Liberty Mortgage Lending Questions and Answers

Need to buy a house...but sold house 1 1/2 yrs ago via short sale. What are my options?

noreply@blogger.com (Liberty Mortgage Lending Blog) — Mon, 11 Apr 2011 14:58:00 +0000

Question:

I have a great job...have some money towards down payment, I have improved my credit scores but can't seem to get financing. What options do I have? There must be some way for someone like me to buy a home!

Answer:

You have a few options- If you had a short sale without any late payments- (Very Rare), then you can get and FHA mortgage within 1 year of the short sale- You are good to go now- If you have had late payments, you will need to wait 3 years with FHA. You can wait only 2 years but you would then get a conforming mortgage and would need to put 20% down.

Erez Cohen

Liberty Mortgage Lending

851 SE 6th Ave

Suite 109

Delray Beach, FL 33483

Licensed Correspondent Lender

South Florida

Palm Beach County

erez@libertyml.com

www.libertyml.com

561-266-2621 Office

561-441-5764 Cell

Can person get a FHA loan if there on disability and have very poor credit?

noreply@blogger.com (Liberty Mortgage Lending Blog) — Mon, 11 Apr 2011 13:29:00 +0000

Question:
If a person is on disability, and they have poor credit, can they get an FHA mortgage?

Answer:

The issue of disability will not prevent a borrower from getting an FHA mortgage- The main question that will arise is how long will disability payments continue? If the answer is for the life of the borrower, then we could use that income. If the answer is for a predetermined period of time, then we must show proof that your job will be guaranteed to be reinstated once the disability ends.

In regards to the poor credit, if your score is below a 580 and depending what your poor credit is due to- No FHA loan will be possible.

Erez Cohen

Liberty Mortgage Lending

851 SE 6th Ave

Suite 109

Delray Beach, FL 33483

Licensed Correspondent Lender

South Florida

Palm Beach County

erez@libertyml.com

www.libertyml.com

561-266-2621 Office

561-441-5764 Cell

My Lender has taken hold of my escrow money.

noreply@blogger.com (Liberty Mortgage Lending Blog) — Thu, 20 Jan 2011 15:14:00 +0000

Question:
How do I get back escrow money my lender is holding?

Answer:

This does not make sense at all. Your lender cannot compel you to buy a home and your lender cannot hold escrow monies for the purchase of a home. Only the title company can hold escrow monies so I assuming, the lender's title company is holding your money. Since the lender and the title company are somehow related, did you 1) sign an ABA- "Affiliated Business Agreement"- disclosure acknowledging this fact, and 2) If the title company never transferred the money to the seller and you ended up in breach of contract then they would be liable. I am assuming a very large piece of the picture is missing and I think you would be better served in picking up the phone and discussing this scenario verbally.

Erez Cohen

Liberty Mortgage Lending

851 SE 6th Ave

Suite 109

Delray Beach, FL 33483

Licensed Correspondent Lender

South Florida

Palm Beach County

erez@libertyml.com

www.libertyml.com

561-266-2621 Office

561-441-5764 Cell

Qualification Ratio's

noreply@blogger.com (Liberty Mortgage Lending Blog) — Thu, 20 Jan 2011 15:12:00 +0000

Question:
How much am I qualified for?

Answer:

In order to determine an answer to that question, the following would need to be known.

1) What is your monthly income? ((Keep in mind copies of your last 2 years 1040's and 1120's if any would be needed to determine if you took any unreimbursed job deductions and or filed self employed corp. returns.))
2) What is the monthly debt that appears on your credit report plus we would add to that Alimony and or Child support.

Once those variables are known, we can determine what the max monthly payment you would be approved for. Keep in mind, the max housing payment you are approved for may be more than you want to spend so you would dictate based on the purchase price, down payment and intangibles that come with the home (Taxes and Insurance) where you want your monthly payment to be.

Erez Cohen

Liberty Mortgage Lending

851 SE 6th Ave

Suite 109

Delray Beach, FL 33483

Licensed Correspondent Lender

South Florida

Palm Beach County

erez@libertyml.com

www.libertyml.com

561-266-2621 Office

561-441-5764 Cell

FHA and Down Payment

noreply@blogger.com (Liberty Mortgage Lending Blog) — Thu, 20 Jan 2011 15:10:00 +0000

Question:
If I and my wife were approved for a FHA loan would we have to put the 3.5% down payment down before kb homes started to build the house are could we do it at closing. We will not have the 3.5% for another two are three months but we wanted to start the building process now. And I guess my other question is would the bank require us to have the 3.5% inside our account before they would approve us for the loan. Some body please help no one seems to give me a straight answer.

Answer:
You are not required to have 3.5% in your account today. The builder wants you to have the money because they do not want to take a chance on you not going through with the purchase of the home. I would suggest you do not buy their home as they are squeezing you. Keep in mind- Assume you were going to buy a home in December but went into contract in October. You knew you would get a bonus of say $7000 which would equal your 3.5% down and closing costs. You would be eligible to buy the home. The seller could not dictate whether you have the money today or not. They could only dictate a closing date and if you both did not come to an agreement a contract would not be signed.

Erez Cohen

Liberty Mortgage Lending

851 SE 6th Ave

Suite 109

Delray Beach, FL 33483

Licensed Correspondent Lender

South Florida

Palm Beach County

erez@libertyml.com

www.libertyml.com

561-266-2621 Office

561-441-5764 Cell

FHA seller concessions

noreply@blogger.com (Liberty Mortgage Lending Blog) — Wed, 19 Jan 2011 20:30:00 +0000

Question:
Did FHA drop the allowable seller concessions from 6% to 3%?

Answer:
According to the newest FHA letter, the current seller concession is still 6%. There was talk of lowering the concession to 3% but that has not happened as of yet.

Erez Cohen

Liberty Mortgage Lending

851 SE 6th Ave

Suite 109

Delray Beach, FL 33483

Licensed Correspondent Lender

South Florida

Palm Beach County

erez@libertyml.com

www.libertyml.com

561-266-2621 Office

561-441-5764 Cell

Newly Self Employed

noreply@blogger.com (Liberty Mortgage Lending Blog) — Wed, 19 Jan 2011 20:27:00 +0000

Question:
I just recently opened my own business(6 months ago) but i want to lower my interest rate with a refinance. Is this possible.

Answer:
No- If you have just become self employed and were not 1099 in the field before, and or filed a schedule C on your 1040 for the past 2 years, you will need 2 years personal and 2 years corp returns if you will file an 1120s.

Erez Cohen

Liberty Mortgage Lending

851 SE 6th Ave

Suite 109

Delray Beach, FL 33483

South Florida

Palm Beach County

erez@libertyml.com

www.libertyml.com

561-266-2621 Office

561-441-5764 Cell

Chapt 13

noreply@blogger.com (Liberty Mortgage Lending Blog) — Wed, 19 Jan 2011 20:24:00 +0000

Question:
Could I still qualify for the FHA Refinance Program even if I filed Chapter 13?

Answer:

It all depends when you filed your Chapt 13. Typical guidelines dictate the following- A one year payout period under the BK has elapsed with perfect payment history and you recieve written permission from the court to enter into the mortgage transaction.

Erez Cohen

Liberty Mortgage Lending

851 SE 6th Ave

Suite 109

Delray Beach, FL 33483

South Florida

Palm Beach County

erez@libertyml.com

http://www.libertyml.com/

561-266-2621 Office

561-441-5764 Cell

Can a seller request an FHA appraisal?

noreply@blogger.com (Liberty Mortgage Lending Blog) — Wed, 19 Jan 2011 20:20:00 +0000

Question:
Our sale seems to be in a slow down and I am wondering if we can seek and appraisal from an accredited FHA appraisal to help speed the process or will this throw more cogs on the wheel???

Answer:
Will not work- In order to get an FHA appraisal, you will need a case #. A case # can only be assigned when a request is made through the FHA system. In order for a request to be made, a lender must input information on the borrower. Since there is no borrower, no information can be entered.

Erez Cohen

Senior Managing Partner

Liberty Mortgage Lending

851 Southeast 6th Avenue

Suite

109

Delray Beach, Florida 33483

South Florida

e-mail: erez@libertyml.com

Liberty Mortgage Lending Questions and Answers

Need to buy a house...but sold house 1 1/2 yrs ago via short sale. What are my options?

Can person get a FHA loan if there on disability and have very poor credit?

My Lender has taken hold of my escrow money.

Qualification Ratio's

FHA and Down Payment

FHA seller concessions

Newly Self Employed

Chapt 13

Can a seller request an FHA appraisal?

I need a bigger house, but my condo is worth much less that I paid, what can I do?

Current down payment expectations

Refiance Scenario

Debt Consolidation

Real Estate Taxes paid when refinancing

Mortgage options for house with accessory dwelling unit/second unit

Refinance portion of mortgage

Question about FICO scores?

What kinds of debt are included in debt-to-income ratio?

Does anyone know if there is any USDA money avaliable in Arkansas? What do scores have to be?

Where can I get a HELOC on an investment property in Colorado?

Balloon Mortgage

Does HELOC have to be closed when refinancing the mortgage?

Can PRN income for a nurse be used to qualify for a loan?

Hard time getting a mortgage- Because of self employment/ tax returns income is low

Paying down Credit Card Debt vs a larger downpayment