• Ask about our bank statement program which eliminates the use of tax returns and we just use the deposits in your bank account to calculate income.
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2016 Qualifying Income

2016 Qualifying Income

Income from 2016 Used to Qualify

1. When 2016 income is being to qualify, and the underwriter is unable to validate the income using transcripts (e.g. recently filed and no transcripts are available), one of the following scenarios must be met:

  • When 1040s show that the borrower is getting a REFUND:
  • Provide copies of the filed 1040s for 2016, and
  • Verify acceptance of filed return with the IRS via the refund verification site: irs.gov/Refunds

○ See Appendix H for guidance on how to use the “Where’s My Refund” site.
○ Enter the borrower’s SSN, filing status, and refund amount from the 1040s
○ If the results are successful, then it is okay to proceed without the 1040 transcripts for 2016.
○ If the results do not show a match, then the 2016 income cannot be used and the borrower must qualify using the 2014 and 2015 income.

2. When the 1040s show that the borrower OWES money:

  • Provide copies of the filed 1040s for 2016, and
  • Cancelled check (or wire, etc.) showing payment to the IRS in the exact amount shown as the liability from the 2016 return.

○ If the borrower does not pay the balance in full and instead enters into a payment plan with the IRS, the following will also be required:

◘ Cancelled check showing the amount that was sent to the IRS
◘ Evidence of an accepted payment plan by the IRS
◘ The Underwriter will need to escalate these to their Sr. Team Lead for review to determine if there is any further action needed (i.e. reserves sufficient to cover the balance owing and/or add the debt as a liability).
◘ If no accepted payment plan can be provided then the 2016 income cannot be used.

NOTE: To use increasing income from 2016, the above steps will need to be taken; however, if the income from the 2016 returns indicate decreasing income, this lower (i.e. more conservative amount from the current year’s tax return) amount should be considered to qualify the borrower, even if transcripts are not available.

Contact us today for more information at (800) 535-0270

Foreign Nationals Program

Foreign Nationals Program

In the United States, all homeowners are property investors. Homeownership is one of the tenets of the American Dream, and it is available to foreigners who wish to own a piece of this great nation. New York is one of the most attractive states for foreign national property ownership, and we are happy to help finance this dream.

Previously, home ownership by foreign nationals in the U.S. was mostly restricted to wealthy investors who arrived with suitcases full of cash to purchase a vacation home that they could only enjoy for a few months in a year. These days, however, foreign nationals can apply for mortgage loans to acquire investment properties, and they may be able to occupy their homes for as long as their visas allow them to.

The basic guidelines and assumptions of our foreign national home lending program are:

  • Minimum loan amount: $100,000
  • Maximum loan amount: $650,000
  • Maximum loan-to-value (LTV) ratio: 65 percent
  • Credit score: 680 FICO
  • Purpose of the loan can be purchase or refinance
  • Applicants must prove strong reserves and adequate credit profile
  • Condominium units are acceptable
  • No penalties for pre-payments
  • All liens seasoned at least 12 months can be settled with refinancing

With regard to the type of mortgage loan that foreign nationals can obtain, we approach each case individually. A fixed rate mortgage may make sense for some borrowers while others may like the flexibility of an adjustable rate.

The mortgage loan application process for foreign nationals is not as complex as some people believe it to be. A current passport with a visa in good standing is essential; obtaining an Individual Tax Identification Number (ITIN) may be required in some cases. Other documents may include: letters of good standing from foreign banks as well as international credit reports.

Contact us at 800-535-0270 for more about our Foreign Nationals Program

Communication and honesty: The mark of a good loan officer

Communication and honesty: The mark of a good loan officer

When home buyers set out to find the home of their dreams, the key players working with them are their real estate agent and loan officer. The fact that most residential home purchases require mortgage financing makes the relationship between the loan officer and the real estate agent a determining factor in the success of the transaction.

The relationship between agents and loan officers is one derived from economic necessity. Real estate professionals need a knowledgeable and skilled financing expert to work with their buyers, and loan officers need real estate agents as a source of business referrals.

According to Johnny Quinn, a mortgage broker with MortgageDepot, the development of a good working relationship between real estate professionals and loan officers takes time and effort on the part of both parties. In his experience, communication and honesty are the two most important qualities real estate agents look for in a loan officer.

Communication and transparency

Once they have helped a buyer to find a home and agree upon the terms of the purchase, a real estate agent depends upon a loan officer to take over and handle the financing. Buyers, particularly those purchasing a home for the first time, have questions about financing the purchase, including:

  • How does the process work?
  • What paperwork and documentation will they need?
  • How long will it take to be approved for the mortgage?
  • What interest rate will they pay?
  • What costs are associated with the loan?

A loan officer who is unwilling or unable to ease the fears and concerns of buyers places the real estate agent in the uncomfortable position of having to deal with telephone calls and visits to the office from irate buyers. “It is our primary job as loan officers to be there for our borrowers,” said Johnny Quinn. “MortgageDepot has procedures in place to ensure open communication between our mortgage brokers and the borrowers and real estate professionals with whom we work.”

Quinn emphasized how he reviews the application, disclosure agreements and other documents with his borrowers to address any questions or concerns they might have about them. This is in sharp contrast to some companies that routinely send documents to borrowers who must wade through them on their own.

Honesty

Real estate agents understand how problems can arise when buyers apply for financing. A buyer’s credit score, income or debt can create challenges. According to Quinn from MortgageDepot, no one wants to deliver bad news to a buyer or to the buyer’s real estate agent, but the worst thing a broker or loan officer can do is not be honest about problems.

A professional mortgage broker can help

Our mortgage brokers at MortgageDepot work with home buyers to find the best lender for them. We guide our borrowers through the lending process and are with them at every step of the way to answer their questions and address their concerns.

Contact us today for more information at (800) 535-0270

What You Need To Know About Reverse Mortgages

What You Need To Know About Reverse Mortgages

A reverse mortgage is an ideal way to make your retirement years financially easier and more enjoyable. Although the term reverse mortgage can be confusing, it can be seen as a homeowner selling part or their entire home over time.

The way it works is quite simple. Once your reverse mortgage is approved, the lender will pay you a certain amount of money each month. This is money you can use for any purpose you like. Your life will become more enjoyable as you will have more income to spend in your retirement years. People all over the country are realizing a better retirement by using the equity in their home as a part of their retirement income.

Although a reverse mortgage may not be ideal for everybody, if you plan on staying in your home for several years and would like some extra money every month, this may be perfect for your personal finances in retirement. Without a reverse mortgage, you will need to sell your home to tap into the equity. However, living in the comfort of your own home is an important part of retirement. We can help you get a reverse mortgage to make this possible.

There are certain basic qualifications you must have in order to get a reverse mortgage. You must be 62 years of age or older, you must be living in the house and have the house paid for or a substantial amount of equity built up in your house. With these three criteria met, we can help you get a reverse mortgage.

You can contact us today, and let us know your particular situation. How much we can provide to you with a reverse mortgage will depend upon the equity in your home and any balance you may have on an existing mortgage.

To find out more about Reverse Mortgage please call us at (800)535-0270.

Home Affordable Refinance Program

Home Affordable Refinance Program

In early 2015, government officials estimated that up to 700,000 homeowners across the United States could benefit from the federal Home Affordable Refinance Program (HARP). Since 2009, HARP has helped millions of American mortgage borrowers stay in their homes by legally avoiding foreclosure with a sensible refinance program.

HARP is one of various home finance programs we offer to our clients. This program is specially designed for homeowners who have been turned down by other banks and mortgage brokers because they are “underwater,” which means that the market value of their properties has lowered below their outstanding mortgage balances.

In essence, HARP is a refinancing transaction that can be applied to mortgages that were guaranteed by Fannie Mae or Freddie Mac before May 31, 2009. Compared to other states, HARP has not been very popular in New York, and this is because not many mortgage lenders or brokers offer this specific program.

Our mortgage firm is ready to help homeowners in New York to keep their homes and lower their monthly payments through HARP. The key to taking advantage of HARP is to start the application process early. Some homeowners who are underwater often lose hope because they are too deep; to this effect, it is important to note that there is no loan-to-value (LTV) limit under the current guidelines as long as a fixed rate mortgage is being obtained.

With lower interest rates forecast for the rest of 2015, the time to apply for HARP is now. In general, only those borrowers who have managed to stay current with their mortgage payments are eligible for HARP, but we can also help New York homeowners who have missed a couple of payments. If you have fallen behind on your payments, we may be able to help you through the federal Home Affordable Modification Program (HAMP).

To contact us by phone call 800-535-0270

FHA Mortgages in New York State

FHA Mortgages in New York State

 FHA has year over year been the most utilized loan product when it comes to low down payment. FHA allows for borrowers with poor credit history, as low as 580, and low down payment, as low as 3.5%, to obtain mortgage financing. Not too many people know that closing costs can also be covered by the FHA loan.

As FHA mortgage experts in the state of New York we have been the trusted mortgage broker who specializes in all types of FHA loans, including a renovation loan called FHA 203K loan, which funds your renovation project on your current home or the new on that you want to acquire.

Contact us at 800-535-0270

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