It’s been another unbelievable week in the mortgage business. I am still getting your clients approved and deals are coming together! Yes, it’s true. Here are some tips that are helping as I am continuing to be creative.
1. Counting Rental Income if Converting a Primary to an Investment- If qualifying is a problem get a co-mortgagor to help offset the debt to income ratios if they are too high.
a. Conventional – 30% equity and 6 months PITI reserves to count rental income
b. FHA – 25% Equity and 6 months PITI reserves to count rental income
2. Source the down payment – getting a gift or having money in the bank makes getting approved easier. We can use gift down payments from relatives.
3. Zero Down? – I have USDA Zero down programs for rural housing, CALHFA for 100% financing with a 680+ fico, and VA loans with no mortgage insurance.
4. Low Down – 3% down until January 1, 2009 and 3.5% thereafter! We can use gift money from a relative it’s so easy!
5. Credit Problems? Talk to about a credit repair program. It’s easy and its low cost to turn your clients into approved buyers.
6. Think Full Documentation – 2 years tax returns, 2 months bank statements, current paystubs. Set realistic expectations.
7. Investors – 20% down with no more than 4 properties with loans on them – Per Fannie Mae Guidelines
8. Investors – 30% down with more than 4 properties with loans –
Hope this helps! Oh by the way, I am never too busy for referrals!