Most mortgage program guidelines follow the “rule of twos.” So what do you do when you have income gaps? Loan approvals require a lender to verify at least two years of employment. For self-employed borrowers, two years of self-employment is required and verified with at least the last two year of federal income tax returns. […]
Loan applications go through several stages before loan documents are actually printed. There’s the initial submission and documentation stage. It’s here where the loan officer reviews the application before submitting the loan through the automated underwriting system, or AUS. The AUS digitizes the application and runs it through an online app where a list of […]
It didn’t get a whole lot of publicity last week, but there was a major change for VA Home Loans. More specifically, the VA loan limit, or loan cap. Over the years, the VA loan limit has changed and the changes have always been favorable to the veteran. The most recent adjustment eliminates the VA […]
More and more investors are placing real estate into their portfolios. It’s a special asset class that both appreciates over time and provides the owner a monthly cash flow. Investors also know to leverage their money with today’s low interest rates. It simply follows that the lower the cost of funds the greater the cash […]
Real estate investors take time to properly determine whether a particular property is a good investment. There are multiple factors to consider when investing in real estate which is where the debt service coverage ratio comes into play. After all, real estate isn’t the most liquid of investments. Common Ways to Evaluate Property The first […]
In real estate, a mixed-use property is one that contains both residential as well as commercial space within its interior walls. A commercial property is an income producing property and can be as varied as a gift shop to a doctor’s office. To finance a commercial property, a commercial loan is needed. These loans are […]
More and more students as well as parents are resorting to loans to pay for college. Public universities have had the ability to set their own tuition rates for years now and for many, attending college means going into debt just for the privilege. And that’s just the tuition, never mind the multitude of fees […]
Okay, the main difference between a conforming home loan and a jumbo loan is simply the loan amount. Conforming loans are labeled conforming because they conform to guidelines set by Fannie Mae or Freddie Mac. For most parts of the country the maximum loan amount to still be considered a conforming loan is $484,350. Anything […]
Qualifying for a private loan, sometimes referred to as a “hard money loan” might be easier than you think. Private loans are a critical part of the real estate industry. Without private lenders, many profitable opportunities would fall by the wayside as conventional lenders determine a particular project falls out of their lending guidelines. Private lenders […]
Impound accounts, also called escrow accounts in some parts of the country, are set-aside accounts used to pay property tax bills and insurance premiums when due. Each month when someone makes a mortgage payment and there is an impound account set up, 1/12th of the annual tax bill and 1/12th of the insurance premium are […]
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