No Appraisal on Purchase Home Loans

No appraisal required by a mortgage lender on a purchase transaction?  It's true and now allowed on certain Conventional home loan backed purchases.  This may sound familiar as appraisal waivers have been allowed on refinances since late 2016.  To have appraisal waivers available on Conventional home loans for purchase transactions is giant step toward sense and sensibility. The appraisal waiver for purchases upgrade to Conventional home loans impacts both Fannie Mae AND Freddie Mac backed … [Read more...]

No Seasoning Cash Out Home Loan

Savvy buyers often pay cash for a property for a number of reasons.  Cash purchases present a strategic advantage when buying a home.  Cash purchases can leverage a lower price and or can be more attractive than a competing financed offer. The challenge in the past is that paying cash has tied up an investor's liquid resources.  This can limit an investors ability to leverage financing in order to strengthen their investment portfolio.  It can also hijack opportunities to use cash for other … [Read more...]

Home Loan Rules Eased

Many home-buyers will soon be able to borrow more AND more self employed home loan applicants will be able to use 1 year's worth of tax returns to qualify (instead of 2 years).  Fannie Mae is tweaking its self-employment and debt to income ratio requirements on Conventional Home Loans at the end of July (July 29th, 2017). Debt to Income Ratio Max to Loosen Currently, Fannie Mae (and Freddie Mac) both allow certain home loan applicants to go up to a total (or "back end") debt to income … [Read more...]

2017 Conventional Loan Limits Increase

Fannie Mae has increased the max Conventional Loan limit for 2017.  This is the first Conventional loan limit increase since 2006. As of January 1, 2017 the maximum allowable Conventional loan limit for Fannie Mae Conventional will be $424,100. (up from $417,000) Here is a table direct from Fannie Mae’s website showing the new maximum loan limits.  The one that we most often deal with is the $424,100.   This is the limit that used to be $417,000.  Click Fannie Mae Loan Limit Increase … [Read more...]

Deferred Student Loans & a Home Loan

If you have had the misfortune of having a student loan payment derail your home loan pre-approval, do not give up yet!  Far too many mortgage lenders do not keep up with the rapid changes with student loans.  Whether it be on a Conventional Loan, FHA Loan or VA Loan there are multiple methods a lender can use to determine what student loan payment needs to be counted against you.   Lets look at Conventional Financing and how to get through student loan trouble. Deferred Student Loan Mortgage … [Read more...]