Realtor Susan
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Every kind of mortgage loan has different rules for people who have filed a Chapter 12 bankruptcy. So, let’s go over the options and waiting periods for each major loan type.
FHA Loans (HUD Guidelines):
Waiting Period: Usually one year from the discharge date.
Requirements: Must have established good credit or chosen to avoid incurring new credit obligations.
The bankruptcy must have been caused by extenuating circumstances beyond the borrower’s control.
The borrower must have shown an ability to manage their financial affairs.
VA Loans:
Waiting Period: Generally one year from the discharge date.
Requirements:
The borrower must have reestablished satisfactory credit
Financial mismanagement cannot be blamed for causing the bankruptcy.
USDA Loans:
Waiting Period: Typically one year from the discharge date.
Requirements: The borrower must have restored their good credit.
Any adverse credit issues should be explained and documented.
Conventional Loans (FNMA – Fannie Mae Guidelines):
Waiting Period: Normally two years from the discharge date.
Requirements:
- Credit must be reestablished and meet minimum score requirements.
- The waiting period may shrink to 12 months if extenuating circumstances can be supported.
Freddie Mac: Waiting Period:
- Usually, two years from the discharge date. Similar requirements to Fannie Mae.
Additional Considerations:
Credit Score: Although each loan type requires a different minimum score, higher scores can give you better chances at approval and more favorable terms.
Extenuating Circumstances: Many lenders may reduce waiting periods if your bankruptcy was a result of extenuating circumstances, such as severe illness or closure due to an employer shutting down the business.
Reestablished Credit: You will need records showing a good payment history since filing for bankruptcy.
Down Payment/Equity: A larger down payment on purchases or more equity in refinances can improve approvals.
Debt-to-Income Ratio: Must meet specific program requirements.
Documentation: You should expect to provide thorough documentation regarding your bankruptcy case, such as discharge papers, and may be asked for a written explanation.
Chapter 12 Specifics: Some lenders might have additional considerations related to farm income or operations since Chapter 12 is designed specifically for family farmers/fishermen.
Manual Underwriting: Due to the complex nature of post-bankruptcy situations, many loans will require manual underwriting instead of automated approvals.
Occupancy: Primary residences, second homes, and investment properties may have different guidelines.
Loan Purpose:
- There may be different things to consider regarding purchases versus refinances, especially cash-out refinances.
- It is important to remember that while these are general guidelines, individual lenders may have overlays (additional requirements) on top of these base guidelines.
- Working with a knowledgeable mortgage professional with experience dealing with borrowers after bankruptcy can help you find the right fit for your situation.
Also, remember that rules change over time, so always check with specific lenders or an informed mortgage broker about the current situation.
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California housing prices keep on going up. Rents in California is skyrocketing. Average rent in Los Angeles and Orange County is $4,000 to $8,000 per month. how much is an average 2,000 square feet house with 3 bedrooms and two bathrooms and a one car garage. The price of a 2,000 sq ft home with three bedrooms, two bathrooms, and a one-car garage can greatly vary depending on its location, materials used in construction, and other market conditions. Here are some general considerations and estimates:
Factors that affect the cost:
Location:
Urban vs rural areas
The cost of living index in the area
Regional real estate market conditions
Quality of Construction: Standard features versus custom finishes
The kind of materials employed.
Labor Costs:
Varies by region
Availability of skilled labor force
Land Cost:
Costs associated with buying land (these fluctuate considerably from place to place)
Average Cost Estimates:
High-Cost Urban Areas: (e.g., San Francisco, NYC, Los Angeles).
$300 – $500 per sq ft
Total Estimate: $600,000 – $1,000,000
Moderate-Cost Suburban Areas: (e.g., Denver, Atlanta, Dallas).
$150 – $300 per square foot.
Total Estimate: $300,000 – $600,000
Low-cost rural Areas (e.g., parts of the Midwest or Southeast).
$100 – $150 per sq ft.
Total Estimate: $200,000 – $300,000.
An Example Breakdown:
Urban Area Example:
Price/sqft = $400.
Total Cost= 2k * 400 = 800k.
Suburban Area Example:
Price/sqft = $200.
Total Cost= 2k * 200 = 400k.
Rural Area Example:
Price/sqft = $125.
Total Cost= 2k * 125 =250k.
In Conclusion, for an exact figure, it would be best to consider exactly where it would be built geographically and what grade-level artistry should be expected based on the current economic climate. Also, talking to some local realtors or builders may give you a better idea that is more tailored to your area.
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I definitely believe Joe Biden is senile and has been senile for many many years. Yes, folks, the United States of America has a senile old stubborn man with late stages of dementia and a first lady, Jill Biden, who thinks she is a combination hybrid of Barbie and the Queen of the World who does not give a shit about her senile old deteriorating husband but is out for her own power grab. Unbelieveable that the Democrats have put the American people and the American economy in this type of situation. What normal old man takes a shit in his pants in front of world leaders in front of dozens of global media network outlets? You have to be senile at the latest stages of dementia.
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If you want to purchase a multi-family home with two to four units using an FHA, VA, USDA, or conventional loan, follow these steps:
FHA Loan:
Down payment: 3.5% for 2-4 units
Owner occupancy required: Must live in one unit
Debt-to-income ratio (DTI): Up to 46.9% front-end and 56.9% back-end with an automated underwriting system approval.
Credit score: Minimum 580 (some lenders may require higher)
Mortgage insurance: Required.
VA Loan:
Down payment: 0% possible.
Owner occupancy required: Must live in one unit
DTI: Typically up to 60%.
Credit score: No official minimum, but lenders often prefer 620+.
Eligible borrowers: Veterans, active-duty service members, and eligible spouses.
No mortgage insurance is required.
USDA Loan:
Not available for multi-family properties (restricted to single-family homes)
Conventional Loan:
Down payment: Typically, 5% minimum down payment for 2-4 units.
Owner occupancy is required on an owner-occupant 5% down payment for two-to-four-unit financing. Investment home financing is allowed with a 25% down payment (investment properties are allowed).
DTI: Usually up to 45%.
Credit score: Typically 620+ (higher scores for better rates). Private mortgage insurance (PMI): Required if the down payment is less than 20%.
Absolutely! I have more information about these loans related to purchasing a multi-unit property. There are the FHA loan program, VA loan program, Conventional loan program, and non-QM loans. Just be aware that this breakdown excludes USDA loans that do not allow for multi-family housing.
FHA Loan:
Requirements:
You must be the property owner (you must live in one of the units).
The property must follow FHA guidelines.
Reserve requirements:
Three months PITI (principal, interest, taxes, and insurance) for two-unit properties.
Six months principal, interest, taxes, and insurance (PITI) for 3-4 unit properties.
Credit score:
Minimum 580 FICO for a 3.5% down payment.
500-579 credit scores for a 10% down payment (very rare).
Debt-to-income ratio (DTI):
Front-end ratio: Up to 31% (housing expenses to income) on manual underwriting without compensating factors. 37% front-end debt-to-income ratio on manual underwriting with one compensating factor. 40% front-end debt-to-income ratio on manual underwriting with two compensating factors.
Back-end ratio: Up to 43% (all debts to income) back-end debt-to-income ratio with no compensating factors on manual underwriting. 47% back-end debt-to-income ratio with one compensating factor on manual underwriting. 50% back-end debt-to-income ratio on manual underwriting with two compensating factors.
It can go higher with compensating factors.
Rental Income:
75% of potential rental income can be used for qualification.
Must have signed lease agreements on vacant units.
VA Loan:
Eligibility:
Veterans, active duty service members, and eligible spouses.
Owner occupancy is required (you must live in one of the units).
The property must meet VA standards.
Reserve requirements:
Generally, there is no specific reserve requirement.
Some lenders may require six-month pits for three or four-unit properties.
Credit score:
There is no official VA minimum, but most lenders like to see 620+.
Debt-to-income ratio:
Up to 60%, usually.
It can go higher with residual income consideration.
Rental Income:
75% of potential rental income can be used for qualification.
Requires documentation of property management experience or hiring a property manager.
Conventional Loan: Eligibility: Owner occupancy is not always required (investment properties allowed).
Property must meet lender and secondary market standards.
Reserve requirements: Six months pit for two-unit properties (owner-occupied) and twelve months pit for investment properties.
Credit score: Typically 620+, minimum 740+ for best rates and terms.
Debt-to-income ratio: Generally up to 45%. It can go up to 50% with strong compensating factors.
Rental income: 75% of potential rental income can be used for qualifying.
May require existing lease agreements or market rent analysis.
Non-QM Loan:
Eligibility: Varies by lender. They are often used for investors or those not qualifying for traditional loans.
Reserve requirements: Vary widely, typically 6-12 months pit or more.
Credit score: Can be as low as 500 but varies by lender.
Better terms for higher scores.
Debt-to-income ratio: More flexible, often can exceed 50%. Some programs use DSCR (debt service coverage ratio) instead of DTI. Rental income: Often allowed to use 100% of market rents. May use DSCR instead of traditional DTI calculations.
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Credit history affects VA loans, affecting the approval process, interest rates, and loan terms. These are some of its functions:
Loan Approval
Lender Confidence: A strong credit history gives lenders confidence that the borrower can repay the loan. The Department of Veterans Affairs backs VA loans, but lenders are still required to evaluate risk, and credit history is a major component.
Credit Score: While the VA does not set a minimum credit score, most lenders have their requirements, usually around 620. Those with higher scores are more likely to get approved for a VA loan.
Past Credit Issues: The lender considers past credit issues, such as late payments, bankruptcies, foreclosures, etc.; though less stringent than conventional loans, significant problems may still be challenging under VA.
Interest Rates
Lower Rates for Better Scores: Generally speaking, if you have higher credits, your interest rate is lower. This can save you lots over time throughout the life of the loan.
Risk-Based Pricing: According to lenders, their credit history determines the risk level associated with a borrower. People with better records are seen as low risks; hence, they are given good terms, including rates.
Loan Terms
Loan Amounts and Conditions: Depending on one’s credit history, how much money one can borrow through loans and specific conditions, such as down payment requirements needed for getting approved, will be affected based on these factors alone.
Flexibility in Underwriting: Flexibility in underwriting may be evident among individuals with favorable financial records since it may enable them to qualify even when other aspects do not favor their bid for borrowing money from banks or any other institution offering such services as mortgage companies, etcetera, where this could come into play during those times when individuals happen not met all qualifications related towards borrowing funds necessary so they could purchase homes under programs designed specifically, targets veterans affairs department.
Compensating Factors
Manual Underwriting: VA loans have manual underwriting for people with less-than-perfect credit. This is where compensating factors like steady employment, low debt-to-income ratios, and significant savings can offset credit issues.
Credit History Review: When lenders do manual underwriting, they dig deep into the borrower’s credit history by looking at past reasons behind defaults, etc., plus the present financial situation, which must be taken care of before approving any application for money provision from these institutions mentioned earlier about housing finance schemes targeting vets, among others.
Impact of No Credit History
Alternative Credit Assessment: If an individual lacks traditional methods of evaluating their worthiness, such as paying rent bills on time or monthly utility charges, then this may pose a challenge when trying to secure financing via mortgage firms since some still use them before considering giving out home loans based off other criteria deemed necessary within lending industry itself involving such transactions designed exclusively towards veterans affairs program beneficiaries.
Building Credit: One should build positive borrowing records, which can be achieved through timely servicing obligations arising from borrowings of different types and prudent debt management. This will increase one’s chances of getting approved for favorable terms under the VA loan scheme.
Improving Credit History
Credit Repair: Individuals whose ratings are poor could try repairing them by following steps like questioning inaccuracies identified during assessment process done by respective bureau(s), settling outstanding liabilities which might have been recorded against names (especially those related to revolving accounts) plus staying away from fresh ones altogether until such time when things stabilize financially speaking but it is advisable also seek advice where necessary vis-a-vis credit counseling services available locally or online platforms providing these kinds guidance designed specifically aimed veterans beneficiaries interested accessing facilities offered through their department relevant agencies concerned here about obtaining support required purchase homes etc., succeed over long term without encountering further difficulties related to personal finances going forward too soon after being discharged honorably military service units served thus ensuring sustainable ownership houses acquired via programs created around needs vets.
Credit Counseling: Veterans looking forward to securing a VA loan can benefit from consulting credit counselors, who will help them create plans to improve their ratings and increase their chances of approval.
Long-Term Financial Health
Sustainable Homeownership: Not only does a good credit history facilitate access to VA loans, but it also enhances long-term financial stability, which is necessary for sustainable homeownership among veterans since failure in this regard may lead to future economic challenges having already purchased houses using these facilities provided by government through various agencies tasked with responsibility over vets’ welfare programs. Even though the VA loan program is made for veterans, service members, and their families to become homeowners with fewer guidelines than most programs, it requires you to maintain a strong credit record. This factor is important because it determines if you can get approved for a loan and impacts your financial terms and overall mortgage cost. A good understanding of why credit history matters and how you can enhance yours will make one’s application more likely to pass, thus leading to beneficial results in terms of personal finance through these types of loans.
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The story of your cardiologist throws light on AI’s abilities and boundaries in the creative spheres, but mostly music. Here are the main points:
AI capabilities in music: Can compose and finish musical pieces. Can achieve technical perfection with all instruments. Understands and replicates complex musical structures
What AI lacks about human creativity:
- Passion
- Emotional depth
- The “feel” or “energy” which is hard to describe but essential for good music
There are two sides to artificial intelligence in creative industries: It is a powerful instrument for assisting and enhancing human creativity. However, it may only have that emotional subtlety with which great art can exist.
Importance of human touch in music: Performance character comes from slight imperfections or variations. Different interpretations by musicians add unique emotional layers.
AI as a tool vs. replacement: Composers and musicians can greatly benefit from AI assistance. But there is something about deep-moving art creation that only. Humans can do it.
The debate over AI & creativity continues, raising questions about creativity and artistry. This forces us to rethink what makes music truly impactful.
This example shows how amazing AI can be while at the same time showing its limitations. It suggests that although AI might create technically perfect works, they lack the soulfulness and flaws of humanity necessary for true artistic expression. It will be exciting to see where AI takes us next as it becomes more integrated into various creative fields. Will this integration fully capture or replicate human passion within these areas, such as music composition?
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Indeed, you are right that the history of Montgomery Ward and Sears, Roebuck & Co. is one of the most intriguing stories in American retailing. Let’s take a closer look at their ascent and decline:
The Rise:
Montgomery Ward:
Aaron Montgomery Ward founded it in 1872.
This was the first-ever mail-order catalog business.
It used to cater to farmers by providing them with different commodities. It grew quickly from the late 19th century to the early 20th century.
Sears, Roebuck & Co.:
Richard Warren Sears and Alvah Curtis Roebuck established it in 1892. Within a short period, it became Montgomery Ward’s biggest rival. They made the catalog more consumer-friendly and improved customer service, leading to more sales. By the twenties, Sears had already sold more items than Montgomery Ward.
Key Factors in Their Rise:
I met rural America’s requirements by offering a wide range of products at competitive prices. I used advanced marketing strategies and distribution methods. They adjusted themselves according to changes brought about by transportation systems, including communication technologies.
The Fall:
Montgomery Ward:
It could not adapt quickly enough when suburban shopping malls began rising all over America due to new highways being constructed. They struggled with poor management decisions such as squabbling among top executives, which affected workers’ morale negatively, leading to losses year after year until finally closing down always on January 14th, 2001, after filing bankruptcy twice within six months before under different ownerships altogether (the 1980s). They changed hands several times during its existence, resulting in nothing but failure every single time because nobody knew anything about running a department store like this one nor how to make money out of such businesses anyway!
Sears, Roebuck & Co.:
Started facing fierce competition from giants like Walmart, whose low pricing strategy threatened their market share, hence making them lose customers who opted for cheaper alternatives elsewhere.
Could not keep pace with technological advancements, especially e-commerce, which required heavy investment in IT infrastructure, thereby making it easier for new entrants into the online retailing sector than ever before since more people now had access to the internet worldwide compared to previous years when only a few had this privilege. Merged with Kmart but continued downhill slide until going bust thanks partly due to poor management decisions again combined effect all these factors led Sears to file Chapter 11 bankruptcy protection shortly after that, followed by shutting most stores except those located within major cities.
Key Factors in Their Decline:
Refusal or inability to adapt to changing retail environments, such as the emergence of big box stores coupled with the e-commerce boom. Loss of traditional customer base as rural populations declined over time, thus reducing demand levels significantly throughout various locations across the country, leading them towards becoming less profitable year after year since then up until the present day, where many have been closed down already. More nimble competitors are taking advantage of increased competition coming from newer players. The heavy burden associated with maintaining an extensive network comprising large physical outlets spread out nationwide, particularly since they were no longer generating enough revenues needed to cover overhead costs associated with buildings themselves, let alone staffing levels required to operate such.
Short-termism was displayed through prioritization of quick gains without considering long-term sustainability implications. Overall, this organization needed a clear strategy focus, which made it impossible for management to achieve set objectives consistently.
Lessons from Their Story: Adapting to changing market conditions and consumer preferences is important. The danger of resting on laurels, failing to innovate when necessary. Keeping up-to-date in a rapidly evolving retail world where staying competitive may prove challenging.
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To help veterans, in particular, quickly boost their credit rating for mortgage approval and better offers, the following fast-action methods can be considered:
Rapid rescoring:
Collaborate with your lender to expedite changes on your credit report. It could reflect betterment within days rather than months.
Aggressively reduce debts owed on credit cards: Strive to bring down utilization rate to below 30%, preferably single-digits. Scores can benefit instantly from this move.
Dispute errors:
Concentrate on eliminating negative items that are erroneous or no longer valid.
Use rapid rescoring so that you see the effect soon enough.
Be added as an authorized user:
Ask a relative who has good credit to put you into their account.
Their record of timely payments could enhance your score.
Ask for higher credit limits:
It can rapidly reduce the ratio of used versus available balance.
However, take care not to make hard inquiries during the process.
Make use of Experian Boost or similar programs:
Include utility and subscription service bill payments in reports.
Pay-for-delete agreements:
Request removal of collections upon payment.
Ensure all deals with agencies are documented.
Goodwill letters concerning late payments: Appeal to creditors’ kindness by asking them to erase occasional lateness records. Accordingly, every such application might cause a temporary reduction in your score.
Bring all accounts current: Give precedence to bringing those needing to catch up if there are any.
To speed up the credit improvement process, Contact your mortgage lender directly, as they can use speed optimization services. Provide evidence of recent positive changes, such as debt settlement and error correction. It usually costs around $25-$50 per account per credit bureau.
Pay credit card debts aggressively: Start with the highest-utilization cards first. If necessary, deplete savings or request a salary advance. Make several monthly payments so that the balances remain low.
Ensure that payments are reported before submitting a mortgage application.
Dispute errors:
Visit annualcreditreport.com to acquire your free credit reports. Find mistakes and gather supporting documents for each one. Online disputes should be filed with each credit bureau (Equifax, Experian, TransUnion)
Reach out to creditors directly if need be.
Important correspondences should be sent using certified mail.
Get authorized as an additional user:
Find someone you trust who has high-rated family members on their cards. Ensure their card issuer reports authorized users’ activities to all bureaus tracking consumer credits. Just being added there brings benefits, though physical access is optional. Opt for accounts with longer histories and lower utilization.
Ask for higher credit limits: Contact issuers through phone or online. Give details about your current income when prompted by the customer care representative attending to you. Seek clarity on whether asking for an increase will lead to hard inquiries.
Start with those cards whose ownership period is longer than others.
Utilize services like Experian Boost: Sign up for Experian Boost via online platforms only. Link bank accounts securely as required by this process. Choose eligible positive payments, which can then be appended to your file containing records of borrowings.
Pay off debts in exchange for removals: Write letters to collection agencies demanding they remove all negative items from your credit report. Pay off the entire debt only after they have confirmed their agreement to do so and you have obtained a written copy of it.
Get in touch again to make sure the item is indeed removed.
Send friendship letters if you have late payments:
Explain what led to this one-time incident involving delayed payments in writing and address it directly to the creditor responsible for reporting it. Also, remind them how timely all other obligations were consistently met before this isolated event occurred. Be polite yet brief with such communication, including account numbers and dates when overdue amounts are due. Direct those messages to executive offices or departments specially designated by lenders for handling goodwill requests related to delinquencies.
Avoid seeking new credits:
Forbid any attempts at obtaining fresh lines of credit altogether. In cases where additional borrowing becomes inevitable, ensure soft pulls are used only during prequalification stages. Only authorize hard inquiries after closing the mortgage loan application process.
Bring accounts up-to-date:
Start by dealing with the ones that have recently fallen into arrears. Contact relevant institutions regarding negotiation terms, which might include periodic payment plans. Use tax refunds and other occasional inflows to offset outstanding dues speedily. Once each delinquency has been settled, request forgiveness coupled with deletion.
Remember, when implementing these tactics:
Record everything done step-by-step on paper or computer files kept offline (or both). Frequently check your credit reports using online facilities provided free of charge annually by major bureaus like Equifax, Experian, and TransUnion. Keep sharing updates about what you’re doing with your mortgage broker, who needs that kind of information from time to time. Don’t give up too quickly; some methods take longer than others – sometimes even months – before yielding visible improvement.
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Of course! Here’s a step-by-step guide to using an FHA 203(k) loan for solar panel financing, including qualification start up steps, the pre-approval process, and mortgage process:
Step One: Understand The FHA 203(K) Loan
The Federal Housing Administration’s (FHA) 203(k) loan is a government-backed mortgage that allows homeowners to finance home improvements into their mortgage. This includes solar panel installations. There are two types of 203(k) loans: the Standard 203(k) and the Limited 203(k). The Limited 203(k) is typically used for solar panels, covering non-structural improvements up to $35,000.
Step Two: Eligibility Requirements
Property Type: Must be a single-family home or multi-unit property (up to four units).
Credit Score: Minimum credit score typically required is 580; however, some lenders may require higher scores
Income: Must meet FHA income guidelines
Occupancy: Property must be borrower’s primary residence
Step Three: Prequalification
Self-Assessment: Evaluate your financial situation including credit score, income and any existing debts.
Research Lenders: Find FHA-approved lenders with experience in 203(k) loans.
Initial Consultation: Speak with a lender about your eligibility and get an idea of your borrowing capacity.
Step Four: Pre-Approval Process
Application: Fill out a loan application with your selected lender. You will need to provide:
Personal identification (ID, social security number)
Employment history and income verification (W-2s, pay stubs, tax returns)
Authorization for credit report
Pre-Approval Letter: Based on the information provided, the lender will determine if you prequalify for the loan amount requested and provide you with a preapproval letter.
Step Five : Find A Contractor
Choose Reliable Contractors: Partner with reliable contractors who have been in the business for long enough and know how to follow FHA regulations.
Stay Updated: Keep talking to your lender consistently so that you understand what is going on with your loan and the installation. One way of enhancing energy efficiency in your home is through solar panels financed by FHA 203(k) limited loan which spreads payments over life time of mortgage. Seek guidance from lenders well-informed about this type of loan as well as experienced contractors to help you go through it without any hitches.