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firstsource last won the day on October 10 2008

firstsource had the most liked content!


  • Biography
    A Loan Officer since 4/2002. Prior to that 26 years as Factory Rep for US (and London & Paris)
  • Interests
    Church-Reading-Community Theater
  • Occupation
    Loan officer

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  • Location
    Salt Lake City, UT

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500 posts and hasn't been banned yet....

500 posts and hasn't been banned yet.... (6/6)



  1. I would suggest that you go to the PHFA (Pennsylvania Housing Finance Agency) website. Depending on your circumstances, you can get an interest free loan for up to 3,000 from them. The note is due only when you sell your home Charles
  2. Are the payments you make the first 4 years paying anything towards principal? I don't understand where they are coming up with a figure of your owing 175K after making payments for 20 years. Charles
  3. When you add on, from my experience be sure to have the entrance to the new bedroom "down a hall" so that someone would not have to go through another living area, like a kitchen/bedroom etc. This way when you are ready to sell your new home it can be listed as a 3 bedroom. Charles
  4. It depends on how old the collections are. Most of the time if they are over 12 months old they are not taken into effect for a loan approval. I caution you to not pay any collection that won't PFD. It will just lower your credit score. If your LO says that you have to pay them off, don't pay them until closing. You can bring the funds to the title co/attny office and give them the money and they will pay the account off. Charles
  5. Sad thing about some programs that are authorized by VA and FHA. They exist on the books, but no lender will lend for those programs. From my research, the only repair money that lenders will allow is to make the home more energy efficient. best to ask your broker (or call up several brokers) to confirm what I found out. Charles
  6. I would suggest that you hire a RE attorney. They are trained to pay attention to detail. With a FSBO you are probably doing the Negotiating yourself. A tip, VA will allow the seller to pay "all reasonable closing costs" (not the fixed 3% for conventional or max 6% for FHA) Your Loan officer will give you an estimate of what typical closing costs are in your area, and ask for that amount. The lender will arrange the title/appraisal/ people for you. Charles
  7. Yes, if you can PFD those old accounts that will boost your scores. All you need in today's environment is a 620 score and you are very close. Don't pay off anything that you can not get -IN WRITING- from the creditor an agreement to delete upon receipt of the payment. "if it wasn't written, it wasn't said". If that won't work, you can count on 1-3 increase in your scores as time goes on. Charles
  8. I would need more info to tell you the "for sure" answer, but generally, you will need to document that the house you say is a rental, is in actually a rental. Once you have done that then you just get a loan on your home. "sad" thing about rentals is that your cost is figured at 100% (PITI) and your income is counted at 75%. Charles
  9. Rental credit is a problem to use as part of the down payment. You need to establish what the actual rental would be per month. This is best done by getting an appraiser to give you a "market rental analysis". This will give you a rental figure that the lenders will accept. Then the difference between the market value and what you are paying is going to be what you can use towards the down payment. ie: the rental analysis says rent should be 500.00, but you are giving them 750, you can count the 250.00 per month towards the down payment etc. Charles
  10. My 2@ worth If your goal is to lower your interest rate, I would do nothing. The $ spent (even if "rolled into the loan") will exceed the benefit. You would have to save 200 or so per month to make sense, and not possible with a loan balance of 32K. If your goal is to build an addition on to your home, you are "maxed out" for a cash out loan in Texas, to 80% of the value of your home. So, before closing costs you could get 40K from the refinance. If you could do the remodeling/addition you want for that amount of $, this is an awesome time to do that kind of loan. You will never see these rates again. Charles
  11. I would estimate that your DTI (Debt To Income ratio) would be in the range you should be at, if you went by the rule books (and there is some flexibility I have found) you can be as high as 31% for the housing portion and 43% for your total Debt. Depending on what your taxes are I would guess that your total DTI would be less than 35%. As long as the lowest middle score of both of you is over 620 you are in good shape for an FHA loan. Rates don't improve after that level, unless you are considering going with a conventional loan. Unless you have 20% to put down, I would not even consider anything other than an FHA loan. Charles
  12. What are the scores for the other two? Do these companies that are not showing up on your credit report submit to credit bureaus? Charles
  13. If she is over 62, a reverse mortgage would work great. As long as she lived in the home, there would be only payments for Taxes & Ins. The loans are figured assuming that the borrower lives to age 100. They still stay in the home as long as they live, and people are living to well over 100 these days. The loan is currently at 2.15%. That is an adjustable rate. Generally means that the loan is getting larger every year, I would expect that the rate will average 6% over time. The only time that Reverse Mortgages are a problem, is when the heirs feel that they are getting "cheated" out of their inheritance. It is not the case, because the ownership/title is always the borrower or the estate. Charles
  14. Depending on the other factors about your situation, you can probably get approved for a lot higher DTI than the 28%. Just be careful to not over extend yourself. There are two versions of 203K. One where the repairs are <35K and one where they are over. For the one under, like the furnace replacement, you should be able to do all of the work by a local contractor) If it is just the furnace issue, or things like it that would be done by a contractor, I would suggest that you just apply-go for it. Charles
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