One of the factors that lenders look at when qualifying borrowers is debt to income ratio called DTI. In short, DTI ratio is the amount of debts dividing by borrower’s incomes. As you may have guessed, lenders like DTI to be low. For conventional loans, max DTI has recently increased since July 2017 from 45%
Some lenders may offer minimal documents from borrowers; however to ensure the income and assets are not missing out during approval process, please making sure you have this check list of documents for your loan officer: 1. W-2’s and or 1099’s, along with Federal Tax Returns with ALL Pages and ALL Schedules for 2 most recent
We tend to focus on borrower income base on their paystubs (for wage earners) and tax returns (for self employed), however there are many other sources of income that lender also allows for borrowers loan qualification. Here are the list of all possible sources of income: Alimony & Child Support: Allowed to use for
“HomeReady recognizes the growth of extended-income households by allowing the existence of non-borrower income to be considered a compensating factor in Desktop Underwriter® (DU®). HomeReady permits the borrower to have a higher debt-to-income (DTI) ratio – higher than 45%, up to 50% – considering available household income to provide additional assistance with household expenses if
Unfortunately, the earlier news about the FHA rollback on the reduction of annual mortgage insurance premiums has been suspended indefinitely. It now appears that HUD rescinded the FHA premium reduction on Friday as part of the Trump Administration’s plans to overturn a host of regulations/policies implemented by the Obama Administration. FHA will issue a subsequent Mortgagee
Federal Housing Administration, known to be the government insurer of low down-payment home loans, has just reduced annual mortgage insurance premium by 25 basis points. FHA pointed out that the reduction in insurance premium was due to the improved financial condition of the FHA’s insurance fund and continue to make home-ownership less costly. With the
California has updated mortgage loan limits which increase for FHA and VA loans. The FHA has published the 2017 Mortgage Limits. The new single-family low cost areas is $275,665 and the new maximum loan amount in high cost areas is $636,150*. The new FHA limits apply to case numbers assigned on or after January 1st, 2017
In today competitive market, real estate listings probably can’t sell from just a simple “For Sale” sign into the front yard. To stay competitive, top agents should also consider additional of marketing methods for moving residential real estate. For sellers that want quick sales, they often look for real estate professional who is willing to
