Thursday, February 18, 2016
Conventional Mortgage Financing
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, email@example.com or call 206-218-5825.