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...]

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...]

Realtor Commission for Down Payment

Home loan guidelines seem to be in a period of flux currently.  Many of the changes are favorable and ease the loan approval process.  One change that was long overdue is to allow Real Estate commissions to be used for down payment on a personal transaction.  While this has not changed with each and every loan type, Freddie Mac has made a change and now allows this. Real Estate Agent’s Commission & Down Payment As of Monday March 6, 2017 Freddie Mac is allowing Real Estate Agents to … [Read more...]

Mortgage Rates and The Election

Once every 4 years we see clients holding their breath and hitting pause to see how election day unfolds.  How does Nov 8th actually impact mortgage rate trajectory? We hear hip shooter predictions like “in election years rates go up…” or “in election years rates go down.”   The election itself has zero impact on rates.   It is the president elect and their agenda that may have an impact on mortgage rates.   Also, the relationship between the president elect’s agenda and the current … [Read more...]

No Appraisal on Refinance Home Loans

UPDATE: Appraisal Waivers now allowed on purchase transactions too The lending pendulum continues to sway toward normalcy.  Pre-meltdown,  lenders could sometimes skip having an appraisal done.  We would get a notice on a loans automated approval that would allow us to skip an appraisal.   It is/was called a “Property Inspection Wavier.”  Property Inspection Waiver = No Appraisal Needed Fast forward to October 2016 and we get to re-introduce you to the Property Inspection Waiver - in … [Read more...]