investments than their qualified counterparts.
Key Differences Between Non-QM & QM Mortgages:
Income Verification Flexibility: Non-QM mortgages may use alternative forms of income verification, such as bank statements or asset-based qualification, rather than rely solely on W2s/tax returns.
Higher DTI Ratios Allowed: Non-qualified loans can have higher debt-to-income ratios, making them available to people with more debt or lower income relative to their obligations.
Loan Features: Non-QMs can have loan features not allowed under QM guidelines, such as interest-only or balloon payments.
Borrower Profiles: Self-employed individuals and real estate investors often use non-conforming loans. These borrowers may have volatile incomes that do not qualify for regular conforming mortgage programs due to the variability in their earnings streams over time (e.g., salespeople who work on commission).
Types of Non-QM Loans
Bank Statement Loans:
Description: Bank statement loans are designed for self-employed borrowers who cannot provide traditional income documentation. Lenders review bank statements for 12-24 months to determine average monthly cash flow.
Differences from QM: Unlike qualified mortgages requiring W2s and tax returns. Non-QM mortgages use a borrower’s average monthly deposits shown on their bank statements as proof of income, allowing those with irregular earnings to qualify for home financing.
Use Case: This is ideal for self-employed individuals, freelancers, and small business owners who have strong cash flow but cannot prove it via conventional means such as pay stubs or tax returns.
No-Ratio Loans:
Explanation: In a no-ratio loan, the lender does not calculate or verify the DTI ratio. Instead, it relies on criteria such as credit score, assets, and down payment for approval.
Different from QM: While no-ratio loans look at a borrower’s overall financial situation, QM loans require a strict DTI calculation.
Use Case: No-ratio loans are helpful for people with high net worth who have many assets but get earnings irregularly, which would make their DTI ratios too high.
No-Doc Loans (No Documentation Loans):
Explanation: Income documentation is either optional or very limited with no-doc loans. The main factors considered during the approval process are credit score, down payment, and assets.
Different from QM: Unlike QM loans that need full income, employment, and asset documentation, no-doc loans allow borrowers to qualify without giving traditional documents.
Use Case: It is mostly used by individuals with large amounts of money in their accounts and good credit scores who want to keep their earnings private.
Summary of Differences:
Income Verification: Non-QM loans provide alternative ways of verifying income so that self-employed persons or those with non-traditional income can easily access them.
Flexibility: Non-QM loans have more flexible terms regarding DTI ratios, borrower qualifications, and loan features.
Risk and Cost: Due to their higher risk exposure, non-QMs might attract increased interest rates and lender fees.
Legal Protections: QMs offer certain protections for lenders that non-qualified mortgages lack, making them more suitable for individuals who fail to meet the standard criteria.
Non-qualified mortgages differ from bank statement loans, DSCR,no-ratio, and no-docs regarding income verification, borrower profiles, and loan flexibility. Nonetheless, they provide useful alternatives for borrowers whose needs are unmet by traditional qualified mortgages. However, this comes at an extra cost with stricter terms and conditions. Familiarity with these variations is essential for both borrowers and lenders in the mortgage industry.