Posts Tagged ‘david hughson’

  • Online Credit Scores Vs. Lender Credit Scores

    I’ve never pulled someone’s credit for a mortgage application and heard them say the credit scores I got were higher than what they got online at one of those consumer credit sites like FreeCreditReport or Credit Karma. This is even true for those people who access their scores directly through the credit bureaus Equifax, Experian, and TransUnion. The mortgage credit scoring model yields scores on average 40 points lower than online consumer sites.  Other loan and finance applications like car loans and credit cards are also typically lower. This means the scores on the consumer sites are basically worthless and all they do is inspire false confidence. You may ask how does this benefits anyone? It doesn’t but the consumer credit sites don’t claim they are giving out FICO scores which is what financial institutions use. What they give you are scores based upon their calculations. Even on the rare occasion they are using a FICO based scoring model there are over fifty FICO based scoring algorithms so it’s unlikely to be the one you’ll need in the future when applying for a loan. In my opinion the consumer or free credit report sites are the Zillow of the credit world. It’s fun to see what the numbers look like but it’s not to be taken too seriously.  What is one to do? The obvious answer is for anyone looking

  • Mortgage Rates Remain Low – Rents On The Rise

    With as little as 5% down their net mortgage payment would be $183/mo less than what they pay now in rent!

  • Is Right Now Your Best Opportunity To Buy A Home?

    Almost one year ago one headline read “Home Sales Tumble As Mortgage Rates March Upward”. The main culprit last February was affordability which was based on rising interest rates. To begin 2018 30-year fixed mortgage rates climbed to 4.4% and continued to rise throughout the year, even breaking the 5% barrier for the first time since the previous decade. You may have noticed that rates unexpectedly softened a bit to end 2018 and according to Bankrate.com the 30-year fixed mortgage was down to 4.59% by the middle of January 2019. Now in to the fourth week of this new year we see them pretty much holding steady. Could we see rates continue to fall? Anything is possible but it’s unlikely. Tax reform kicks in this year and we’ve seen the stock market stabilize recently. Most economists I’m reading are saying long term rates will rise in 2019 and some even saying we’re due for an economic downturn. If you are on the fence about buying a home here in early 2019 keep this number in mind. If rates increase just half a point your purchase power drops by $40,000. I see three things converging at the moment. First, home prices have leveled off and even dropped in some markets, rates are down, and the buying season hasn’t started yet. Those factors compounded by a motivated seller could mean right now

  • Have Mattress Money? Cash-On-Hand Is Now An Eligible Source Of Funds

    Are you stashing money under the mattress, in a home safe, or even in a security deposit box?  And are you a person who customarily uses cash for expenses? If so, there is great news for you when it comes to buying a home.  Through the Fannie Mae HomeReady program cash-on-hand is an acceptable source of funds for a borrower’s down payment, funds for closing costs, and prepaid items like insurance and property taxes.   This means you can use that rainy day fund to buy a home without the illuminati knocking on your door.  Of course, you won’t have any money left over for the apocalypse but if that happens we’ll be back to trading furs and bullets anyway. This could especially be good for those first-time home buyers with minimal funds available for down payment.  Some other great features of this loan program include: Up to 95% financing with non-occupant co-borrower Up to 105% financing w/o non-occupant co-borrower Not required to be a first-time home buyer Gift funds, grants, and down payment assistance programs are all eligible sources of funds. There are even more enhancements to this program that could benefit you so to find out more click here to contact me and reference “Cash-on-hand” in the subject line.   By David Hughson Mortgage Planner david@greenmeansgrow.com 858-863-

  • Have Student Loans? Qualify For A Home Loan And Exclude The Student Loan Payment

    If a monthly student loan payment ( >$0) is provided on the credit report, you may use that amount for qualifying purposes. If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the lender must determine the qualifying monthly payment using one of the options below. If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment. File must contain documentation that the payment is an Income driven payment plan (also known as IBR or Income Based Repayment) For deferred loans or loans in forbearance, the lender may calculate (a) a payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), or (b) fully amortizing payment using the documented loan repayment terms. This applies to both purchase and refinance loans so call me to discuss more options on qualifying for a home loan when you have student loans!  For more great content on how your purchase power is affected by student loans click here. By David Hughson Broker | Mortgage Planner 858-863-

  • Mortgages Paid By Others

    Article originally posted on www.mpamag.com Fannie Mae has recently announced the changes related to Mortgages Paid by Others. When a person is obligated on a mortgage debt – but is not the party who is actually repaying the debt – the full monthly housing expense may be excluded from that person’s recurring monthly obligations when they go to buy their next home if: The party making the payments is obligated on the mortgage debt, There are no delinquencies in the most recent 12 months, and The borrower is not using rental income from the applicable property to qualify. In order to exclude the mortgage debt from the borrower’s debt-to-income ratio, the most recent 12 months’ cancelled checks (or bank statements) from the other party making the payments that document a 12 month payment history with no delinquent payments must be obtained. David Hughson Mortgage Broker 858-863-

  • Family Opportunity Mortgage

    Feb 2, 18 • Huggy • Home Buyers, Loan Programs, Purchase LoanNo CommentsRead More »

    Do you have a family member in need and want to help them buy a house?  If you have a disabled adult child or an elderly parent who can’t qualify for a mortgage on their own you have options!  With the Family Opportunity Mortgage, your can purchase another home without the conventional investment property requirements!  Here are some program highlights: Purchase a home for your family member as if you were purchasing an owner occupied home. This allows you to take advantage of the much more lenient owner occupied guidelines and avoid the much more strict investment property guidelines. 620 minimum credit score Can be used for a purchase or refinance   To find out if you qualify click here and type FOM in the subject line.   By David Hughson Mortgage Broker 858-863-

  • Take Cash Out Without The Cash Out Rate Hit

    Dec 18, 17 • Huggy • Loan Programs, Mortgage Rates, RefinancingNo CommentsRead More »

    There are more and more housing reports telling us that most markets around the country have recovered from the last housing crash of 2007-2009. With values back in the black many homeowners will look to cash out their home’s equity to make improvements to their home, pay off other high interest debt, or send a child to college. So what is the best way to harvest a portion of your home’s equity? When looking around for favorable “cash out” refinance loan terms people often discover that banks hit them hard on the interest rate and they end up paying a premium which means the higher loan amount and higher interest rate yields a higher monthly payment.  Now you may be saying that it makes sense they would be facing a higher payment because they are borrowing more money.  In some cases that is true depending on their current interest rate.  You may also be saying that if someone currently has a low interest rate they should leave their existing first mortgage where it is and go get a fixed second mortgage or home equity line for the cash out portion.  This is also true depending on the interest rate they currently have and the value of their home. Often times it’s harder to go get a fixed second mortgage or home equity line behind an existing first mortgage. We now

  • Don’t Fit In The Conventional Lending Box? We Got You Covered

    LendEDU published a financial report back in October of this year showing the national average credit score is 682. This is a solid score in the mortgage lending world but generally considered a “fair” credit score by the credit bureaus. It also means the average American might have a tough time qualifying for a decent mortgage rate. With 50% of people below a 680 credit score it means there are many who don’t qualify for conventional financing and the government loan options, which are typically only for owner occupied homes, can’t help them.  These people typically fall into three categories.  They are someone who has experienced a derogatory credit event like a bankruptcy or foreclosure, a self employed borrower that has too many write offs thereby killing their qualifying income, or they are a real estate investor and/or foreign national unable to purchase their next property due to conventional ownership limits. If you happen to fall into the middle ground between conventional and hard money lending it can feel like you have very few options.  The good news is that there are many new lenders who recognize this need and specialize in helping just this type of borrower through offering Non-Qualified mortgage loans.   To find out more about how this may help you find just the right type of financing for your next purchase click here and send me a message

  • Homebuyers: Get Creative With Your Offers

    Reality check #1:  For most of us the road to home ownership starts with a personal budget and is followed by a conversation about what home loan options are available.  That conversation will determine a buyer’s purchase power which means to look at homes for sale before digging into the numbers is the very definition of putting the cart before the horse. While this advice is nothing new and most people do go about it in the right order what they find when they are ready to start looking at the available inventory is Reality check #2:  There aren’t many homes for sale in their price range and the competition for what is available is fierce. If you are a first-time homebuyer with a low down payment this can seem like a mountain too high to climb and leads many to assume it’s not possible.  The good news is that you are not alone and there are some great strategies that I see working every day to get our clients’ offers accepted. Here are a few of the basics every homebuyer should consider.  Getting your loan pre-approval is very important and a prerequisite at this point.  Meaning, any serious seller will not even consider an offer from a buyer who hasn’t done their due diligence to get their financial ducks in a row.  Buyers can also increase their ernest money

The GreenHouse Group, Inc. | Real Estate Consulting & Mortgage Planning. "Moving People With Purpose."

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