Last year, FHA implemented a policy of risk-based mortgage insurance premium (MIP) pricing, which made those with bad credit scores pay more for insurance, and allowed those with good credit to pay less. That idea went over like a lead balloon with lawmakers and activists alike. And so on October1, 2008, a couple of months after it started, the policy was scrapped–for a year. Well, that one year moratorium is over October 1st of this year. If you have bad credit and want an FHA loan you need to do it now–because after October 1st it may cost you more. Continue reading ‘Thinking FHA? Think Fast if You Have Bad Credit’
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Those of you waiting to take the step from renting to home ownership may want to step it up. First, unless Congress extends the deadline, that first-time home buyer credit is going away the end of November. Of course those on the sidelines face challenges–often bad credit, a little short on income, insufficient down payment, or lack of time on the job. But you don’t know until you try, right? With a good loan agent, even a decline from a lender can be a useful tool. Here’s how to make the most of that information. Continue reading ‘Even Being Declined for a Mortgage Can Be Useful’
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While news that lender underwriting guidelines have toughened up is old stuff, and most people now know that unless they are candidates for financial sainthood they will be dinged with surcharges for everything from missing credit score cutoffs to buying a condo to obtaining subordinate financing (a second mortgage to increase your down payment). And most people know now that loans are largely underwritten by computer programs. What you probably don’t know is that an automated approval from Fannie Mae or Freddie Mac may not be worth the paper it’s printed on. Continue reading ‘Today’s Mortgage Insurance: Even if You’re Approved, You’re Not’
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Until the recent mortgage crisis, it wasn’t all that important to document your income for lenders if everything else was in order–good credit, assets, and a demonstrated capacity to handle large amounts of debt successfully. Stated income loans had a purpose, and it wasn’t to allow pathological liars to buy bigger houses. Continue reading ‘Why “Liar’s Loans” Need to Make a Comeback’
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If you’re like most people, you never heard of a company called Taylor, Bean and Whitaker. But they may soon have a very profound effect on your life. Because the FHA loan you think you are approved for and ready to close on may just have disappeared. Continue reading ‘Spillling the Beans. You May Not Have that FHA Loan After All’
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In today’s economic turmoil, people are changing jobs and residences faster than NASCAR crews change tires. So how does that affect your ability to get a new home once you’ve found that new job? It depends. Continue reading ‘How Long Do I Need to Have My Job to Get a Home Loan?’
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Many thousands of people get mortgages after completing a bankruptcy. How long you have to wait depends on a few things. Continue reading ‘Can I Get a Mortgage After Filing Bankruptcy?’
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Two large American lenders are being sued by the NAACP for allegedly discriminating in their lending practices. The two separate lawsuits filed in the U.S. District Court in California cite studies that indicate that some lenders’ policies treat borrowers of different races, well, differently. Continue reading ‘Is There Discrimination in Mortgage Lending? NAACP Sues Mortgage Lenders’
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Government mortgage programs are all the rage these days–mainly because that’s where the money is. And unlike the crazy, water-tight underwriting of private mortgage programs, government mortgage lenders don’t require that you provide a saliva sample and turn over your first-born child. Continue reading ‘Government Loans Are Great–But You’ve Gotta Pass a CAIVRS Check’
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Let’s see, if you’re a first time home buyer in California, and you buy a newly-constructed home, you could get up to $18,000 in tax credits! But even if you’re not a first-timer you can get the California credit. And that’s a sweet ten grand.
Continue reading ‘California’s Generous $10,000 Credit For All Home Buyers (Not Just First-timers)’
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