All Forum Posts by: Sean Grapevine

@Bryan O.quite possibly! The 1% rule went into effect at the end of last year (2015), so that may have something to do with it as well.

Best,

Sean

@Bryan O., 

IBRs *are* fully amortizing, but the lender knows they have a chance of increasing. So while, technically, they could use the reported payment, I've never convinced one of the ten lenders we broker to to actually do it. They'll always use the higher figure in that case.

@Account Closed, it looks like you're right about condos! The Fannie program disallows condos, but this Freddie program appears to allow them. Good to know!

I think the product they're "announcing" is just their own brand of Freddie Mac's Home Possible Advantage. Go here to check out the full specs: http://www.freddiemac.com/learn/pdfs/mp/hp_glance....

I can't get Freddie loans to price out right now, but I'm seeing Fannie 3% loans with "no MI" pricing out in my system at 4.5%-4.625% at BoA margins. Not saying it's a horrible choice, and the underwrite is considerably simpler than FHA, along with a probably more generous appraisal...

Still no free lunch, unfortunately.

The 3% down program has been around through Freddie and Fannie for a few years now. They don't come stock without MI, but the MI can be bought out by the lender using a product called Lender Paid Mortgage Insurance. Just know that you'll pay for it in your rate. I few caveats about this program:

• Must be a first-time homebuyer (no ownership in the last 3 years)
• A conventional $150,000 loan at 4.375% with no MI pretty much costs the exact same as an FHA loan at 3.25% with FHA's MI
• These can't be used on investment properties
• Or condos.
• Your income must be below a certain amount depending on your area.

@Adam Garcia, roger that. They're minimum loan amount is $100k with no rehab option. Good luck out there!

@Adam GarciaHow much are you putting down? What's the total loan amount? I know a lender in Florida that lends on non-warrantable condos.

@Gloria Mirzaand @Kyle J., this wouldn't have an effect on your DTI. Just like having a credit card with a high limit and no balance, won't have an effect.

Thanks, @Chris Mason!

I'm a full time broker at a two man shop, so that was some awesome encouragement! Hope you've got a ton in the pipeline. I have 13 locked right now and am totally hating life, but looking forward to that paycheck!

15 Year mortgage payments aren't double the amount of 30 year mortgage payments. Take for instance this scenario on a $150,000 mortgage:

30 Year @ 4%:

Monthly payment: $716.12

Double payment: $716.12 = $1,432

Months to pay off: 130

Total payment: $186,160

and then this scenairo:

15 Year @ 3.25%:

Monthly payment: $1,054

Extra payment: $378 = Total of $1,432

Months to pay off: 125

Total payments: $179,000

Savings: $7,610

Yearly savings: ~$760

I honestly thought the differences would be more stark. You're basically paying $7,500 for the option to have a lower payment, which may be a worthwhile trade-off for you.

If you're not experienced at estimating costs, then you need to get someone in there to work up a quote for the proposed rehab.

You can know the approximate sales price, you can probably reasonably estimate on your own the ARV, but none of that is worth anything if you don't know the costs of the repairs. Bring someone who can estimate costs or provide you a bid.