Mortgage Appraisals and CU – What’s the Impact?

Collateral Underwriter - First Encounter A few months back it was announced that CU would be added to the mortgage process for Conventional loans.  CU (which stands for "Collateral Underwriter") is in short, an automated system used to evaluate the validity and reliability of an appraisal report ordered by a mortgage lender.  Specifically CU is aimed at judging the strength/risk of an appraisers opinion of value.  As with any unknown, there was concern with how the injection of CU into the … [Read more...]

Mortgage Trick to Solve Tight Debt to Income Challenges

Tight Debt to Income Ratio Mortgage Trick Every so often a home buyer falls on the wrong side of the maximum allowable debt to income ratio allowed for a Conventional loan.  Whether they are just 1% or 5% over, being over debt to income limits is typically a deal breaker no matter how small the margin.  Standard debt to income ratio limits on Conventional Loans range from 45% to 50% depending on the borrower and overall loan application.  Frustration abounds for the client that is oh so … [Read more...]

Mortgage Approval and a 2 Year Job History

Mortgage Approval and a 2 Year Employment History There are many myths in mortgage lending.  One of my favorites is "I need to be on my job for 2 years before I can qualify for a mortgage" (which is only beat out by the "I need 20% down" myth).  Today I am here to play the role of mortgage mythbuster!    The average mortgage applicant believes that they must have stable job history with the same employer for 2 years.   That my friends is certainly not the case.  You may be thinking "right, … [Read more...]

Fannie Mae brings 3% Down Mortgage Back

The 3% Down Conventional Mortgage is BACK! Do you hear that beeping sound?  No need to worry, it’s just Fannie Mae is backing up on some of their recent guideline tightening.  Just announced – “the Return of the 3% down Conventional Loan.”   Fannie Mae is bringing back a 3% down Conventional Loan (yes the same loan they just did away with not too long ago).  This time it is just for first time buyers though.  Below are the key bullet points so you can pass this on to your valued clients. Key … [Read more...]

Self Employed Borrower’s Get a Mortgage Break

Mortgage Rules Ease for Self Employed Borrowers Self employed borrowers tend to shutter at the thought of the mortgage approval process.  They know that the stack of paperwork they are required to gather is going to tower over that of a non self-employed borrower.  Well, that has changed for some self-employed borrowers (read below for more info).  Typically a self-employed borrower has to cough up additional tax returns, profit and loss statements and more in order for a mortgage lender to … [Read more...]