If you are buying an investment property, you probably already know that you’ll have to put down a larger down payment, use a smaller seller’s concession, and have more available in reserves, but are you aware of these three important differences when it comes to your loan’s interest rate, points, and available programs? Difference #1:… Continue Reading
In the previous two articles, we discussed how to qualify for a mortgage on investment properties and loan-to-value (LTV) requirements for investment property. In this article, we discuss the 3 main differences between buying an investment property and buying an owner occupied property. When buying an investment property, make sure you understand the limitations on… Continue Reading
Let’s say you’re buying a house and you have calculated your front ratio or the comparison of your proposed housing debt to your usable income. You know your lender allows a 43% total DTI ratio, and your front ratio is an enviable 36%. But your loan officer informs you that your total or “back” DTI… Continue Reading
If you are buying or refinancing an investment property, the first thing you need to know is “how much can I borrow”? To answer this question, we need to look at the maximum loan-to-value guidelines (“LTV”) for conventional loans that are sold to Fannie Mae or Freddie Mac. This article lays out the five differences between… Continue Reading
Are you thinking about buying an investment property? Do you already own an investment property and you’re considering refinancing, either to reduce your rate or to take out some cash? Perhaps you already own your own home where you live, and you’ve gone through the underwriting process a few times so you’re familiar with what… Continue Reading
If you are buying a home or refinancing a mortgage, you should be aware of the two most potentially expensive components of your closing costs: Escrows and Prepaids. What Are Escrows and Prepaids? Escrows are the initial amount you must put aside (i.e., pay) at closing to fund your escrow account with sufficient funds so… Continue Reading
If you are about to close on a loan, whether you’re buying a home or refinancing a loan you already have, you will probably have an escrow account established at closing. This account is where your monthly payments of taxes and insurance will be deposited so that when taxes and insurance are due, your servicer… Continue Reading
Have you been affected by COVID-19? Not physically – financially. Did you lose your job? Did your company cut back on your hours? Are you a homeowner and you’re finding it increasingly difficult to pay your bills on time? Then you might need a forbearance. What is a forbearance? On March 27, 2020, President Trump made… Continue Reading
Let’s say you applied for a loan in March, before the first corona virus case was reported. You and your wife had good income, good credit, and you had been pre-approved for the loan amount you needed to buy the house. Then the corona virus hit, and everything ground to a halt. Your job was… Continue Reading
By now, we are all aware of the impact of the novel coronavirus “COVID-19” on our lives. Travel is restricted, businesses are closed, many are quarantined, and when we do go out, many of us wear face masks and stay at least six feet from other people. But what has the impact of COVID-19 been… Continue Reading