[Bruno]

TFC and Innovis are lesser known to the Big 3. They can provide factual reporting on the consumer’s history. Experian and TransUnion provide a full overview of an individual’s credit health. Still, monitoring your credit with any agency is mandatory, as each has its strengths.

[Bruno]

Yes there is.

[Bruno]

When qualifying for lender credits or seller concessions to pay closing costs, there are several important things to consider. Let’s take a look:

Lender Credits

What They Are: In exchange for an increase in the loan interest rate, the lender will offer money to help cover the closing fees.

Qualification:

Credit Score: A higher credit score, on average, makes it easier to qualify for lender credits.

Loan Type: Certain loan programs might have specific policies regarding lender credits.

Debt-to-Income Ratio (DTI): A lower DTI increases your chances of qualifying for lender credits.

Impact on Loan: While it lowers the cash you must pay out of your pocket at closing, the increased loan fee may mean a greater portion of the monthly payment due to the larger interest charged.

Seller Concessions

What They Are: Usually part of the purchase agreement, a seller concession is an allowance by the seller toward the buyer’s closing costs.

Qualification:

Negotiation: Seller concessions may be easier to obtain in specific markets. For instance, sellers are more likely to concede during a buyer’s market.

Contract Terms: The exact dollar amount of the desired concession must be indicated in the purchase agreement.

Loan Type: Different loans cap the amount the seller can pay towards a closing cost, which is usually between 3% and 6% of the purchase price.

Market Conditions: In a competitive market, sellers may be less likely to make concessions, while in a slow one, they may be more ready to help.

Tips on Obtaining Concessions or Credits

Engage an Experienced Agent: A real estate agent with good knowledge of the local market can help to negotiate better for seller concessions.

Be Open. One option, which may depend on your wider approach to closing dates and other terms, is paying the seller’s concessions.

Dealing with Lenders: Mention to your mortgage broker or lender upfront about the possibility of any credit items that the lender may offer, and based on your profile, advise which options are available to you.

That said, it is not “easy” to qualify for lenders’ credits or seller concessions. However, it is possible with the right approach and conditions. Awareness of barriers, such as finances and market dynamics, will help you navigate this process.

[Bruno]

I can understand your frustration with the difficulties of an FHA refinance. Consider these suggestions, which may make more sense of your situation.

Current FHA Refinance Landscape

Market Conditions: Depending on the economy and interest rates, lenders’ penetration in any given market might change as policies are standardized within any given company. In such cases, lenders lower their requirement thresholds, which may create unnecessary bottlenecks in the system.

Manual Underwriting: Contrary to automated underwriting, manual underwriting requires a more detailed approach and often requires a longer conclusion period. This could also be the reason for the combination of the paperwork you have endured, as the documentation process may take considerably more time in some cases.

Your Situation

Secure Employment: Your case has a very strong point regarding over three years and upwards of two W-2 jobs. However, to receive positive feedback regarding this assumption, ensure your lender receives all relevant and sequentially required papers.

Good Payment History: Considering these are the only sore points to satisfy your case, never missing a mortgage payment in your record is remarkable. The fact that most other criteria in your application should also be met leads me to presume a positive outcome.

DTI: Agreed that a high DTI may be cause for concern, however, as your income has considerably increased, this is likely to help her logic. More than likely, expect the factors influencing your DTI ratio to come into play more than often.

LTV Ratios: Generally speaking, FHA loans could have high ratios, subject to specific lender provisions. If you stand at nearly 80%, having some cash to close could bolster the case you are trying to build.

Feedback from Lenders: While I understand this has been your experience, poor information flow between you and lenders is regrettable. However, there’s always a silver lining to every cloud. Stay constructive and ensure you’re ringing the likelihood for updates quite often.

Recommendations

Seek Specialized Lenders: Target lenders who are more versed in dealing with FHA-insured loans and manual underwriters. They might deal with more problematic scenarios, such as the one you are in.

Documentation: The completeness and clarity of the relevant documents are ensured. Remember to include copies of tax returns, pay stubs, financial documents, etc.

Consider a Mortgage Broker: If you are not currently working with a broker, find someone experienced in getting FHA manual underwrites. They could have the right connections, which helps, and they are more intense on follow-up.

Timeframe: Manual underwriting can take some time, and it should be familiar to you if it falls within weeks of the appointment. Chat with your lender for the required information.

Alternative Options: If you do not receive timely feedback from United Wholesale Mortgage, it would be best to immediately commence searching for other lenders. Sometimes, it does help to have other lenders view your case.

You are among many who find the current refinancing scenario difficult and frustrating. If you choose to look elsewhere, you can contact one of the local lenders in Phoenix, AZ, who are known for performing FHA manual underwrites. Good luck, and I hope you are able to sort out the situation quickly!

[Bruno]

Mortgage Prequalification and Canceled Mortgage Payments

Requirement: In most cases, mortgage lenders only call for the 12-month period, which is never required – Such specifics and requirements don’t exist. Don’t get me wrong. They will demand proof of payments on loans, but not limited to.

Still, they may seek documentation that demonstrates payment performance history on debts, which includes, though not limited to:

• Statements from banks.
• Affidavits showing rent was paid.
• Payments made by debtors on debts.

Focus: The core area of concern for lenders is what they call ‘underwriting credit review,’ which consists of the borrower’s credit score, debt-to-income ratio, and repayment history.

Removing Debt Settlement Records

A record of a debt settlement can be removed from a credit report: On average and typical of the average person, a debt settlement will stay on their credit report for an average of 7 years from when it was settled. Unfortunately, there was no fast approach to achieving this.

What to do?

Remove the errors: Where some errors pertain to the debt settlement that you do not think are correct, you can dispute them with the reporting agencies.

Seeking for Credit Removals: Ensure you pay your bills on the correct day and cut down the balances of the credit cards you own while not making them negative by getting another account.

What You Should Know About Achieving a 700+ FICO Score When Will It Be Possible

Estimated Achievement Timeframe: It is possible, with a necessary amount of work, to achieve a 700+ score of FICO one year after the discharge of the bankruptcy case, but it will not be challenging as many factors come into play. Here are some tips that can aid you in improving your score.

685+ FICO: It is very important that all bills are paid on the due date to achieve a perfect payment history, which greatly augments your score among the three danger areas rated.

Credit Utilization: Maintain your credit card balances at less than 30 percent of your available credit.

Build Positive Credit: Use secured credit cards or small installment loans to establish a positive payment record.

Supervise Your Credit: Focus on your credit history and occasionally review your credit report for mistakes.

Although canceled checks are not usually necessary for a mortgage, it is important to maintain consistent payments. Removing a debt settlement from your report may be lengthy; however, keeping a good financial reputation will help elsewhere. Obtaining a FICO score 700 within a year after going bankrupt is quite optimistic. Still, it can be achieved if one is hardworking and responsible with credit.

[Bruno]

When comparing single-family homes, multi-family homes, and apartment buildings for investment, each type has its advantages and challenges regarding cash flow. Here’s a breakdown to help you determine which might be best for cash flow:

Single-Family Homes

Pros:

Easier to Finance: Single-family homes are generally easier to finance with conventional loans, often requiring lower down payments.

Higher Demand: They typically have a larger pool of potential buyers and renters, appealing to families and individuals.

Less Management: Management can be simpler since you deal with one tenant or family.

Cons:

Limited Cash Flow: Cash flow can be lower than multi-family properties since you rely on a single rent payment.

Vacancy Risk: If the property is vacant, you have no rental income to cover expenses.

Multi-family homes (Duplexes, Triplexes, Fourplexes)

Pros:

Higher Cash Flow: Multi-family properties generate multiple rental incomes, significantly increasing cash flow potential.

Economies of Scale: Operating costs (maintenance, management) can be lower per unit than those of single-family homes.

Reduced Vacancy Risk: If one unit is vacant, you still have income from the others.

Cons:

Management Complexity: More tenants can lead to more management responsibilities and potential issues.

Financing Challenges: Securing financing can be more complex compared to single-family homes.

Apartment Buildings

Pros:

Maximized Cash Flow: Apartment buildings can provide substantial cash flow due to the large number of rental units.

Professional Management: Larger properties often benefit from professional property management, reducing the burden on owners.

Diverse Income Streams: The vacancy rate can be better managed with multiple units, providing more stable income.

Cons:

Higher Initial Investment: The purchase price and financing requirements are typically much higher than for single-family or multi-family homes.

Increased Risk: Market fluctuations can impact cash flow significantly if the property is not well-managed.

Best for Cash Flow: Multi-family homes and apartment buildings generally offer better cash flow potential than single-family homes due to multiple income streams and reduced vacancy risks.

Consider Your Goals: Ultimately, the best choice depends on your investment goals, risk tolerance, and willingness to manage tenants. If you prefer a more hands-on approach and are ready to deal with the complexities of multiple tenants, multi-family or apartment buildings may be ideal. Conversely, single-family homes could be better if you prefer simplicity and lower management.

[Bruno]

I’m happy to hear that! Down payment assistance programs can be very helpful for homebuyers, especially in a very competitive state like Florida. For example, the HERO DPA home purchase program is one such cooperative that is meant to assist more individuals and families in owning their own homes.

Cheers to Angie Torres for her coordination efforts at Gustan Cho Associates, a dba of NEXA Mortgage. Her change in attitude and perspective towards these programs enables homebuyers to combat financial obstacles when buying a home.

But suppose you or someone you know is planning to buy a house in Florida and thinks these programs could be useful. In that case, I’d advise that you consider the options and consult people like Angie Torres for assistance.

Do you have any further queries or concerns about down payment assistance or home purchasing in the Florida region?

[Bruno]

The way you see compliments and constructive criticism is quite illuminating. Constructive criticism is beneficial for one’s development, helping one improve and grow. If compliments are merited, they can also reinforce effort and commitment.

Kevin DeLory and Eddy G. Perez Jr. have the characteristics of great leaders, which are essential for the backbone of a successful company such as EPM. Leaders such as Christian Sorenson can motivate and engage employees, which is part of the company’s culture.

It’s good to know you think so highly of the opportunities they have opened up, especially in making it possible for many to own a house. Acknowledging the success of such leaders is quite encouraging, especially when a clear vision and honesty drive it.

Your recognizing and accepting their input and constructive feedback is a nice testimony to equilibrium within business and personal growth. Keep nurturing that sense of growth and gratitude—it can change individuals and whole corporations.

Please let me know if you have any more ideas or need help!

[Bruno]

The loan applicant’s credit is a factor considered in determining whether financing a boat or yacht is relatively easy or difficult, depending on the particular lender’s requirements. This includes the boat borrower’s profile and income. Let’s look at some internal structures when financing a boat or yacht.

Understanding the Difficulty of Financing a Boat or Yacht

Approval: The lenders will primarily focus on your credit score, income, DTI ratio, boating experience, vessel type, and vessel value.

Particular Lenders: Most lenders are marine lenders, and while you have plenty of options, the process is simpler than taking out an auto loan.

The Maximum Ratio of Debt to Income

General Requirements for a DTI: Lenders tend to restrict a DTI ratio to 43% or less, but some allow up to 50%, especially if the borrower possesses strong assets.

Boats Loan Terms for Yacht

Amortization Conditions: A yacht and a normal boat might have different prices. However, amortization terms are standard, and you can get a loan anywhere between 15 and 25 years.

30-Year Terms: While rare, a few lenders might advertise across a 30-year amortization with a $700,000 or even higher yacht. However, each lender can have a very different set of terms.

Requirements for Credit Scores

Basic Requirements: Generally, a minimum credit score of 650 or above is preferred to qualify for a boat.

A score of at least 700 is sometimes needed for larger yachts or apex conditions per one of the boating requirements.

Obtaining a Yacht at 700,000

Amortization for 30 Years: Although infrequent, it is likely to acquire a 30-year amortization for yachts. For such a priced yacht, most lenders may suggest a shorter twenty or fifteen-year term, depending on the type and age of the yacht.

Locating Marine Financing

Locate prominent lenders in yacht financing: Listing options include seeking lenders with attributes tailored towards yachts. Some of them are:

• Bank of the West: Offers expansive options on marine loans.
• Wells Fargo provides loans for items beyond the recreational range, such as boats and yachts.
• LightStream: This lender offers an online loan, but the question is whether the loan applies to boat purchasing or yachts.
• Suntrust, known as Trust, provides boat financing at a higher interest rate.
• SeaDream: This loaner operates in a different format and lends with a focus on providing loans to help buy boats and yachts.

Other Terms

Down Payment: Roughly be prepared for a down payment of four twenty percent or higher for a mortgage similar to the above. Other points worth remembering include whether employment qualifies and which lender you choose.

Insurance: Most lenders will add the vessel’s insurance vessel’s insurance in their financing agreement.

Documentation: Ensure income, credit history, and the vessel are correct. Ensure that any financial issues are rated under the same documents.

Planning and awareness of lenders’ needs are essential to properly financing a craft or a yacht. If possible, have a strong credit score and a low acceptable DTI ratio to increase the rate of acceptance. Look for niche finance providers and select based on your specific criteria. If you have other inquiries or need more support, don’t hesitate to ask!