All Forum Posts by: David Kelly

Here is a little more information from HUD on this topic.

A Borrower is considered eligible for a new FHA-insured Mortgage if, from
the date of case number assignment for the new Mortgage:
• all Mortgage Payments on the prior Mortgage were made within the
month due for the 12-month period preceding the Short Sale; and
• installment debt payments for the same time period were also made
within the month due.
(b) Exception for Extenuating Circumstances
The Mortgagee may grant an exception to the three-year requirement if the
Short Sale was the result of documented extenuating circumstances that were
beyond the control of the Borrower, such as a serious illness or death of wage earner, and the Borrower has re-established good credit since the Short Sale. Divorce is not considered an extenuating circumstance. An exception may, however, be granted where a Borrower’s Mortgage was current at the time ofthe Borrower’s divorce, the ex-spouse received the Property, and there was a subsequent Short Sale. The inability to sell the Property due to a job transfer or relocation to another area does not qualify as an extenuating circumstance.

As most would say, it is always good to shop your rates/fees.  Especially now with the market fluctuating like it has been over the last few weeks.

I am able to do loan amounts down to $80,000 with conventional financing.  I lend Nationwide.  

Hello, 

I can lend in TX.  What questions do you have?

Lender here!  Conventional guidelines allow you to use college as part of your 2 year work history if your job is in the same field as what you went to college for.  But you will need to have a job first!  No income means no way to pay the bills.  When you get a job you can get an offer letter from the new company stating how much you will be making.  As a lender we can use that to make our income calculations to approve you, but we will need to have a paystub or two under your belt before we can close.  I would suggest getting in touch with a lender a few months in advance to  make sure your credit and liabilities are in line that way you have time to fix something if need be.  I have done this with other BP members, feel free to reach out with any other questions.

3.5% down is available for an FHA up to 4 units.

@Stephen Duncan Reach out to me today and I can run this scenario and give you a quick answer if this is in line.  To me it sounds pretty high.  I am a national lender.

Hello, 

You seem to know more than the average first time homebuyer, which is great!  One thing to note is that you have 30 days to shop other mortgage lenders and all will have the same credit report to work with.  The scores do not change until after that 30 days.  So shop around because it will be well worth the few points that it will drop your score in the end.  

3% conventional may or may not be your best option. Did he run the approval with Fannie/Freddie? The 3% conventional loan (HomeReady or HomePossible) have income limits as well as a lower DTI guideline.

In general, if the mortgage lender is doing a pre-approval they should have gotten all income docs, DL, Full credit report, etc. to figure out a limit on what you can purchase.  Once you have a property picked out then you can get the actual approval based on the property address.  Reach out if you have other specific questions.

Yes, mortgage rates do fluctuate daily.  For your lender to offer a later lock because they believe they can get a better rate is not exactly their call.  It is pure gambling at that point at the cost of your money.  If you choose that lender and they start the process and are unable to get you that rate then you will be the one that has to pay the difference or possibly risk losing the deal if the terms cannot be met.  Do you know if the 3.5% lender is charging points for that rate?  If they are simply throwing rates out at you without giving the "fine print", I would dig a little deeper and find out what all the closing costs are.

If you have a conventional loan, there is no issues. If you have an FHA loan you still are fine to do so because you have been in the home for a year now. That is the requirement for an FHA loan. You don't need to switch the loan to an investment property, it can stay the way it is. I assume your interest rate is in the 3's or lower?