Forum Replies Created
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Gustan
AdministratorAugust 18, 2024 at 6:17 pm in reply to: Non-Qualified Mortgages Versus Qualified MortgagesQM Loans: Qualified-Mortgage Loans
The Consumer Financial Protection Bureau (CFPB) has strict criteria for classifying loans as qualified mortgages. One of them is a cap on debt-to-income ratios at 43%. Other criteria include prohibiting interest-only payments, common among risky loans, and ensuring borrowers can repay their debts.
Non-QM Loans: Non-Qualified Mortgage Loans
Non-qualified mortgages, on the other hand, don’t adhere strictly to QMs, but they still provide safe and responsible lending. These loans offer more flexibility to cater to unconventional income sources such as self-employment, investors, or people with credit challenges.
Key Differences between Non-QM and QM Loans:
QM loans have stringent guidelines, making them less risky. In contrast, non-qualified mortgages have higher risks and typically attract higher interest rates.
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Gustan
AdministratorAugust 18, 2024 at 12:29 am in reply to: Can You Streamline Refinance an FHA and VA Loan With a DPA SecondSuppose you have a non-forgivable down payment assistance (DPA) second mortgage. In that case, you may still qualify for an FHA or VA streamline refinance. However, the DPA second mortgage would need to be subordinated. The second lien holder must agree to remain in a subordinate position behind the new FHA or VA loan. This is necessary because streamlined refinancing deals only with your first mortgage; all current subordinate liens must stay put to continue with refinancing smoothly.
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Gustan
AdministratorAugust 18, 2024 at 12:25 am in reply to: HOW MUCH ARE CLOSING COSTS ON FHA and VA Streamline RefinanceClosing Expenses on FHA and VA Streamline Refinance:
FHA Streamline Refinance Closing Prices: Usually vary between 2 % and 5 % of the loan amount. These include things like charges for appraisals and titles, as well as other fees charged by lenders.
VA Streamline Refinance (IRL) Closing Costs: Similar to FHA, the closing cost is usually about 2%- 5% of the loan amount but can be lower because there’s no need for an appraisal or income verification.
VA Funding Fee: This is usually around half a point (0.5%) but can vary depending on whether someone qualifies with their status as an eligible veteran or not. Sometimes, this fee gets waived entirely.
Rolling Closing Costs: Certain costs may be rolled into an FHA loan while others cannot; alternatively, both the funding fee and some closing expenses can be rolled into a VA streamlined loan.
The process from Application to Closing:
Application: Submit a streamlined application with reduced documentation required.
Approval: Because there is less underwriting involved in these programs than in traditional refinances, approval tends to happen fast
Closing: Sign papers and complete all remaining steps necessary to finalize a refi transaction, such as wiring funds.
In general terms, one should expect little difference regarding overall cost. However, each lender may have different fee structures associated with their products. Hence, it pays off to always ask questions upfront!
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Having a pet monkey can be an interesting and exciting experience since they are highly intelligent creatures with distinct personalities similar to children. Videos of domesticated monkeys, like the one in Vietnam named Lilly, often reveal their playful and loving character, bringing much happiness to people who watch them. Nevertheless, caring for pet monkeys demands great dedication due to their intricate necessities for survival, which require special attention. Therefore, anyone interested in knowing more about this topic should watch such videos as they will entertain and educate you on some things about these animals!
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To check your credit scores without spending a dime, visit Credit Karma, Credit Sesame, or AnnualCreditReport.com. These services allow you to monitor your credit reports and scores to understand how you’ll qualify for a mortgage.
Minimum Credit Scores for Buying a House
FHA Loans: 580 (3.5% down payment) or 500 (10% down payment).
Conventional Loans: Usually 620 or higher
VA Loans: No official minimum score requirement exists, but most lenders want at least 620.
Review your scores and talk to a lender about your chances of approval.
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Several factors can hold up a home closing, including:
Loan Approval Delays: Underwriting issues, documentation requests, or last-minute financial changes can delay approval.
Title Issues: Problems like unresolved liens or unclear ownership can prevent the title from being cleared.
Appraisal Discrepancies: Renegotiations or delays may occur if the property appraises for less than the purchase price.
Inspection Issues: Necessary repairs or disputes over inspection findings can cause delays.
Final Walkthrough Problems: Unresolved issues during the final walkthrough can delay closing.
Addressing these factors proactively can help avoid delays.
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Forward and Backward Mortgages: What Are They?
Forward Mortgage: A conventional home loan that requires you to repay the mortgage over time by making monthly payments to a lender. You gain ownership as you repay the borrowed amount.
Reverse Mortgage: This type of mortgage is usually used by individuals at least 62 years old or older; it enables them to convert some portion of their home equity into cash. In most cases, the creditor will only ask for repayment once you sell your house, move out permanently, or die.
Main Contrasts:
Payment Direction: In forward mortgages, money is given to lenders, whereas in reverse mortgages, lenders give money to borrowers.
Utilization of Equity: While forward ones build it up, backward ones tap into this resource.
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Gustan
AdministratorAugust 18, 2024 at 12:00 am in reply to: WHAT FICO MODEL DO YOU LOOK AT FOR FHAIn the case of Federal Housing Administration mortgages, the standard practice for lenders is to employ FICO Score models 5, 2, and 4. These represent the versions used by the three major credit bureaus as follows:
Experian: FICO Score 2
Equifax: FICO Score 5
TransUnion: FICO Score 4
These are a little older and sometimes used because they are more conservative. They better reflect what a lender wants to know about your credit history. Additionally, ensure that you ask your mortgage officer what version they need to approve an FHA loan for you.
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Gustan
AdministratorAugust 17, 2024 at 11:07 pm in reply to: WHAT IS THE MAX DTI ON CONFORMING LOANSThe maximum debt-to-income (DTI) ratio of conventional loans typically depends on the lender and the borrower’s financial profile.
Generally:
45% DTI: Most lenders consider this the standard maximum, especially if the borrower has no strong compensating factors. For borrowers with credit scores below 700 FICO, the automated underwriting system will cap the debt-to-income ratio at 45%.
50% DTI: Some lenders may allow up to a 50% DTI if the borrower has higher credit scores, larger down payments, or other compensating factors. For borrowers with credit scores higher than 700 credit scores, the automated underwriting system will approve debt-to-income ratios up to 49.99% on conventional loans.
The exact limit can vary, so it’s important to check with individual lenders regarding their specific guidelines.
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