[Winston]

Wish Mat Grella the very best

[Winston]

A CPA (Certified Public Accountant) letter for a P&L (Profit and Loss) statement is a document requested by mortgage lenders when a borrower is self-employed or has income from a business. This letter serves as third-party verification of the borrower’s business income and financial standing.

The CPA letter typically includes the following:

1. Confirmation that the CPA prepared or reviewed the borrower’s P&L statement and business tax returns for a specified period, usually the most recent 1-2 years.
2. Verification of the net business income reported on the P&L statement and tax returns.
3. An opinion from the CPA stating that the income information provided is accurate and complies with generally accepted accounting principles (GAAP).
4. Details about the nature of the borrower’s business, such as the legal structure (sole proprietorship, partnership, or corporation), and the number of years in operation.
5. Any relevant notes or explanations regarding significant changes in income, unusual expenses, or other factors that may affect the borrower’s financial profile.

Lenders request a CPA letter for several reasons:

1. Income Verification: Self-employed borrowers often have complex income sources, and a CPA letter provides independent verification of their reported income.
2. Credibility: A letter from a licensed CPA adds credibility and reliability to the financial information provided by the borrower.
3. Risk Mitigation: Lenders use the CPA letter as a tool to mitigate the risk of income misrepresentation or fraud, which can be more prevalent with self-employed borrowers.
4. Documentation Requirements: Many mortgage programs, such as those backed by Fannie Mae or Freddie Mac, require a CPA letter as part of the documentation for self-employed borrowers.

The CPA letter is a crucial document that helps lenders accurately assess the borrower’s ability to repay the mortgage loan based on their business income. Providing this letter can increase the chances of loan approval and ensure a smoother mortgage process for self-employed borrowers or those with business income. Most mortgage lenders do not require an actual Certified Public Accountant to write a CPA letter. As long as the tax preparer has a tax preparer number from the internal revenue service the tax preparer can do the CPA letter for a P and L statement non-QM loan.

[Winston]

You can qualify for an FHA loan with outstanding judgments if you pay the judgment off either before or at closing. Have a written payment agreement with the judgment creditor. Or get proof that the judgment has been settled or the statute of limitations has passed. Getting approved for an FHA loan with outstanding judgments can be challenging, as FHA lenders typically have strict requirements regarding a borrower’s credit history. Outstanding judgments can negatively impact your credit score and may raise concerns for lenders about your ability to repay the loan. However, it’s not impossible to get approved for an FHA loan with outstanding judgments.

Here are a few things to consider:

1. Credit Score: FHA loans generally have more lenient credit score requirements compared to conventional loans. However, having outstanding judgments on your credit report may still affect your credit score significantly. It’s essential to know your credit score and work on improving it if possible.

2. Judgment Status: The status of the outstanding judgments matters. If the judgments are satisfied or paid off, it may improve your chances of getting approved. Some lenders may require you to pay off the judgments before approving your FHA loan application.

3. Compensating Factors: If you have compensating factors such as a stable income, low debt-to-income ratio, or significant savings, it could improve your chances of getting approved despite the outstanding judgments.

4. Lender’s Discretion: Ultimately, the decision to approve your FHA loan application with outstanding judgments rests with the lender. Some lenders may be more flexible than others, so it’s worth shopping around and discussing your situation with different lenders.

5. Explanation: Providing a detailed explanation of the circumstances surrounding the outstanding judgments may also help your case. If there were extenuating circumstances beyond your control that led to the judgments, be sure to communicate this to the lender.

It’s important to consult with a mortgage lender or broker who is experienced in FHA loans to understand your specific situation better and explore your options. They can provide personalized guidance based on your financial circumstances and help you navigate the FHA loan approval process.

[Winston]

You normally cannot have two FHA loans at the same time unless there are extenuating circumstances like moving to a different location beyond driving distance normally 100 miles. No, generally, you cannot have two FHA loans at the same time. FHA (Federal Housing Administration) loans are intended to help individuals with low to moderate incomes afford homes. They come with certain restrictions, including limits on the number of FHA loans an individual can have.

Typically, the FHA allows borrowers to have only one FHA-insured loan at a time. There are exceptions to this rule, such as when a borrower needs to relocate for work and wants to keep their existing home as a rental property while purchasing a new primary residence. However, such exceptions are rare and require approval from the FHA.

If you already have an FHA loan and want to purchase another property, you may need to explore other loan options, such as conventional loans, or consider paying off your existing FHA loan before applying for a new one. It’s essential to consult with a mortgage lender or financial advisor to explore the best options for your specific situation.

[Winston]

Where I live, barndomeniums are very popular.

A barndominium is a type of building structure that combines elements of a barn and a condominium. It’s a style of architecture that originated in rural areas, particularly in the United States, where people sought to create living spaces that offer both the rustic charm of a barn and the modern amenities of a condominium.

Typically, a barndominium features a large, open living space with high ceilings, often utilizing the open floor plan characteristic of a barn. It may incorporate elements such as exposed beams, metal roofing, and large windows. However, unlike traditional barns, barndominiums are designed to be residential dwellings, so they include features like bedrooms, bathrooms, kitchens, and other living areas.

Barndominiums have gained popularity for their unique blend of functionality, affordability, and aesthetic appeal. They can be customized to suit individual preferences and offer a versatile living space that appeals to those looking for a rustic yet modern home.

[Winston]

Just got off the phone with Gustan Cho Associates and he said that he will post your questions on this thread.

[Winston]

What type of lead sources have you been using? I just joined NEXA Mortgage from retail and I am getting a lot of mix response when it comes to generating my own leads through organic traffic. I know a few top producers who are very successful at like Gustan Cho Associates but his team got the start years ago.