My New Blog

If you are PCSing to the Mississippi Gulfcoast (or are the realtor helping a military family), be sure to call me first to see if you qualify to use your VA entitlement.  In Mississippi, I can help you obtain 100% VA financing at low rates AND help you obtain closing cost assistance.  Most military families need some type of help.  The costs of moving are enormous and we all know that the military doesn't reimburse for every single cost.  I have same day decision underwriting to help homebuyers. 

Recently, a family PCSing from Italy, emailed me and we had their 'credit side' fully approved before they even came to the states for their house-hunting trip.  Many times, we are able to close on a VA loan in less than 2 weeks.  My direct # is 228-257-9000.  Homebuyers can also go to my secure web site and apply on-line.

For homebuyers that need a 90% LTV Stated Income/Stated Asset or Stated Income/Verified Asset Loans, their is only one Mortgage Insurance company left that will issue a MI Certificate.  That being said, they will only write it if the borrower is Self Employed, owns 50% of the business and if the property is not in a declining market.  (Commissioned or tipped waged earners will not qualify). I ran into this in late April 08.  If anyone you know has a deal in the works and its a SISA or SIVA, be sure your Loan Officer knows the new rules.

Most homebuyers that need this type of limited doc program are going to have to come up with a 20% down payment.  They must be self employed and sign a 4506 IRS form.

Payment Shock is a term Underwriters use when the 'Proposed Housing Payment' exceeds 2-3 times the buyers current rent or housing payment.  The calculation varies depending on FHA, Conventional or Non-conforming loan programs.

Let's face it, most of America lives paycheck to paycheck with very little motivation to save money.  I see it every day in taking loan applications and making decisions to lend.  If you fall into this category and happen to be a first time homebuyer, keep in mind that the loan officer is not the person making the final decision on your loan approval.  An Underwriter makes the final decision.  Let's say you come to me and are currently paying $600 a month for rent and want to buy at house that with Principle, Interest, Taxes and Insurance (PITI) will run about $1500/month (in this market, due to insurance, this is about a $180,000 house).  Let's say you only have $500 in verifiable assets between your checking and savings.  Even with perfect credit, you are financially not ready for home ownership.  Ideally, you really need to have about 3 months of your future PITI in reserves (about $5500 in savings) plus any amounts due for down payment and closing/prepaid costs of the loan.  At a minimum, an underwriter will require 1 month PITI in reserves + down payment/closing costs.  In addition, you need to understand that you will need to change their lifestyle in order to be able to make the $1100 difference in their housing expense and consider any difference in utility expenses.

There is a reason why so many homeowners are in foreclosure right.  Borrowers need to realize that they need to find houses with mortgage payments that they can realistically afford.   I review all of these issues with my borrowers.  I carefully review their credit and their spending habits with them if I see a potential problem and counsel borrowers on the impact of late payments that impact their credit.

Before looking for a house with a realtor, review your monthly budget and determine what payment you can afford FIRST!  When you do this,  you will be able to avoid payment shock.