wetpaint72

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About wetpaint72

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  1. I thought these grant programs were illegal, because you have to pay them back...and you cannot borrow money for a down payment. I know a couple of people who got in trouble for this when the poop hit the fan in the lending industry...I may be wrong but be careful.
  2. This is the most current information I have on loan programs...please note I have no information on rates. I hate to promise anything I can't deliver, and unfortunately, rates seen to change hourly these days. But the guidelines are correct and tend to be consistant for a couple weeks at a time. I will update as necessary. Just tell anyone you know that is in trouble with their mortgage to get help a.s.a.p., waiting only makes it harder to fix. Keep your homes people. I will help you if I can Just act before it's too late. It breaks my heart the stories I hear that I could have hepled if they had just contacted me two months earlier. I Also provide credit rescores for my clients, to assist with charge offs and reporting mistakes. "Go Fast" refers to a product line that rewards borrowers for their diligence in maintaining better than average credit ratings. This program normally allows for reduced income documentation, faster than average underwriting times, and, in some cases, automated property appraisals - or complete appraisal waivers. Moreover, those that qualify can expect faster than average closing times...sometimes reduced as much as 50% and a much easier process. Here are the guidelines for the “go fast” program: 680 score for rate/term refinance and purchase "rate/term" means you simply want to refinance for a better interest rate or term(i.e. 15 years instead of 30 etc) no cash at closing is allowed for the payment of debts or equity lines/second mortgages(if such mortgages were secured after the original purchase) a limited amount of cash is allowed to the borrower at closing in the amount of 2% of the loan amount or $2000.00 whichever is less 720 score for cash out/ debt consolidation refinance "cash out" refers to cash at closing for any reason i.e. debt consolidation, remodel, savings, night on the town, etc. if you are paying off a second mortgage or HELOC(home equity line of credit) secured after the original purchase 90% loan to value for purchase and rate/term refinances "LTV" equals the amount of the loan in relation to the value of the property, ex; a 90% LTV on a refinance means you can secure a loan for 90% of the current appraised value On a purchase transaction, the value is automatically the sales price of the property, regardless of what it appraises for, Moreover, a 90% LTV on a purchase will require you to have a 10% down payment.,again, regardless of the appraised value. 75% loan to value for cash out/ debt consolidation refinance 75% of the current appraised value; ex; if your home appraises for $100,000.00 you would be eligible to borrow 75% or $75,000.00 It is important to note that you must leave room in your loan amounts for settlement costs and the payoff of your current mortgage (if you are refinancing) unless, you intend to bring money to the closing table. For example; if you are eligible for a 90% rate/term refinance, your house is worth $100,000.00, you owe $90,000.00, and your total settlement costs are $5,000.00, then you would have to bring $5000.00 to closing - remember, you can only get a loan for 90% of the value - if the value is $100,000.00 and you need $90,000.00 + $5000.00 (payoff + settlement costs), then you need 95% and you are not eligible - unless you bring $5,000.00 to closing. There may be other programs for you but the "Go Fast" would not be a product choice in this instance. Minimum 2 months reserves for PITI payments sourced and seasoned 60 days "reserves" means money if your payment is $500.00 ,and you need 2 months reserves, then you need $500.00 x 2 = $1000.00 "PITI" refers to principle,interest,taxes, and insurance principle = the monthly loan payment, interest = the monthly interest payment, taxes = the monthly installment of your property taxes, insurance = the monthly installment of your home owners insurance if your monthly loan payment is $400.00, your monthly interest payment is $50.00, your monthly taxes are $25.00, and your monthly home owners insurance is $25.00 then your monthly PITI is $500.00 In other words : PITI : principle : $400.00 interest : 50.00 taxes : 25.00 insurance: 25.00 Total PITI : $500.00 "sourced" means it is in a verifiable place verifiable means a Bank, 401k, IRA, Pension fund, Money Market, Tax refund Check, to name a few you must be able to withdraw your funds at any time for them to count cash in the top drawer of your dresser does not count, because it is not verifiable by anyone other than you you can use money given to you from a relative - only a relative - and, yes, you must prove they are related to you and they have to prove where their money came from - which again must be a verifiable source - their top drawer does not work either! "seasoned" means it has been in a verifiable place for a period of time 60 days is the standard "seasoning" period. So, if the bank is the verifiable source being used, then you must provide two bank statements that proove you have had your funds in the bank for 60 days...and it must be the most recent two bank statements...you cannot buy a house in January and provide last June and July for your bank statements...a January purchase would require a December and November bank statement for verified funds A tax return check or 401k statement automatically counts for the 60 days requirement Verification of employment for W2 borrowers A "verification of employment" form is sent by the mortgage company to the employer for every loan that is processed - this is done by the mortgage company, a letter from the borrower or employer will not work - the form is specific and must come from the mortgage company solely. A borrowers employment is verbally verified during the loan process as well. A phone call will be made to the employer prior to closing on the loan to make sure you are still employeed. A W2 borrower is someone who works for a company or individual and has taxes taken out of their paycheck. Additionally, a W2 employee cannot receive more than 25% of their annual income in the form of commission. If you work in sales and are paid 100% commission as your salary, you are not a W2 employee - even if you receive a W2 at the end of the year. non-W2 employees who are self employed or receive more than 25% of their income in comission must be on their current job for two years - two different jobs in the same industry does not count. For example, if you have sold cars at "X" ford dealer for the past year and the year before you worked at "Y" ford dealer, that does not count. You must be at "X" Ford dealer for 2 years License or CPA letter for self-employed/ 1099 borrowers A business license is required for self-employed borrowers for the last two years...if your business does not require a license, you can supply a letter from a CPA stating that they have reviewed your tax returns for the past two years and you are indeed self-employed. If you are a 1099 employee - you are employed by a company but they do not take taxes out on you, you are listed as an independant contractor, or you receive a 1099 form every year instead of a W2, then a license or CPA letter is required. For example, you are an electrician hired by a general contractor to wire a house, your electricians license would be required and you must supply a copy of your license for the last two years. Debt-to-income ratio (DTI) The required Debt to income ratio, refered to in the industry as DTI, involves two elements : your housing expense ratio and your total debt expense ratio The ideal DTI ratios are 28% housing expense and 36% total debt expense. This is calculated by taking your housing expense and dividing by your income prior to any deductions - this is not your "bring home" pay - it is your income prior to any taxes, insurance, retirement, or any other deductions are taken out. For example, if your monthly income is $5,000.00 prior to any deductions and your monthly housing expense (PITI - remember from above) is $500.00, then your housing expense ratio is $500.00 divided by $5000.00 or .10 which equals 10% The "go fast" program requires a total expense ratio (DTI) between 45% and 50% Your total expense ratio is comprised only of debts that report to credit. For example; credit cards, installment loans - i.e. car loans, other mortgages, as well as the proposed housing expense (PITI) this means, again, the total housing expense - Principle, Interest, Taxes, and Insurance. Cable, cell phone, utilities, gas, food, etc. are not items that are calculated into your DTI. However, you should bear these costs in mind when determining how much you want to pay monthly for a home. Remember, gas alone is over $1.00 per gallon higher than it was a year ago - depending on the mpg of your car, you could be spending $100.00 more per month currently than you were only 1 year ago. Some necessities are more than double - i.e. MILK, EGGS! You must be able to stay within your budget no matter what happens - inflation, recession, or whatever "they" choose to call it these days. Remember, the maximum is the maximum for a reason - do not think that you have to reach for it! -------------------------------------------------------------------------------- Last edited by wetpaint72 : Today at 09:38 PM.
  3. Hi, im a newbie , and a mortgage broker, I am truely sorry if I wasn't supposed to post. But I truely want to help people keep their homes. It saddens me to no end to see so many Americans losing "the american deram". I know of nothing else to do but to offer my help in any way possible. Please check it out and I will remove it or change it, whatever it takes to remain active on this site. Again I appologize.
  4. This is the most current information I have on loan programs...please note I have no information on rates. I hate to promise anything I can't deliver, and unfortunately, rates seen to change hourly these days. But the guidelines are correct and tend to be consistant for a couple weeks at a time. I will update as necessary. Just tell anyone you know that is in trouble with their mortgage to get help a.s.a.p., waiting only makes it harder to fix. Keep your homes people. I will help you if I can Just act before it's too late. It breaks my heart the stories I hear that I could have hepled if they had just contacted me two months earlier. I Also provide credit rescores for my clients, to assist with charge offs and reporting mistakes. "Go Fast" refers to a product line that rewards borrowers for their diligence in maintaining better than average credit ratings. This program normally allows for reduced income documentation, faster than average underwriting times, and, in some cases, automated property appraisals - or complete appraisal waivers. Moreover, those that qualify can expect faster than average closing times...sometimes reduced as much as 50% and a much easier process. Here are the guidelines for the “go fast” program: 680 score for rate/term refinance and purchase "rate/term" means you simply want to refinance for a better interest rate or term(i.e. 15 years instead of 30 etc) no cash at closing is allowed for the payment of debts or equity lines/second mortgages(if such mortgages were secured after the original purchase) a limited amount of cash is allowed to the borrower at closing in the amount of 2% of the loan amount or $2000.00 whichever is less 720 score for cash out/ debt consolidation refinance "cash out" refers to cash at closing for any reason i.e. debt consolidation, remodel, savings, night on the town, etc. if you are paying off a second mortgage or HELOC(home equity line of credit) secured after the original purchase 90% loan to value for purchase and rate/term refinances "LTV" equals the amount of the loan in relation to the value of the property, ex; a 90% LTV on a refinance means you can secure a loan for 90% of the current appraised value On a purchase transaction, the value is automatically the sales price of the property, regardless of what it appraises for, Moreover, a 90% LTV on a purchase will require you to have a 10% down payment.,again, regardless of the appraised value. 75% loan to value for cash out/ debt consolidation refinance 75% of the current appraised value; ex; if your home appraises for $100,000.00 you would be eligible to borrow 75% or $75,000.00 It is important to note that you must leave room in your loan amounts for settlement costs and the payoff of your current mortgage (if you are refinancing) unless, you intend to bring money to the closing table. For example; if you are eligible for a 90% rate/term refinance, your house is worth $100,000.00, you owe $90,000.00, and your total settlement costs are $5,000.00, then you would have to bring $5000.00 to closing - remember, you can only get a loan for 90% of the value - if the value is $100,000.00 and you need $90,000.00 + $5000.00 (payoff + settlement costs), then you need 95% and you are not eligible - unless you bring $5,000.00 to closing. There may be other programs for you but the "Go Fast" would not be a product choice in this instance. Minimum 2 months reserves for PITI payments sourced and seasoned 60 days "reserves" means money if your payment is $500.00 ,and you need 2 months reserves, then you need $500.00 x 2 = $1000.00 "PITI" refers to principle,interest,taxes, and insurance principle = the monthly loan payment, interest = the monthly interest payment, taxes = the monthly installment of your property taxes, insurance = the monthly installment of your home owners insurance if your monthly loan payment is $400.00, your monthly interest payment is $50.00, your monthly taxes are $25.00, and your monthly home owners insurance is $25.00 then your monthly PITI is $500.00 In other words : PITI : principle : $400.00 interest : 50.00 taxes : 25.00 insurance: 25.00 Total PITI : $500.00 "sourced" means it is in a verifiable place verifiable means a Bank, 401k, IRA, Pension fund, Money Market, Tax refund Check, to name a few you must be able to withdraw your funds at any time for them to count cash in the top drawer of your dresser does not count, because it is not verifiable by anyone other than you you can use money given to you from a relative - only a relative - and, yes, you must prove they are related to you and they have to prove where their money came from - which again must be a verifiable source - their top drawer does not work either! "seasoned" means it has been in a verifiable place for a period of time 60 days is the standard "seasoning" period. So, if the bank is the verifiable source being used, then you must provide two bank statements that proove you have had your funds in the bank for 60 days...and it must be the most recent two bank statements...you cannot buy a house in January and provide last June and July for your bank statements...a January purchase would require a December and November bank statement for verified funds A tax return check or 401k statement automatically counts for the 60 days requirement Verification of employment for W2 borrowers A "verification of employment" form is sent by the mortgage company to the employer for every loan that is processed - this is done by the mortgage company, a letter from the borrower or employer will not work - the form is specific and must come from the mortgage company solely. A borrowers employment is verbally verified during the loan process as well. A phone call will be made to the employer prior to closing on the loan to make sure you are still employeed. A W2 borrower is someone who works for a company or individual and has taxes taken out of their paycheck. Additionally, a W2 employee cannot receive more than 25% of their annual income in the form of commission. If you work in sales and are paid 100% commission as your salary, you are not a W2 employee - even if you receive a W2 at the end of the year. non-W2 employees who are self employed or receive more than 25% of their income in comission must be on their current job for two years - two different jobs in the same industry does not count. For example, if you have sold cars at "X" ford dealer for the past year and the year before you worked at "Y" ford dealer, that does not count. You must be at "X" Ford dealer for 2 years License or CPA letter for self-employed/ 1099 borrowers A business license is required for self-employed borrowers for the last two years...if your business does not require a license, you can supply a letter from a CPA stating that they have reviewed your tax returns for the past two years and you are indeed self-employed. If you are a 1099 employee - you are employed by a company but they do not take taxes out on you, you are listed as an independant contractor, or you receive a 1099 form every year instead of a W2, then a license or CPA letter is required. For example, you are an electrician hired by a general contractor to wire a house, your electricians license would be required and you must supply a copy of your license for the last two years. Debt-to-income ratio (DTI) The required Debt to income ratio, refered to in the industry as DTI, involves two elements : your housing expense ratio and your total debt expense ratio The ideal DTI ratios are 28% housing expense and 36% total debt expense. This is calculated by taking your housing expense and dividing by your income prior to any deductions - this is not your "bring home" pay - it is your income prior to any taxes, insurance, retirement, or any other deductions are taken out. For example, if your monthly income is $5,000.00 prior to any deductions and your monthly housing expense (PITI - remember from above) is $500.00, then your housing expense ratio is $500.00 divided by $5000.00 or .10 which equals 10% The "go fast" program requires a total expense ratio (DTI) between 45% and 50% Your total expense ratio is comprised only of debts that report to credit. For example; credit cards, installment loans - i.e. car loans, other mortgages, as well as the proposed housing expense (PITI) this means, again, the total housing expense - Principle, Interest, Taxes, and Insurance. Cable, cell phone, utilities, gas, food, etc. are not items that are calculated into your DTI. However, you should bear these costs in mind when determining how much you want to pay monthly for a home. Remember, gas alone is over $1.00 per gallon higher than it was a year ago - depending on the mpg of your car, you could be spending $100.00 more per month currently than you were only 1 year ago. Some necessities are more than double - i.e. MILK, EGGS! You must be able to stay within your budget no matter what happens - inflation, recession, or whatever "they" choose to call it these days. Remember, the maximum is the maximum for a reason - do not think that you have to reach for it!