Loan Officer Tom Miller
Loan OfficerForum Replies Created
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What are the specific income limits eligibility for Kamala Harris $25,000 homebuyers grant?
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What Credit Score Model Do Mortgage Lenders Use?
Mortgage lenders will most often focus on the FICO score and use the FICO Mortgage Score models to address the loan applications as processed. However, VantageScore is not utilized by mortgage lenders when making lending decisions. The FICO score is regarded as the mortgage industry benchmark in this case, considering that it was established before VantageScore, reflecting the depth of borrower-assessed risk assessment in the mortgage industry.
Is VantageScore Higher Than FICO?
VantageScore and FICO are built using different models so that scores will vary, often to great extents. The VantageScore is relatively less harsh in some respects, for instance, treating medical collections or allowing shorter credit histories. Therefore, you will probably see that your VantageScore is better than your FICO score. However, this is not always true; the variances are based on each person’s credit profile.
Do Mortgage Providers use a FICO or VantageScore?
Mortgage lenders typically use FICO scores, while VantageScore credit scores are not used. This is because mortgage companies do not use VantageScore, but it is widely accepted in credit monitoring and other purposes, such as personal loans and credit cards. In fact, the FICO score models used by mortgage lenders are proprietary to the mortgage industry and incorporate more information about long-term financial viability.
What is the Fico Score Used By Mortgage Providers?
- Only a particular version of the FICO score is employed for mortgages.
- These are called FICO Mortgage Scores.
- They are not applicable in precisely the same way across all credit bureaus:
- There is a FICO Score 2 (Experian)
- FICO Score 4 (TransUnion)
- FICO Score 5 (Equifax).
These versions of the FICO score were created to predict the risk associated with the mortgage market. Therefore, they are much more risk averse than FICO 8 or FICO 9, employed in the personal loan or credit card industries.
The Comparison of VantageScore with FICO. How Far Off Is It?
- VantageScore can be miles apart from FICO.
- For instance, one might spot a slip of 30-50 on one of the scores above.
- Factors include your average age and the last credits or holidays you had.
- How VantageScore treats issues like collections or missed payments compared with FICO influences the exact variance.
- This difference leaves one stranded when checking the mortgage window if the only score available is the VantageScore.
Which FICO or VantageScore Models Are Used In FHA, VA, USDA, Fannie Mae, Freddie Mac, and Non-QM Loans?
- FHA, VA, and USDA loans have the same FICO models that normal mortgage lenders hold.
- FICO 2 (Experian).
- FICO 4 (TransUnion).
- FICO 5 (Equifax).
- In the same breath, Fannie Mae and Freddie Mac would use these respective FICO models in underwriting conventional loans.
- Unlike their name, non-QM loans (Non-Qualified Mortgages) also utilize normal practices and procedures regarding FICO mortgage scores.
- Still, some lenders often allow variation in the mortgage underwriting criteria.
What Is A Good Fico Score For Mortgage?
A good FICO score for a mortgage will depend on the loan type as follows:
- Conventional loans (Fannie Mae and Freddie Mac) mostly require a minimum credit score 620.
- However, those scoring 700 or above can get favorable rates and terms.
- FHA Loans: Allows a minimum FICO score of 500 with a 10% down payment.
- Or 580 with a 3.5% down payment.
- VA Loans: There is no official minimum FICO score for VA loans.
- 620 is a common number lenders usually require.
- USDA Loans: USDA loans do not require a minimum credit score.
- However, most lenders have overlays and will require a minimum FICO score of 620 and above.
Non-QM Loans: Non-QM lenders have more elasticity. The FICO score requirement is generally 620, down as low as 500 in the most vulnerable support.
Summary of Key Points:
- Mortgage lenders assess the FICO score.
- This includes FICO 2, 4, and 5 Scores per the credit bureau.
- Mortgages are never obtained with VantageScore.
- It is normally higher than FICO as the scoring methodologies vary.
- A credit score of 620 or higher in FICO is acceptable for conventional loans.
- However, there is more scope for lower scores for FHA and Non-QM loans.
FHA, VA, USDA, and conventional loan institutions use the FICO mortgage score models, not VantageScore.
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The real estate industry has shifted a lot with the settlement of 2024 by the National Association of REALTORS®. The National Association of REALTORS (NAR) responded to antitrust lawsuits challenging the traditional handling of real estate commissions. Below is a summary of what this agreement means, how it affects realtors, and what buyers and sellers should take into account:
Main points outlined in NAR Settlement
Commencement Date: The new regulations will be operational on August 17th, 2024.
Commission Changes: Sellers were typically requested to pay their agent’s and buyer’s commissions. But now, according to this settlement, sellers are no longer mandated to pay the commission meant for agents representing buyers. Instead, purchasers will have to negotiate on their behalf and be responsible for paying fees charged by their agents.
Written Agreements: Buyers must enter a written agreement with their real estate agent before touring any homes. This agreement should clearly state how much money will go towards compensating agents and include other things. It must also indicate that commissions are negotiable.
Implications for Real Estate Agents
Realtor’s New Ways: In a world where commission offers are no longer shown on MLS listings, realtors must be transparent about their compensation while dealing with customers directly through negotiations.
Heightened Competition: Due to buyers’ selectiveness based on paid services, there could be increased competition among real estate professionals. This would result in lower commission rates.
Upheaval Within The Industry: Some people worry about whether purchasers will still make many requests if they have doubts about paying for these services out of pocket, which they never wanted before. This would lead to a decrease in demand for buyer’s agents, limiting their choices.
Who Stands To Gain From This Agreement?
Homebuyers: The fact that buyers can now determine how much money is given towards payment of their real estate agents creates an environment where things are clear and can be cheaper, too.
Sellers: It may cost less since they can no longer pay the buyer’s agent commission.
What Does This Mean For Buyers And Sellers?
You will need to think twice as hard about each party involved in a transaction, especially when you want to buy or sell:
If you are a homebuyer, plan for your real estate agent’s commission, negotiate terms one-on-one with them, and know what services the said person will offer.
If you are a home seller, concentrate on bargaining only for your agent’s commission without considering the buyer’s side.
This is a big shift in how real estate transactions have been done. It might make things easier for sellers but more complicated for buyers. Agents must learn these changes quickly to remain helpful under such circumstances.
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No doubts you are correct. Human trafficking and exploiting children are serious issues that must be dealt with seriously. It is important to handle such matters carefully, making sure there is enough evidence before taking any step or making public allegations. The right thing to do is report any worry through appropriate channels like the police or anti-trafficking organizations so that investigations can be conducted in proper way fairness maintained. Baseless accusations may ruin lives of innocent individuals while at the same time deflecting attention from real urgent cases which require intervention.
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Yes, please. Can you please elaborate on all aspects of HOA and home buying in Florida. Are only condominium complexes have homeowners association or do single-family homes and townhomes belong to homeowners association? I know family and friends who live in Florida in single family homes and are being charged $700 per month. That is the cost of another mortgage. How many percent of homes and condos are part of an HOA in Florida? What does this percentage compare to the rest of the states in the nation?
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What will mortgage rates be in 2024? How do U.S. Treasuries affect mortgage interest rates? How does the Dow Jones Industrial Average affect mortgage rates? Why are mortgage rates going up? What makes mortgage rates go down? When will U.S. Treasuries go down? What is pushing mortgage rates down? What is mortgage rates forecast in the next five years?
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Wisconsin Property Taxes: Essential Facts and Tips
Wisconsin’s Property Tax Cap
No state law in Wisconsin limits yearly property tax increases across the board. However, local governments must comply with levy limits, which cap how much they can raise yearly property taxes. These limits are meant to control the growth of property tax levies but do not directly cap individual bills.
Age-Related Property Tax Exemptions
The state of Wisconsin has set up several programs to help reduce property taxes for seniors:
Homestead Credit: This is available to low-income homeowners, including senior citizens, based on household income.
Veterans and Surviving Spouses Property Tax Credit: Eligible veterans or their surviving spouses receive relief from this program.
Municipal Programs: Some municipalities provide additional property tax relief programs for seniors, even though no state law entirely exempts people from paying them at a certain age.
Challenging an Overvalued Property Assessment
To Challenge a Property Assessment in Wisconsin, Do The Following:
- Check Your Assessment Notice: Ensure all details about your home and its assessed value are correct.
- File An Appeal: Submit a formal appeal within a specified timeframe to the local Board Of Review/Assessment Appeal Board.
- Gather Evidence: Support your case using comparable properties’ values, recent sale prices, and other relevant data.
- Professional Help: If you need assistance with your appeal process, hiring a real estate attorney or professional appraiser who specializes in such matters may be wise.
How Increased Assessed Value Affects You
When the Assessor’s Office raises your assessed value, they have determined that more money should be charged for taxes than before. Unless taxation rates decrease correspondingly, there will be a higher bill overall due to increased valuation alone.
Why Do My Property Taxes Go Up?
- Market Value Increases: Higher demands and rising real estate prices lead to this phenomenon.
- Reassessments: County assessors periodically revalue properties to reflect current market values accurately.
- Government Spending: Higher local government expenditures on services provision and infrastructure development can also result in heavier burdens on homeowners through their respective taxing authorities.
Recent Changes In Wisconsin’s Real Estate Market And Its Effects On Homeowners’ Tax Bills
Property owners, particularly those residing in Kenosha County, Racine County, Milwaukee County, etc., have experienced significant hikes because of soaring house prices. This is followed closely by mass appraisal activities undertaken by assessors, which confirm upward trends visible throughout the entire State of Wisconsin over time.
What To Do If You Can’t Afford Your New Higher Taxes?
Payment Plans: Find out whether your county offers any options concerning payment plans regarding outstanding debts owed against properties located within its jurisdictional boundaries.
Exemptions and Credits: Apply all possible exemptions and credits to reduce taxable income before calculating the total amount due annually. Downsize, Relocate, and Move into smaller affordable housing areas where living costs are lower, especially when the burden becomes unbearable.
Avoiding Paying Property Taxes In Wisconson
Moving around might lessen tax deductions on earnings received from various investment sources. Still, complete avoidance is impossible without engaging in fraudulent activities like hiding wealth offshore trusts, etc., so better still try these alternatives instead – apply every eligible exemption credit available, relocate to cheaper taxing jurisdictions, take part in deferment schemes offered here if any else pay full dues always cause trouble later.
Higher National Average Comparisons To Other States
Compared nationally speaking, although some states have lower rates than others, they remain higher than average rates since most revenue needed to fund government functions comes thus indirectly via the education sector. Hence, significant disparities exist between different municipalities due to varying levels of dependence attached to each area served respectively upon them. Be careful while making decisions about local taxation policies; otherwise, things might end badly for you financially. Speaking down the road ahead someday, maybe even sooner than expected!
Ownership Status Differences Regarding Occupants Vs. Investors Properties:
Taxation policies apply to them differently Based on their residency status at different times throughout yearly cycles. Thus, it gives us more freedom when choosing where to live. Next, life after death occurs, which is fair but not always true, Depending on the circumstances surrounding each individual case. It is specifically designed for that particular person only.
What are Investment Properties?
They have similar tax rates but are not eligible for homestead exemptions. Therefore, investment properties incur a higher effective tax rate than homes where the owner resides.
Final Words
Because of rising real estate values and reassessments, property taxes keep increasing in Wisconsin, especially in Kenosha County, Racine, and Milwaukee counties. Homeowners should learn how to contest high assessments, take advantage of tax breaks, and plan their payments to reduce their overall tax burden. Working with experts in this field can also provide additional strategies based on individual situations.
Additionally, it is advisable to contact your local county assessor’s office or visit their website for more specific guidance regarding appeals and exemptions.
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Wine Details
Sauvignon Blanc, wine in general, and its health benefits.
Introduction to Sauvignon Blanc Wine Presentation
Sauvignon Blanc Overview: Sauvignon Blanc is a white wine grape from Bordeaux, France. It is known for being crisp, dry, and aromatic. The wine usually has a light to medium body with flavors like green apple, pear, lime, and passion fruit. There might be an herbaceous quality, too. Notes like bell pepper, grass, and nettle are common in this type of wine. Serve it chilled and pair with seafood dishes or salads topped with goat cheese.
Key Features:
Aroma and Flavor: Citrus fruits, green apples, pear, passion fruit, bell pepper, grass
Acidity: High
Body: Light to medium
Alcohol Content: 11.5% – 13.5%
Regions: France (Loire Valley and Bordeaux), New Zealand, California, South Africa, Chile
Popular Styles:
Loire Valley (France) – Crisp mineral-driven citrusy
New Zealand – Intense tropical fruit flavors with high acidity
California – Riper fruit flavors fuller body
General Wine Information: Wine is an alcoholic beverage made from fermented grapes or other fruits. It has been produced for thousands of years in many different styles, including red wines, which can range from light-bodied to full-bodied; white wines, which may be dry or sweet; rosé wines, which can be still or sparkling; sparkling wines known as Champagne, among others; and dessert wines, which are very sweet and often served after dinner.
Red Wine: These types of wines are made using dark-colored grape varieties such as Cabernet Sauvignon, Merlot, Pinot Noir, etcetera;
White Wine: These kinds of drinks are produced by using green or yellow-colored grape varieties like Chardonnay Sauvignon Blanc Riesling Gewürztraminer;
Rosé Wine: These types of wines are made by allowing minimal skin contact with red grapes, which imparts a pinkish hue to the final product.
Sparkling Wine: It adds carbon dioxide bubbles to wine during fermentation to create enthusiasm. Popular examples include Champagne Prosecco, among others;
Dessert Wine is usually sweet and contains higher alcohol levels than other kinds of wine. Examples include Port Sherry Madeira, among others.
Health Aspects:
Moderation: Moderate consumption can have certain health benefits, such as improved heart health due to antioxidants like resveratrol.
Antioxidants: Red wine is particularly rich in antioxidants, which have been shown to help reduce inflammation and lower the risk of heart disease.
Risks: Drinking too much can lead to liver disease addiction and an increased chance of developing certain cancers.
Serving and Pairing:
Serving Temperature: Red wines should be served at room temperature, while white wines should be chilled and sparkling very well chilled.
Pairing Food with Wine—This is when different drinks are consumed together to complement each other’s flavors. For example, your favorite dry red wine goes great with steak or lamb, while a crisp white goes great with fish or chicken dishes. Dessert wines can also be enjoyed on their own.
This presentation will help you start learning about wine, especially Sauvignon Blanc.
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Below is an inclusive analysis of waiting periods after insolvency and repossession for different types of loans:
FHA Loans:
Chapter 7 Bankruptcy: Two (2) years after being discharged.
Chapter 13 Bankruptcy: One (1) year during which payment is made per the plan.
Foreclosure: Three (3) years
Deed-in-Lieu of Foreclosure and Short Sale: Three (3) years.
VA Loans:
Chapter 7 Bankruptcy: Two (2) years from being discharged.
Chapter 13 Bankruptcy: One (1) year with court approval and satisfactory payment throughout that period.
Foreclosure: Two (2) years.
Short Sale: Two (2) years.
USDA Loans:
Chapter 7 Bankruptcy: Three(3) years after discharge date.
Chapter 13 Bankruptcy: One(1) year with good payment history.
Foreclosure :Three(3 )years.
Short Sale: Three(3 )years.
Conventional Loans:
Chapter 7 Bankruptcy: Four(4 )from being discharged
Chapter 13 bankruptcy: two(2 )years from dismissal date, four (4 )years from discharge.
foreclosures seven(7 )years ,extenuating circumstances allow applicants to wait for only three(3 )years.
Deed-in-lieu or short sale: four(4 )years. However, extenuating circumstances reduce it by two more years to only two(2 ).
Non-QM loans :
Each lender has its own terms, but they usually differ from conventional loans by being more flexible. Some will give you the loan one day after bankruptcy discharge or foreclosure.
Jumbo loans :
Generally, they use conventional loan criteria but can be stricter sometimes, meaning that some lenders may require up to seven or more if necessary.
For different property types:
- Primary Homes: Same as the above-mentioned standard guidelines.
- Second homes are similar to primary homes, but some lenders may require slightly longer waiting periods.
- Investment properties: One(1 )to two (2) years longer than primary home guidelines.
Commercial loans: These are diverse because different lenders fund them differently; thus, they vary from one lender to another.
They also have more lenient terms than residential ones since current financial status is a key factor.
Chapter 11 and 12 bankruptcies :
They are less common in personal finance, but when they occur among individuals, they are often treated as Chapter 13 bankruptcy would be for that particular person.
Remember: These are general rules, and a lender could be more or less strict than the given policy.
Extenuating circumstances can help reduce the waiting period.
During this time, credit is rebuilt, and good financial records are kept.
Some loan programs might require a larger amount of money, which means longer waiting periods or lower credit scores, thus necessitating more time.
Always check with multiple lenders because their policies will differ widely.
Guidelines change frequently. Therefore, consult with up-to-date mortgage professionals about what is happening now and consider how your situation affects whether you qualify.