Real Estate Blog

“I Want to Buy a Home-In a Year or Less!” Best Tips for Paying Rent & Why


Rent tips To prove your rent history the best, pay your rent by check on-time each month

Rent Tips to Buy a First Home

In this series, we are providing tips to avoid the Most Common Roadblocks to Home Ownership.  So far we have discussed how to solve limited or bad credit, no down payment, and not having a budget.  So lets discuss overcoming Roadblock #4.  Not being able to document rent or housing history to show, as a buyer, that you are able to handle a new mortgage payment.  So in this article we are going to provide you detailed rent tips.

Reasons to Document Rent History

First of all, there are plenty of situations where a buyer does not have to prove a rent history.  Program type and overall strength of the borrower’s file are examples for

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Underwater on Your VA Mortgage & Experienced a Hardship? There is a Solution for VA Borrowers

 

Solutions for VA borrowers that are underwater on their mortgage

Solutions for VA borrowers that are underwater on their mortgage

Department of Veteran Affairs offers the Compromise Sale Program to help VA borrowers get out from an underwater mortgage that is giving them a financial strain or hardship.

Too often VA buyers have purchased a home that depreciated in value so that their home is now underwater, they have experienced a hardship, and they are unable to sell the home for enough to satisfy the mortgage debt.  Foreclosures, short sales, or deed in lieu of foreclosure needs to only be a last resort because of the serious credit ramifications.

A little known solution to these sellers is the

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 FHA 100 Mile Rule

 To have multiple FHA loans or use rental income on a departing residence, the FHA 100 mile rule must be followed

Often buyers are relocating to a new area and 1) need a 2nd FHA loan for one of many reasons and/or 2) need to count the FHA 100 mile rule for 2 fha loans at once or counting rental incomerent on the departing residence to qualify.  FHA loans offer so many options for 1st time or subsequent buyers such as:

  1. Low down payment
  2. Allows for down payment assistance
  3. Lenient on lower credit scores or past issues
  4. Forgiving on previous bankruptcies, foreclosures, & short sales
  5. Student loans with Income Based Repayment
  6. Higher debt ratios
  7. Co-signors that will not occupy the home
  8. Gifted funds for down payment

Buyers looking to purchase a new home with an 

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Seller Deed Requirements for a Trust, Company, Estate, or POA

An often overlooked area on a purchase contract is who can sign as the seller.  Seller deed requirements are an important area to understand.  This is especially true when the owner of the property is not a regular person.  So let’s discuss the basic requirements listing agents and sellers should follow when the seller is a trust, company (such as an LLC), or estate.  We even provide helpful tips for sellers using a power of attorney.

Seller Deed Requirements for a Trust

There are several types of trusts.  They mainly fall into revocable and irrevocable trusts.  Revocable trusts may be altered or canceled.  Irrevocable trusts may not be altered or cancelled without the

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How to Buy a Home with Student Loan Debt. VA New Policy Can Help!

Student loan debt and payments play a large role in buyers qualifying for a mortgage loan.  With escalating costs of a college education, many graduates carry the heavy burden of debt.  Luckily there are many programs providing student loan payment relief.  But when it comes to mortgage qualification, the programs are often not recognized.  VA home loans, available to qualifying military veterans or active service members, are the most flexible when it comes to student loan debt.  So Veterans can take advantage of these flexible student loan guidelines to purchase a new home.

The Veterans Benefits Administration in the Department of Veteran Affairs recently announced a rule

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How to Buy a House With Student Loans in Income Based Repayment

It is no secret that student loans cause debt ratio issues when qualifying for a home loan.  While mortgage lending hasn’t caught up with student loan debt payment options, there are great solutions available.  So let’s share creative ways millennials and first time buyers with even large student debt could buy a home.  Plus buy a home with great terms!

Per a recent Federal Reserve report **, student loan debt is rising at an alarming rate of $2,701 per second!  As of January 2017, student loan debt is approximately $1.4 trillion!  Obviously this is a problem.  We don’t have a solution for this stat, but we do have a great option for many that desire to be a homeowner.

How

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Annual Movers Study: NC and SC Rank High for Relocation


United Van Lines 2016 Annual Movers Study

Every year United Van Lines compares inbound and outbound movers in each state.  So basically it is a relocation study.  They are able to determine which state is the nation’s “Top Moving Destination”.  In 2016, the top spot goes to South Dakota which broke the 3 year streak of Oregon.

“For 40 years, United Van Lines has been tracking which states people are moving to and from. We also survey our customers to understand why they are moving from state-to-state,” said Melissa Sullivan, director of marketing communications at United Van Lines. “As the nation’s largest household goods mover, the data we collect is reflective of national migration

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Self Employed Tax Return Issues? Bank Statement Income Program

Self employed borrower bank statement program

 

Too often borrowers with incomes that are difficult to document, especially self employed borrowers, have a very hard time obtaining a mortgage loan approval to purchase a home.  Well, we have a mortgage loan option which is lenient on previous credit issues and can use the borrower’s bank statements to calculate their income and can be described as:

  • Flexible guidelines
  • Favorable terms
  • Understanding
  • Alternative solution
  • Unique
  • Up to $2,000,000 loans

Buyers with at least 20% down can have access to this product which is more forgiving in the areas of credit and income documentation compared to FHA, Fannie, Freddie, or VA.  NO TAX RETURNS

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Unreimbursed employee expenses form 2106 and mortgage loans

Unreimbursed Employee Expenses can cause issues with calculating mortgage income

An often overlooked and potential deal killer on mortgage loans is a few pages back in the tax returns on Schedule A called “Employee Business Expenses”.  If you have found this article through an online search down the road after it was written, it is probably because you or a client is having an unreimbursed employee expenses issue which is causing an income calculation problem on a mortgage.  We hope this is not the case, but at least we want to educate you on the subject and hopefully save your loan now or in the future.  When a taxpayer completes their tax return with unreimbursed employee expenses, they are basically telling the IRS the following:

  • In
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USDA Funding Fee for 2016-2017 Announced

2016-2017 USDA Funding Fee and Annual Fee Decreases

Huge Decrease in the 2016-2017 USDA Funding Fee & Annual Fee!

The USDA Funding Fee is a key part of the USDA home loan program and basically pays for the program.  First, USDA mortgage loans are so popular (especially in NC, SC, and Virginia) because it allows homebuyers to purchase with no money down.  Additionally, USDA loans provide a fixed 30 year payment.  Now USDA just got better!!  The 2016-2017 USDA Funding Fee is decreasing dramatically and even the Annual Fee is decreasing as well.  Because foreclosure and delinquency rates have fallen to historic lows, USDA could afford this reduction.  Less risk means less costs.  USDA Rural Housing Service Administrator Tony Hernandez said “When our

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