Archive for the “FHA, VA & Conventional Related” Category

help with issues relating to non-USDA loans. All posts related to FHA, VA & Conventional financing are welcome


VA Loan
VA Loan

The answer is yes! (As long as the penalty is included in the max allowable concessions by Seller on a VA loan).

This is great news for Homebuyers who are Veterans of the Armed Forces.

With Interest rates being as low as they are and house prices as affordable as they are compared to recent times, many Veteran homebuyers are held back just by the stiff penalties for breaking a  Rent-Lease.

 

The Seller can not only pay that penalty but it can be safely disclosed on the Closing Statement.

Pass on the good news!

 

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Homebuyers and Real Estate Agents often don’t realize that FHA allows a Borrower to co-sign as the **Non Occupant** Co-Borrower on an unlimited number of FHA loans.

Really? Yes Really.

Even though, unless there are special circumstances,  (like a forced job relocation or sudden and dramatic increase in family size) a homebuyer can really only have one FHA loan at any given time, someone who doesn’t intend to occupy the property can cosign/co-borrow with the buyer(s) that *do* intend to occupy the property without such a limitation.

Better still, FHA allows the total incomes and debts of all the borrowers to be blended together to arrive at one (overall) debt ratio.

This feature has enabled many a homebuyer who couldn’t properly document all of their income for example, to qualify for a home loan when their income alone wasn’t sufficient for qualifying purposes.

 

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Chapter 13 Bankruptcy FHA Home Purchase TheZerodownloan.comit’s a little known fact amongst Homebuyers, Renters, Realtors and even Loan Officers that both FHA and VA allow a Borrower to purchase a home after they’ve made 12 timely payments on a Chapter 13 BK.
Wait! What? Yes you read that right.
Why is this important? It’s important because while grappling with many unpaid collections, charge off’s and judgements, a Borrower’s credit score remains low and unable to revive. This keeps them from FHA financing.
Bringing all that unpaid debt, all the dirty laundry so to speak, under the governance of the Bankruptcy Trustee forces the credit bureaus to begin reporting each of those negative accounts as “INCLUDED IN BANKRUPTCY”.
The magic is this: When a trade/account is reported in this way, the FICO (Credit) Scoring model treats the accounts as “non-rated”.
Their negative effect is diminished!
Now a smart homebuyer would couple this with obtaining maybe 2 or 3 **secured** credit cards which are virtually guaranteed, pay on them for 12 months alongside the Bankruptcy Trustee payments and . . . voila! After 12 months of filing Chapter 13 the Borrower has a better score *AND* some re-established credit.
It’s important if using this maneuver to not leave any unpaid collection/charge off outside the BK filing.
For more details on purchasing a home while in Chapter 13 Bankruptcy, contact us at 877-332-9703 or through the links on this blog site.

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Did you know you can remain in Bankrtupcy and still purchase a home with FHA financing? Also, some buyers are eligible for FHA financing just 1 day after short sale ? Watch this informative video (40 mins) when you have time.

 

 

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If you’re getting married and plan on a Bridal Registry, there’s good news for you.
You can set up a ‘Downpayment Registry’ and have family and friends dump some cash in there for you which can later be used towards the FHA required Downpayment on a Home! This isn’t a new program at all; . ..it’s been around since 1996
But homebuyers are taking advantage of it m

ore these days due to the difficulties involved with putting enough money away for a home purchase in this tougher economy. In fact in 1997 HUD came forward with further clarification which streamlined the program.
Here are the essentials:
(i) Open a ‘Downpayment Bridal Registry’ called a ‘Bridal Registry Account’ Bank account. This account is a custodial savings account where all deposits made are used to fund the down-payment on a home.
(ii) Give your family & friends the account information.
(iii) Even cash deposits into that account are acceptable!
(iv) You don’t have to use ALL the money that ends up in the account towards your home purchase.
(v) You don’t even need to be married before you close on your home to use the money that accumulates in that account.
(vi) The typical FHA restriction of sourcing of funds whereby the relationship between the homebuyers and the Gift-Giver, proof of where the funds came from and other annoying procedures, are bypassed. All that’s needed is a Lender & Borrower certification! Cash is fine too!
(vii) The only folks excluded from being able to deposit money into that account are those that are party to the transaction.
(viii) Good news for those single homebuyers also! This convenience isn’t just for people getting married. The FHA allows their gift registry to be used for any other ‘special’ occasion for which gift funds might typically be received by someone including Graduations, Birthdays and so on.
Contact the featured Loan Officer or Real Estate Agent on this Blog for more details!

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