[George]

According to HUD guidelines and most local building codes, a deck that is more than 30 inches above grade typically requires a railing for safety. The railing height usually needs to be at least 36 inches high. However, these guidelines can vary based on local building codes, so it’s important to check with your local jurisdiction to ensure compliance with specific FHA requirements and local regulations.

[George]

To qualify for a 3.5% down payment FHA loan, you need a 580 credit score. To qualify for an FHA loan with credit scores between 500 to 579 FICO, you need 10% down payment. As long as you have been timely on all of your payments in the past 12 months and meet the minimum debt-to-income ratio of 46.9% front-end and 56.9% back-end, you can qualify for an FHA loan and get an approve/eligible per automated underwriting system.

[George]

If you lose your job right after buying a home, it’s important to act quickly. Here are some steps to consider:

1. Contact Your Lender: Your lender will transfer you to the workout department. The workout department will work with you and give you a loan forbearance or loan modification until you find new work.
2. Inform them of your situation; they may offer forbearance or other options.
3. Review Your Finances: Determine how long you can cover mortgage payments with savings.
4. Unemployment Benefits: Apply for benefits to help with income.
5. Seek New Employment: Start job hunting immediately.
6. Staying proactive and communicating with your lender is key to managing the situation.

• This reply was modified 5 months ago by  Sapna Sharma.

[George]

The general timeline from preapproval to “clear to close” on a home loan is 30-45 days. However, it can depend on several factors. Here’s the breakdown:

Preapproval:

It usually takes 1-3 days. This includes credit checks, income verification, and preliminary asset reviews.

House hunting and offer acceptance:

It could be days to months. Depending on market conditions and buyer preferences

Loan application: One day to submit a formal application after the offer acceptance.

Processing: 1-2 weeks: Lender gathers and reviews all necessary documentation.

Appraisal: 1-2 weeks to schedule and complete. It can take longer in busy markets.

Underwriting:

1-3 weeks Review of all documentation. May request additional information.

Conditional approval:

Usually, it is within the underwriting timeframe. The Lender may request additional documents or clarifications.

Clear to close:

1-3 days after all conditions are met Final review by underwriter

Total typical timeline:

30-45 days from offer acceptance to clear to close. It can be as quick as 21 days or up to 60+ days or more.

Factors that can affect the timeline:

Loan type (conventional, FHA, VA, USDA, NON-QM).

Borrower responsiveness in providing documents.

The complexity of the borrower’s financial situation.

Property issues (e.g., appraisal problems, title issues).

Lender’s current workload.

Market conditions.

Tips to speed up the process:

• Respond quickly to lender requests.
• Have all documents ready in advance.
• Choose an experienced lender and real estate agent.
• Be prepared for additional requests or clarifications.

Remember “clear to close” is not the final step – you still need to:

• Review the Closing Disclosure (usually three business days before closing).
• Do a final walk-through of the property.
• Attend the closing to sign the final documents.

Every loan is unique so that actual timelines can vary. It’s always best to stay in close communication with your Lender and real estate agent throughout the process to obtain the most accurate timeline based on your situation.

[George]

Fannie Mae and Freddie Mac credit score guidelines is 620. You need a minimum of a 620 credit score to qualify for conventional loans. This includes owner-occupant and second home conventional loans as well as investment property conventional loans.

[George]

The smallest amount for non-QM loans depends on the lender. It is commonly between $100,000 and $150,000. This is to prevent breaking high-cost mortgage regulations. High-cost regulations state that fees must be within the set limits for these mortgages, such as 5% of their value. These rules also require non-qualified mortgage lenders to carefully structure their loans to avoid violating them while still meeting customer needs. This is especially true if they borrow a small sum. Below is an example showing what I mean by saying ‘minimum loan amount for non-qm (non-qualified mortgage) loans’:

High-Cost Mortgage Regulations

These fall under HOEPA, which stands for Home Ownership Equity Protection Act.

It aims at shielding consumers from predatory lending practices

Thresholds of High-Cost Mortgages

Normally, a loan is considered high cost if its APR exceeds the Average Prime Offer Rate (APOR) by:

• 6.5 percentage points in case of first lien transaction or:
• 8.5 percentage points when dealing with subordinate liens transactions.

Minimum Loan Amounts

• There isn’t any specific minimum figure across the board for non-QM loans.
• Mostly, lenders set their levels based on profitability and the risk involved.

Common Minimums:

• Most non-QM lenders establish minimums in the range of 100k to 150k.
• Some may go down as low as $50k or $75k.
• Hardly will you find them below $50k.

Factors Determining Minimum Requirement:

• Fixed costs related to origination & servicing.
• Each lender performs a risk assessment individually based on the borrower’s profile.
• Including credit history and income levels.
• The target market is served by particular lenders, such as consumer type (subprime borrowers).

Regional Differences:

Minimum amounts could vary depending on local real estate markets, where properties might have lower values, calling for reduced minimum thresholds accordingly.

Comparison With QM Loans:

Non-QM loans generally have higher minimums than conventional or government-backed mortgages.

Ways of Avoiding High-Cost Classification:

Lenders package their loan products carefully so as not to activate the status of being categorized under high-cost mortgages.

This could mean adjusting interest rates, fees, or loan amounts.

Policies Differ By Lender:

Every non-QM lender has its own rules, which must be followed by all parties involved.

Some lenders specialize in larger loans, while others focus on smaller ones.

Other Options For Small Amounts:

• When borrowing small sums, you may consider personal loans or home equity lines of credit (HELOC).
• It should be noted that there is no strict regulatory minimum for non-QM loans.
• Lenders often set minimums because it makes business sense.
• These can differ greatly between companies and are subject to change based on market conditions.

The best source for current information would be specific non-QM lenders since policies vary widely. Also, remember that interest rates and qualification standards are usually tougher with non-QM mortgages than with qualified mortgages.

[George]

Approve/Eligible” means that Fannie Mae’s DU (Desktop Underwriter) has found that the loan application is eligible for the program applied for. An approve/eligible per automated underwriting system findings shows that the borrower’s credit profile, income, and assets fit with what is acceptable under automated approval guidelines. So, standard documentation should suffice to move forward. Generally, an “approve eligible” finding is regarded as positive. An approve/eligible per AUS FINDINGS is viewed favorable because it suggests that if everything checks out okay during verification. This type of mortgage will usually be approved. Basically, “Approve Eligible per DU Findings” relates to conventional mortgages. Conventional loans, often called conforming loans, are home loan products often obtained by people who need to borrow large sums over long periods at fixed rates. The mortgage loan is secured against their property, such as houses or apartments; let us now examine these words separately.

DU (Desktop Underwriter):

• Fannie Mae’s automatic underwriting system was created to simplify and streamline mortgage lending processes.
• Lenders can use this software when they want quick results without much human input.

“Approve Eligible”: These words from the system meet Fannie Mae’s requirements.

Definition: It has passed initial underwriting based on certain criteria specified under different sections within Fannie Mae’s guidelines.

Implication:

• Normally, this indicates a strong possibility for approval.
• This may lead to faster processing times because some steps may not have to be performed manually.

Not final decision:

• Though favorable, it is still subject to further review and verification by the lender.
• Requires confirmation through documentation provided for every aspect stated therein.

Next step:

Upon receipt of these findings, lenders should carefully study all conditions indicated thereunder and seek clarification where necessary prior to seeking additional documents from the borrower.

Advantage:

It saves time taken during the manual evaluation process, especially compared with other types of loans whose assessments require more paperwork.

Conditions:

Various requirements stated under each sub-section must be met before final approval can be granted, but some examples include:

Lender’s prerogative:

Even if recommended as “approve eligible,” lenders can still decline applications based on their overlays, which are additional criteria they set over and above those provided by Fannie Mae.

Comparison with FHA:

There are similarities between this term and one called “Accept” under FHA’s TOTAL Scorecard system.

How long is it valid?:

These findings usually remain valid within a given period, like 120 days. Hence, applicants may need to rerun their application through the same system after expiry.

What does “Approve Eligible per DU Findings” mean in mortgage language?

This implies that your initial level of automated underwriting has been passed according to Fannie Mae’s guidelines. AUS approval signifies a positive indication of loan approval. Still, some requirements need to be fulfilled before the final decision is made by a lender who may also have extra conditions apart from those set forth by FNMA. Therefore, this step provides an industry-standard evaluation of creditworthiness for borrowers seeking conventional loans where financial institutions try to identify whether or not they should buy these mortgages.

[George]

Hard Money Loans:

Hard money loans are fleeting, resource-supported advances primarily used for land and real estate ventures. The property ensures these credits and, as a rule, has higher financing costs and shorter terms than customary advances. Hard money lenders center more on the property’s worth than the borrower’s creditworthiness. Hard money lenders are more concerned about the loan-to-value of the real estate rather than the borrower’s financials or credit scores. Hard money loans are for investment and commercial properties. You cannot have hard money lending on owner-occupant homes due to Dodd-Frank and TRID rules and regulations.

Private Money Loans:

Private money loans resemble hard money loans yet are financed by private people or small organizations rather than institutional loan specialists. They are likewise utilized for land and real estate. Private money loans are more adaptable in terms of conditions and prerequisites. The two advances are mainstream for fix-and-flip projects and fast closings.

[George]

The answer differs for each divorce agreement and how the property is titled. The following is a breakdown:

Property Title

Joint Tenants with Right of Survivorship: If held as joint tenants with right of survivorship, your brother’s interest in the property would pass automatically to his ex-wife when he dies, even if he has other wishes stated in his will or doesn’t have kids.

Tenants in Common: However, if owned as tenants in common, then his portion would not pass directly to her but instead go into his estate, which is distributed according to intestate laws (if no will) or testamentary provisions (if there is one).

Divorce Decree

Sometimes, divorce settlements include language about what happens if one spouse dies before everything gets sorted out. So, depending on their agreement, she may still get half.

Will or Estate Plan

If there’s a will: If your brother has a will that says his share should be given to children. They hold it as tenants in common, and this means that upon death, all rights shall vest indefeasibly with them as tenants in common being co-owners without the right of survivorship, which means that each child becomes vested with an equal, undivided interest therein.

No will: On the other hand, if he doesn’t have one, then state law takes over – most likely resulting in everything going equally among offspring