BUYERS WITH CREDIT SCORES BELOW 620 ARE FINANCABLE

Does your lender finance anything  below a 620/640? FHA/VA/ USDA loans are all regulated by the government.  They don't truly have minimum credit scores, but lenders have what is called overlays.http://www.thetruthaboutmortgage.com/what-is-a-lender-overlay/  These overlays are a set of rules specific to each lender.  Most lenders sell their mortgages in large pools to investors.  These investors set minimum credit score requirements for loans that they will purchase from these lenders.  Since each lender has different investors, there are different minimum score requirements per lender.

I deal with many different lenders, and I have a very reputable one who will go as low as a 550 score on all three types of mortgages: VA,USDA, and FHA.  Other lenders are required to receive approvals from an automated software system specific to the type of loan requested, in order to close and fund these types of mortgages. My lender underwrites the loan manually, which means that  they don't have to receive an automated approval through any of the government software systems. This allows me the ability to finance many more ready, willing, and able buyers.

In order to finance any of these buyers with sub 620 scores, they are required to provide 12 months rent checks evidencing they've paid all of the payments on time.  The lender will not accept rent receipts, money orders, or letters from a landlord/apartment complex.  In addition,  the buyer will have to furnish 12 months checks or a printout from at least one utility company to evidence timely payments.  The most common types are cable, internet, cell phone, electric, heat, and car insurance. Any of these will work, and the lower the score, the more utility references we may require.

If you know of anyone who may fit the description of a buyer who is capable of owning a home please have them call me.  I will give them an answer within 48 hours one way or another.

Andy Williams
President
Abacus Regional Mortgage
NMLS # 118317
(484)-695-5972
www.abacusmort.comhttp://www.abacusmort.com/

3 DAY MANDATORY BUYER REVIEW OF HUD-1

Is this another way of slowing down our turnaround times?  It is bad enough that the government enacted so many lending changes in the past few years, much too late to avoid the kinds of loan fraud which were prevalent in the mid 2000's.  Now they are continuing to find more red tape that slows down the lending process.  They changed the good faith estimate, requiring that the lenders would have to eat any fees being over charged to the buyers at settlement.  This was a novel idea which kept the predatory lenders from using bait and switch tactics to take advantage of consumers.  They required licensing for individual loan officers,  mandatory continuing education, testing, criminal background and credit checks.  All of these have been effective in eliminating the less than desirable loan officers from continuing to originate loans.

Why are they requiring a minimum of a 3 business day review of the HUD-1?  As of August 1, 2015, there is a mandatory 3 business day review  in which a buyer can cancel their contract to buy a home after receiving a copy of the HUD-1. This is an example of an overkill.  Any discrepancies at closing fall within the 10% tolerance, meaning that the lender or loan officer will have to absorb any additional lender  charges incurred by the buyer.  Since the fees cannot be changed from what the borrower was shown at the time of application and/or within 3 business days from the date of application, there is no need to delay the closings an additional 3 business days.  Many lenders take until the day of closing to do the final preparations of closing papers.  They wire the monies needed, and email the papers to the title company within 24 hours of the closing.  With these changes, they will have to have everything to the title company at least 4 business days before the closing so that the title company will have the time they need to complete the final HUD-1 and get it to the borrower.  This is doing nothing to help anyone, because the culprits who changed the fees at closing are long gone, and only the remaining experienced and reputable loan officers remain.  All this does is provide another reason why the government agencies are too late to act, and often overreact to problems. Tack on another 3 days to your real estate contracts!

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

NMLS #118317

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...