Thursday, February 18, 2016

Conventional Mortgage Financing

American Pacific Mortgage can lend down to a 600 FICO score on an FHA loan in-house (580 brokered)

Judgements and tax liens can remain open with 
proof of repayment plan

When converting their primary residence to an
investment property – can use rental income to help
qualify as long as it’s 100 miles away, there is a security
deposit, a one year lease and 25% equity in the house.

The monthly Mortgage Interest rate was lowered last February –  and is now more
competitive with conventional financing.

FANNIE MAE

If borrower’s current principle residence is a pending
sale and scheduled to close after new home being
purchased -  American Pacific Mortgage doesn’t need to include pending sales
PITI payments in the borrower's current Debt-To-Income ratio.

No longer is proof of equity needed when converting a
current residence into rental  - along with no
additional cash reserves required.

Borrowers that claim 2106 expenses – if they make
25% or less in commissions to their annual income
do not have to be deducted from the borrower’s qualifying
income.

American Pacific Mortgage no longer needs to deduct voluntary deductions from
borrowers income – ie union dues.

Fannie Mae allows lenders to use 100% of the vested value of
stocks, bonds and mutual funds (including
retirement accounts) – for down payment, closing
cost and assets.

Fannie Mae loans are possible with 2 years past a chapter 13 or 4 years past chapters 7/1.

FREDDIE MAC

Home loan only requires 3% down on the purchase price.

Borrower’s putting a minimum of 5% down – can all come in the form of a gift.

Freddie Mac still allow non-occupying co-borrowers income to be
used to help buyer qualify for more mortgage.

There is no need for 2 year landlord history – when buying
investment property and needing rental income to
qualify

Conversion of primary residence to investment –
same guides as Fannie – no additional reserves
required or proof of equity.

Today's blog courtesy of Cheryl Taylor, American Pacific Mortgage, cherylt@aplending.com or call 206-218-5825.

Happy Investing!

1 comment:

cheryl Taylor said...

Hi Wendy, When questions come up for anyone, I am a call away ~