Parents have been helping their kids buy homes since, I'd guess, kids have been buying homes, but in today's lending environment, it's important that both borrowers and real estate professionals avail themselves of the most current options, advantages and guidelines. After all, knowledge is power and there are really only two main approaches, gift funds and co-signing, that come into widespread use when we talk about introducing family help into the mortgage approval process.
Gift Funds Borrowers of all stripes use gift funds and do so far more often than the general public would estimate. But on … (12 comments)
"Hello Mr. Spinosa, what brings you in today? Annual check up?"
Well, actually you, Doc. You're bringing me in today. I hear you're trying to buy a house.
"Uhhh, how did you know?"
Maybe it's the aura of the student loans that I could sense from the waiting area. We both know medical school doesn't come cheaply, right? So I just figured I'd come in for a sort of annual check-up for both of us and find out if your student loan payments have been in deferment or forbearance for a year or more?
It's that time of year again when holiday gift giving is on everyone's mind. But you know me, compulsive mortgage professional, I want to focus on but a single aspect of the loan process --- gift funds --- this same form of largesse that is received by a fortunate few for the purchase of a home. As we go into the holiday season, I want us all to keep in mind that right behind Santa's sleigh is Auld Lang Syne. And when we're talking tax implications for gift funds, this can matter.
Last week, with the passing of Fats Domino, we lost a rock 'n' roll legend and pioneer.
But nearly every week we (me and my team and you, as real estate agents with your teams) lose transactions simply because of the unquestioned and untested myth that every buyer needs to bring in at least a 20% down payment, especially here in California where many of our home prices require loans that exceed the conventional and FHA loan limits. In addition to simply not recognizing that many great programs exist in order to accommodate a 10% down payment on a … (4 comments)
Ever since the woebegone days of Greenpoint Mortgage's 400+ page rate sheet (and those who remember are laughing right now...) we in the mortgage lending industry have become accustomed to recognizing that not every borrower and not every scenario will fit exactly in the credit box. That's just been a reality of the post-Dodd-Frank era. Lending solutions rarely "check all the boxes" and I hear myself reminding clients, not infrequently, to "not let the perfect be the enemy of the good."
So you can imagine that when we start talking about jumbo loans and lower down payments AND … (3 comments)
As we come to the end of the year, we, here in Marin County, CA, tend to notice that purchase and sale activity can slip into "holiday mode" even if the weather outside is not particularly frightening. There's not much inventory available for buyers to pick over --- and here in 2016 that implies an already slim market --- and sellers are reluctant to list a home for fear it will sit through Thanksgiving and Christmas and then appear "stale" come the New Year. In short, despite mistletoe, spiked egg nog and holiday cheer it … (5 comments)
If you want to realize, first hand, just how far the mortgage lending industry has gotten away from the days of the "Wild West," there is no single better way to do it than to hath the fury of an underwriter's scorn of your assets --- you know, the very bank statements, down payment funds, deposits and gift money that are integral to your home loan application. There's a new sheriff in town, pardner, and if you don't want to get hung at high noon when you go to get a conventional, jumbo or FHA loan, here's what you ought to … (25 comments)
Can I Get a Cosigner for a Jumbo Mortgage?
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