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Answers (7)
- Shane Milne, "ShaneTheMortgageMan"
- Contributions:463
You are welcome. A large down payment certainly will make a lender feel that much more comfortable with your situation, I feel bad that it went 120 days late, if it only went 90 days then it wouldn't be a foreclosure and you could choose Fannie Mae or Freddie Mac conforming financing loan programs. Alas...
Not sure if you can swing it, but if you can put down 22% and afford a 15-year term payment, then you can avoid paying the monthly mortgage insurance associated with FHA loans (a drawback, but if you have no other options...). 15-year term is key with FHA as it really reduces the amount of monthly mortgage insurance you are paying.
FHA only approves lenders to do FHA loans, however those FHA approved lenders can then allow brokers to do FHA loans through them (mini approval process).... so all brokers have the capability of doing an FHA loan, but not all are set up to do it. I don't know how a broker would survive without have access to FHA these days, so I am sure just about everyone out there would have it (especially if homes that could be purchased with low down payments and within FHA loan amounts are common in your area).
I'd recommed you talk to at least 3 lending sources - could be brokers, the lender you bank with, a new lender, or mortgage professionals you find on the internet (not companies you find on the internet, but loan officers you find on the internet). But be sure to diversfy so you aren't just getting feedback from one type of lending source (brokers, bankers, and mortgage lenders all can have a slightly different outlook & mortgage capabilities).
Not sure if you can swing it, but if you can put down 22% and afford a 15-year term payment, then you can avoid paying the monthly mortgage insurance associated with FHA loans (a drawback, but if you have no other options...). 15-year term is key with FHA as it really reduces the amount of monthly mortgage insurance you are paying.
FHA only approves lenders to do FHA loans, however those FHA approved lenders can then allow brokers to do FHA loans through them (mini approval process).... so all brokers have the capability of doing an FHA loan, but not all are set up to do it. I don't know how a broker would survive without have access to FHA these days, so I am sure just about everyone out there would have it (especially if homes that could be purchased with low down payments and within FHA loan amounts are common in your area).
I'd recommed you talk to at least 3 lending sources - could be brokers, the lender you bank with, a new lender, or mortgage professionals you find on the internet (not companies you find on the internet, but loan officers you find on the internet). But be sure to diversfy so you aren't just getting feedback from one type of lending source (brokers, bankers, and mortgage lenders all can have a slightly different outlook & mortgage capabilities).
- Lorne228
- Contributions:3
Thanks Shane.
The max FHA loan amount for the area we are looking in is a lot higher than what we would need. So that is a good thing. We are also able to put down up to and maybe slightly more than 20%. Sounds like we probably would not need to; but that amount could cover any pre-paid property taxes (if required).
Will any mortgage broker do an FHA loan? I know nothing of this process.
The max FHA loan amount for the area we are looking in is a lot higher than what we would need. So that is a good thing. We are also able to put down up to and maybe slightly more than 20%. Sounds like we probably would not need to; but that amount could cover any pre-paid property taxes (if required).
Will any mortgage broker do an FHA loan? I know nothing of this process.
- Shane Milne, "ShaneTheMortgageMan"
- Contributions:463
Since you had a 120 day late payment, lenders consider that the same severity as a foreclosure, and so you will have a waiting period from whenever your last 120 day late payment was. At the 4-year mark, the only type of financing that would be available I am aware of for your situation would be FHA or VA financing, as Fannie Mae requires 7 years and Freddie Mac requires 5 years. FHA & VA financing can offer you some pretty good terms though (rates in the mid 4's), and FHA just requires a 3.5% down payment (although it has loan amount limitations).
When you are buying the new home, your existing mortgage payment on the rental property will be factored in, but if you have claimed the rental income on the tax returns then it can offset that mortgage payment and even produce a positive rental income depending on the income/expenses, etc. that you claim on the property.
When you are buying the new home, your existing mortgage payment on the rental property will be factored in, but if you have claimed the rental income on the tax returns then it can offset that mortgage payment and even produce a positive rental income depending on the income/expenses, etc. that you claim on the property.
- Lorne228
- Contributions:3
Shane,
Yes, there is a 120 day late on my credit report. Leading up to the loan mod I was behind on my payments for everything. I was house poor and was drowning in credit card debt. Missed a few payments on the CCs and everything just started to spin out of control for a little over 6 months. Started to make more money; was able to qualify for a loan mod, entered in to a debt management program... and it has been smooth sailing since. I actually was able to pay off all credit card debt within 2 yrs by making more than the min payments.... paid down close to $25k in that time frame.
Yes, there is a 120 day late on my credit report. Leading up to the loan mod I was behind on my payments for everything. I was house poor and was drowning in credit card debt. Missed a few payments on the CCs and everything just started to spin out of control for a little over 6 months. Started to make more money; was able to qualify for a loan mod, entered in to a debt management program... and it has been smooth sailing since. I actually was able to pay off all credit card debt within 2 yrs by making more than the min payments.... paid down close to $25k in that time frame.
- Shane Milne, "ShaneTheMortgageMan"
- Contributions:463
What was the mortgage history like up to the loan mod? Sounds like you may have been late since you said "Have not been late since"... was it ever 120 days late? If so, when was it last 120 days late?
How much are you planning on putting down on the new purchase?
How much are you planning on putting down on the new purchase?
- Colleen Cena, "ccena"
- Contributions:62
http://www.grantmoneyadvisor.com/obtaining-a-home-financing-after-a-loan-modification-t152328.html
This link may help answer your question. Good luck in your journey. You are one of the lucky ones who was successful in getting a loan modification!
- David Stein, "Military Loan Expert"
- Contributions:315
You should not have a problem if your debt ratio supports the new house. Your credit at 700 should support the new loan as well. Your income has been the 3x higher amount for how long?
Are there difficulties to getting a new mortgage on a new home after a loan mod on another property?
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