• Freddie Mac is loosening their income documentation guidelines for social security, retirement, survivor and dependent benefits, long-term disability, and public assistance.  They are now only requiring proof of receiving the income for two months.  Alimony and child support will only require the most recent six months of verification, although they will still require proof that the income will continue for the next three years in order to be counted.
• VA is tightening their credit guidelines.  Although no specific guidelines were given in terms of credit score, it appears the system will “refer” more loans on borrowers with less than 680 credit scores.  The changes are scheduled to take place in automated underwriting on or around Dec 17, 2011.  Loans run through automated underwriting after that date may receive a “refer” status even if the loan was approved prior to that date. 
• USDA has apparently added an automated underwriting condition into their algorithm that’s not in their written guidelines that may cause borrowers with authorized user accounts to “refer”. 

For complete details, check out the full article:

Article at MLImplode.com

The way the bill is currently structured, energy costs would be factored into a buyer’s debt-to-income ratios for qualification purposes and documented energy-efficency savings for homes could be used to adjust the value of a home upwards. 

The bill will have to undergo the normal legislative procedures before having a chance to be passed into law, which could easily result in significant changes, assuming it were to pass. 

Article from Ken Harney

• Single Family Homes
• Town Homes
• Duplexes
• Triplexes
• Four Plexes
• Condos (some restrictions on owner-occupancy and location)

Other program highlights of the Regions Bank 100% Financing Program for Doctors:

• 100% Mortgage Financing for stable markets (at this time, Dallas and Fort Worth Texas are considered stable markets).
• Valid employment agreement or contract is required – If self-employed, must have three year history (tax returns) of self-employement.
• No upfront or monthly PMI (mortgage insurance)
• Taxes and insurance are escrowed for all loans greater than 80% loan-to-value ratio.  Escrows may be waived for loans with less than or equal to an 80% loan to value ratio.
• Owner occupied properties only up to 100%.
• Regions has other programs available for second homes 90% LTV with no PMI up to 1.5 Million.
• Student loans excluded from debt-to-income ratio calculation if currently in deferment. 

Loan Terms available from Regions Bank on the 100% Mortgage Loan for Doctors:

• 3/1 ARM
• 5/1 ARM
• 7/1 ARM
• 10/1 ARM
• 15 and 30 Year Fixed Rates

Is The Regions Bank Doctor Program Available in other areas besides Dallas?

Yes!  Regions services 16 different states in the US:

• Texas
• Arkansas
• Louisiana
• Missouri
• Iowa
• Illinois
• Indiana
• Kentucky
• Tennessee
• Mississippi
• Alabama
• Georgia
• Virginia
• North Carolina
• South Carolina
• Florida

If you are a doctor and would like to find out if you qualify for the Regions Bank 100% Mortgage Program for Doctors, contact John Olson for a free consultation and pre-approval. 

Obtaining pre-approval from a competent and knowledgeable loan officer should always be the first step of the homebuying process.  John is a veteran mortgage loan officer and has many other specialty programs to fit your needs!

 Contact John Olson at 214-678-2541 or 214-563-0171 or email him at john.olson@regions.com.   You may also complete the contact form below for priority processing:

In addition to CPAs, other professions eligible for the BBVA Compass Professional Program include:
• Attorneys
• Doctors / Physicians
• CEOs, CFOs, COOs or Chairmen of publicly traded companies.
• Executives in direct report to the CEO or Charman of publicly traded companies.

Is the BBVA Compass Professional Program available in other areas besides Dallas?

YES!  BBVA Compass offers this program in seven states:
• Texas
• New Mexico
• Arizona
• California
• Colorado
• Florida
• Alabama

Obtaining a quick pre-approval for a mortgage should always be the first step when shopping for a home. BBVA Compass has a very quick and easy pre-approval process. Their automated approval system allows for quick and streamlined loan pre-approvals with no application fee.
Please call Susan Hiatt at (214) 310-6066 to consult with her about this program and obtain a quick pre-approval. Or you can email her directly at susan.hiatt@bbvacompass.com .  Completing the contact form below will ensure priority processing.

DISCLAIMER: The views expressed are my own and are not reviewed approved or endorsed by BBVA Compass or any affiliate.  I have no affiliation with BBVA Compass and am only providing this information as a service to doctors/physicians and other professionals that may benefit. If you are a Dallas area physician in the market to purchase a home, please call me today at (972) 978-3553 or email me at johnjonesrealtor@gmail.com .

This program is only offered at BBVA Compass and is a unique opportunity for qualified Dallas area doctors/physicians and eligible professionals to obtain 95% mortgage financing on a home purchase.

 Program highlights of the Professional Program for physicians (Program rules are subject to change at any time without notice):

•  95% mortgage financing up to one million dollars for primary residences.
• NO PMI (private mortgage insurance) required!
• Eligible properties inclue Single Family, primary residences only.  Other property types are not allowed on this program and residence must be primary. 
• Student loan payments are NOT included in the debt-to-income ratio calculation if they are deferred for at least 12 months.
• Expansion of loan-to-value ratios for physicians that want to refinance an existing mortgage.
• BBVA Compass offers a free investment and insurance review with a wealth management professional.

Doctors/Physicians Eligible for the 95% Mortgage Financing Program include:

• Resident or practicing physicians.
• Oral surgeons

Other Eligible Professions include:

•  Attorneys
• Certified Public Accountants

Is the BBVA Compass Professional Program available in other areas besides Dallas?

YES! BBVA Compass offers this program in seven states:

• Texas
• New Mexico
• Arizona
• California
• Colorado
• Florida
• Alabama

The first step in the homebuying process should always be mortgage pre-approval.  BBVA Compass makes pre-approval fast and easy.   Their automated approval system allows for quick and streamlined loan pre-approvals with no application fee. 

To consult with a BBVA Compass loan professional about this program, please email Susan Hiatt at susan.hiatt@bbvacompass.com  Completing the contact form below will ensure priority processing. 

DISCLAIMER: The views expressed are my own and are not reviewed approved or endorsed by BBVA Compass or any affiliate.  I have no affiliation with BBVA Compass and am only providing this information as a service to doctors/physicians and other professionals that may benefit.  If you are a Dallas area physician in the market to purchase a home, please call me today at (972) 978-3553 or email me at johnjonesrealtor@gmail.com .

Qualified military personnel, foreign service workers and members of the intelligence community have until April 30, 2011 to secure an executed purchase contract and until June 30, 2011 to close the transaction.

This special program for veterans and military servicemembers was signed into law as part of the original extension and expansion of the homebuyer tax credit that went into effect on November 6, 2009.

DEFINITION OF QUALIFIED SERVICEMEMBERS
Per the legislation, a “qualified servicemember” means a uniformed servicemember of the military, a member of the U.S. foreign service or the intelligence community who was called to an extended period of oveerseas service for at least 90 days between December 1, 2008 and May 1, 2010.  (For those that were not called for extended service, the deadline to execute a purchase contract was April 30, 2010 and the closing deadline is September 30, 2010.)

A member of the military, foreign service or intelligence community who was called for extended duty of at least 90 days but was unable to complete this term due to medical reasons MAY still qualify for the extended deadline.

Consult with a licensed tax accountant to make sure you qualify.  I am not an attorney or a CPA and cannot give legal or tax advice!

ADDITIONAL QUALIFICATIONS FOR THE VETERANS $8,000 FIRST TIME HOMEBUYER TAX CREDIT:

• The amount of the tax credit is the LESSER of $8,000 or 10% of the purchase price of the home.  For example, a qualified individual who purchases a home for $68,000 will receive a tax credit of $6,800, not the full $8,000. 
• The home purchased must be a primary residence.
• The income limit to qualify for the tax credit is $125,000 for single filers and $225,000 for married filers.   Single and married filers who make more than this may qualify for a reduced tax credit amount.
• Home must be priced at $800,000 or less.
• Must be a first-time homebuyer (meaning cannot have owned a home in the last three years).
• Non-first time homebuyers may qualify for the move-up tax credit of $6,500. 

QUALIFIED VETERANS:  This opportunity to get the $8,000 tax credit will end on April 30th.   All qualified veterans must have a home under written contract by April 30th but do not have to close the transaction until June 30, 2011.

For more information or to set up a customized home search, please call John Jones at (972) 978-3553 or fill out the quick contact form:

LINKS TO ADDITIONAL INFO:

http://www.federalhousingtaxcredit.com/home.html

This essentially means the middle of the three  credit scores must be at least a 640.  Over the last two years, the minimum credit scores required by most lenders has slowly increased.  FHA does not have a minimum credit score requirement per se, but lenders have what are known as “overlay guidelines”, which are guidelines that are separate from what FHA requires. 

Essentially this is a move to clamp down on early payment defaults, which cost lenders millions of dollars per year.  Even though FHA insures mortgage loans against default, lenders can still incur a significant amount of losses if the loans default, especially if they default in the first year.

Recently, some data was released showing that 75% of early payment defaults were from borrowers with credit scores between 620 and 639.  Lenders often analyze data from recently funded loans to see which factors are contributing to delinquencies; and not surprisingly, there is almost always a direct correlation between higher defaults and lower credit scores. 

Some banks may still advertise that they allow credit scores below 640 for FHA loans, but they likely will require a significant amount of compensating factors, which are other strong supplimental reasons for approving the loan.  An example of a compensating factor might be a significant amount of cash reserves or significantly low debt-to-income ratios on the part of the borrower.  

In my opinion, lenders will likely move to a minimum credit score of 680 for FHA loans at some point in the near future.  As more and more borrowers default in this tough economy, lenders will continue looking for ways to cut their losses.  Unfortunately, credit score is typically the easiest metric by which to set a benchmark.  I expect this trend to continue until the housing market has truly stabilized, which won’t happen until unemployment begins to change for the better, foreclosures start to dwindle and the glut of home inventory begins to wane.

Several factors will determine whether or not it makes sense for a home owner to refinance, MAINLY the break-even-point, or how long it will take the homeowner to save the cost of refinancing.  This is a mistake that I see MANY homeowners make: They roll thousands of dollars into their loan to lower their payment by only a small amount and then sell their home before they have time to recapture the savings. 

Article from Bankrate.com

In fact, many home buyers with strong credit were automatically approved as stated income loans, which meant that many home buyers were unaware their loan was approved as stated income, assumed they were approved as full doc loans and will likely expect the same experience the next time they purchase a home and apply for a mortgage.

Not anymore.

Nowadays, most home buyers (yes, EVEN THOSE with STRONG or PERFECT CREDIT) will more than likely be asked to provide a significant amount of documentation in order to be approved for a home loan.  Be prepared for it because that’s how things work now.   Of course, the documentation varies, depending on many factors. 

For most home loan applicants that are not self-employed, the documentation will include, but will not necessarily be limited to, the following: 

• Driver’s license
• Social security card or verification of social security number.
• W-2 forms for the last two years.
• In most cases, the loan officer will ask for full tax returns to make sure there are no self-employed losses or unreimbursed employer-related expenses (these are typically DEDUCTED from income used to qualify).
• Pay stubs for the last 30 days.
• ALL PAGES of bank and financial statements for the last two months or most recent quarter.

Self-employed borrowers, those with unusual circumstances, those receiving gifts or assistance for down payment, as well as those selling their current homes to qualify for the new loan, will likely have to provide some additional documenation as well.  And most lenders will not approve any applicant with disputed items on their credit report.

If you’re planning to apply for a home loan in the near future, it’s a good idea to start saving these items in a place that will allow you to provide them to the lender in a quick and timely manner.  Otherwise, your closing may be delayed, which can potentially cause many other problems, including a potential lawsuit for failing to close on time per the executed contract with the seller.

Article from Bankrate.com

This article from the LA Times explores some scenarios to see in what cases the new fee structure may benefit some borrowers.