Home Mortgages and Non–US Citizens

OK…today we’ve got some down and dirty details about legal residents and their home buying/mortgage eligibility. Basically, it is pretty straightforward. First of all, there are two types of legal residency in the United States: permanent and non-permanent. As long as an individual is working here legally they have the same FHA-type loan opportunities as… Continue Reading Home Mortgages and Non–US Citizens

Investor Mortgages Guidelines and Hurdle Jumping

All pretty standard stuff; no real surprises here, but there are some extra hurdles these investors will have to clear when it comes to mortgaging properties 5-10 in regard to credit score and cash reserves.

Once a borrower exceeds the four financed property count, the general guidelines are as follows:

Short Sale Fees

But most importantly, when it comes to short sales and when a buyer (borrower) is required to pay the negotiator fee, that fact must be officially disclosed to all parties in the transaction from the buyer to the seller to the short sale lender, and must be evident in the underwriting documentation.

Additionally, (and interestingly!) the thinking is that if the buyer is willing to pay a few more thousand dollars toward this fee, (rather than pay some negotiator), the lender may want to grab a piece of the action — given the fact that they are already short on the deal.

At the end of the day, it is what it is. If you’re buying a distressed property just disclose what you need to and move on with your life. You’ll be operating in a world with a differently tinted sky and two moons anyway, but hopefully you’re getting a great deal and will find yourself seated at the closing table as quickly as possible.

Property Insurance and the 2012 Hurricane Season

So for the most part, once that swirling tropical rotation enters the sector, insurance companies will hang their hurricane shutters. They’re not writing anything – it just ain’t happening – and without this bound insurance those customers who are financing their purchase are going nowhere. They won’t be able to close.

For all you Realtors out there, make sure your clients are cognizant of the sense of urgency if a named storm is approaching the edges of the box. There are some things that can be out of our control in today’s real estate market, but being proactive in this regard is well worth your clients’ attention.

All in the Mortgage Family

With people living longer in general, there are fortunately some opportunities for family members to assist one another in certain potentially dependent situations. This is not a widely-publicized program, but it can be a life saver and offer some tremendous opportunities.

Fannie Mae allows a relative to purchase a home for elderly or disabled family members.