All Forum Posts by: Michael Cohen

@Nick G. @Rusty Pollard

Conventional (Fannie/Freddie) loans cover the verification of commission income as such:

For FHA and/or FHA 203K, the rules are:

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If you're base income (even if smaller than it was previously) cover your DTI, then you're fine. If you want to use the commission income, then 12 months is the minimum provided there are compensating factors: your income increased dramatically, non-borrower income taken into account (i.e. spouse's income), or something similar.

Got it; for a 100% commission job (even if W2), you'll need at least two years in that position for a standard QM loan that's looking for ability-to-repay. Meaning people like me.

There are some lenders out there that will do bank statement loans, utilizing on the past 12 months. Banc of California is one. Outside of that, you're looking at PML/HML.

@Iqwe Haywood I'm not totally clear about your work history:  100% commission > unemployed > W2 position (same industry you were commissioned). Is that correct?

@Mike Cumbie - clients must pay the difference? See, you learn something new every day. Thank you for explaining that to me.

FHA does allow manufactured homes, but it's a world unto itself: flood issues, inspections, appraisals, property requirements, etc. Many lenders choose not to service that market so the challenge will be finding a lender who operates in the manufactured home market.

FYI, as a residential purchase mortgage lender, I don't do HELOCs. I send all my HELOC clients in Baltimore to Bay Bank and/or Fairfax Federal Credit Union. You might want to try there as well.

Fast. Cheap. Good. - Pick two.  :)

confirming @Steven D. is spot on.

I'm with @James Maradits - expecting top level, professional, world-class service for rock bottom prices is always a recipe for disappointment and frustration.

And while any service provider should seek to find the best for their client, the real world implication is that we have only so many hours in the day. Client A is looking for a $450,000 SFH while Client B is looking for a $50,000 inner city property to fix and flip. If you were the agent, where would you spend your time? It's nieve to suggest all clients should be treated equally due to ethical reasons. Clients are not equal.

What we're really talking about is Client A is looking at a $450,000 SHF and the agent chooses to "suggest" House 1 with 3% commission vs. House 2 with 2.5% commission. That is highly unethical and probably illegal; however, internet sites such as Zillow making all MLS properties readily available to consumers, the "knowledge paradox" has all but been eliminated, so my hunch is that this probably occurs less than we all suspect.