Archive for June, 2011

Client called today with a not-so-unusual scenario. They had been declined by a Bank on this . .
They lost their home in foreclosure 5/29/2008, filed Bankruptcy in 10/2008 and the BK was discharged 6/4/2009.
In their Bankruptcy filing their attorney had listed the balance of the foreclosed-on mortgage. The bank denied their loan stating that the filing of the BK to include the mortgage made it to where 3 yrs had to expire from the BK discharge date.
Can they qualify for FHA financing now ?
The answer is:
The bank is wrong.
The three year time-clock to satisfy the ‘seasoning since foreclosure’ requirement of FHA, begins from the date of the Trustee sale (or in Judicial Foreclosure states such as Oklahoma, from the Court ordered sale date) -Well this client is past that 3 yr period (5/29/08).
The fact that the BK included the deficiency balance of the foreclosure (which would have prevented the Lender from trying to collect on it) doesn’t negate the 3 yr seasoning.
The BK is 2 yrs old (from Discharge date) and therefore they are eligible for FHA financing. :)

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FHA Streamlines (refinances) are a quick and easy way to drop your payment without an appraisal and without qualifying all over again.
However the HUD handbook is very clear on trying to Streamline a home the Borrower no longer occupies:

HUD’s 4155.1 Section 4, Types of Permissible Streamline Refinances, Paragraph 6.C.4.kk. states the following: “Investment Properties and Secondary Residences are Ineligible For Streamline”

 

 

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Yes he/she can! And yes , with a VA loan!
Federal Tax Liens are basically the last stage of the collection process by the Internal Revenue Service, after a Levy.
A lien basically ties up assets owned by the debtor.
How can a VA loan be approved under these circumstances ?
If the Veteran has a Payment plan (Installment repayment agreement) with the IRS, and has been making the payments on time for at least the past 12 months (which can be documented for the VA Underwriter), then the Veteran can indeed be approved.
How does the VA Underwriter deal with the CAIVRS alert that will surely come up?
The approved repayment plan will allow the CAIVRS to be cleared. (Federal IRS tax liens are allowed to stay unpaid if the IRS subordinates the tax lien to the VA mortgage.)
Watch our VA Homebuyer Webinar series here Click Here : VA Homebuyer Webinar

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How Long After Bankruptcy, Foreclosure, Short Sale Can I Buy a home?

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There are some sweeping changes coming in the Fall of this year (2011) which will make Mortgage lenders more accountable for the loans they fund and approve; some speculate that this is the part of the reason the USDA has chosen to tack on Mortgage Insurance (just like FHA’s) to the monthly payment.
Thankfully, we the tax payers won’t be the ones needing to subsidize things. The homebuyer pays Mortgage insurance just like he/she would for an FHA loan.
Here’s how things will change , come Oct 1, 2011.
Presently the USDA Zero down loan carries with it a 3.5% Upfront Guarantee fee and no monthly mortgage insurance.
After Oct 1, the Upfront Guarantee fee drops to 2.00% and an annual Mortgage insurance of 0.3% will be added.
The annual mortgage insurance will never go away over the life of the loan. (This makes it unlike FHA, where after 5 yrs and 78% Loan-To-Value threshold, the mortgage insurance can go away).
Good news is that the annual mortgage insurance $dollar amount will decline each year because it’s recalculated at the new principal balance of the loan each year.
Overall this means an increase of about $16/mo for every $100,000 loan amount borrowed. Not a deal killer necessarily, but definitely something that affects debt ratio and qualifying ability/buying power.
Stay tuned for more updates :)
Be sure to use our super Mortgage Calculator (unlike any other) to compare payments at www.thezerodownloan.com/mortgage-calculator

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