Forum Replies Created
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Gustan
AdministratorAugust 22, 2024 at 4:53 pm in reply to: Can I get a mortgage without a credit score?Yes, it is possible to acquire a home loan without a credit score; however, the process differs from a traditional mortgage application. Here’s how you can get a mortgage without a credit score:
Manual Underwriting:
What is Manual Underwriting? Manual underwriting means that instead of relying on your credit score, the lender will look into what they consider more relevant, which is your financial situation. In this case, other factors are considered to determine whether you are worthy of being given credit. Examples include payment history for bills and rent, among other obligations.
Qualifying Factors: To be eligible for a manually underwritten mortgage, you must have established a strong financial track record, which includes.
On-Time Payment History: Provide proof that you pay rent, phone bills, insurance premiums, and utility bills on time every month.
Consistent Income: Show that there have been steady and regular earnings by producing pay stubs, tax returns, and bank statements.
Low Debt-to-Income Ratio (DTI): Lenders would look to see if your monthly debt payments are at most 43% of gross monthly income. Anything lower than this is considered better. Given their leniency with other aspects, this is because it implies less risk for them. The DTI ratio compares one’s debts against one’s earning ability.
FHA Loans:
FHA Loan Options: FHA loans may still work through manual underwriting FHA loans may still work through manual underwriting if you have a traditional score or even a non-traditional history. Manual underwriting allows for a more flexible approach to credit history checks, provided all other requirements are met.
Alternative Credit Data: Some FHA lenders consider alternative information during evaluation. Examples of alternative information include rental or utility payment history indicating that one can responsibly manage one’s debts. In response, these things are included in what they consider during their review exercise.
VA Loans:
VA Loan Eligibility: VA loans don’t require one to have any ratings from crediting institutions. Hence, being a veteran service member alone can make you eligible for VA loans. This is because the Department of Veterans Affairs backs them and has less stringent rules regarding credits before approval is granted.
Alternative Credit Considerations: Just like for FHA loans, some credit officers may consider alternative information such as rent or utility payments when manually underwriting your VA loan.
USDA Loans:
Rural Property Eligibility: A USDA loan is designed for individuals with low to moderate income who wish to buy homes in rural areas without a score. Manual underwriting can still be done on USDA loans. This is because the information provided meets all other criteria.
Non-Traditional Credit Verification: Non-traditional credits that could be verified through rental history, among others, could be used by a USDA lender to assess whether or not you deserve the loan.
Non-QM Loans:
Flexible Requirements: Nonqualified mortgage (non-QM) products typically have more relaxed conditions. Due to flexible mortgage requirements, non-QM loans make accessing loans easier for people without scores through this channel. However, this does not mean that if such were created, all conventional financing options would close up shop overnight. Lenders tend to have different policies on how to handle things like this, so shop around first.
Higher Interest Rates: Besides having higher fees attached, non-QM mortgages also tend to attract slightly raised interest rates. Therefore, do a thorough cost-benefit analysis before settling for any particular offer.
Building a Non-Traditional Credit History:
Document Regular Payments: Record keeping should always be included during manual underwriting. This is so that each regular payment is made, whether it’s rent or utilities. It is documented because lenders use these records to determine one’s creditworthiness.
Secure testimonials: Request references from landlords or other service providers who can confirm your timely bill payment habits.
Using a Mortgage Broker:
Finding the Right Lender: Mortgage brokers know lenders that give loans based on factors other than credit ratings. They also assist with manual underwriting by advising on what documents to collect.
In summary:
Getting a loan without a credit score may be more difficult, but it is still possible through manual underwriting and alternative credit information. What matters most is showing financial responsibility through a history of making agreed-upon payments and a steady income. And they are also keeping the debt-to-income ratio low. Moreover, an established lender or mortgage broker will make the process faster for you.
Please let me know if there’s anything else I can assist with or if you have any further queries!
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Gustan
AdministratorAugust 22, 2024 at 2:04 am in reply to: CAN I GET APPROVED FOR MORTGAGE IF I GET BANKRUPTCY DELETEDIf you delete collection accounts, charge-off accounts, late payments, or other non-public reporting derogatory credit tradelines, those do not matter and it will not be triggered during the public records search. Only public records will get discovered even though it is not on the credit report or has been deleted.
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Gustan
AdministratorAugust 22, 2024 at 12:47 am in reply to: Can a gift of equity be used to pay off debt on an FHA purchaseYes, a gift of equity can be used in an FHA purchase; however, this is meant to cover most of the down payment and closing costs. Some limitations exist when using a gift of equity to pay off debt as part of the transaction.
Things to Consider:
HUD Agency Mortgage Guidelines on FHA Loans:
Down Payment and Closing Costs: According to FHA, the minimum 3.5% down payment can be paid by the gift of equity, which also covers closing costs.
Debt Payoff: It is not common for people to use their gifts to pay off taxes, but the Federal Housing Administration guidelines allow it. Use a gift fund if it helps lower your debt-to-income ratio so you can easily qualify for a mortgage.
Lender Requirements: Lenders must record all documents regarding these transactions properly, such as stating in writing that no loan was involved and repayment is not expected. They also need to determine whether settling debts aligns with their policies based on what they know about internal procedures at different banks and national rules set forth by HUD.
Approval Process: It will work best to discuss this idea early enough with your loan officer, who should be able to tell whether such an arrangement meets the necessary conditions, depending on which they may have obtained approval beforehand from appropriate quarters since they vary considerably.
Usually, when buying through an FHA program, you would use a gift of equity for the down payment and closing costs. However, it could also pay off debt under the lender’s policy. Make sure you follow the rules set by HUD and consult with your lender about how it will affect the approval process before deciding anything.
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Financing a condotel (condo hotel) unit can be more difficult than financing a traditional or single-family home. However, there are options available. Particularly through non-QM loans. Here’s what you need to know about your choices:
Mortgage options for condotel financing
Non-QM loans
Bank statement loans: If you’re self-employed and can’t qualify using traditional income documentation, these are for you. Lenders will evaluate your income based on deposits made into your bank accounts over 12-24 months. Bank statement loans can be used for condotel units in the Florida Keys.
Asset depletion loans: Some lenders may calculate your income based on the value of your available liquid assets rather than using traditional income documentation.
DSCR loans (Debt Service Coverage Ratio): Aimed at investment properties, these mortgages consider the cash flow of the property rather than the borrower’s income. As such, they’re ideal for units within a condotel that generate rental income.
Portfolio loans
Unlike other mortgage types, portfolio loans aren’t sold on the secondary market. Instead, they’re held by the lender — who has more flexibility. Unique properties like condotels (which might not qualify under traditional loan programs) often rely on this type of loan.
Interest-only loans
For an interest-only mortgage, you’ll pay interest for an initial period before starting to pay down the principal. Some non-QM lenders offer interest-only condotel products.
Jumbo loans
You might need a jumbo loan if the condotel is considered a high-value property. These are offered by non-QM lenders with more flexible standards regarding condotel financing.
Bank statement loans for Florida Keys’ condotels?
Yes, bank statement mortgages can finance a Florida Keys-based condo-tel purchase. Even traditional lenders do not offer funding options, given their unique nature. Still, there are always non-QM lenders who tend to be more accommodating regarding these types of loans.
What should I do next?
Contact a non-QM lender: Talk with one of these lenders specializing in non-QM loans about your condotel financing needs.
Prepare documentation: If you’re going for a bank statement loan, get 12-24 months’ worth of statements together to prove your income.
Consider investment potential: If the condotel will generate rental income, a DSCR loan might also be good. This is because it considers how much money can be made from renting out property like yours.
These choices offer flexibility for financing a condotel unit. This is especially true in hotspots like the Florida Keys.
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Gustan
AdministratorAugust 22, 2024 at 12:29 am in reply to: Can Conventional Loan Appraisal Be Transferred to Different LenderA normal loan assessment can typically move from one lender to another. However, this depends on some conditions:
Key Points:
Lender Cooperation: The appraisal must be released by the first lender to the second lender. Some lenders may want to do something other than this. They might have paid for the appraisal upfront and don’t want to give it away for free.
Appraisal Independence: An appraisal must satisfy the Appraisal Independence Requirements (AIR) to be eligible for transfer. This means an AMC or some other independent process ordered it, so no undue influence is involved.
Acceptance of New Lender: The new lender should agree to accept transferred appraisals. However, some lenders may need an appraisal under their name to ensure it meets their underwriting standards.
Time Sensitivity: Appraisals usually have a validity period (normally around 120 days). If you move outside of this window, you may need another valuation.
Process:
Request the Transfer: You or your original lender must request the report on your evaluation’s transfer to its new home with another bank.
Complete Required Forms: The new lending institution may require certain documents or forms when processing this.
Verification by New Lender: They will examine whether everything is alright based on their views about what all appraisals should contain, etcetera.
Considerations:
Costs: Even if appraisals are transferred between institutions, there might still be costs associated with verifying them and updating them where necessary.
Delays: Transferring can sometimes take too long; thus, if you know that time is running out, it might be wiser to order another one.
It is possible but also complex since both sides must act according to rules set by regulators. Therefore, it is recommended that you contact all parties involved.
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Gustan
AdministratorAugust 21, 2024 at 11:04 pm in reply to: CAN I GET APPROVED FOR MORTGAGE IF I GET BANKRUPTCY DELETEDDeleting a bankruptcy from your credit report might help you qualify for a mortgage sooner, BUT not so FAST. I know credit repair companies that can delete bankruptcies, foreclosures, deed-in-lieu of foreclosure, short sales, judgments, tax liens, student loan defaults, child support judgments, and other derogatory credit tradelines. The automated underwriting system will not pick up the deletions and render an approved/eligible per AUS. The above derogatory credit tradelines are public records. All mortgage lenders do a national third-party, public records search on each borrower during the mortgage process. However, lenders frequently keep internal records or require standard waiting periods after a bankruptcy discharge, regardless of the report status. Mortgage lenders verify financial history outside credit reports, through third-party national public search vendors such as Lexis Nexus, Data Verify, or other Public Records Search Companies. Therefore, deleted bankruptcies and other public records will be revealed during the national public records search. Borrowers with deleted public records, such as bankruptcies and foreclosures, won’t get mortgages approved without meeting wait requirements. Talking to a loan officer is the best way to determine what will work in your case.
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Gustan
AdministratorAugust 21, 2024 at 10:19 pm in reply to: FANNIE MAE SHORT-SALE GUIDELINES ON CONVENTIONAL LOANSA conventional loan for a home can be granted to a buyer five years after the sale when they have already paid 5% of their mortgage. The following are some basic details:
Waiting Period for Conventional Loans After a Short Sale
Standard Waiting Period: The usual time to wait before qualifying for a conventional loan after a short sale is four years.
Exception: Sometimes, lenders will consider that the short sale was due to unavoidable circumstances, such as a job loss or serious health problem. Then, reduce the waiting period to 2 years, which is uncommon and often requires solid documentation.
Down Payment Requirements
Minimum Down Payment: For those who have waited out the four years, usually a 5% down payment required
Higher Down Payment: If your credit score suffered from this event. Some lenders may want more money upfront as an extra assurance against riskiness.
Credit Score Requirements
Good Credit: You typically need at least a 620 credit score to qualify for a conventional loan; however, higher scores (680+) might be necessary after experiencing short sales for best terms.
Rebuilding Credit: Restoring one’s reputation by not making late payments is crucial. I am avoiding significant negative marks on the record after having undergone such a process as selling property below its market value.
Other Considerations
Debt-to-Income Ratio (DTI): Your ability to manage your new mortgage payment and other debts will be assessed based on your DTI ratio, which must fall within acceptable limits set by your lender.
Reserves: If further cushioning against default risk is needed, the lender may require that the borrower have a certain amount saved up, which can cover several months’ worth of mortgage payments.
As long as you meet the minimum four-year waiting period and can put at least five percent down on your prospective home. You should qualify for a standard type of loan. Work on getting your credit score up to par and ensure that your debt-to-income ratio is reasonable so the deal goes through without problems.
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Gustan
AdministratorAugust 21, 2024 at 9:12 pm in reply to: What is it Like Owning a German Shepherd For a Family With KidsI have always had and have had multiple dogs at the same time all my life. From Labrador Retrievers to Old English Mastiffs to toy breeds, Great Danes. However, I have never seen such a smart, intelligent dog as a German Shepherd. My first dog was a female German Shepherd named Jeannie—my best buddy on this planet. My long-coat male German Shepherd Chase is hands down the smartest. Dog next to Jeannie. Eighteen months old and doesn’t need training. Picks things up by eye contact. I highly recommend a long-coat male German Shepherd if you plan on Getting a fog, Chad. I got him when he was eight months old. He’s leash-off-trained and follows me wherever I go. He sure loves ❤️ his red ball. He comes and gets me with eye contact. I can’t say no to my buddy. The breeder became my friend, so if you are in the market for a German Shepherd with great DNA and bloodlines, I will introduce you to Dan Ivenovic, who breeds German Shepherds and Doberman Pinschers. Great guy. I want to get another Long-coat Male German Shepherd from Dan Ivenovic.
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Gustan
AdministratorAugust 21, 2024 at 8:32 pm in reply to: What is it Like Owning a German Shepherd For a Family With KidsMore pictures
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