FHA mortgage insurance requires a Florida borrower to demonstrate a good repayment history of all debts. This history serves as the most useful guide in determining a Florida mortgage applicant’s willingness to repay credit obligations and serves as a model in predicting his/her future actions.ank” href=”http://www.floridamortgagecorp.com/usda_rural_florida.htm” target=”_blank”>
When analyzing a Florida mortgage applicant’s credit report, it is important to focus upon the general pattern of credit behavior rather than isolated unexpected temporary occurrences of late payments. Often times, Florida mortgage applicants will experience a period of financial difficulty in the past and does not necessarily translate into an unacceptable risk. Reasonable past explanations of the derogatory credit and evidence of offsetting factors (such as a new job or promotion with greater stability and pay, for example) will be necessary. All recent derogatory credit within the past 2 years must be explained, in writing, by the borrower.
The following is a brief synopsis of the credit underwriting guidelines for FHA mortgage loans:
- Lack of credit history: If a Florida mortgage applicant does not have a minimum of 3 trade lines on their credit report, alternative forms of credit may be used. This would include items such as 12 months canceled rent checks, or verification of rent from a management company, letter from an electric, cell phone, cable, auto insurance payment history or utility bills, etc, providing proof of a 12 month on time payment history.
- Included credit obligations: Any installment loans such as student loans, car loans, or other debts with less than 10 months remaining does not need to be included when qualifying for a Florida FHA mortgage loan. However, consideration is given to a large debt of over $100 a month, regardless of the number of months remaining. Furthermore, if payments on auto leases with less than 10 months must be included in the qualifying ratios. The minimum payment on all revolving accounts (i.e. credit cards) is also factored in. If the borrower has an open revolving account without a balance, $10 per open account should be included when qualifying. Any loan where the Florida mortgage applicant has co-signed for another party is included with their debts unless the borrower can prove that the other party has made the payments on their own for a minimum of 12 months.
- Chapter 7 Bankruptcy: Florida FHA mortgage lenders require a minimum of 2 years since the discharge of the Florida bankruptcy. An explanation of the Florida bankruptcy will be required. Furthermore, the Florida mortgage applicant should have re-established credit proceeding the bankruptcy with no late payments.
- Chapter 13 Bankruptcy: Florida FHA mortgage lenders will consider a borrower still paying on a Chapter 13 bankruptcy if the payments to the court have been made for a minimum of 1 year in a satisfactory manner (as verified with the courts) and with the approval of the court trustee.
- Federal Debts: A mortgage applicant is not eligible for a FHA loan if he/she is delinquent or in default on any federal debt (such as a HUD or VA mortgage, student loans, SBA loans or a tax lien against his/her property). Florida mortgage applicants can become eligible by bringing any delinquent accounts current, making satisfactory repayment arrangements with the creditor (generally a 3 month minimum history will be required), or paying the account in full.
- Judgments: Judgments must be paid or have 12 months of arranged payment history
- Collection Accounts: Collections do not need to be paid (LOX) needed
- Foreclosure: A Florida mortgage applicant who has had a property foreclosed upon, or who has given a deed-in-lieu of foreclosure within the previous 3 years, is generally not eligible for a Florida FHA mortgage loan. However, if it was the result of extenuating circumstances beyond the borrower’s control (such as the death of a spouse, loss of employment, or serious long-term illness, etc.) and the borrower has since re-established good credit, an exception may be granted. However, extenuating circumstances do not include the inability to sell a house when transferring from one area to another.
- Non-purchasing Spouse: If a married mortgage applicant is purchasing a property by himself/herself, the credit obligations of the spouse must be included with the application and will be factored in with the borrower’s credit obligations and used to determine the financial capacity of the borrower. Furthermore, the non-purchasing spouse may be required to sign a security instrument or documentation relinquishing all rights to the property.
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Help answer the question about mortgage loan
Any US bank would make a mortgage loan to a borrower whose income is from outside the US?I am trying to refinance my existing mortgage on a house in Vienna. But my income is currently from outside the US. Does anyone know any US bank that would make such a loan to me? Thanks.
If you are both going to be on the loan, then both incomes will count. Critereia for a mortgage is dependent on the following:
* Credit Score – there are 3 credit bureaus and this thing called a FICO (Fair Issac) score. The closer your score is to 850 the easier the loan is to get and the better rate (lower interest) you will be offered.
* Debt to income ratio. If you earn $1,000 a month and have $750 per month in bills to pay, it will be tougher. Banks/mortgage companies like debt to income to be less than 50%, and would prefer 30% area.
* Don't be getting new loans and don't apply for new credit until after you have purchased your new home. These "inquiries" will bring down your credit score.
Look up your credit online now. You can get it done very inexpensively and know where you stand.
Hope that help
Simply put the loan officer will get paid either three ways:
1. You pay him origination points
2. The lender will pay him
3. A combination of 1 and 2
For anyone to come here and tell you that only one or two ways is the right way or how much of % should be paid is completely wrong.
Each state is different on how much on an average a borrower will pay on origination points.
In order for you to find out how the loan officer is chargin your, look at the Good Faith Estimate.
If you are paying for origination points up front, you may be getting a better rate than having the lender pay the loan officer for his commission. Although you could be getting charge at both ends.
Look carefully at the Good Faith Estimate.
Mortgage Loan officers do not make anything from the SALE of a home. They make a certain percentage of the amount of the mortgage loan on the PURCHASE of a house.
The percentage of commission varies from state to state and from lender to lender.
I can tell you from my own personal experience.
First off, modifying your mortgage is a very difficult thing to do. Forget what the media and all these other yahoos are saying about the government's modification act. Most banks are not willing to modify your mortgage without putting up a fight.
Why? Because it costs them money to do it. Most mortgages are sold off to someone else after you take out the loan, but the original bank still acts as the servicer. They receive a percentage from the buyer of your mortgage to handle the payments and record keeping.
When something complex as a loan modification is requested, any profits they would make disappear and as such they are reluctant to do it.
The media and the banks themselves don't tell you this of course.
First-expect to hire a lawyer or get a legal aid lawyer. Most banks will not take you seriously unless you have a legal mouthpiece going to bat for you. Having a lawyer shows you mean business and just are not some schlub looking for a handout.
If you try to do it yourself, expect to be jerked around for months only to be told it can't be done and by the way we're starting foreclosure proceedings, which will only make the modification even more difficult.
The bank will not talk to you unless you are delinquent. And this is where time is of the essence-if you're very late with your payments and they have'nt started legal proceedings it makes the process much easier. Once legal proceedings start, then it becomes difficult if not impossible to complete the modification because now the courts will be involved.
Second-you will be expected to make your new payments ON TIME if you do receive the modification. The bank will not care how you accomplish this. You will be told that the first 3 payments or such MUST BE ON TIME OR THE AGREEMENT IS NULL AND VOID.
Keep in mind whatever agreement you agree to will only stall the inevitable. Eventually over time your payments will return slowly back to where they originally were. The original terms and payments will not go away. ALL A MODIFICATION DOES IS LOWER YOUR PAYMENT FOR A PERIOD OF TIME UNTIL YOU CAN GET BACK ON YOUR FEET.
Third-If you feel you can't keep up with the payments at any time now or in the future, consider selling the home while you can or give it back to the bank. It may seem difficult but it's a far better option than having it being taken away from you. Also note that if you file for chapter 7 bankruptcy, don't sign a reaffirmation of your loan. That way if you need to walk away you won't be held liable for whatever is still owed.
Fourth-I can't empathize this enough: NEVER, EVER, LET ANYONE TALK YOU INTO BUYING YOUR TITLE OR ASKING FOR MONEY TO REARRANGE YOUR LOAN. IT WILL BE A SCAM I ASSURE YOU AND YOU WILL STILL BE LEFT HOLDING THE BAG.
I hope this helps you and don't believe Obama and his socialist bullshit. What I told you is the reality and what the government says is fantasy.
Good luck!
I really suggest looking around at different careers websites, such as monster.com, in addition to checking out our careers page (I’m an employee of Quicken Loans).
Don’t worry about your lack of experience. At many mortgage companies, including Quicken Loans, no lending experience is not a problem.
In addition to on-going training, all new mortgage bankers attend five weeks of industry-leading training. We’ve been hiring 200+ new mortgage bankers a month for the past few months and we consider candidates with various work backgrounds and experiences.
I’ve included a link to our mortgage banker careers page that has more information, but if you have any questions feel free to contact me through my profile.
One thing, we only hire for employment in Detroit, Cleveland, and Scottdale, Arizona.
Good luck!
Yes it is. In fact, it is common these days. It will all depend on what type of loan you are going for, and what type of collections you have. If you owe 200 bucks to a phone company from a year or two ago, it isn't as big of a deal to the lenders as owing 5,000 in back child support…. they do whatever makes sense…
Comment back on what type, how old, and total number of collection accounts, as well as a total dollar amount and I will tell you how your chances look…
Avg. Salary: 42k$
50 Salaries registered here:
http://www.whatsalary.com/us/salary/MORTGAGE-LOAN-OFFICER-T4154.htm
In an interest-only loan or mortgage the borrower only pays interest each month. This makes it cheaper than a conventional mortgage, in which part of each month's payment goes towards the principal and part goes towards interest. These loans have become popular because the monthly payments are lower, allowing borrowers to afford a larger home.
However, these loans can be dangerous, especially in a down housing market. The interest rates are generally fixed for the first 1, 3 or 5 years. After that, they convert to a conventional loan, with a higher monthly payment. Most borrowers take on these loans because they assume they will sell the home before the interest rate increases. In a down market, they may not be able to sell. If they cannot afford the increased payment, they may have to default on the loan, and foreclose on the home. So, when the rate starts to adjust, you would need to refinance again. And, either get a fixed or another interest only adjustable. And, yes, I do believe you mean ARM. Although, if you have extra money every so often, you can pay down the principal in extra payments.