Uncategorized

Jumpin’ Jumbos – What is considered a BIG loan and how do you find one?

The conforming loan limit changes typically every year and it was just raised to $802,650 for a single family property for conventional financing, so for all practical purposes a Jumbo is a loan higher than that or $802,651 and up. For a Duplex it is $1,027,750, Triplex $1,242,250 and a …

property types

There are ways to finance oddball unusual properties – properties that don’t fit the traditional financing box can be financed

Fannie Mae says that they are willing to finance homes of an unusual dwelling type based on the ability of the appraiser to comp it out and how it fits in the location and come up with a reasonable market value.

property types

Condominium, Townhome, Attached, or Regular Home Purchase: Some Considerations and Mortgage Details

The variances in financing requirements for a house versus a condominium Financing  details do vary when  considering the differences between a House, Attached Dwelling, Townhome or Condominium/Apartment. Understanding how a lender views the property type you are purchasing has bearing on how you qualify for the mortgage loan.  Houses or Condominiums …

Loan Types

Conventional and FHA Loans Both Offer Great Options For Buyers Putting Smaller Amounts Down

conventional loans are offered by private lenders, such as banks, credit unions, or mortgage companies and often sold to government sponsored entities (GSE’s). These include the Federal National Mortgage Association (FNMA) known as Fannie Mae and the Federal Home Loan Mortgage Corporation (FHLMC) known as Freddie Mac.

Homebuyer basics

Learning the Ropes of Mortgage Loans

At its simplest, a mortgage is a loan that you take out to buy a property. Whether it’s a house, a condo, or even a piece of land, a mortgage is the financing you get for Real Property aka Real Estate. The collateral for the loan is the property that is being purchased. When you take out a mortgage, you’re borrowing money from a lender, like a bank or a credit union. In exchange for the loan, you agree to pay back the money over a set period of time, usually 15 or 30 years. Each month, you’ll make a payment that includes both the principal (the amount you borrowed) and the interest (the fee you pay for borrowing the money). The interest rate you pay will depend on a number of factors, including your credit score, your income, and the current state of the housing market.

Income

When you have no income or not enough income to qualify for a home loan there are options

Adding another person as a Co-Borrower on the loan to qualify for income In situations where the borrower just doesn’t have enough income to qualify or the income that they earn somehow does not fall in acceptable categories to be used for qualifying, a co-borrower may be the easiest solution. …

Income

Income Calculation for a Home Loan – How Lenders calculate qualifying income for a mortgage

A lender uses your monthly gross (before taxes) income as the basis for calculating the allowable ratio of housing expense to income. The old rule of 28/36 says that your new house payment, that includes: loan payment, taxes, insurance, HOA dues and any mortgage insurance in total should not be more than 28% of your gross monthly income and your new house payment plus other recurring installment and revolving payments not exceed more than 36% of your gross monthly income. With the advent of automated underwriting those ratios can go higher. This means you might get approved for a payment/loan amount higher than that.

Income

Happy about being newly self-employed? There are special mortgage programs available

If you are newly self-employed as in under a year, there are some offbeat programs in the Non-QM (non-qualified mortgage – the new subprime) space that can help you. Additionally more traditional programs like FHA and Freddie Mac will often look at you if you have at least 12 months under your belt and one year of filed tax returns and profit and loss.

Stories and Other Information

Story in Progress: The Fixer had a LOT of surprises – how to swing the fix up costs

The Problems Clients that were continuing to be beat out and could afford more, recently opted for a weird and awkward home in a fantastic neighborhood. The home was fully functional, but though they were purchasing from a flipping company, it was hard to tell what they actually did to …

Refinance

When does a mortgage refinance make a hopeful difference?

With all the chatter circulating about rates being up, are you feeling like you might have missed the moment? For more information on criteria to help you decide about doing one, see my previous post https://mortgagecanary.com/should-i-refinance/. While my regular news sources are talking about rates going to the 4’s, I’m …

property types

Buy a house or buy a condo – does it change how I qualify for my loan?

In many places, including the Portland area we are officially in a seller’s market according to real estate professionals. It’s due to the lack of inventory. If you’re in that starting out price range, getting your foot into the real estate market for the first time, unless you have a …

Income

Mortgage Lender Self-employed Income Calculation and Qualification

Mortgage lenders on traditional programs like FHA, VA, USDA, Conventional and regular JUMBO loans calculate income based on the amount of income that is reported to the IRS for self-employed borrowers. You can do it yourself by reviewing your tax returns and pulling out some of the numbers. The idea is to distill the income down to after expenses, but before taxes. Any paper losses like depreciation or business use of your home do not count into the expense portion of the calculation.

Front Page

What feels like home to you?

Maybe it’s a tent in the woods or under a bridge. You might have the Tiny House bug or a penchant for a waterfront mansion with swaying palm trees and an Infinity pool. Whether it is an old Airstream braving the elements on a solitary plot of acreage or a 3 bedroom 2 bath 2 story on a cultesac near the park, your home is an important place.

Whatever your goals, partner with advisers and consultants that will keep your goals and desires front and center as you create a plan to reach them. Sometimes it just takes a little creativity to make the plan come together. We’re here to help! There are many options that can help with a strategy to find that spot that is your home sweet home or investment property.