Mortgage Industry News and Events

California Alternative Document Mortgages for Self-Employed Independent Contractors

For many years, buying a home has been difficult for small business owners, contractors, and the self-employed. If you own one of the 3.8 million small businesses or you’re one of the many self-employed and gig economy workers in California, take heart: we know you’re out there—and we offer the alternative document mortgage programs for people just like you. We look beyond tax returns. Look, we get it. Lots of small businesses owners, independent contractors and self-employed professionals don’t quite fit in the box for conventional home mortgage underwriting criteria. You may have excellent cash flow, but your tax [...]

Applications for Non-Conforming Loans Surge

Among main mortgage products, only applications of “non-conforming” increased on a quarterly basis in the third quarter of 2018, according to a new ranking and analysis by “Inside Non-conforming Markets.” The sector includes non-qualified mortgages, non-prime loans, mortgages with alternative documentation and any other non-jumbo mortgages not eligible for delivery to Fannie Mae, Freddie Mac or Ginnie Mae. Origination of expanded-credit loans rose 10.5% in the third quarter. In the first three quarters of 2018, expanded-credit volume was up by 22.7% from a year ago. “The entire mortgage industry has come to recognize the potential and significance of non-QM,” said one of the [...]

Reverse Mortgages Have Surged in Popularity

Why Reverse Mortgages Have Surged in Popularity: 1. 90% of Seniors want to age in their own home 2. 83% of Americans have not saved enough for retirement 3. People are living longer/outliving their money 4. Consumers are becoming educated to improvements to the Reverse Mortgage program 5. More Financial Advisors are touting the benefits of the Line of Credit feature that grows in value over time - providing access to more money for the senior homeowner in the future California Leads the Nation. Why? Demographics: California has the Largest Population with 14% Over 65 Years of age [...]

Creative Financing Programs for Self-Employed and Investors

The fastest growing sector in mortgage financing this year has been creative alternative & niche programs. This has been a boon for self-employed borrowers who traditionally have had difficulty qualifying with traditional methods. Here’s a sample of some of the easy options: Qualify on Assets, Not Income: Borrowers may qualify by having assets greater than the loan amount after the close of escrow Qualify on Cash Flow using deposits on Bank Statements instead of tax returns Qualify on Rental Income of Subject Property when buying or refinancing Qualify based on a Profit & Loss Statement Features: [...]

Student Loans? You can still qualify for a home mortgage!

If you have student loans, you can still qualify for a home mortgage! Have you been putting off buying a home because of your student loans? You no longer have to. Recent changes in the way mortgage companies treat student loan debt have made it much easier for those with education-related debt to qualify for a mortgage. Fifty-six percent of those with student debt say that their debt has prevented them from buying a home, but thousands of student loan borrowers are getting approved! According to the 2018 Homebuyer’s Report from the National Association of [...]

Getting a Mortgage After Bankruptcy or Foreclosure

Had a bankruptcy or foreclosure? We have some good news: The Federal Housing Administration (FHA), Fannie Mae and Freddie Mac have all recently announced they were shortening the mandatory waiting period for qualifying for a home loan down to two years after a bankruptcy discharge or foreclosure. FHA announced it was shortening its own minimum waiting period to just one year, in its “Back To Work” program announced last spring. Under the old rules, each agency imposed a four-year waiting period before they would be willing to approve a new mortgage loan. Fannie Mae reduced the waiting [...]

5 Quick Tips For Improving Your Credit Score

The better your credit, the better the mortgage you can qualify for. The most attractive loan programs have minimum credit scores, and your credit score will probably determine your interest rate - affecting your monthly payment substantially. The difference between excellent credit and fair credit can translate to thousands of dollars per year in interest charges. If your credit is less than perfect, don’t worry – you can turn things around! But there are no shortcuts or magic bullets to improving your score quickly. It takes time. The sooner you begin, the sooner you’ll be qualifying [...]

The Good News About Rising Rates

While we’ve had many false starts of rising rates over the past few years, this time it looks for real. In the past few months, mortgage rates have risen about one-half percent. That’s not much and it’s still well below historical averages. The Fed expects to raise the Fed Funds rate four times this year. Since the Fed doesn’t directly control mortgage rates and mortgage rates move in anticipation well ahead of the actual event, some of that future increase is already baked into today’s mortgage rates. What’s the Good News? Having been in the mortgage [...]

Is a Reverse Mortgage Right for You?

If you are 62 years of age or older and own a property that is used as your primary residence, you could qualify for these benefits of a Reverse Mortgage: Minimal income restriction: A reverse mortgage is based primarily on your age and the value of your property, not your income. You will, however, need to demonstrate the ability to pay for ongoing property taxes and insurance. Free you from existing loans: Your existing loans can be paid off from the proceeds of the reverse mortgage. No more monthly payments: There are no monthly payments to [...]

Myths and Misconceptions about Reverse Mortgage Loans

The Reverse Mortgage Program is perhaps the most misunderstood mortgage program. While the program is not for everyone, many seniors realize the benefits once the program is properly explained. Hopefully this following will dispel some of the myths surrounding this program. Myth #1: The lender will take ownership of your home. False - You and your family or your estate continue to retain ownership of your home after obtaining a reverse mortgage. The lender does not take control of the title. The lender's interest is limited to the outstanding loan balance. Myth #2: The reverse [...]