Mortgage Specialists - Need Help

[3tekcorps]

I think you can still do these in the 80-80% LTV range. I would ask your agent for contact at a good mortgage company.

Do you have an IRA/401k you could tap for the balance in order to hit 20% down? There are few more pages to these guides, but it's not really black and white at 7 years. It depends on the cause and details of the short sale. You need to find a place that wants to sell you a mortgage, not decline your loan quickly.

If you have good credit aside from the Short Sale and high scores it makes a difference. If you have chronic credit issues for the last 10 years it's not so easy to get done. I've seen these close in less than 2 years when structured well.

[///WORK-F36]

Originally Posted by 3tekcorps

I think you can still do these in the 80-80% LTV range. I would ask your agent for contact at a good mortgage company.

Do you have an IRA/401k you could tap for the balance in order to hit 20% down? There are few more pages to these guides, but it's not really black and white at 7 years. It depends on the cause and details of the short sale. You need to find a place that wants to sell you a mortgage, not decline your loan quickly.

If you have good credit aside from the Short Sale and high scores it makes a difference. If you have chronic credit issues for the last 10 years it's not so easy to get done. I've seen these close in less than 2 years when structured well.

Very rarely do lenders allow the 2 years with extenuating circumstances. You need to show proof of some sort of financial hardship such as losing your job, and showing your asset statements that you did not have the money to pay the mortgage, or something to that effect. 99% of the time you need to wait 4 years.

[enron29]

Credit scores are about 750, both TransUnion and Equifax.

[enron29]

Originally Posted by ///WORK-F36

Very rarely do lenders allow the 2 years with extenuating circumstances. You need to show proof of some sort of financial hardship such as losing your job, and showing your asset statements that you did not have the money to pay the mortgage, or something to that effect. 99% of the time you need to wait 4 years.

Yeah, that is what I'm finding out. That's what sucks the most. My wife and I made adjustments to help offset these hardships as best we could rather than just dumping everything.

[3tekcorps]

Originally Posted by enron29

Yeah, that is what I'm finding out. That's what sucks the most. My wife and I made adjustments to help offset these hardships as best we could rather than just dumping everything.

It really comes down to the details on this and you should discus it with a lender that will pull for you.

[enron29]

So how do I find these different lenders. We have been suggested a couple from a realtor friend, but they are sort of stopping at we should only go FHA route, but can't do it in San Bernardino County or Townhomes in Orange County don't allow FHA loans (mostly)

[M3 Number 86]

Originally Posted by enron29

We are just trying to figure out a move to keep my daughter from changing schools multiple times in the next couple years. So trying to find where we can rent, then more than likely afford to buy in the following year, but at the same school zone.

So this may be a stupid question, but I have to ask it. So are there lenders out there that could go around the FHA limit? Or there is no real way around that? It is what it is? And the Fannie Mae Conforming, how does that differ from FHA and how are you eligible for that?

Can't you just rent an apt? It's just 12 months? Cheaper than a house or townhouse.

[///WORK-F36]

Originally Posted by 3tekcorps

It really comes down to the details on this and you should discus it with a lender that will pull for you.

It's not that simple. These loans need to be backed by Fannie or Freddie, so lenders cannot just make up their own rules. They need to follow Fannie and Freddie's guidelines.

[Flying Ace]

Originally Posted by enron29

So how do I find these different lenders. We have been suggested a couple from a realtor friend, but they are sort of stopping at we should only go FHA route, but can't do it in San Bernardino County or Townhomes in Orange County don't allow FHA loans (mostly)

what? How is San Bernardino county excluded from FHA loans?

The link I gave you yesterday from the FHA website clearly tells you that there are superconforming limits up to $417k for FHA loans.

Have you gone to a brick and mortar bank in the county or serving that county? Or are you working with independent mortgage brokers?

I went to an online mortgage company website and punched in your basic loan info and and your loan isn't anything special, for your county, this is what they gave me:

Loan Program: Conforming 30 Year Fixed
New First Mortgage Loan Amount: $417,000.00
Existing Second Mortgage (if any): $0.00
Property State: California
Property Type: Single-Family Detached
Occupancy: Owner-Occupied
Loan Purpose: Purchase
Home Value: $500,000.00
Number of Units: 1
Assumed FICO Score: 760

Rate Pts/Credit % Pts/Credit $ Monthly P&I APR
3.250 % 1.500 % $6,255.00 $1,814.81 3.423%
3.375 % 0.625 % $2,606.25 $1,843.54 3.478%
3.500 % -0.500 % ($2,085.00) $1,872.52 3.524%
3.625 % -1.250 % ($5,212.50) $1,901.73 3.650%
3.750 % -1.625 % ($6,776.25) $1,931.19 3.776%

[enron29]

Originally Posted by Flying Ace

what? How is San Bernardino county excluded from FHA loans?

The link I gave you yesterday from the FHA website clearly tells you that there are superconforming limits up to $417k for FHA loans.

Have you gone to a brick and mortar bank in the county or serving that county? Or are you working with independent mortgage brokers?

San Bernardino County isn't excluded. The FHA limit is just too low ($356,500). There is the superconforming up to $417k, but isn't this Fannie or Freddie, which won't allow less than 4 years after short sale?

Again, I have just been working with a couple lenders that were suggested to me from a realtor friend of the family.

[Flying Ace]

Originally Posted by enron29

San Bernardino County isn't excluded. The FHA limit is just too low ($356,500). There is the superconforming up to $417k, but isn't this Fannie or Freddie, which won't allow less than 4 years after short sale?

Again, I have just been working with a couple lenders that were suggested to me from a realtor friend of the family.

As others suggested above, your wait limit could be 1 year, if you qualify for the "Back to Work" program?

http://dreamwellhomes.com/buying-a-h...er-short-sale/

Otherwise, it sounds like you just need more downpayment, which is the case anyways to squeeze in under $417

[3tekcorps]

Originally Posted by ///WORK-F36

It's not that simple. These loans need to be backed by Fannie or Freddie, so lenders cannot just make up their own rules. They need to follow Fannie and Freddie's guidelines.

Which i posted above

[3tekcorps]

More:

DEED-IN-LIEU OF FORECLOSURE, SHORT SALE OR CHARGE-OFF OF MORTGAGE ACCOUNT
These transaction types are completed as alternatives to foreclosure.


EXTENUATING CIRCUMSTANCES – FANNIE MAE
Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in
a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial
obligations.
If a borrower claims that derogatory information is the result of extenuating circumstances, the lender
must substantiate the borrower’s claim. Examples of documentation that can be used to support
extenuating circumstances include documents that confirm the event (such as a copy of a divorce
decree, medical reports or bills, notice of job layoff, job severance papers, etc.) and documents that
illustrate factors that contributed to the borrower’s inability to resolve the problems that resulted from
the event (such as a copy of insurance papers or claim settlements, property listing agreements, lease
agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.).
The lender must obtain a letter from the borrower explaining the relevance of the documentation. The
letter must support the claims of extenuating circumstances, confirm the nature of the event that led to
the bankruptcy or foreclosure-related action, and illustrate the borrower had no reasonable options
other than to default on their financial obligations.
EXTENUATING CIRCUMSTANCES – FREDDIE MAC
For Accept Mortgages and A-minus Mortgages, the significance of the derogatory information has
already been considered by Loan Prospector and the Borrower’s credit reputation has been deemed
acceptable. However, regardless of the Risk Classification received from Loan Prospector, if evidence
of a short sale is disclosed on a credit report or contained elsewhere in the Mortgage file, the following
recovery time periods and additional requirements must be met:
The Mortgage file must contain all of the following documentation:
• A written statement from the Borrower attributing the cause of the financial difficulties to outside
factors beyond the Borrower’s control that are not ongoing and are unlikely to recur
• Third-party documentation confirming that the events related by the Borrower in the explanation
were an isolated occurrence and significantly reduced the Borrower’s income and/or increased
expenses and rendered the Borrower unable to repay as agreed
• An underwriting analysis on Form 1077, Uniform Underwriting and Transmittal Summary, or on a
separate document in the Mortgage file, relating the Borrower’s explanation to the Mortgage file
documentation and leading to a reasonable conclusion that:
Conventional Underwriting Guidelines
VI. Underwriting Guidelines 38 of 147 04/15/2016
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o The events causing the financial difficulties were beyond the Borrower’s control, are not
ongoing and are unlikely to recur; and
o The Borrower has reestablished an acceptable credit reputation
Evidence on the credit report and other documentation in the Mortgage file of the length of time
since completion of the significant derogatory event to the date of application and of completion
of the recovery time period requirements.

[kprocivic]

Originally Posted by Reborn_

That's only an issue if the funds have not matured (i.e. not in your bank at least 60 days), right?

correct, some instituions vary that from 30-90 days, 60 is average.