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wayne lancaster

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Lender

Mortgage Loan Originator, Mortgage Originator (30 years experience)

Specialties:
Purchase Loan,
Refinancing

Advice

  • (2759 Contributions,
  • 73 Best Answers,
  • 737 Helpful)

Contributions are sorted newest to oldest.

Do I put 20% down or 5% on conventional loan?

Answer

Sounds simple but there are issues. If you put down 5% you will have PMI that may remain for a min of 2 years. Putting down the extra 15% does not automatically remove the PMI. A better option would be to consider 5% down and 15% second, and pay off second when your current house closes.  95% Combined Loan to Value loans are not readily available in all areas/states so that may be an issue as I don't know what state property is located. If Note does not state a 2 year min on PMI, then doing a 5% down and a 15% reduction of principal when house closes would be less complicated option. Some lenders/investors will accept a principle reduction and recast payment vs lessen term, so if that is important be sure to verify that upfront before loan process. Virtually all loans have no pre payment penalty so you can always pre pay any amount you desire, it just may not recast/lower payment.

  (0)
what lenders will allow me to buy a home out of state at 12% down

Answer

You have not addressed the question of your husband job.  Is it in Ohio and will he commute to GA on week ends or few times a month?  A second home/vacation home loan is when someone lives in one place but spends time in another area.  The rent is counted against their debt along with the second home payment to qualify. If your husband continues to have housing expenses in Ohio, whether leased property or temporary rental, that expense would be counted along with new mortgage payment.If his job allows him to work in GA though company is in Ohio, then the GA purchase would be like any other purchase of a relocating family.  It could be an FHA with 3.5% down or conv with 3% down.

  (0)
Do Any Mortgage Lenders Use the Newer Fico 8 Model?

Answer

There are no investors on typical mortgage loan programs that except fico 8 model. If your FICO mid score is 660 or above, your rate will not vary much from a  higher score on an FHA program. On a conventional loan the rate and MI rates vary considerably, but with FICO mid score above 700 the rates would not vary that much. 

  (0)
VA Loan Help

Answer

Thank you for your service.  Unfortunately, it may not be time for you to buy a home.  With a 536 credit score it is apparent that you have had recent credit issue including late payments, collection accts., BK etc.  The last thing you want to do is get into a home and not be able to afford to stay for the long term. Your mortgage payment would be close to your rent payment but utilities are likely to be considerably higher. Unexpected repairs and expense ( hot water heater, furnace, plumbing, a/c, electrical, appliance etc) would all be your expense not landlords.Homeownership is a great goal to have, but getting your financing in order over the next 18 months is your best option.  Not sure any lender can do a VA loan with a 536 credit score, and that frankly is a good thing.

  (0)
Curious about bank statement requirements.

Answer

One of the criteria for the mortgage loan is that sufficient funds for down payment and closing cost be verified in your account(s). Your mortgage broker should be analyzing those statements, and verifying the acceptability of the monies.  In your case there would be deposits over the past 2 months that should coincide with pay periods/pay stubs and IRS refund.  The "side job" deposit and invoice should also be part of the "paper trail" process.  All of this would determine that those funds are eligible, and only any other deposits over $500 would need to be explained.  Typically salaried borrowers only have pay period deposits so "paper trail" is not an issue.  If however numerous unverifiable deposits show up that is an issue.The side job funds would likely not be an issue since it would appear that income from that source will not be needed to qualify. If outside income results in a loss on a Schedule C, that loss would be deducted from income.I assume you are no longer putting funds in a safe, as cash is not acceptable source of down payment except in very limited criteria. The accepted verifiable funds would exclude any cash deposits that are not based on sale/paper trail of an asset/personal property.You should request the analyzing of your statements occur as soon as possible, as that will also be part of an Approval letter mortgage broker should provide before you begin your house hunting.

  (1)
Max concession on conventional w/ 20% down?

Answer

Though 6% is maximum seller contribution with 20% down on a conventional loan, it is unlikely total of closing cost and pre paids would exceed 3% unless sales price is less  than $200K. You mention "will have seller concession", but in a hot market with competitive bids you need to be careful about reducing a sellers net. Discuss strategy with your Realtor prior to submitting offer, and look at lender credit in lieu of some or all of seller concession.

  (0)
Should you co-sign? Or ask for a co-signer?

Response

User7924866,Is that the way you end all communications when you disagree?  This is a Mortgage Advice blog and hard to accuse someone with 30 yrs. of experience in the mortgage industry of being "ignorant and uninformed" and give "ridiculous" answers.  Check out # of Best Answers and Helpful Answers wetdawgs and I have been given by posters and lender participant on this forum for the past 7 yrs. +.There are lender guidelines when a borrower(s) is employed by a family business. Many borrowers meet those guidelines. Those that don't typically can not provide acceptable verification of income received from relatives. The same circumstance and requirements apply for any borrower, and because a conflict of interest may exist when borrowers are employed by relatives, the requirements should not be difficult to meet.  Once met the "bank" or other lenders will not discriminate because you work for a relative.The biggest issue is for the co signer. They wind up with your mortgage on their credit report as a debt for length loan is outstanding.  That payment is counted fully as their debt, which likely will impact them when they buy a car, another house, etc and if there is ever a late pay their credit score starts a downward slide. Very quick on a late mortgage payment. If loan should go into default, that default becomes part of their credit history; and could prevent them from buying another home for 7 yrs.Much better option is for you to get your circumstance to where you can qualify on your own, and spare anyone else to be involved in your loan.  Then you will be Absolutely ready for home ownership Above and beyond that..........

  (2)
What is transfer taxes were not disclosed of GFE in the state of California

Response

Old post but example how fees and custom vary from state to state. In Texas the borrower is charged a Recording Fee (no transfer tax exist).  If it is left off the GFE the lender pays as a tolerance cure.  A survey (required on all closings) can be paid by borrower or seller depending on language in sales contract. It has a gotcha though as language typically has a box checked that states seller to provide but another box that is checked stating borrower to pay for a new one if seller is not able to provide an existing survey.  If it left out of GFE as charge to borrower, it can not later be charged to borrower and is a lender tolerance cure issue.  On a refinance an existing survey may be acceptable but if it is turns out not to be acceptable then a new one is required,  If it was not disclosed on GFE it can't be charged and is a lender tolerance issue.  Many states have rather large transfer/recording fees, and it behooves a loan officer/lender to understand who is responsible for applicable fees and prepare GFE properly to avoid last minute issues and expenses. Among the reasons I only do mortgages in Texas.

  (0)
Side Business Loss

Answer

Your income will be reduced by $1.663 monthly, so impact will depend on if you can still qualify with that much less income. Since I assume you are not using 2014 tax return, even if you are no longer have the LLC it would not be possible to verify that is the case.Typically tax transcripts come back with in a few days after application is started by lender's processor, so the issue will come up shortly.

  (0)
Is there anyone to assist buying home for people with damaged credit?

Answer

I am sorry you had so many health issues to deal with.  Keeping your home during this ordeal is commendable.  You didn't mention employment information on the move to Grove, so not sure if there is salaried jobs for one or both of you there.  That will be a consideration on any possible loan program option. If your credit score is 580 or higher with qualifying income and large down payment, buying a home now is a possibility on an FHA loan. I would expect a lender that is active in OK will offer assistance, and hopefully buying now is a possibility.  If employment is not secure, leasing a home for next 18 months would be a better option.  You would gain financial stability, have good reserve funds, and your credit score would improve significantly by paying all debt on time.  Good luck.

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