Ask the "Mortgage Man": Can I buy a house if I just declared bankruptcy?

Ask the "Mortgage Man": Can I buy a house if I just declared bankruptcy?: I have heard this question over and over again, and until now, I was unable to say yes.  The old tried and true method of approval is: 2 yea...

Can I buy a house if I just declared bankruptcy?

I have heard this question over and over again, and until now, I was unable to say yes.  The old tried and true method of approval is: 2 years out of bankruptcy, 3 years from short sales or foreclosures.  With this new program from FHA called "Back to Work", it enables an individual with a bankruptcy/ foreclosure/ short sale, to purchase a home after 1 year.  If they lost their job and earned much lower income while collecting unemployment, or had to take a much lesser paying job, they may be eligible for this program.  The catch is that a borrower must be able to show that they had good credit prior to their loss of job, and good credit reestablished for the past 12 months since this life changing event.  This program has and will open many new doors for home-ownership in 2014 and beyond.

For more information please contact me at 610 837 1600 or 484 695 5972

Andy Williams 118317
President
Abacus Regional Mortgage 113984
www.abacusmort.com

Ask the "Mortgage Man": END TO AN OLD TRICK

Ask the "Mortgage Man": END TO AN OLD TRICK: Have you or anyone you know ever moved into a different home without selling the current residence?   Did you claim to be renting your resid...

END TO AN OLD TRICK

Have you or anyone you know ever moved into a different home without selling the current residence?   Did you claim to be renting your residence or selling it, all to get the best terms for a mortgage on an investment property? For years, many people used this ploy to get better terms for their loans.  This went on for years before lenders became smart.  When I got into the industry in 1986 as an underwriter, I was taught what to look for to determine true occupancy in a property.  With a few general questions you can determine a borrower's intentions with regards to the property.  If their commute distance from their current job to the subject property is 2- 3 hours away from the property, it is obvious that they are looking at the property as either a 2nd home or an investment property.  If they claim that the home will be a 2nd home, but it is located in downtown Allentown, you can conclude that it is to be used for investment.  To be considered as a 2nd home, the property must be located in a resort area or community where it is common for home owners to use them on weekends. If a buyer is moving from a home in which they owe more than the total price of the new home being purchased,  you can assume that the are either going to let their current home go into a short sale or foreclosure.  In 1983 in Houston Texas, the oil industry suffered a bad slump.  Many workers in that area were effected by the slump, and may lost their jobs.  Prices of homes dropped significantly, where many builders went bankrupt.  Buyers were purchasing the exact same home to theirs, in the same development, for 60% less money.  Why pay on a mortgage for a home that is worth 1/3 of what they owe on the home? Many claimed they were renting their current home and purchasing a new home.  When they completed the sale, they walked away from their old mortgage; therefore, the banks lost significant amounts of money. This trick worked well for a time, but the banks eventually put a stop to that.

Since the mortgage crisis of 2008, Fannie and Freddie Mac implemented changes in underwriting
guidelines which help to keep these fraudulent activities from happening.  If a buyer states that they will be vacating their current home and buying a new one, they must qualify with the new home mortgage as well as the old home, too.  If they brandish a lease, underwriters will not count any of the rental income until a borrower can provide proof that the home has been rented for 6 months.  This means that the buyers will have to vacate their home and rent for a minimum of 6 months before they can look to buy unless they qualify with both properties in their name.  Furthermore, if their current home doesn't have at least 30% equity, the borrowers must provide proof that they have 6 months mortgage payments on both properties saved in reserve.  Depending on the cost of the new home, you can be looking at tens of thousands of dollars needing to be shown in savings, 401k plans, IRAs, etc.  What seemed to be a fool-proof plan years ago, is becoming more and more difficult to pull of in today's market.

Andy Williams #118317
President
Abacus Regional Mortgage NMLS #112984
484 695 5972

Ask the "Mortgage Man": Free Credit Seminar December 5th 9:30-10:30AM at B...

Ask the "Mortgage Man": Free Credit Seminar December 5th 9:30-10:30AM at B...: This seminar is a free event where you will learn more useful tips for improving your credit in 1 hour! Dave Wheeler from Credit Plus wil...

Free Credit Seminar December 5th 9:30-10:30AM at Best Western Rts. 512 & 22

This seminar is a free event where you will learn more useful tips for improving your credit in 1 hour!

Dave Wheeler from Credit Plus will be our main speaker.  Dave is one of the pioneers in the credit scoring industry who has helped to develop the complicated algorithms used in determining credit scores.  He will explain the impact of Bankruptcy, Foreclosures, Short sales, Late payments, Tax liens, Credit inquiries, as they relate to determining credit scores.

In addition, we will explore case studies to show examples of how to improve credit scores in a reasonable time frame.  We will show you helpful hints on improving your scores and keeping them at a high level.

Last time, we touched on some basic understanding of credit scoring and gave generic hypothetical situations to outline a  general idea.  This time, we will focus on specific situations with actual credit reports in order to show the direct impact of our advice to improve our past clients' scores.

This seminar is designed to help realtors, but is open to the public.  Because of the enormous turn out we experienced 2 years ago, reservations are required.  Please RSVP to Karen at 610-837-1600 or you may email: andrew.williams@abacusmort.com.

Location:   BEST WESTERN located at 300 Gateway Drive, Bethlehem, PA 18017.
A continental breakfast will be served (Juices, Coffee, Tea, Danishes, Sweet Bread, Muffins, Bagels, Fruit)

This 1 hour of your time will earn you a lot more income! 

Andy Williams NMLS# 118317  (484) 695-5972 
President of Abacus Regional Mortgage

Download this free App for your I phone or Droid:http://andyw.mortgagemapp.com/mobile.

Ask the "Mortgage Man": FREE Mobile App for your I Phone or Droid

Ask the "Mortgage Man": FREE Mobile App for your I Phone or Droid: This FREE App offers you the ability to calculate total mortgage payments, and offers industry news and current interest rates.  It is all f...

FREE Mobile App for your I Phone or Droid

This FREE App offers you the ability to calculate total mortgage payments, and offers industry news and current interest rates.  It is all free and offered to you.  All you have to do is download the following:
 Here's a link to Andy Williams's mobile tool kit for mortgages: http://andyw.mortgagemapp.com/mobile.

Contact me with any questions or difficulties loading the app.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
www.abacusmortgage.com
NMLS # 118317

Ask the "Mortgage Man": How is the Government Strike going to effect My Mo...

Ask the "Mortgage Man": How is the Government Strike going to effect My Mo...: How is the Government Strike going to effect My Mortgage? The answer is very little.  Other than the slow down of an already slow mortgage...

How is the Government Strike going to effect My Mortgage?

The answer is very little.  Other than the slow down of an already slow mortgage product (USDA), there will be very little delay to new loans and loans currently in progress. Unlike any other type of mortgage, the USDA loans require a full underwritten mortgage packet to be sent to them so that the USDA can rubber stamp the file with their seal of approval.  Assuming the strike continues for another week, this will delay the USDA loan closings for up to 2 weeks.  FHA, VA and other government backed mortgages will continue to get funded without delays.  These loans are insured by the government but not funded by the government, so they will continue without delay.  The only possible hiccup is that most lenders require an income tax transcript from the IRS prior to allowing funding on a loan.  This can be done at the very beginning of the loan process or just before the closing.  Most loans already in process have the transcript  in hand.  New loans that won't be closing for several weeks have plenty of time in which to obtain the transcript before closing.  The transcripts are usually processed within 48 hours, so there still remains plenty of time after the strike has ended, to get these documents from the IRS.  Rest easy, there is a 95% chance your loan will not be effected.

Andy Williams NMLS # 118317
President
Abacus Regional Mortgage
484 695 5972

Does Fraudulent Activity Still Occur in the Mortgage Business?

A woman thought she had one over on me this week.  She didn't qualify on her own so I suggested she find a suitable cosigner to help her purchase a  home.  She suggested her ex-husband as a viable and willing candidate to go on the mortgage with her.  She had all of his information including his social security number, bank accounts and income figures, so I processed the application and ordered the appraisal for the subject property.  Since neither she nor her ex-husband live locally, I sent all of the papers by way of Federal Express to her home address.  As part of the normal requirements, I requested copies of financial information on both parties as well as drivers licenses for each borrower.  The entire package came back via the mail but her ex's drivers license was missing.  I requested it again and still she didn't send it back.  After much ado, I found that he never agreed to cosign the loan, and she was using his identification to help her get the mortgage. WRONG!  http://www.ssa.gov/employer/ssnv.htmIt is amazing to see just how far people will go to try and fool you.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
andrew.williams@abacusmort.com
NMLS # 118317

A New Twist To An Old Program

Can the market for mortgages be softening? Way back in 1993, the federal government came out with a program called "My Community".  This mortgage program was granted to people who wanted to do a conventional loan yet didn't have the required 5% down payment.   This program offered 97% financing, thus the need to only put 3% down on a prospective house.  At the time,  FHA mortgages required only 2.25% down payment, but the house had to pass rigorous inspections by the appraiser in order to qualify for an FHA mortgage.  Peeling paint and minimum distances between well and septic tanks, were some of the problems associated with getting a  house to pass through FHA's tough standards.  Since conventional loans didn't have such requirements, this new "97 My Community" offered a better alternative to the FHA loan.

Again,  they've introduced a new and improved "My Community" 20 years later.  For a few years,
when the housing bubble burst in 2008, the government cracked down on mortgages limiting many lenders to 10-20% down payment requirements for conventional loans.  Now the lending guidelines have slowly been easing and now history has repeated itself 20 years later. The program requires only 3% down payment from the buyers own money.  A gift is not allowed for the down payment minimum requirement to be met by the borrower.  The seller can contribute 3% of the selling price toward the buyer's closing costs.  Back in 1993, there wasn't any internet to help determine a borrower's credit worthiness.  There wasn't even such a thing as credit scores. 
They relied on the appearance of a person's credit history, as it appeared on a report to determine how strong of an applicant they appeared to be.  Now, everything is decided by the software used by the government agencies to determine eligibility of a buyer.  This newest version of "My Community"
offers a new twist for spouses or roommates who can't be on the mortgage.  In terms of qualifying for the loan, we can now use occupying spouses and roommate's income  who won't be on the mortgage.  Perhaps their credit scores aren't good enough to be listed on the loan, or maybe they will be living there temporarily.  We can use a percentage of these co-habitator's income for the purpose of helping the borrower to qualify for the home. 

For more specifics on this and many other programs, please ask the Mortgage Man.  I am licensed to do mortgages in the state of Pennsylvania.

Andy Williams
President
Abacus Regional Mortgage NMLS # 113984
484 695 5972
NMLS # 118317

Why The Mortgage Man?

Why do they call me the mortgage man? I started my career in finance with Beneficial Consumer Discount in 1986 and became a collection manager.  Once I was given the option of moving out of town to manage my own branch, I decided to pursue a career as a Mortgage Underwriter with Merchants Bank of Allentown in 1988.  Once I had a thorough understanding regarding collections and underwriting, I took a job with Meridian Bank as a mortgage loan officer.  I continue to service 27 real estate offices and builders in three counties ( Monroe, Northampton, Lehigh ).  When Meridian was being sold to another bank, I decided to go out on my own as a Mortgage Broker in 1997.  I've owned my owns business for 16 years and know all the ins and outs of the mortgage industry.  I've seen interest rates as high as 16% and as low as 2.5%.  I've witnessed market bubbles, corrections, booms, busts, short sales, foreclosures, bankruptcies, wrap around mortgages, recasts, bridge loans, divorces, identity theft, fraud, subordinations, straw buyers, owner financing, hard money lending, and many other situations in my years in the industry.  Through it all, I've used my knowledge, experience, and contacts to help over 5,000 families purchase their home. I have almost any program or lender to get the job done.  If I do not, I know who may be able to help a potential home owner purchase their home.  It takes just one phone call to get the right answer!  Please call me with any situations or scenarios that you wish to discuss in confidential manner.


Andy Williams NMLS # 118317
President
Abacus Regional Mortgage
484 695 5972

Lexington Law

Is there a reputable company to rehab people's credit who doesn't just take consumer's money? I don't know where this company came from or how long they've been in business, but I've heard their name mentioned many times in the past few months.  For years, potential home buyers have asked me for recommendations on whom they can go to for credit disputes and resolutions.  Until now, I wasn't recommending anyone because all the companies appeared to do the same thing.  They take your hard earned money and don't improve your credit score at all. I told my customers the same thing.  " Until I find a company that actually improves credit scores and actually earns their money, I don't recommend anyone as being reputable".

Lexington Law has been a company whom I've heard many wonderful stories from adding 100 points to a borrower's credit score within a few months, to removing old collection accounts that were in dispute within 30 days.  I will highly recommend them to anyone who asks for a reputable company that actually does what they say they are going to do for a consumer.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
NMLS # 118317

Is it possible to finance a condo with less than 20% down payment?

We offer 95% financing on warrantable condominiums.  What does this mean? If the property being financed is for the borrower to occupy as their primary residence, if they have 5% down payment and some money for closing costs, if they have a minimum credit score of 680, they may be eligible to buy a condo with this program. 
The condo project must be approved, as well as the buyer.  The meaning of warrantable means that the condo association must meet the requirement set by Fannie Mae and Freddie Mac for condos.  There can't be more than 9% of the development owned by one person or entity.  There can be no more than 15% delinquent property owners.  If the condo is being purchased as an investment property, 51% of the units must be owner occupied.  These are most of the major guidelines, but there are more specific requirements ( see attached ) and unique circumstances that may need to be explored before entering into an agreement to buy a condominium. 

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
NMLS # 118317

Ask the "Mortgage Man": Commercial Loans in the Lehigh Valley requiring NO...

Ask the "Mortgage Man": Commercial Loans in the Lehigh Valley requiring NO...: Can you imagine buying a commercial property and financing this piece of real estate without having the bank order an appraisal?  Most comme...

Commercial Loans in the Lehigh Valley requiring NO Appraisal!

Can you imagine buying a commercial property and financing this piece of real estate without having the bank order an appraisal?  Most commercial appraisals cost upwards to $2,000 per appraisal.  This is not only extremely expensive, but a commercial appraisal can be much more time consuming than a residential appraisal.  There is so much more paperwork and analyses that needs to be done to complete a commercial appraisal.  Since there aren't as many commercial properties selling in this market, the appraiser must go to remote areas to find similar properties to compare to the subject properties value.  Since most of my commercial loans don't require appraisals, I save my customers lots of time and money.  We can close most commercial loans in under 30 days!  In addition, I shop for the lowest interest rate which is now as low as four.  For a low cost, low rate commercial loan with the fastest closing, you need to look no further. 

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
NMLS # 118317

Ask the "Mortgage Man": FHA LOANS WITH 600 SCORES

Ask the "Mortgage Man": FHA LOANS WITH 600 SCORES: We are introducing a new program for FHA with scores as low as 600.  There is no catch! Most lenders are requiring a minimum of 640 credit s...

FHA LOANS WITH 600 SCORES

We are introducing a new program for FHA with scores as low as 600.  There is no catch! Most lenders are requiring a minimum of 640 credit scores to finance FHA, but Abacus can do much lower scores.  These programs are almost the same as the typical FHA mortgages with a few minor differences.  I am outlining the differences for both programs below.

If a borrower's credit score falls between 620-639, a maximum debt ratio of 43% is allowed.  You can't go to 45.  If a borrower's new mortgage payment (PITI) doubles what a borrower is currently paying in rent, they must show an extra 2 months mortgage payments in reserve ( IRA, 401K, etc.)
They can't spend every dollar on buying the house, as a normal FHA program allows.  You can still get the seller to pay 6% of the selling price toward the buyers closing costs, but the buyer's 3.5% down payment CANNOT be a gift.  They must show proof that it is from their own funds. 
If a borrower's credit score falls between 600-619,  maximum debt ratios may not exceed 33/45%.  In addition, the borrower must put 5% down payment, not the standard of 3.5%.  The entire down payment must be the borrower's own funds.  If there is a doubling of the mortgage payment compared to what the borrower is currently paying in rent, they must show proof of an extra 2 months mortgage payments in reserve (IRA, 401K, etc.). 

This is a great opportunity to finance people who have experienced a problem with their credit in the past but have cleaned it up and still show scores below what is the norm.  It also helps to enable borrowers with high credit card debt to be able to purchase a home before having to pay down their revolving debt. 

For more solutions to your mortgage needs please contact me on my cell, email me at andrew.williams@abacusmort.com, find me on twitter at #abacusmort or find me on facebook.

Andy Williams
President
Abacus Regional Mortgage
NMLS # 118317
484 695 5972

Reason no. 45 why to use Abacus Regional Mortgage

Everyone has the problem where a self employed borrower hasn't shown enough income in order to qualify.  This is the time of year when they prepare their tax returns for the previous year.  Everyone is gathering their receipts and deductions to try and pay as little income tax as allowed by the federal government.  The more you pull out of Uncle Sam's pocket, the less house you can afford.  Since lenders use a two year average of income to qualify a self-employed borrower, careful consideration must be used in doing 2012's return.  If the income is high enough, a buyer can boost their buying power greatly. 

The problem lies in what is know as Form 4506.  Because of many cases of loan fraud having occurred in the past, where buyers have given fraudulent 1040s to their lender far different than the actual one they filed with the IRS, lenders won't allow buyers to close on their homes until they receive proof of income from the IRS.  This form when sent to the IRS, verifies the 1040 transcript matches the one given to the lender.  It can take as long as 8 weeks by the IRS to verify a return has been filed by a borrower.  This has delayed many closings, and in some cases causing hardships with families.  I have three lenders who don't send this form to the IRS; therefore, I can close the loan with a newly filed tax return.  No delays means happy customers, and happy realtors.

Call me with your next mortgage loan.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
NMLS # 118317      

Commercial Loan Rates Drop....Finally!

For years, interest rates on commercial loans have been much higher than standard 30 year fixed rate mortgages for a primary residence.  The rates for home loans have been coming down lower in the past few years to record lows.  Most homeowners have refinanced their mortgages to the lowest payments possible, but commercial loan rates have remained steady. There has always been a difference in interest rates between the two types of mortgages of between .5 to 1.5% in rates.  Never before has the spread been as much as 3 % higher for commercial loan rates.  Until recently, rates on commercial loans have been TWICE the rate of residential home mortgages.  The reasoning of most banks has been that they are lending to businesses based on the depositors who have money in their banks.  These institutions have been paying depositors less than 1% on their savings accounts and CDs, yet they are charging 6.25% to the commercial borrowers. Since they have a limited pool of funds they can't lend like the banks who are selling their residential loans to Fannie Mae and Freddie Mac.  These agencies have an unlimited amount of funds to lend to the banks, making them flush with funds available to lend to homeowners.  Finally, they have come to realize that these low interest rates on home mortgages appear to be staying at these record low levels for quite some time.  In sympathy with the home mortgages, many local banks have reduced their lending rates on commercial loans to as low as 3.75%.  This marks a sharp reduction for what they were charging as recently as a few months ago.  Since most commercial loans are much higher than residential loans, the monthly savings will be significant.  If you haven't taken advantage of these low rates for businesses, you may get in touch with your current lender, or if you own a business in Pennsylvania you can call me.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972 

What are people waiting for?!!

 I can't understand why more people aren't buying homes right now. If you compare a $ 180,000 house of today at today's interest rates to the same house at 2007 prices and rates, the average monthly savings is $ 750 per month. If you could afford that house 5 years ago at a monthly payment that much higher, you would think people would be lining up to buy right now!

Andy Williams
President
Abacus Regional Mortgage
484 695 5972