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Posts Tagged ‘scottsdale mortgages’

The down low on using GIFT funds for down payment…


Many types of mortgage financing allow for GIFT FUNDS to be used towards down payment.  The basics?
* Gift funds need to come from a blood relative (“donor”)

* The “donor” needs to be willing to provide the “source” of the funds.  This can be a bit tricky as many times the relative does NOT want to provide bank statements or asset statements to show where the money came from.  There is no way around this so prepare for it from the beginning.

* The “donor’s” bank statement can not show any LARGE deposits into it in the statement period.  The reason for this is the underwriter wants to see that the “gift funds’ are not borrowed funds requiring a repayment.

* The “donor” will sign a gift letter stating they are gifting the funds from Account “X” and that the funds do not have to be repaid.

* Those funds should then be wired directly to the escrow company handling the transaction.  This helps to avoid having to “paper trail” the funds through the borrowers account and again to escrow.  If the “donor” sends the funds directly to the escrow company it eliminates this step.

Remember, on FHA loans, 100% of the down payment AND closing costs can be gifted.

Be sure to check on the specific type of CONVENTIONAL loan you are qualified for as to the allowable “gift funds” per your program.

Ready to get started?  You can apply ONLINE conveniently at www.fcfs.net

If you have any questions, feel free to contact us at 602.294.9288

or E-mail:  mortgagedr@fcfs.net

Post your question on Facebook 

Having a dream is good, Owning one is better!

Leslie Nilsen

Owner/Broker

First Class Financial Services, proudly Arizona mortgage lending since 1999.

602.294.9288(O)

602.294.9830(F)

www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

 

 

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Cleaning the carpets at my Arizona rental… secret to stains!


 

Cleaning the carpets at my Arizona rental…. secret to stains!

First, I know this has nothing to do with the insides of the Arizona Mortgage business.  However, a good pointer I could not pass up.

I have tried everything to get the stains out of my WHITE carpet.  I rented a carpet cleaning machine and even purchased the spot remover. Nothing worked. HOWEVER I remembered the Queen of Clean mentioning something about Baking Soda/Vinegar and Water.  The baking soda WORKED! Literally took the BLACK stains from years ago, out of the carpet completely! I sprinkled down the baking soda, sprayed it with a water bottle and let it sit.  That’s it! Pulled it right out!

You can all thank me later!

Having a dream is good, owning a rental property with clean carpets is great, owning your own home is even better!

 

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

AZ Mortgage Question of the Day: How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?


AZ mortgage Question of the Day:

How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?

Here is a generic guideline – keep in mind that many lenders have additional requirements depending on their own guidelines:

Bankruptcy:

Chapter 7:

FHA – 2 years with re-established credit / 1 year if bankruptcy was from extenuating circumstances and have shown substantial ability to manage new affairs since. A minimum 640 score.

CONVENTIONAL – 4 years and a minimum 680 credit score.

Chapter 13:

FHA – 1 year has elapsed since filing, all payments have been made to the trustee on time and ONLY with trustee prior approval.

CONVENTIONAL – 4 years and a minimum of a 680 score. All payments have been made to the trustee on time and ONLY with trustee prior approval.

Foreclosure:

FHA – * 3 years has elapsed from the finalized date of the foreclosure.

CONVENTIONAL –

* 3 years if borrower can prove extenuating circumstances. Additional occupancy, credit score and down payment requirements.

* 7 years if financial mis-management. Additional occupancy, credit score and down payment requirements.

Short Sale:

FHA * 3 years has elapsed from the finalized date of the short sale.

CONVENTIONAL – * 4 years – Additional occupany, credit score and down payment requirements.

One additional note to consider: Many lenders will NOT follow these guidelines if they had their own prior loan included in the bankruptcy, foreclosure or short sale so keep this in mind when applying. All of this information is in a generic sense and can only be guaranteed with an approval directly from your lender. This is another reason that applying and getting loan approved BEFORE you start home shopping is so important.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

“I can’t buy a new house, I understand it is much more difficult to qualify”


That statement is just simply not true!

I can’t tell you the last loan application that I took that a borrower did NOT qualify.  I’m sure there was one but it is definately not the norm. 

I dare you to ask 5 people today, “Could you qualify for a mortgage if you applied today?” If they say “No.” Ask “Why?” I guarantee they will say “I understand it is much more difficult to qualify” but they will not have specifics as to what they consider “more difficult”.  It appears that most are repeating what they hear in the media “Its more difficult to qualify”.  It’s just not true.

Here is what people think… AND the reality in BOLD.

* I need 20% down payment, that could be 10’s of thousands of dollars! ……….. FHA requires only 3.5% and that can be gifted from a blood relative.

* I don’t want an FHA loan but cannot get a conventional loan without 20% down payment……. Mortgage insurance companies are back in the game and allowing borrower and lender paid mortgage insurance up to 95% loan to value.

* My credit score is too low… FHA allows for a minimum of 580 credit score. Conventional loans allow for a minimum of 640 credit score.  The average American citizen has a 660 score. 

* I can’t qualify to afford the payment… Most borrowers are shocked that their monthly mortgage payment is LESS than they are paying in rent. 

* I don’t have enough credit… borrowers need only 4 open active tradelines on their credit report and enough history to meet the minimum credit score requirement.

* I’m on fixed income and cannot qualify for the monthly payment ….. FHA allows for up to a 50% debt to income ratio (this means if you make $2000 a month you can have $1000 go towards total debt)

* I do not have any down payment money… the USDA Rural Housing product allows for a 100% financing on eligible properties on borrowers who meet the income eligibility as well. 

I could go on and on.  You get the point.  Spread the word to your borrowers.  Most people don’t realize how easy it is to qualify and are waiting when they could be shopping! 

Please join my “Squash the Qualifying Rumor” campaign…….Pass it on!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

To Condo or not to Condo?


Ugh. Condo’s.  I don’t want to be a big downer on condo’s but… here it comes.  Specifically to Arizona, condo’s are increasingly more and more difficult to lend on.  There are several reasons for this but primarily the lenders make a distinction between whether the condominium project is warrantable or non-warrantable.  Simply put, lendable or not?  

Conventionally the project needs to meet a miriad of restrictions:  (this is the short list.. there are more)

* 70% of the units need to be owned and occupied as primary residences.

* The HOA cannot be in any litigation with the homeowners.

* One owner cannot own more than 10% of the units.

* The HOA cannot have more than 15% delinquency.

* The HOA has to be turned over to the owners.

* In a new construction project, 90% of the units have to be delivered.

* The HOA has to carry a minimum of a $1million dollar liability home owners insurance policy and carry an employee dishonesty rider (Many other insurance requirements but this tends to be a big one)

For FHA, the project needs to have received its NEW FHA approval (all FHA approved condo projects needed to get reapproved in 2010)

Given the above restrictions, you can see why I would be a big downer on condos.  With the amount of default we have seen in the state of Arizona, most projects have a higher than 30% investor occupancy.  Many investors have gone in and bought several units and made the projects ineligible OR the current owner is in default/ delinquent on HOA dues. 

I understand the draw to the condo projects as there are many that are priced too low to pass up.  Ask the right questions initially in order to determine if it is eligible for lending.  On a conventional loan, the HOA MUST complete a “Condo Questionaire”.  Most HOA’s do not hand complete them any longer.  They are typically done through HOA Questionaire Services for a fee.

My last question? How difficult will it be to re-sell given the difficulty today?

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

YAY! Lender LOWERS FHA credit score requirement to 580!


I ask you… IF you can get a mortgage with:

1. A 580 credit score

2. Your grandmother can gift you the 3.5% down payment

3. The seller can pay ALL your closing costs

4. (You can have ZERO contribution of your own money)

5. You do not need reserves to qualify.

6. You can get an interest rate below 5%

7. You have more inventory to choose from than eggs at an easter egg hunt.

8. You can have a new mortgage payment less than you are paying in rent.

9. You LOVE your realtor.

10. You LOVE your loan officer.

11. You HATE your roommate.

What is everyone waiting for?

Spread the word. Life is good. We need to take advantage of it!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner/Broker

First Class Financial Services, proudly mortgage lending since 1999.

602.294.9288(p)               mortgagedr@fcfs.net                www.fcfs.net

MB#0902810/ NMLS#162494

How does the new Loan Officer Compensation affect your buyer/seller?


First, did you know there WAS new loan officer compensation?

There is.  Basically (although unbelievably convulated and confusing) the new legislation says that borrowers have 2 options.  EITHER to pay their loan origination fee OR to accept a higher interest rate and have the lender paid the loan origination fee.  Seems simple, right?

Here’s where YOU, as their realtor, come in.  Does the loan officer that your buyer is obtaining their loan from, even have TWO options? Many lenders are adopting ONLY the lender compensation and ONLY offering the higher rate option to your client.  IF you buyer is unaware that their are two options available to them, they may not know to ask or search for another loan officer (me). 

Keep in mind, many times a lender paid, higher rate option works best.  My job is to ensure that BOTH are presented to the borrower so, through analysis, we can determine which is best. 

Also, on the lender paid option, most lenders have adopted a MINIMUM amount in order to ensure the loan officer receives adequate compensation regardless of the loan amount.  HOWEVER, the lender may have to increase the interest rate, considerably, in order to pay the minimum compensation to the loan officer, again dramatically impacting the quality of the loan for the borrower.

On another note, the new Loan Officer Compensation does NOT allow for ANYONE to pay for ANY additional costs associated with the loan OTHER than the borrower.   This typically comes up under lock extensions.  IF a loan needs to be extended at a cost, the buyer is the ONLY one that can pay that expense.  NOT the loan officer.  NOT the realtor. Regardless of WHY the lock needs to be extended AND given that this is a new expense, the buyer will need to re-disclosed this expense (with mandatory disclosure times) which could affect your close of escrow date.

Just be aware. Ask questions. If your business is referral based as mine is, it is critical we are advisors for our clients not just transactional.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453