Our VA mortgage program will now allow borrowers with a credit score of 530. Call us at 877-602-4862 to discuss further the details. The is a 100% financing program for qualified military veterans.
The Fair Credit Reporting Act allows anyone to dispute derogatories in their credit file. When you initiate the dispute process, the credit bureaus (Equifax, Experian, and TransUnion) will send inquires to your creditors asking for verification of the items in dispute. Next, the credit bureaus will add a statement to the accounts being disputed: “Accounts in dispute”. These statements will almost ensure that your ability to borrow will be hindered.
Here are the mechanics of your hinderance. A disputed account is removed from the credit scoring model. This in turn will create a false credit score. When the mortgage underwriter reviews your file, they are instructed to downgrade any approval by the automated underwriting system (AUS) that is utilized by Fannie Mae or Freddie Mac. Before any progress is made, the statements, “Accounts in Dispute” must be removed from your credit report. This will ensure that your credit score is a correct reflection with all accounts taken into consideration. The underwriter will repull your credit report and rerun the AUS.
How do you alleviate this stress? Preparation! Check your credit report on a regular basis. Credit bureaus do not act quickly. Make sure that all disputes have been completed and all verbiage regardng the dispute is removed. Ultimately, your credit report is your responsiblity, ensure you give yourself enough time to “fix” any credit issues.
JADASFinancial Corp. has a small-balance commercial program that allows stated or full documentation. This gives the business owner or entrepenuer flexibility again in documentating income. Here are some more details:
Purchase, Rate and Term Refinance, or Cash-Out Refinance
Multi-Family (4-units) Investment Dwellings
Loan Amounts from $50,000 to $500,000
Minimum Credit Score of 600
If you have any questions, please feel free to contact one of our District Managers at 877-602-4862.
From the Mortgage Bankers Association of America
HUD announced a new series of changes aimed at strengthening the troubled FHA Mutual Mortgage Insurance Fund.
The steps include:
• Consolidation of FHA’s Home Equity Conversion Mortgage options;
• An additional 10 basis-point increase in FHA mortgage insurance premiums;
• Requiring borrowers to pay annual mortgage insurance premiums for the life of the loan;
• Requiring lenders to manually underwrite loans for which borrowers have a decision credit score below 620 and a total debt-to-income ratio greater than 43 percent;
• A proposed increased down payment requirement for mortgages with original principal balances above $625,500;
• Increased enforcement efforts for FHA-approved lenders regarding “aggressive” marketing to borrowers with previous foreclosures
“These are essential and appropriate measures to manage and protect FHA’s single-family insurance programs,” said FHA Commissioner Carol Galante. “In addition to protecting the MMI Fund, these changes will encourage the return of private capital to the housing…
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Documentation, documentation, documentation! The three most important words during the underwriting process of your new mortgage. The days of only “stating” or not providing your income documents are done. Underwriters want to see your pay stubs and W-2s, even for your part-time job. A two year employment history is needed to use your income. Your two year employment history should be documented with pay stubs, W-2s, tax returns, verification of employment, and/or third party verification of your tax returns. Part-time jobs usually require a one year history. What if you get paid in cash?
Cash payments are usually documented with an IRS Form 1099 at the end of the year. The general underwriting guidelines consider 1099 payments as self-employment income. In which case, a two year history is required and the underwriter will scrutinize your tax returns. We will discuss this topic on a later date in more detail.
The key to having a smooth process while financing your house is preparation. Documenting your income is part of that process. Imagine preparing for your retirement one month before you retire. Preparing for the largest purchase of your life should not take place the month prior. On the other hand, keeping good documention is good practice in keeping your financial affairs in order.
After the mortgage debacle, mortgage lenders require more documentation than ever before. Providing documentation for your on time rent payments is no different. Paying your rent on time is an important aspect in the overall credit underwriting of your mortgage. Many lenders now require you to document the last 12 months of rental history. The last 12 months must be verifiable and paid on time for the underwriter to clear this condition.
Documenting 12 months of verifiable rental history is easier when you are renting from a property management company. If you rent from a private party, ensure you keep copies of the last 12 months of canceled checks, money orders, or cashier check. If you pay with money orders and/or cashier checks, make copies of the front and back of the check. Paying the rent in cash is the hardest to document. The underwriter could condition you for the last 12 months of bank statements to show that you have been withdrawing the rent payment from your account. Unfortunately, providing 12 months of bank statements could raise more questions.
In conclusion, preparing to purchase a house takes time and waiting until the last minute will cause undue stress on your life. Educating yourself on the process and preparing will ensure that the process will eliminate as much stress as possible.
We are now registered as a residential mortgage brokerage in the state of Colorado. We will be offering VA and conventional first mortgages. Please contact us at 877-602-4862 if you need assistance with residential mortgages in Colorado.
We are a commercial mortgage brokerage that currently offers commercial real estate services in Colorado and Maryland. We offer a full range of brokerage services bringing private and institutional investors that are willing to provide funding for your commercial investment projects. Contact one of our District Managers at 877-602-4862 if you need assistance.
JADASFinancial Corp. is a financial services company located in the DC Metro area that was founded in 2009. JADASFinancial Corp. was founded under the premise that we cannot continue with the same “business as usual” concept. Exceptional personal service, innovative programs and our experienced employees differentiate us from other financial services company.
Welcome to JADASFinancial Corp.