Profile picture for Nicolas Ellis

Nicolas Ellis

Lender

Benchmark Managing Partner, CMC, CRMS (14 years experience)

Specialties:
Purchase Loan,
Refinancing,
Home Equity,
Mortgage Planning

Advice

  • (109 Contributions,
  • 0 Best Answers,
  • 24 Helpful)

Contributions are sorted newest to oldest.

how does an FHA mortgage turn into a conventional

Answer

It is possible that your FHA insured loan was in fact not honored by FHA.  First, this is a rather rare instance, but it can happen.  Though it is possible you obtained an FHA loan and it was rejected post closing and disallowed to be insured with the FHA program.  This would mean the mortgage company who originated your loan made a mistake or believed it was insurable only to be denied and the reason for denial was an incurable roadblock.  What would this mean to you?  Nothing other than your mortgage was then put thru an alternate pool channel and the mortgage company took a haircut on the deal when it was sold.  Haircut refers to the mortgage company selling the loan at a loss in order to move on from it (This has always been a customary practice - we originate your loan, believe it will go with X program and firm then the buyer decides they don't like the deal.  Mortgage company regroups and sells the loan to Y company for 80, 90% of the full value and covers the loss with their money.)You would still be bound by the terms of the note you signed; FHA would not reimburse for any losses if the loan was foreclosed on. Good Luck!

  (0)
How do I find home sales now?

Answer

I suggest to use Zillow as a tool to review this type of information, but nothing will beat talking to a seasoned realtor that focus's on your area.  What a computer will not be able to tell us:that the home that sold so below market had a terrible layout and wasted a lot of the square footage....That the house that sold for more than it should was due to a unique situation where two buyers were relocated to the area and both just happened to fall in love with the same house and a bidding war erupted....That the Smith's house fell apart the first time because they weren't aware that they took out a line of credit and they owed more than what they were selling the home for; they had to take time to arrange a loan so they could sell their home....Or the Adam's sale included their boat dock and cabin cruiser... the sale price looks out of balance.It's personal knowledge of these types of situations that will aid in knowing the 'why' behind each sale.  And only a seasoned realtor can have their pulse on these items. Good Luck!

  (0)
Should we refinance?

Answer

In short; we need more information to give you a concrete answer.  Some things to take into account with what information you provided:If your plan is to keep the rental property and the terms on that rental property are decently above current terms available; potentially refinancing the rental property balance with your owner occupied home could provide for an overall faster payoff and reduced interest paid. You mentioned your annual income is $140,000; it seems that you could possibly spend the next 12 months and really focus on paying off the existing debts in one year without causing severe cost of living change during that time.Home Equity Loan:  If you do not have the means to pay off the equity line in at most a 5 year time frame and you have a fixed annual income- this is generally not a recommended option.  HELOC's have an adjustable component to the rate and we expect the prime rate to begin to rise in the 2nd or 3rd quarter of 2015. My advise is to speak with a Mortgage Planner or an accredited originator who understands basic tax planning* and can advise in a manner best suited for your situation.*While I am not currently a registered or accredited tax planner; my type can lay out what we see to best meet those needs and give you the list of questions to consult with your CPA so that they can confirm our advise / plan prior to any action.Good Luck!

  (0)
Want to know how the Louisville real estate market is doing versus last year?

Answer

This question is difficult to answer with a single response.  Price points and areas are different for even Louisville Metro.  As a general overall trend - available inventory to buy appears flat with days on market for asking price points below $275K are shrinking.  This assumes several notes:The home for sale is asking fair market valueIt is in average to better conditionIt is located in an area that sought after - examples, but not all inclusive: St. Matthews, Highlands, East EndUltimately each home is unique and will weigh on its attractiveness to sell coupled with the size of the statistical buying market.  Consult a seasoned Realtor professional for specific homes and areas.  If you would like to discuss agents of this caliber; please let me know.Good Luck!

  (0)
moving in 2 years, should I refinance, what type of loan?

Answer

What Dan said - ensure that the cost of refinancing has been divided into the monthly savings to determine your breakeven point. Calculation:   Total fees paid and/or included in new loan / (Monthly P&I + MI)   = number of months you must keep the new loan before you break even and start realizing the savingsGood Luck

  (0)
Can I use my new jobs income to qualify for a higher mortgage?

Answer

Couple of notes:  You could possibly use the newest job income depending upon the documentable circumstances. (such as: years in line of work, how you can work both jobs simotandously, method in which you are paid) Next, you do not have to stop your small business.  At worst, some of the income you derive may disallowed; but I cannot recall a circumstance in over twelve years that required a borrower to shut down an income producing stream for purposes of qualifying for a mortgage. Good Luck!

  (0)
Can I use my new jobs income to qualify for a higher mortgage?

Answer

Couple of notes:  You could possibly use the newest job income depending upon the documentable circumstances. (such as: years in line of work, how you can work both jobs simotandously, method in which you are paid) Next, you do not have to stop your small business.  At worst, some of the income you derive may disallowed; but I cannot recall a circumstance in over twelve years that required a borrower to shut down an income producing stream for purposes of qualifying for a mortgage. Good Luck!

  (0)
Two days before closing, took out $600 dollar cash advance, am I in trouble?

Answer

Your mortgage current set closing date: possibly.  Your ultimate approval to close and own the home: Most likely not.  If you are 'Clear to Close' then the asset/ bank statements you provided must indicate you have that $600 difference on hand and thru the normal course of paying bills, etc.. you have used those funds; thus how you're told the amount you are to bring but did not have it.  With the fact this is an already open trade line and you're CTC - then the 'last minute' credit checks have most likely been done. Chances are your situation will skate thru.  In the event it does not; then documentation to provide the new credit card balance will be updated by the credit bureau (internally done by the mortgage firm) and new minimum payment on the credit card updated to prove you can still afford the payment and potentially proof of the $600 deposit into your bank account as well as a potential letter of explanation and possibly awaiting the next pay cycle to show the earned $600 in funds you were missing.  *Cash advance funds are typically not allowed to used as funds to close. Good luck!

  (0)
Two days before closing, took out $600 dollar cash advance, am I in trouble?

Answer

Your mortgage current set closing date: possibly.  Your ultimate approval to close and own the home: Most likely not.  If you are 'Clear to Close' then the asset/ bank statements you provided must indicate you have that $600 difference on hand and thru the normal course of paying bills, etc.. you have used those funds; thus how you're told the amount you are to bring but did not have it.  With the fact this is an already open trade line and you're CTC - then the 'last minute' credit checks have most likely been done. Chances are your situation will skate thru.  In the event it does not; then documentation to provide the new credit card balance will be updated by the credit bureau (internally done by the mortgage firm) and new minimum payment on the credit card updated to prove you can still afford the payment and potentially proof of the $600 deposit into your bank account as well as a potential letter of explanation and possibly awaiting the next pay cycle to show the earned $600 in funds you were missing.  *Cash advance funds are typically not allowed to used as funds to close. Good luck!

  (0)