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.


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

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.


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

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, or call 206-218-5825.

Happy Investing!

1 comment:

Unknown said...

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