Potential homebuyers should start re-establishing credit after bankruptcy to qualify for a mortgage as soon as possible after the Chapter 7 bankruptcy discharge date. Homebuyers on the Chapter 13 Bankruptcy repayment plan should start re-building credit as soon as they file Chapter 13 bankruptcy. Those who filed for Chapter 13 Bankruptcy need to religiously make…
FHA Guidelines On Non-Occupant Co-Borrowers allow family members to be on a home buyer FHA loan for income qualification. There can be more than one non-occupant co-borrowers. HUD, the parent of FHA, allows a non-occupant cosigner with FHA loans. To qualify for a 3.5% down payment FHA loan, the non-occupant co-borrower needs to be a family member…
This guide covers cash-out refinancing for homeowners. Home values are rising quickly, and many homeowners are discovering that they have more available home equity than they thought. That equity can be converted into cash with a cash-out refinance mortgage. The combination of rising equity and very low mortgage rates is making cash-out refinancing very attractive…
This guide covers transferring lenders during the homebuying and mortgage process from one lender to a different one. The mortgage process should not be stressful. All mortgages should not only close but should close on time. Closing delays happen in some situations, but they should not be due to the lender. Over 80% of our…
Let’s delve into the intricacies of other income mortgage guidelines, particularly when seasoning falls short of the customary two-year mark. In mortgage applications, understanding the nuances of other income sources can significantly impact the borrowing process. Often, individuals rely on various income streams beyond traditional employment wages to bolster their financial standing. However, navigating mortgage…
One of the frequently asked questions at Gustan Cho Associates is can realtors become MLO at the same time? Real estate and mortgage lending are two closely related industries, and professionals are not uncommon to be involved in both. Realtors help buyers and sellers with property transactions, while Mortgage Loan Originators (MLOs) facilitate the mortgage financing…
In this first-time home buyers guide, we will show the benefits of going from being a renter to a homeowner. The first-time homebuyers guide will cover the steps of the homebuying and mortgage process. We will discuss most first and include how to choose the best mortgage loan program with the best rate, how much…
In this blog, we will cover the mortgage guidelines with a prior home loan in bankruptcy. There are instances when people file bankruptcy but include their current home loan in bankruptcy. A frequently asked question is when does the waiting period start if you have a prior home loan in bankruptcy? Is it the discharged…
In this blog, we will cover what mortgage lenders consider compensating factors for manual underwriting on FHA and VA loans. FHA and VA loans are the only two mortgage loan programs allowing manual underwriting. Compensating factors are positive factors that add strength to borrowers. Mortgage lenders will take strong compensating factors for manual underwriting because…
A frequently asked question at Gustan Cho Associates is can you buy house with credit card debt but pay off the credit card once the lender says your debt-to-income ratio exceeds the max? The answer is yes, you can have credit card debt when buying a house. However, if the mortgage underwriter says your debt-to-income…
A frequently asked question by our clients is how to buy a house with bad credit? It is a given that it is best to have the maximum highest credit scores you can achieve when you apply for a mortgage. This is due to mortgage rates being priced based on the borrower’s rates among other…
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