All Forum Posts by: Michael Cohen

Ivy Hailey I'm a mortgage loan officer / originator for Movement Mortgage. It's slightly different then a broker in that a broker is independent and will work with a number of different lending institutions while I work with Movement Mortgage products only.

Bryan C. He's referring to lender's automated underwriting software. Whit it returns "Manual/Eligible" or "Manual/Ineligible" it means the software cannot determine if the file meets guidelines and must be manually reviewed by an underwriter. The eligible vs. ineligible indicates whether the borrower has the required cash to close: down payment, closing costs, reserves, etc.

Hi William Kelly This is going to be a lender-by-lender issue, but most large banks, credit unions, and national lenders won't manual underwrite, so you'll have to call around to ask. My suspicion is that you will get a higher interest rate because of this. Many people have the same concerns you do about debt and see it as a dirty word. From a lenders perspective, your credit history and score is an indication that you honor your obligations (debts, bills, etc.) as you say you will. Without any history, you're basically telling the lender "trust me." There are a few options: 1) alternative trade lines - have nonstandard monthly obligations added to your credit report: rental history, cell phone bill, car insurance, etc. 2) establish traditional credit quickly with small credit cards. They can be secured or unsecured. If you use them to by gas and pay off immediately, there will be activity showing but you won't be racking up any debt. Just building credit. This should take about six months to establish lines on all three credit bureaus. The most common stipulations regarding alternative trade lines are: -Minimum 3 credit references with 12 month history. -No major adverse or public records filed in the last 12 months. -No housing late payments. -Maximum 1×30 day late payment with the other credit references in the previous 12 months. The housing late payments are the most important. NOTE: I am NOT a credit repair expert and my advice should be used as guidance only. Please consult with a reputable credit repair expert!!!

And a mortgage broker is not a middleman. You'll pay the same amount in closing costs, and have the same rate options whether you go directly to the bank, or use a mortgage broker.

You as the buyer pay closing costs. However, under USDA guidelines you can negotiate up to 4% of the sales price as seller concessions to help cover closing costs.

@Stephanie P. hahaha re: best crabs in MD. They're all "voted best" though...

@Ivy Hailey - typically you cannot utilize any grant or DPA (down payment assistance) with a renovation loan, 203K or otherwise.

@Jonathan Jaime Velarde- it is a fairly streamlined process; similar to other residential mortgages. There is a funding fee as @Jonathan Smith mentioned. Here's the chart to see what it would be for you:

Hi @Ivy Hailey - what you're looking to do is very common and most national lenders (big banks, community credit unions, residential mortgage lenders, etc.) will be able to help you out.

@Drew Lamb - even though the down payment for FHA is 3.5%, it also has an upfront MIP of 1.75% as part of the closing costs that you have to consider. Plus MIP/MI/PMI is higher on FHA so even though your FHA rate will be lower, your APR will typically be higher than a conventional loan. Get scenarios for both, but usually is less up front and lower monthly with a 5% conventional loan.

If you're a first-time homebuyer, you can do HomeReady which is a 3% down with reduced MI.