Category: Agents

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%… Continue reading Debt to Income (DTI) Ratio Calculation

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… Continue reading Loan Documents Check List for Wage Earner and Self Employed

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… Continue reading Allowable Sources of Income

“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… Continue reading Non-Borrower Household Income Flexibility

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… Continue reading FHA & VA COUNTY LOAN LIMITS