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Understanding Investment versus Second PropertiesGrade for the kids in the pic: F-It is that time of year again: school has begun and winter vacation is already in our hearts and minds. But buying a log cabin in Aspen and buying and renting out a condo near University of Wherever do NOT require the same loan process! Investment properties:An investment property is a home that is not your primary residence but is purchased with the intent of generating income, reaping tax benefits, or profiting from appreciation.  Investment properties can be residential or commercial. Second homes: A second home is a home you buy that you will visit and/or occupy on a regular basis. Second homes are usually utilized as vacation homes, but some might choose to split their time between the second home and the primary residence.  In order to obtain a second home loan, the home must be located a certain distance from the buyer’s primary home or must be located in a vacation area. So what’s the biggest difference?Investment properties have larger down payment requirements and higher interest rates than second homes do. A second home can’t be rented out for any reason, but an investment home is encouraged and is expected to be rented out on a regular basis.Learn more, including how to finance each:http://www.lender411.com/featured-article-whats-the-difference-between-a-second-home-and-investment-property/

Understanding Investment versus Second Properties
Grade for the kids in the pic: F-

It is that time of year again: school has begun and winter vacation is already in our hearts and minds. But buying a log cabin in Aspen and buying and renting out a condo near University of Wherever do NOT require the same loan process! 

Investment properties:

An investment property is a home that is not your primary residence but is purchased with the intent of generating income, reaping tax benefits, or profiting from appreciation.  Investment properties can be residential or commercial. 

Second homes: 

A second home is a home you buy that you will visit and/or occupy on a regular basis. Second homes are usually utilized as vacation homes, but some might choose to split their time between the second home and the primary residence.  In order to obtain a second home loan, the home must be located a certain distance from the buyer’s primary home or must be located in a vacation area. 

So what’s the biggest difference?

Investment properties have larger down payment requirements and higher interest rates than second homes do. A second home can’t be rented out for any reason, but an investment home is encouraged and is expected to be rented out on a regular basis.

Learn more, including how to finance each:

http://www.lender411.com/featured-article-whats-the-difference-between-a-second-home-and-investment-property/

Filed under Mortgage Loan real estate school winter vacation fall

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Compensating factors for an otherwise unsavory mortgage applicationCompensating factors on your mortgage application do more than make your file look good. They are strong, positive aspects of a situation, which can offset other elements that are either negative or weak. Underwriting exceptions are likely to occur when compensating factors are present, and can make a difference between a borderline loan application’s denial or approval.Possible compensating factors:A 12-24 months documented ability to pay housing expenses equal to or greater than the proposed monthly housing expense for the new mortgage.Minimal increase in housing expenses. Note that payment “shock” (big increase in monthly payments) accounts for over 50% of all late payments in the early years of a mortgage loan!New home is closer to work than current one and/or has energy efficient improvements. This translates into potential savings for the borrower, and improvement of his/her financial situation.A down payment of 10% or more in the case of a home purchase, or a significant equity position in the case of a refinance transaction.There are quite a bit more: http://www.lender411.com/mortgage-compensating-factors/
 
Compensating factors for an otherwise unsavory mortgage application

Compensating factors on your mortgage application do more than make your file look good. They are strong, positive aspects of a situation, which can offset other elements that are either negative or weak. Underwriting exceptions are likely to occur when compensating factors are present, and can make a difference between a borderline loan application’s denial or approval.

Possible compensating factors:

A 12-24 months documented ability to pay housing expenses equal to or greater than the proposed monthly housing expense for the new mortgage.

Minimal increase in housing expenses. Note that payment “shock” (big increase in monthly payments) accounts for over 50% of all late payments in the early years of a mortgage loan!

New home is closer to work than current one and/or has energy efficient improvements. This translates into potential savings for the borrower, and improvement of his/her financial situation.

A down payment of 10% or more in the case of a home purchase, or a significant equity position in the case of a refinance transaction.

There are quite a bit more: http://www.lender411.com/mortgage-compensating-factors/

Filed under Mortgage Loan real estate pizza food

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Could the FHA Back to Work program help you?With extenuating circumstances, you can get a mortgage 12 months following:Chapter 7 or 13 bankruptcyForeclosureDeed-in-lieu of foreclosureLoan modificationForbearance agreementShort saleYou may qualify for an FHA mortgage if you are back to work, have reestablished credit, and can document the circumstance that led to the foreclosure or bankruptcy. Eligible borrowers must document:The financial hardship, including how it was caused and beyond your control.Household income declined at least 20% for a minimum of 6 months from the event.Rental payments have been on time for the past 12 months. Full recovery from any extenuating circumstances. There is a counseling requirement for this program. HUD counselors review borrowers’ total financial picture and make sure they understand the expenses of homeownership. More on eligibility: http://www.lender411.com/fha-back-to-work-program/
 
Could the FHA Back to Work program help you?

With extenuating circumstances, you can get a mortgage 12 months following:

Chapter 7 or 13 bankruptcy
Foreclosure
Deed-in-lieu of foreclosure
Loan modification
Forbearance agreement
Short sale

You may qualify for an FHA mortgage if you are back to work, have reestablished credit, and can document the circumstance that led to the foreclosure or bankruptcy. 

Eligible borrowers must document:

The financial hardship, including how it was caused and beyond your control.
Household income declined at least 20% for a minimum of 6 months from the event.
Rental payments have been on time for the past 12 months. 
Full recovery from any extenuating circumstances. 

There is a counseling requirement for this program. HUD counselors review borrowers’ total financial picture and make sure they understand the expenses of homeownership. 

More on eligibility: http://www.lender411.com/fha-back-to-work-program/

Filed under mortgage bankruptcy foreclosure fast real estate FHA

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Where Can I Find Funding for Manufactured or Mobile Properties? Lenders are pretty strict regarding funding for manufactured properties since their value depreciates so quickly. Many existing loan programs will let you buy a manufactured property, but you must find a lender willing to loan the manufactured home mortgage. For example, if you want to buy a manufactured home and are a veteran, you can talk to a VA lender and they will help you or at least refer you to a willing lender. Here are some specific programs that will give you funding for manufactured properties:VA Manufactured Home LoansUSDA Manufactured Home LoansHUD Manufactured Home Loans (FHA)VA, USDA, and HUD links, and article continued: http://www.lender411.com/featured-article-your-guide-to-manufactured-home-loans/

Where Can I Find Funding for Manufactured or Mobile Properties? 

Lenders are pretty strict regarding funding for manufactured properties since their value depreciates so quickly. Many existing loan programs will let you buy a manufactured property, but you must find a lender willing to loan the manufactured home mortgage. For example, if you want to buy a manufactured home and are a veteran, you can talk to a VA lender and they will help you or at least refer you to a willing lender. 

Here are some specific programs that will give you funding for manufactured properties:

VA Manufactured Home Loans
USDA Manufactured Home Loans
HUD Manufactured Home Loans (FHA)

VA, USDA, and HUD links, and article continued: http://www.lender411.com/featured-article-your-guide-to-manufactured-home-loans/

Filed under Mortgage Loan trailer park real estate

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Mortgages Made in Amurrica.Government-backed loans accommodate buyers far and wide and with credit and down payments great and small. Learn about each type in this overview:FHA LoansFHA loans are guaranteed by the Federal Housing Administration, and perhaps the most well-known out of the three types of government-backed loans. FHA loans don’t require a big down payment like other loan types do. In fact, you can put as little as a 3.5% down payment on your house with an FHA loan.A relative downside of FHA loans is that they have a mandatory mortgage insurance (MI) requirement with a monthly premium. This could equate to hundreds of extra dollars per month for borrowers paying for mortgage insurance. MI must be paid for the lifetime of the loan, not just until you have accumulated enough equity (unlike Conventional loans).USDA LoansUSDA loans are guaranteed by the United States Department of Agriculture and target borrowers in rural communities who are income eligible for their county. USDA loans can be used to buy a home, but they can also be used to renovate a home or perform home construction. USDA loans have very low interest rates and don’t have any loan limits. There isn’t a down payment requirement for USDA loans, but you are limited to purchasing a home that meets the USDA standards. USDA Loans do require MI, though USDA mortgage insurance rates are generally lower than those of FHA. VA LoansVA loans are guaranteed by the Department of Veteran Affairs and are generally limited to active duty military and veterans. Borrowers who qualify for VA loans can enjoy numerous benefits, such as no down payment requirement or no mortgage insurance requirement.  VA loan borrowers can also enjoy low credit standards and can even qualify for a mortgage after a foreclosure, short sale, or bankruptcy if the borrower’s credit has since improved. A possible downside of VA loans is that they require a VA funding fee when the loan finally closes, which is an amount that is equal to anything between 1.25 and 3% of the home’s cost. This represents a huge financial burden to those who may not have that money in cash reserves.How to qualify: http://goo.gl/CJ9Z84
 
Mortgages Made in Amurrica.

Government-backed loans accommodate buyers far and wide and with credit and down payments great and small. Learn about each type in this overview:

FHA Loans

FHA loans are guaranteed by the Federal Housing Administration, and perhaps the most well-known out of the three types of government-backed loans. FHA loans don’t require a big down payment like other loan types do. In fact, you can put as little as a 3.5% down payment on your house with an FHA loan.

A relative downside of FHA loans is that they have a mandatory mortgage insurance (MI) requirement with a monthly premium. This could equate to hundreds of extra dollars per month for borrowers paying for mortgage insurance. MI must be paid for the lifetime of the loan, not just until you have accumulated enough equity (unlike Conventional loans).

USDA Loans

USDA loans are guaranteed by the United States Department of Agriculture and target borrowers in rural communities who are income eligible for their county. USDA loans can be used to buy a home, but they can also be used to renovate a home or perform home construction. USDA loans have very low interest rates and don’t have any loan limits. There isn’t a down payment requirement for USDA loans, but you are limited to purchasing a home that meets the USDA standards. USDA Loans do require MI, though USDA mortgage insurance rates are generally lower than those of FHA. 

VA Loans

VA loans are guaranteed by the Department of Veteran Affairs and are generally limited to active duty military and veterans. Borrowers who qualify for VA loans can enjoy numerous benefits, such as no down payment requirement or no mortgage insurance requirement.  VA loan borrowers can also enjoy low credit standards and can even qualify for a mortgage after a foreclosure, short sale, or bankruptcy if the borrower’s credit has since improved. 

A possible downside of VA loans is that they require a VA funding fee when the loan finally closes, which is an amount that is equal to anything between 1.25 and 3% of the home’s cost. This represents a huge financial burden to those who may not have that money in cash reserves.

How to qualify: http://goo.gl/CJ9Z84

Filed under mortgage advice fha loan bald eagle america amurrica government stars

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Using Alimony or Child Support to Get an FHA MortgageHow to maintain a smooth transactionIf you receive alimony, child support, or maintenance income and want to buy a house there are advantages to securing financing through the Federal Housing Administration, or FHA. FHA regulations generally require evidence of the past 12 months’ receipts of on-time payments for child support or alimony. In certain circumstances, FHA may only require proof of as little as 3 months receipts of on-time child support or alimony payments. The automated underwriting available to approved lenders may issue recommendations for alimony, child support, and maintenance income requirements. According to FHA, alimony, child support, or maintenance income may be considered effective if:1. Payments are likely to continue for at least the first three years of the mortgage.2. The borrower can provide legal documentation of an agreement: divorce decree, separation agreement, court order, or voluntary payment agreement.3. The borrower can provide documentation that the income has been received on time for the past 12 months: cancelled checks, deposit slips, tax returns, or court documentation.Continued: http://www.lender411.com/mortgage-with-alimony-child-support
 
Using Alimony or Child Support to Get an FHA Mortgage
How to maintain a smooth transaction

If you receive alimony, child support, or maintenance income and want to buy a house there are advantages to securing financing through the Federal Housing Administration, or FHA. 

FHA regulations generally require evidence of the past 12 months’ receipts of on-time payments for child support or alimony. In certain circumstances, FHA may only require proof of as little as 3 months receipts of on-time child support or alimony payments. The automated underwriting available to approved lenders may issue recommendations for alimony, child support, and maintenance income requirements. According to FHA, alimony, child support, or maintenance income may be considered effective if:

1. Payments are likely to continue for at least the first three years of the mortgage.
2. The borrower can provide legal documentation of an agreement: divorce decree, separation agreement, court order, or voluntary payment agreement.
3. The borrower can provide documentation that the income has been received on time for the past 12 months: cancelled checks, deposit slips, tax returns, or court documentation.

Continued: http://www.lender411.com/mortgage-with-alimony-child-support

Filed under Mortgage Loan FHA divorce children real estate

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Own your own biz? Get these ducks in a row, get a mortgage.1. Flesh out your credit score. Depending on the loan type you intend to qualify for you will need to meet the minimum credit score standards. Federal Housing Administration loans (FHA) typically require at least a minimum 620 middle credit score whereas conventional loans typically require a minimum 660 middle credit score. It is always a good idea to check your credit report prior to entering in a contract to buy a house and correct any errors you find on your credit report.2. Build a down payment. FHA requires a minimum 3.5% down and conventional financing requires a minimum 5% down payment. Although gift funds are acceptable for some or all of a down payment, using your own funds will make you a better risk. In either case, a larger the down payment may be considered a compensating factor.3. Show stable or increasing income.Lenders will use your last 2 years of tax returns to calculate your income. They will review your tax schedules and add back depreciation, amortization/casualty loss, and depletion to your net profit or loss. The lender will also ask for a year-to-date profit and loss statement to verify your income is stable and not decreasing. If your income is decreasing, a lender will likely use the worst case scenario as your qualifying income instead of your last 2 years’ average income.4. Contribute to reserves.Most loans require 2 months or less of mortgage payments (principal & interest, taxes, insurance, and private mortgage insurance) left in the bank at the time of closing. The greater amount of mortgage payment reserves you have in your bank the better risk you will be in the eyes of the lender.5. Organize business and personal debts.If you have debts that are paid directly through your business, you must have separate business bank account to be able to prove with debts are paid through the business, thereby not counting them in your personal debt ratio. Lenders will require a copy of the last 12 months of cancelled checks to verify the debt is being paid directly out of the business account. If you intend to buy a house avoid any new business debt for the 12 month period prior to purchasing a house. New business debt (where you cannot provide 12 months of cancelled checks from your business account) will likely be counted as personal debts by your lender.6. Make sure your business is recognized by your state.Lenders will need to verify you have officially been in business for at least 2 years. A business license is typically required but a letter from your CPA is often accepted.Full article: http://www.lender411.com/getting-a-mortgage-while-self-employed/

Own your own biz? Get these ducks in a row, get a mortgage.

1. Flesh out your credit score. 

Depending on the loan type you intend to qualify for you will need to meet the minimum credit score standards. Federal Housing Administration loans (FHA) typically require at least a minimum 620 middle credit score whereas conventional loans typically require a minimum 660 middle credit score. It is always a good idea to check your credit report prior to entering in a contract to buy a house and correct any errors you find on your credit report.

2. Build a down payment. 

FHA requires a minimum 3.5% down and conventional financing requires a minimum 5% down payment. Although gift funds are acceptable for some or all of a down payment, using your own funds will make you a better risk. In either case, a larger the down payment may be considered a compensating factor.

3. Show stable or increasing income.

Lenders will use your last 2 years of tax returns to calculate your income. They will review your tax schedules and add back depreciation, amortization/casualty loss, and depletion to your net profit or loss. The lender will also ask for a year-to-date profit and loss statement to verify your income is stable and not decreasing. If your income is decreasing, a lender will likely use the worst case scenario as your qualifying income instead of your last 2 years’ average income.

4. Contribute to reserves.

Most loans require 2 months or less of mortgage payments (principal & interest, taxes, insurance, and private mortgage insurance) left in the bank at the time of closing. The greater amount of mortgage payment reserves you have in your bank the better risk you will be in the eyes of the lender.

5. Organize business and personal debts.

If you have debts that are paid directly through your business, you must have separate business bank account to be able to prove with debts are paid through the business, thereby not counting them in your personal debt ratio. Lenders will require a copy of the last 12 months of cancelled checks to verify the debt is being paid directly out of the business account. If you intend to buy a house avoid any new business debt for the 12 month period prior to purchasing a house. New business debt (where you cannot provide 12 months of cancelled checks from your business account) will likely be counted as personal debts by your lender.

6. Make sure your business is recognized by your state.

Lenders will need to verify you have officially been in business for at least 2 years. A business license is typically required but a letter from your CPA is often accepted.

Full article: http://www.lender411.com/getting-a-mortgage-while-self-employed/

Filed under Mortgage Loan mortgage advice SelfEmployed glasses blonde real estate home

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Let’s go step by step - social for mortgage marketing!Every once in a while we put out content for the pros who actively use our site. With this article, we wanted to provide specific information for crafting social posts and how to communicate on each network effectively, so if you’re a veteran, steer clear! But this tutorial will hopefully educate LOs who are green in the social sphere. So, why go digital for mortgage marketing at all?According to recent NAR studies: 50% of all home buyers use the internet as the main tool for their new home search31% of home buyers are ages 33 or younger76% of this demographic were first time home buyers74% stated their greatest need was to understand the home buying processHome buyers are online, pure and simple. But social media marketing is not always a cake walk. A generic post here and there is not going to to get the attention of search engines for greater authority and search engine ranking. Social activity takes time, patience and enthusiasm. If you do not care to spend time on social media, invest your time elsewhere! How do Loan Officers market on social media?A low cost social media marketing strategy will allow you to maintain contact with your current and past customers as well as allow you to create new relationships and ideally get you noticed online.Know Your PlatformSome of the most common social media outlets are Facebook, LinkedIn, Twitter, Google Plus, and Pinterest. Each platform has a unique flavor that social marketers need to understand. Speak the language of the platform and you’re speaking the language of your customers and real estate agents. Facebook! : Keep it casual. Don’t be wordy, and don’t be afraid to invest in some ads since Facebook has some of the lowest cost-per-click out there. LinkedIn! : Stay professional, but insert your opinion. Start a stimulating conversation with an industry-related blog post. Twitter! : Share everything, but keep the meat of your links in the short character limit your posts allow. Reading up on how to formulate awesome headlines will help tremendously. Google Plus!!! : Be informative. Lengthy posts are completely acceptable so long as they contain top tips or new information of interest. Pinterest! : Think graphics and hashtags. Loan officers can learn from real estate agents, who are killing it on Pinterest.Continue reading here: http://www.lender411.com/social-media-marketing-loan-officers/
 
Let’s go step by step - social for mortgage marketing!

Every once in a while we put out content for the pros who actively use our site. With this article, we wanted to provide specific information for crafting social posts and how to communicate on each network effectively, so if you’re a veteran, steer clear! But this tutorial will hopefully educate LOs who are green in the social sphere. 

So, why go digital for mortgage marketing at all?

According to recent NAR studies:
 
50% of all home buyers use the internet as the main tool for their new home search
31% of home buyers are ages 33 or younger
76% of this demographic were first time home buyers
74% stated their greatest need was to understand the home buying process

Home buyers are online, pure and simple. But social media marketing is not always a cake walk. A generic post here and there is not going to to get the attention of search engines for greater authority and search engine ranking. Social activity takes time, patience and enthusiasm. If you do not care to spend time on social media, invest your time elsewhere! 

How do Loan Officers market on social media?

A low cost social media marketing strategy will allow you to maintain contact with your current and past customers as well as allow you to create new relationships and ideally get you noticed online.

Know Your Platform

Some of the most common social media outlets are Facebook, LinkedIn, Twitter, Google Plus, and Pinterest. Each platform has a unique flavor that social marketers need to understand. Speak the language of the platform and you’re speaking the language of your customers and real estate agents. 

Facebook! : Keep it casual. Don’t be wordy, and don’t be afraid to invest in some ads since Facebook has some of the lowest cost-per-click out there. 

LinkedIn! : Stay professional, but insert your opinion. Start a stimulating conversation with an industry-related blog post. 

Twitter! : Share everything, but keep the meat of your links in the short character limit your posts allow. Reading up on how to formulate awesome headlines will help tremendously. 

Google Plus!!! : Be informative. Lengthy posts are completely acceptable so long as they contain top tips or new information of interest. 

Pinterest! : Think graphics and hashtags. Loan officers can learn from real estate agents, who are killing it on Pinterest.

Continue reading here: http://www.lender411.com/social-media-marketing-loan-officers/

Filed under real estate mortgage marketing Social media

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What Mortgage Can I Afford?If you’re in the market for a new home, you are most likely wondering what mortgage you can afford. There are many factors to be considered when you’re determining what mortgage amount is the right amount for you. Plan your mortgage budget with these tips in mind:Could Versus ShouldThe first factor you need to consider is how much you could borrow versus how much you should borrow. You need to make sure you are living within your means and considering all of your monthly expenses in addition to your monthly mortgage payments. In order to do this, you should make a monthly household budget that includes your personal living expenses and associated expenses of living in a house.A borrower’s worst enemy is budget denial. Be honest with yourself - include expenses that are not necessities but you know you won’t be giving up anytime soon; they tend to be overlooked:Hair cuts or coloringsNail appointmentsCountry club membershipRestaurant spendingCable TVTrips to the moviesNever run away from or underestimate your monthly spending. Otherwise, be prepared for a major change in lifestyle: homes require regular maintenance and as long as homeowners remain conscious of retaining savings while spending a little mad money, a mortgage can be balanced into monthly budgets big and small. Continue reading to calculate expenses: http://www.lender411.com/featured-article-what-mortgage-can-i-afford
 
What Mortgage Can I Afford?

If you’re in the market for a new home, you are most likely wondering what mortgage you can afford. There are many factors to be considered when you’re determining what mortgage amount is the right amount for you. Plan your mortgage budget with these tips in mind:

Could Versus Should

The first factor you need to consider is how much you could borrow versus how much you should borrow. You need to make sure you are living within your means and considering all of your monthly expenses in addition to your monthly mortgage payments. In order to do this, you should make a monthly household budget that includes your personal living expenses and associated expenses of living in a house.

A borrower’s worst enemy is budget denial. Be honest with yourself - include expenses that are not necessities but you know you won’t be giving up anytime soon; they tend to be overlooked:

Hair cuts or colorings
Nail appointments
Country club membership
Restaurant spending
Cable TV
Trips to the movies

Never run away from or underestimate your monthly spending. Otherwise, be prepared for a major change in lifestyle: homes require regular maintenance and as long as homeowners remain conscious of retaining savings while spending a little mad money, a mortgage can be balanced into monthly budgets big and small. 

Continue reading to calculate expenses: http://www.lender411.com/featured-article-what-mortgage-can-i-afford

Filed under mortgage advice Mortgage Loan real estate burgundy