usda: Verification of Rent - Do's and Don'ts - 06/23/13 11:11 AM
The verification of rent is a vital piece of the mortgage qualification procedure.  There have been many changes in the underwriting process for a mortgage.  If you want to borrow money, you have to prove you have a satisfactory payment history.  This applies to more than an application for a mortgage.  It applies to applications for car loan, or credit cards.
In the mortgage process, it doesn't matter if it is a conventional mortgage, FHA mortgage, VA mortgage or USDA mortgage, it is most important to show on time payments for your housing.  If you rent from an apartment complex, it can be … (45 comments)

usda: Verification of Employment Required - 06/23/13 10:47 AM
A Verification of Employment is required when you are applying for a mortgage.  It does not matter if it is a conventional mortgage, FHA mortgage, VA mortgage or USDA mortgage.  What most buyers don't know as that this may be checked more than once during the process.  It may checked before the underwriter reviews the file and again just before closing.
I like to make buyers aware of this since their assistance may be required to expedite the information.  In the last 30 days I have had two closing that were almost delayed because the buyer's employer would not respond to … (4 comments)

usda: How Much Money Do I Need to Buy a Home? - 05/19/13 09:48 AM
How much money do I need to buy a home?  Well, the simple answer is it will depend. 
The first question that needs to be answered is which financing program you are applying for.  Each program has their own minimum down payment requirements.  For example, the FHA mortgage will require a 3.5% down payment whereas, the USDA loan is a 100% financing program that does not require a down payment.  The conventional Homepath program only requires a minimum of 3%.  And of course, I can't forget the $100 down HUD program for the purchase of a HUD foreclosure.
Now that we have … (4 comments)

usda: USDA Residential Mortgage Loan Changes - May 1, 2013 - 05/12/13 09:09 AM
USDA residential mortgage loan changes took place on May 1, 2013.  The changes pertain to exceptions where the housing and debt to income ratio exceed 29 and 41 respectively.
If the applicant has a credit score of 680 or greater may be approved for a higher house ratio as high as 32% and total debt to ratio as high as 44% providing there is at least one of the following compensating factors:
The proposed principal, interest, taxes, and insurance (PITI) payment is equal to or less than the present housing payment provided it can be properly documented for at least 12 … (3 comments)

usda: High Credit Score Doesn't Guarantee Mortgage Approval - 11/05/12 10:40 AM
A high credit score doesn't guarantee mortgage approval, but having a good score will at least get you past the first hurdle.  Lately, that is how I have been viewing the mortgage process, a series of hurdles on the way to finish line (closing table).  
 
Depending on the financing program, a high credit score may be more closely scrutinized if there aren't many trade lines.  A trade line is the number of open and active accounts that are shown on the credit report.  It may be necessary to supplement the credit report by showing other types of accounts being … (10 comments)

usda: Atlanta Home Buyers need to know...Part 3 - 07/06/12 12:56 PM
Atlanta home buyers need to know just how important it is to maintain your financial status during the home buying process. 
Atlanta home buyers will be asked to disclose their assets on the mortgage application.  An asset can be a checking account, savings account, a 401(k), IRA, pension, stocks or bonds. In essence, any account that is currently held in cash or can easily be converted to cash.    
 
As part of your mortgage application and documentation, we are going to ask you for the last two statements for all of your asset accounts.  This is the same for … (0 comments)

usda: FAQ #4 How much can I qualify for if I want to buy real estate? - 06/03/12 08:51 AM
FAQ #4  How much can I qualify for if I want to buy real estate?
 
Have you every heard the expression, “That is a loaded question!”  If every there was one, that is it. 
 
How much you can qualify for will depend on the property type, meaning is the application for  a primary residence, second home or investment property? 
 
It will also depend on the type of financing program you decide on, is it conventional, FHA, VA, USDA or Jumbo.
 
In addition, the total amount of any other outstanding liabilities including any child support or … (6 comments)

usda: Credit History Is Necessary - 04/22/12 02:10 PM
There have been many changes in the underwriting process for a mortgage.  If you want to borrow money, you have to prove you have a satisfactory payment history.  This applies to applications for a mortgage, car loan, or credit cards.
In the mortgage process, the most important is showing on time payments for your housing.  If you rent from an apartment complex, it can be documented with a verification of rent.  If you rent from an individual, you must be able to document that payment history,  Ideally, payment by check is preferably, at minimum would be by money order.  The worst is … (12 comments)

usda: USDA, It’s Not Just For Grading Meat… - 02/27/12 03:23 AM
USDA, is not just for grading meat.  In fact, through the USDA (United States Department of Agriculture) there is a 100% financing program for owner occupied residential property.    Yes, you read that correctly, it is a 100% financing program! 
 
Now, not every home buyer will qualify for this loan program, and not every property is eligible either.  The eligibility is determined county by county and based on the population.  The maximum household income limits are also determined by county.
Here are some other specifics that you will find helpful:
·        the borrower may borrow up to 100% of the appraised value
… (3 comments)

usda: Don't cash that check! - 02/06/12 02:40 AM
You're buying a home, congratulations on your decision.  This advice will serve you whether you are applying for a Conventional, FHA, VA, Rural Development (USDA) or Jumbo loan.  One issue that seem to come up from time to time during the mortgage process are  non-direct deposits made into the bank account.  I have some helpful advice for you to get you through this process.

Keep in mind part of the mortgage process will be documenting all financial  transactions associated with this purchase. This would be identifying the funds for your earnest money, the appraisal fee, and the source of your … (0 comments)

usda: Buying a Georgia home in 2012?-Let's talk dates - 01/23/12 02:09 AM
When you make an offer to purchase a property, your real estate agent will prepare the document for you. It is necessary to keep in mind that this is a legally ending agreement. In addition the terms of your offer including the timeframe for specific performance will be outlined.
This is an excellent time for you to review with your loan originator a realistic expectation of the loan process. A conventional loan with a 20% down payment can be closed more quickly than an FHA, VA or USDA loan.
The three dates that need to be monitored will be:
1.  … (2 comments)

usda: Buying a Georgia Home in 2012? Let’s Talk About the Do’s and Don’ts - 01/09/12 12:47 AM
Without question, the mortgage industry has changed over the last few years.  Not necessarily for the worse, but it has become more stressful for home buyers, especially first time home buyers that have not been through the process. 
Regardless of the financing program, here is my list of do’s and don’ts to help eliminate hurdles as you go through the process.
1.       DO NOT apply for any new credit
2.       DO NOT change jobs
3.       DO NOT make cash deposits into your checking account
4.       DO NOT transfer funds from one account to another
5.       DO NOT make any large … (11 comments)

usda: Buying a Georgia Home in 2012? Let's Talk Employment and Income - 01/04/12 11:48 AM
You're buying your first Georgia home, congratulations you are on your way to achieving the American dream. Now there are two ways to purchase the property one is to pay cash, two is to apply for a mortgage.
If you are going to finance your purchase, the lender is going to verify that you have the income necessary to repay the debt. 
So, let's talk about your employment history for a salaried or hourly paid employees, ideally we are looking for at least two years with the same employer. In each case we will calculate your gross monthly income. This … (6 comments)

usda: Buying a Georgia Home in 2012? Let's Talk Assets - 01/04/12 10:27 AM
Okay, this is going to be your year. This is the year that you have decided to purchase your first Georgia home. The best advice I can give you is to make sure you have all of your ducks in a row before you start the process.

In other blogs I've talked about the importance of credit score and verification of rent. In this blog it's important that we discuss assets.
An asset can be a checking account, savings account, a 401(k), IRA, pension, stocks or bonds. In essence, any account that is currently held in cash or can be converted … (0 comments)

usda: Buying a Georgia home in 2012? - 12/27/11 01:56 PM
Buying a home in 2012? If it is your goal to purchase a new home in 2012, now is the time to start your preparations. Some things to consider would be your current living situation, your current tax situation and your ability to meet all qualifying factors for a new mortgage.

Now let's break these down step-by-step and see if you're going to qualify. The first thing you should look at is your family budget. When making a home purchase in the new year, you will want to make sure that you stay on budget and do not make any … (0 comments)

usda: Full Disclosure On Your Mortgage Application - 12/01/11 11:14 AM
So, you want to buy a house but you don't have enough in savings to pay cash.  Not a problem, let's look at your mortgage options.  Many first time home buyers prefer the FHA/VA/USDA options for mortgages because of the no or low down payment.  In addition to credit, there can be property or income restrictions that apply.
 
The one point that applies to all mortgages, FHA/VA/USDA and Conventional is full disclosure on your mortgage application.  Now that sounds like it is pretty straight forward, but on occasion, I find a prospect that thinks that they can hide material facts.  There is … (4 comments)

usda: Changes as of October 1, 2011 - 09/30/11 01:57 AM
October 1, 2011 will mark the start of more new changes in the mortgage industry.  In my opinion the two biggest changes are the new maximum loan amounts for FHA financing and the implementation of a monthly funding fee on the USDA loans.
Let's discuss each on individually.  The FHA maximum loan amounts are established based on the median
Here is the information that was posted on the HUD website.
These new limits represent about a $25,000 reduction from the previous limits.
For more information check out www.hud.gov.
 
The second major change will be with the USDA loan.  The financed … (3 comments)

usda: USDA Loan Program Changes October 1, 2011 - 09/01/11 06:46 AM
The USDA loan program changes will be effective on October 1, 2011.  What changes, you ask?  Well, USDA is changing the "mortgage insurance" piece of the financing.  As of now, there is a funding fee that is financed into the loan amount and there is no monthly mortgage premium.
 
As of October 1, this will change to mirror the FHA mortgage insurance premium structure where part of it is financed and the second part is a monthly charge.  There has been talk for a long time about making this change, now that it is here, the following table demonstrates the … (0 comments)

usda: USDA 100% Financing - 06/30/11 03:28 PM
The USDA Home loan program allows for 100% financing of the appraised value.  No, that isn't a typo.  The buyer can borrow up to 100% of the appraised value.  So, if the home purchase price is $100,000 and the appraised value is $105,000, the buyer can borrower $5000 toward closing costs and prepaid expenses.
I know what you are thinking... wow, that sounds great!  How can I get that deal?  Here are a list of the restrictions for this program:
The property must be in a qualifying area.  These qualifying areas are in less populated areas.  The program is not going … (4 comments)

usda: High Cost Loans - 06/27/11 12:35 PM
Today, I had three inquiries regarding mortgages for very small amounts from prospective buyers.  At the beginning of the conversation I realized hat these would be "high cost loans."  The definition of a high cost loan applies to FHA, VA, USDA or conventional loans.   I continued to define a high cost loan and learned that these buyers had no knowledge that this could be a stumbling block to them making a home purchase. 
"A high cost home loan refers to a home loan in which the terms of the loan meet or exceed one or more of the thresholds as defined by the GA Fair Lending … (1 comments)