frequently asked questions: First Time Buyers - Solving Credit Roadblocks to Homeownership - 01/01/16 09:40 PM
 Picture this scenario:  A happy couple or individual has never purchased a home but would love to be homeowners in the future, BUT…
*  There is not a lot of credit report experience or there are credit issues
*  Has no money in reserves or for down payment
*  Doesn’t have a budget in order to afford a house payment
*  Pays cash for rent most of the time or lives with family rent free
*  Doesn’t really understand how a realtor can help them find the right home
*  Has maybe heard of an FHA loan but that is about it for mortgages
*  Doesn’t know how to be prepared for a mortgage … (0 comments)

frequently asked questions: Is PMI Still a Tax Deduction? - 01/01/16 01:02 AM
Is PMI Still a Tax Deduction?
We continue to hear threats of axing the mortgage interest and PMI tax deduction but there has been a decision for 2015 & 2016.  Low to Middle level taxpayers take their tax deductions seriously and want everything possible that will lower their tax burden or better yet, increase their REFUND.  Over the years PMI on a primary residence has been an allowable deduction for many but there are limitations and rules to it.  Many people have their fingers crossed hoping that the tax break is extended past it’s expiration of 12/31/2014.
Do you qualify for the PMI … (2 comments)

frequently asked questions: Watch out for the Holidays and what they can do to your credit scores! - 12/08/15 01:27 AM
“Do you want to put that on your charge card for a special discount?” or “If you open a charge card with us, you will save 30% off of today’s purchase!” is what you will hear at every department store you visit over the holidays.  Sounds great, right?Not when it comes to credit scores!  There are several ways that opening a new account and then charging your purchase on the card can lower your credit scores.  You would not believe how much a new $300 card with a $270 charge can do to your credit scores!
Here are the top ways a holiday trip to the … (0 comments)

frequently asked questions: Credit Tricks for Buying a Home! - 12/07/15 02:40 AM
Do you have limited, but good credit and want to buy a home with little to no money down?Our USDA guaranteed loan guidelines will allow for us to add nontraditional credit to a thin credit file in order to get approval for the buyer.
Check out these 2 USDA loan approvals for very limited, but good credit buyers that needed 100% financing.  Here are two scenarios below in which we were able to help:Buyer # 1:
First time buyer with very limited credit experience Only one trade line (a student loan) reporting on credit Rent paid on time for over a year Car insurance … (0 comments)

frequently asked questions: Limited credit experience and how to be prepared up front - 11/23/15 11:06 PM
A fairly common occurrence and potential roadblock to home ownership these days are prospective buyers having very limited traditional credit and having borderline credit scores in the 580-639 range. We have been successful many times in building a strong file to present to underwriting to overcome the shortcomings of the file.6 Best Tips for Limited Credit Buyers to Have Success in Purchasing a New Home! Go ahead and apply with us so we know the details to help you best Write down every account in your name paid at least 12 months – These could be used as “alternative credit” Pay … (0 comments)

frequently asked questions: What to do with those old credit cards that could help interest rates - 11/23/15 10:49 PM
When you are looking to raise your credit scores quickly, showing some love to that old card in the back of your wallet could get the points you want!Credit card usage and their affect on credit scores is the most misunderstood credit reporting topic among Americans and often we will hear someone say things that will most of the time negatively affect scores a lot such as:
“I just closed all of my credit cards” “I just lowered my credit limits on all of my cards” “I don’t have credit cards because they will hurt my credit” “I forgot all about my … (1 comments)

frequently asked questions: Using a Pastor's Housing Allowance to Qualify for a Mortgage Loan - 10/21/15 02:45 AM
Does anyone understand how to count Pastoral Housing Allowance Income in order to obtain a mortgage loan to purchase a home in NC, SC, VA, or GA?You are going to say “Amen, it’s about time someone understands my income!” because we do understand pastor, priest, or reverend income and it is a little understood income among mortgage lenders.
Here is the definition of Pastoral Housing Allowance and other income plus how we can approve VA, FHA, USDA, and conventional mortgage loans with itThe IRS looks at the housing allowance portion of a pastor’s income as an exclusion from income. Therefore the housing allowance is not reported … (0 comments)

frequently asked questions: Understand Why and When Flood Insurance is Required on a Purchase - 10/13/15 12:04 AM
It is a given that every coastal Realtor, insurance agent, & mortgage lender should be familiar with flood insurance but there are also plenty of non-coastal properties in flood hazard areas because of being located near a river, lake, or in a low lying area where water can rise.  Below we asked a local flood insurance expert some of the most popular questions we hear from buyers and realtors.Every hurricane season that comes around, the topic of flood insurance spikes and this year was no different with the heavy rains the east coast received during the near miss of hurricane Joaquin.  So … (0 comments)

frequently asked questions: Fayetteville, NC realtors, sign up for "Financing Dreams Class" for CE - 10/07/15 12:41 AM
Realtors local to Fayetteville can complete 4 hours of Continuing Education on November 12th, 2015 which will be offered by Team Move OVM and NC Housing Finance Agency.Sign Up Here Products explained in the class will include: 15,000 Special Down Payment Assistance Product Available to Cumberland County! MCC Tax Credits up to $2000 per year for qualifying first time home buyers. Click here to see the Household Income Limits for the MCC Tax Credit Down Payment Assistance programs for first time and move up buyers Details of the 4 hour “Financing Dreams Class” class which could be used as 4 hours of … (0 comments)

frequently asked questions: Foreclosure Prevention to Help Homeowners that have had Hardships - 09/28/15 04:03 AM
There are some great resources to avoid foreclosure now which include the NC Foreclosure Prevention Fund, the Hope Hotline, and the VA Compromise Sale program.So if you are facing foreclosure, there is help.  The first thing to do is realize that this happens to a lot of homeowners and don’t be afraid to ask for help.  These programs are real but some are mortgage product or state specific.  So let’s break down these wonderful free products available to homeowners.
NC Foreclosure Prevention Fund helps NC homeowners who are struggling to pay their mortgage due to job loss or other temporary financial hardship such as divorce, serious illness or death … (0 comments)

frequently asked questions: FHA changes many guidelines as of 9/14/15 that can hurt or help buyers - 09/24/15 12:17 AM
Below are the FHA guideline changes effective for FHA case file numbers assigned on or after September 14, 2015.
Below are the topics and the new guideline language which replaces the prior rules often because the prior rules were not specific enough.
Assets:  This section applies to anything pertaining to documenting assets on an FHA loanGift funds – documenting transfer:Requires donor’s bank statement, showing withdrawal of funds.
Earnest Money:Document source of funds if amount exceeds 1% of sales price, or appears excessive based on borrower’s savings history.
Large Deposit Definition:For recently opened accounts and recent individual deposits of more than 1 percent of the Adjusted Value (lesser of purchase price minus inducements or the … (2 comments)

frequently asked questions: Do you have a game plan to navigate recent FHA changes? - 09/16/15 02:54 AM
FHA is changing a lot of their guidelines so we will provide the game plan to navigate minor tweaks to big changes.
Below are answers to the some of the most common questions received about these FHA changes.Is a borrower eligible if they have a delinquent federal debt but have a clear CAIVRS?If a delinquent federal debt is reflected in a public record, credit report or equivalent, or CAIVRS or an equivalent system, the lender must verify the validity and delinquency status of the debt by contacting the creditor agency to whom the debt is owed. If the creditor agency confirms that the debt is valid and … (0 comments)

frequently asked questions: First Time Buyers - Solving Credit Roadblocks to Homeownership - 07/25/15 03:07 AM
 Picture this scenario:  A happy couple or individual has never purchased a home but would love to be homeowners in the future, BUT…
*  There is not a lot of credit report experience or there are credit issues
*  Has no money in reserves or for down payment
*  Doesn’t have a budget in order to afford a house payment
*  Pays cash for rent most of the time or lives with family rent free
*  Doesn’t really understand how a realtor can help them find the right home
*  Has maybe heard of an FHA loan but that is about it for mortgages
*  Doesn’t know how to be prepared for a mortgage … (0 comments)

frequently asked questions: Construction Perm Loan Process from Loan Application to Moving In - 02/09/15 01:14 AM
A construction to perm loan for stick built and modular homes has a lot moving pieces just as building a house does and a popular question is "How does the construction perm loan process work?". 
Construction to Permanent Loan Process
Complete loan application and pull credit Send you a detailed list of items needed to process your mortgage (tips for providing complete documentation) Send the required documentation to us including income, assets, and construction specific items such as: Copy of the deed to the property Signed contract with the builder Mortgage information for the land loan that will be paid off (if applicable) Provide us … (0 comments)

frequently asked questions: USDA Rural Development Mortgage Loan Pilot - Streamline Refi Available - 01/25/15 10:51 PM
USDA has a little known, special refinance product called the USDA Pilot Refinance Program which is for borrowers that currently have a USDA guaranteed loan and are looking to lower their rate and payment through a refinance even with equity not required. This USDA program allows for a borrower to refinance without an appraisal through a streamline process for a lower monthly payment. Besides not requiring an appraisal on the Pilot Program, another strength is that the closing costs can be included in the new loan so that the borrower brings little or no money to closing. Our team is very … (0 comments)

frequently asked questions: We have 3 mortgage loan options for 97% financing for 1st time buyers! - 01/04/15 10:04 PM
For first time home buyers, we offer three Fannie Mae programs with a LTV up to 97% for credit worthy borrowers for certain principal residence transactions. One little known low down payment option we offer is the MyCommunityMortgage or MCM. MyCommunityMortgage (MCM) is an option for purchase transactions if at least one borrower on the loan is a first-time home buyer and pre-purchase home-buyer education and counseling is completed.
Some of the guidelines for these are as follows:
Minimum 640 middle credit score, or lower of 2 if only 2 scores
The credit score must be based on a traditional credit … (0 comments)

frequently asked questions: Veterans can request DD-214's online. Request yours today! - 12/17/14 02:35 AM
Have you lost your DD-214?  Is your DD-214 hard to read?  There is a website for veterans to gain access to their DD-214 discharge papers online.  Providing a DD-214 is a requirement of a VA home loan.  The National Personnel Records Center (NPRC) provides this ability to request the DD-214.
Request Your DD-214 Here
You can call the NPRC Customer Service Line at 314-801-0800 from 6:00 AM EST thru 6:00 PM EST

Who can order records online?  You may use this system if you are: 
A military veteran Next of kin of a deceased, former member of the military.  … (0 comments)

frequently asked questions: FHA guidelines for short sales on a previous residence - 11/04/14 02:47 AM
What are the guidelines for borrowers with a short sale on a previous principal residence?
When a previously owned property was sold for less than what was owed (short sale), borrowers are considered eligible for an FHA insured mortgage if, as of the loan application date, all mortgage and installment debt payments were made within the month due for the twelve months preceding the short sale.  Most lenders require the borrowers to be past due before considering a short sale but if the borrower is able to short sale their home without any late payments, then FHA may be an option … (0 comments)

frequently asked questions: Retired Borrowers? - 10/20/14 07:17 AM
Did you know that a retired borrower can use a new distribution of income from a retirement account as qualifying income for a mortgage loan as long as the income from the asset should continue for at least 3 years? Even if the borrower has not been receiving the distribution from an asset account for 1 – 2 years or more, the income can be used as long as it meets the continuance guidelines and a structured amount is set up for monthly or more frequent for the income. For more details on how this works, contact us.

frequently asked questions: What's Your Mortgage Rates? - 10/17/14 02:19 AM
Keep in mind that there is not just one or two rates for all scenarios so when someone asks “what’s your 30 year fixed rate?”, there is no all-encompassing rate. Here are some of the criteria for quoting rates that we need to review for an accurate quote on program, rate, terms, etc:
1. Loan Size
2. LTV
4. Credit Score
5. Credit History
6. Escrow Preference
7. Closing Date
8. Loan Type
9. Property Type
10. Occupancy Type
11. Residency
12. Available Assets
13. Asset Seasoning
14. Co-borrowers
15. Debt Ratio
16. Housing Ratio
17. Improvements Needed
18. … (0 comments)

Russell Smith, Loan Officer Communication & Execution You Deserve (Blue Ridge Bank Mortgage) Rainmaker large

Russell Smith

Loan Officer Communication & Execution You Deserve

Wilmington, NC

More about me…

Blue Ridge Bank Mortgage

Address: 6303 Oleander Drive, Suite B-103, Wilmington, NC, 28405

Office: (910) 352-6344

Mobile: (910) 352-6344

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The goal of my blog is to give you real world mortgage solutions to actual mortgage scenarios I see everyday.




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