Bruce
Loan OfficerForum Replies Created
-
Generally, commercial loan officers have at least some formal training, which they obtain through various methods.
Such as:
Commercial loan officer education: The majority of commercial loan officers possess a degree in finance, economics, business, or any other related area, which is a minimum requirement for the job.
Education and Attitude.
Commercial loan officer certification: Agents must have certifications, and Licensing Bodies, such as the Independent Community Bankers of America, offer the Certified Commercial Loan Officer (CCLO)
After this, an exam must be passed, and Continuing Education is required to keep up-to-date with new developments.
Experience is vital in this profession. When they enter the workforce, most commercial loan officers hold graduate-level positions, and they are trained by their seniors and other experienced professionals in this field.
Workshops, seminars, and online courses on new commercial practices and changing regulations are examples of continuing education opportunities for them.
SBA, Hard Money, and Factors Training Modules: Some institutions conduct specialized classes on underwriting specific types of commercial loans, such as factoring and accounts receivables, including SBA or hard money loans. Such modules equip learners with specific skills and knowledge pertinent to those areas. In this article, let us look at a few of the designated certifications and loan officer training programs on commercial loans:
Selective Commercial Loan Officer Certification level 1 (CCLO)
Offered by: Independent Community Bankers of America (ICBA)
Program: Commercial Lending Institute
Details: This is training that encompasses credit risk evaluation, loan structuring, risk assessment, and compliance oversight management. It includes formal learning as well as practical elements.
Requirements: Students must complete the institute’s program, take an examination, and complete the requisite compulsory fields of ongoing education.
Certify them as Lender Specialists (SBA)
Offered by: Other members, including NAGGL
Details: Programs focus on specific aspects of SBA loans, including the prerequisites, underwriting, and packaging. Courses may include the many variations of SBA loans, including SBA 7(a), SBA 504, and many more that require many specifications.
Format: Combination of online courses with webinars and offline workshops.
American Leading Commercial Lending Academy (ALCLA)
Offered by: American Bankers Association (ABA)
Details: This is an all-inclusive module that absolutely deals with the essential training, which incorporates credit risk management, evaluation of the financial statement, loan design, and legal facets that touch on commercial lending.
Format: One week-long rigorous program, usually located in different places in the US.
Hard Money Loan Training
Offered by Various private lenders training institutions.
Details: Such programs deal with the particularities of hard money lending, which include risk assessment, loan and collateral structuring, property valuation, and legal issues related to the loan.
Format: Online courses and training, workshops, and mentorship programs.
Factoring and Accounts Receivables Training
Offered by: International Factoring Association (IFA)
Details: The training included fundamentals of factoring, risk factors, legal factors, and operational factors. Advanced courses may include international factoring, supply chain finance, and management.
Format: Seminars, conferences, in-person and online courses.
These programs build up comprehension and necessary skills for commercial loan officers in every field they specialize in.
-
FHA DPA WITH 600 FICO
Yes, an FHA loan is still obtainable even with a low FICO of 600.
The following points must be taken into consideration:
Minimum Credit Score: 3.5 percent of the down payment requires FHA loans, but as an adequate score, you are eligible. The requirement will start at a minimum loan score of 580.
That said, scores above 580 will allow a 3.5% minimum requirement.
Down Payment Assistance (DPA): Some DPA programs include FHA 100 and FHA 200, which assist with the 3.5 percent minimum down payment.
Such programs target low and moderate-income earners and assist in 3.5%- 5% DPA’s.
Loan Terms: Most FHA loans have agreeable terms, including the 30-year fixed mortgage. The DPA can be made repayable or forgivable on a program basis.
Eligibility: Most programs will, quite the reverse anti-climatically, require the DPAs to be used mainly by first-time homebuyers.
The following points are crucial: FHA down payment assistance (DPA) regarding how down payment assistance works in general:
FHA Down Payment Assistance Programs
Types of Assistance: DPA programs can be grants or loans but may vary in gross pay.
Repayment isn’t needed for grants, while monthly loan payments can take several forms, including no payments whatsoever or low payments, which are more typical of a mortgage.
Eligibility: These programs’ general concept and structure target first-time homebuyers and borrowers from low—and moderate-income families.
Depending on the location, the specific eligibility criteria may also vary from state to country or municipality.
Application Process: To apply for DPA, you must partner with a third-party company that deals with assistance provision.
If you received assistance from the organization where you worked, it can be used to pay the down payment and closing costs associated with an FHA loan.
Examples of Programs:
Florida Empowered DPA Program: It serves first-time home buyers by providing the needed assistance in obtaining a home by offering programs to cover their down payment and lowering their interest rates, among other loan programs.
CBC Mortgage Agency: Provides a second mortgage with no interest and runs for 30 years to help with 3.5 percent of the purchase price.
Chicago Housing Authority: Assists approved applicants by providing a grant to help cover the down payment cost.
-
Bruce
MemberOctober 26, 2024 at 2:09 am in reply to: How do 401k Loans Effect a Mortgage Application?For these types of loans, does it matter if you have a 401k in the first place? Can you borrow from it and still be eligible?
Good question! It is safe for me to say that having a loan against your 401k will not be a disqualifying factor for any mortgage applications you make in the future.
There are noteworthy points to take into consideration, which include:
DTI: Generally, a loan against a 401k does not get counted in the DTI ratio, a major consideration factor for lenders. This is because 401k loans are not reported to credit bureaus.
Credit Score: To my satisfaction, most 401k loans are not reported to credit reporting agencies; therefore, one’s credit score will not be impacted. Based on the seniority of the 401k, there should be no problem when applying for a mortgage.
Down Payment: It is also feasible to consider using the funds/ amounts raised with a loan against your 401k as a down payment on a house if the loan can be paid promptly.
Repayment Terms: Whenever a loan is undertaken, it comes with a set of terms that need to be agreed upon to avoid penalties and ensure that retirement savings are not negatively impacted.
When checking an applicant’s mortgage-friendly ratio, most lenders see applicants’ (k) loans as a liability.
However, it is wise to consult a mortgage lender or financial adviser before making the decision to make a prudent financial decision. Excellent contrast in question! In the general case, a customer who has taken out a 401 (k) loan could say this not on the resize of the mortgage loan application.
Consider the following factors to be true:
Debt-To-Income Ratio (DTI): One regrettably cannot include a 401k loan in their DTI ratio, which is an important field case in any mortgage loan application. This is because 401k loans are never reported to the County Deed and Recorders Office.
Credit Score: 401k loans do not have credit bureaus, meaning they do not have negative reports. So, one does not need to be concerned about having a 401k loan when applying for a mortgage.
Down Payment: Some buyers apply for a 401k loan, hoping to use the funds as a down payment when purchasing a house. One might say,” Yes, that is a good plan as long as they have plans to repay the loan anyway.”
Repayment Terms: Making repayments as originally stipulated and signing the agreement helps one avoid situations where they have to pay the 401k loan penalties and, worse, affect retirement.
A 401(k) loan can be removed from the mortgage application. Consider talking to a mortgage lender or a financial advisor to determine the effects of your course of action on your overall well-being.
-
Obtaining a mortgage when self-employed and ready to put the business on hold for 4-6 months is difficult but not impossible. Here is how lenders assess and approach this type of situation:
Relying on Only One Year’s Tax Returns
FHA and Conventional Loans:
- In most situations, lenders request at least two years of taxable income returns for the self-employed to ascertain that the individual is earning a steady income.
- Nevertheless, other lenders are positive, especially concerning the FHA, where one-year tax returns are accepted.
- This holds as long as the individual has been self-employed for at least a year and the tax returns for that year have positive figures.
Non-QM Loans: Non-QM stands for Non-Qualified Mortgage. Non-QM loans make the qualification criteria less stringent. One may also qualify using a year’s tax return or a bank statement. However, non-QM loans come at higher interest and require a bigger down payment.
Effect of the Business Closing
Income Stability: For reasons attributable to other income sources, lenders would also be looking to satisfy themselves by ensuring a permanent and relatively stable income, especially for self-employed borrowers. Interruption of normal activities by taking a break or temporarily closing the business could cause you to have concerns about your capacity to repay the loan even if you have good tax returns for that one year. It is expected that the lenders will want to know what you will do to earn income during a business closure.
Explaining the Gap: In this case, the lender will expect you to submit a letter outlining why you are abandoning the business, how long you intend to do so, and how you expect to fund your operations for that duration.
Compensating Factors
You realize that, because of the closure of your business, you will be incurring some risks. As such, you need compensating factors to counter the risks.
Larger down payment: In most cases, the more the down payment (e.g., for instance, more than 25% on the first shooting), the lesser risk that the lender takes on you
Strong assets/reserves: To qualify for the loan even when the business is not operational, it is important to have enough asset reserves to sustain mortgage payments for several months.
Low Debt-to-Income (DTI) Ratio: Keeping a DTI ratio within manageable levels will help demonstrate the ability to service the creditable amount when the business is up and running.
Alternative Loan Options
Bank Statement Loans: Several lenders offer bank statement loans meant for the self–employed, who receive self-employment income rather than their tax returns to determine income. This could be an option if you’ve been earning high income for several months and plan to shut down the business for now.
Non-QM Loans: These loans allow borrowers to qualify differently, such as not requiring a traditional income verification. If you intend to close your business, this may be a great option since you had a good income last year.
Preparing for the Application
Stay Current with All Payments: Ensure you are current on all debts and obligations, including taxes and other loans.
Provide Strong Documentation: In addition to your tax returns, be ready to provide additional documents such as profit and loss statements, bank account statements, and a projection of how you intend to finance yourself during the business’s closure.
Summary:
FHA and Conventional Loans: Requiring two years of tax returns is common. However, a few lenders may require one year for reasonable income and compensation factors.
Non-QM Loans: More flexibility and a better feeling regarding the closure of your business considerations.
Lender concerns: You must discuss how you will survive without income during the period your business will be closed. To calm the lender, you may need to make better deposits or have more reserves.
Given your explanation, are you interested in targeted lender options or structural tactics to optimize your mortgage application?
-
Bruce
MemberOctober 3, 2024 at 9:59 pm in reply to: MORTGAGE APPROVAL WITH 590 CREDIT SCORE IN TEXASEven with a 590 credit score mortgage in Texas, you can be approved for some mortgage loans. Still, the mortgage amount you qualify for depends not only on your credit rating but also your income, DTI ratio, and the loan to value.
FHA Loan
When you have a 590 credit score, you are already in the range for an FHA loan geared towards the lower end of the market. This is what you should know:
Down Payment: With a credit score of 590, you may be able to get the minimum 3.5% down payment required for the FHA loan.
Loan Amount: Each state determines its loan limitation based on certain criteria determined by the FHA. For instance, in Texas, the loan limits for single-family homes in most counties range from $498,257 to $809,150 and can depend on the county. However, the actual loan amount you will be approved for will be determined by your income, DTI, and property value.
DTI Ratio: The standard DTI ratio acceptable by most lenders is 46.9% front-end and 56.9% back-end. At the same time, age factors that might affect this DTI allowance include compensating factors serving as the main rationale, such as large down payments or savings.
Conventional Loans
Conventional loans usually present the highest challenge as they require a very high credit score, and with a score of 590, it might prove to be rather difficult. However, the minimum credit score on conventional loans is 620.
Larger down payment: In this case, you must have a 3-5% down payment.
Higher interest rates: Regarding Conventional loans, lower credit ratings imply greater risk to lenders and, thus, higher rates. This means your monthly payments will be high. So will the maximum amount that you would be entitled to?
Non-QM Loans
This is where non-QM (Non-Qualified Mortgage) loans come into play or for those who are unable to qualify for FHA or conventional loans. Such loans are made available to individuals who do not adhere to conventional mortgage norms, with lower credit scores being the main consideration.
Such loans:
- Credit guidelines may be less stringent.
- Often, a higher initial payment is made (usually 10%-20%).
- Don’t come cheap.
- These loans carry relatively higher rates.
Loan Estimate Example for FHA
- Suppose you want a loan to purchase a $300,000 house in Texas.
- You would pay about $10,500 to cover the mortgage down payment, which would be 3.5%.
- Your maximum loan request would be $289500.
- However, your approval will be altered if other factors, such as your income and debt-to-income ratio, are considered.
Summary:
FHA Loan: This is probably your best option. It requires a down payment of 3.5%, and the loan limits are reasonable.
Conventional Loan: A higher credit score and a larger down payment are required to get approved for this loan.
Non-QM Loan: This could be a very useful resource if you cannot take other mortgage categories but have much more down payment and higher interest rates on loans or the cost of loans.
Would you like to see Texas FHA loan limits for specific counties or simulate different loan amounts?
-
Bruce
MemberOctober 3, 2024 at 9:48 pm in reply to: MORTGAGE APPROVAL 16 MONTHS INTO CHAPTER 13 REPAYMENTYou can get an FHA loan while still in Chapter 13 bankruptcy if you meet certain conditions. HUD, the parent of FHA, allows borrowers in Chapter 13 bankruptcy to obtain a mortgage, provided they meet the following criteria:
Payment History
- You need to have completed at least 12 months of on-time payments on your Chapter 13 bankruptcy repayment plan.
- You meet this requirement since you’ve made one year and four months of on-time payments.
Trustee Approval
- You will need written approval from the bankruptcy trustee to take on new debt, including an FHA mortgage.
- Your bankruptcy trustee must confirm that you’re financially stable enough to manage the bankruptcy payments and a mortgage.
Manual Underwriting
- Because you’re still in active bankruptcy, your loan will likely go through manual underwriting.
- Lenders will assess compensating factors, such as:
- Stable employment history.
- Low debt-to-income (DTI) ratio.
- Demonstrate financial responsibility during your bankruptcy repayment period.
Credit Score
- While FHA loans are more flexible with credit scores, having a score of at least 580 will give you better terms.
- Some lenders might even accept lower scores with compensating factors.
- If your credit score is below 580, you may still qualify but need to make a larger down payment (typically around 10%).
Other Loan Requirements
- You’ll need to meet the basic FHA loan requirements, such as a minimum 3.5% down payment (if your credit score is 580 or higher) and verifiable income to ensure you can afford the loan.
Lender Flexibility
- Not all lenders offer FHA loans to borrowers in Chapter 13 bankruptcy.
- It’s important to find a lender experienced with this type of situation.
After Discharge or Dismissal of Chapter 13
- Suppose you wait until your Chapter 13 bankruptcy is discharged or dismissed.
- In that case, you’ll need to wait at least two years from the discharge date before qualifying for an FHA loan without additional conditions, such as trustee approval.
Would you like more information on finding lenders specializing in FHA loans for Chapter 13 borrowers or help preparing your documentation?
-
Bruce
MemberSeptember 23, 2024 at 5:38 pm in reply to: Eligibility Requirements for Unsecured Credit CardsEligibility requirements for unsecured credit cards can differ from one issuer to another. However, there are some factors that most credit card companies have in common. An overview of such ‘common’ eligibility criteria can be provided as follows:
Age:
Applicants must be of majority age and above (18 or 21, depending on location. min).
Credit Score: Generally, an unsecured card is available to applicants for a credit score of 600 or above. Generally, higher than 700 scores will benefit cardholders from rewarding and better cards. Unsecured cards are targeted at fair credit holders and cover scores of 640 and higher.
Income: Stable and verifiable income must be shown. A minimum monthly income is required. Income varies depending on the card issuer and the type of card applied. Debt to Income Ratio (DTI): Preferred ratios should be lower, with the majority being 40-50% and lower.
Employment Status: Either steady employment or a dependable source of income is mostly a requirement. Citizenship/ Residency: Most cards require housing, US citizenship, or permanent residency. A few may be offered to non-resident aliens with an SSN or ITIN.
Credit History: Which considers the age and structure of the credit history? Absence of recent bankruptcies, defaults, or any serious delinquencies.
Previous Relationship with Issuer: A few issuers prefer applicants with accounts with them.
Address Stability: The requirement for a permanent residential address may appear on some application forms.
Educational Background: Some student credit cards might require verification of enrollment in higher education.
Financial Responsibility:
There has been no misuse in terms of abuse of credit cards and or fraud. Timely payments in the past 24 months are a must.
Existing Credit Limits and Accounts:
The number and type of existing credit accounts can also be the qualifications.
Recent Credit Applications:
A lot of applying for credit can make it hard to get approval.
Specific Card Requirements:
High-end credit cards can sometimes include additional requirements, such as premium income or even the best credit accounts.
Relevantly, the applicant should remember that the fact that state requirements have been satisfied doesn’t guarantee he will be granted a credit card. Every issuer has its own rules related to underwriting. Some, but not all, issuers provide a pre-qualification function to check the potential for getting a credit card without having hard credit checks done.
For those with limited or poor credit history, an affordable credit builder card or student credit card (if applicable) may be offered. These cards can assist in establishing credit and pave the way for applying for an unsecured credit card.
Every cardholder needs to observe the following steps before proceeding with an application:
Ensure that the information used to generate a credit score is correct, especially if a firm advises or assists in improving a client’s creditworthiness.
Identify certain cards that are suited to your credit background.
Pre-qualification helps when there is an opportunity to do so.
Remember to decrease the number of applications because of the consequences of several hard pulls on your report.
Lastly, always remember that prudent credit card management is vital to building and maintaining one’s credit health.
-
VA Streamline Refinance Application, popularly known as the VA IRRRL, is a streamlined refinance loan for borrowers with a current VA loan. No income documents or appraisals are required. Homeowners with a current VA loan can do a VA streamlined refinance with a lower rate to lower the monthly mortgage payment, where they can save tens of thousands of dollars on the course of their VA loan. Most VA streamlined refinance (VA IRRRL) takes a week to two weeks to close. VA streamlined refinance is unlike a traditional VA loan mortgage process. The only documents required are the VA loan monthly statement and mortgage verification. Suppose the current mortgage rate is 0.75% or lower than your existing VA loan. In that case, you will benefit from a VA streamlined refinance mortgage. There is no money out of pocket for closing costs, and most homeowners get to skip one full month of mortgage payment.
Interest Rate Reduction Refinance Loan (IRL).
As follows:
Check Eligibility Infrastructure
- VA Level Qualification: A service member qualifies as an applicant under the VA loan program.
Current Loan: A VA Streamline Refinance is meant to be used by someone with a current VA loan. Documentation Certificate of Eligibility COE
- This can be either from the VA or from the lender.
- Financial Documents Below are some of the documents that are important about financial documents.
- Latest mortgage statement.
Research Lenders
Find Lenders for VA Approval Loans.
When it comes to getting VA loans, searching for proper lenders or banks that make VA loans is necessary. This is because these are the people executing the transactions. There is a site where information about VA mortgage lenders and other approved services is available for veterans.
Compare Rates and Terms: As much as the process of gearing towards procedures that involve the loan refinancing, be sure that you do indicate the part, the interest, and the period that the equity loan to be sought will be.
Submit Your Application For The Loan
Fill out the Application: Once you have decided about the type of loan you wish to take from a specific lender, you complete the application with the lender. Most of the time, this is expressed earlier by someone at the office or on the web.
Choose the Type of Loan: In this case, you would wish to have VA Streamline Refinance information.
Get Supporting Documents Drafted
Filed documents (handing over)—Organization documents will be filed with relevant lenders when necessary and within control. If required, such documents are on hand in other places. Such documents may include COE and recent mortgage ethics, which center on making appointments and skipping offices to identify clients’ income and pay slips.
Review Loan Estimates
Loan Estimate: During the processing of the application for a special loan/application, the applicant will be provided with a Loan Estimate that indicates other costs involved apart from the principal. Also, some other related terms will be necessary during application processing for the original cost of that loan.
Compare Offers: You should keep some Copies of Scans of the Loan Estimates or any other documentation issued by other Loan Lending Institutions to protect yourself from being put in an untenable position.
Loan Processing
Timing: The applications shall be submitted to the lending institution after all the documents are completed, including verifying the transactions and the applicant’s credit history.
No Court Document Required: Due process must be followed. For instance, an appraisal of the house for the reason of VA Streamline Refinance is not performed as a traditional mortgage process. No income verification or appraisal is required. Therefore, the entire process can be completed in a relatively short period.
Closing the Loan
Awareness comes in after the loan has been closed. Once the VA streamline refinance loan is processed, a closing disclosure is issued to you. This contains the repayment of the loan plus other extra charges that you are likely to incur in closing the loan.
Sign Documents: A closing is normally scheduled at your home, and a closer will stop by with the VA streamline refinance mortgage documents.
Start Making Payments
Payment of New Loan Amounts: Payment is generally within 45 to 60 days after closing a new loan. Cash-out is not an option on VA streamline refinance.
-
Unfortunately, there are millions of people who don’t care about the qualifications of the Presidential candidate. They will vote someone like the biggest hypocrite brainless lying sack of shit that will run the United States into the ground than vote for Donald Trump 🙄