Ever wondered about the most common (as well as lesser known) ways mortgage borrowers sabotage their own loan process?
Do they dispute credit items and try to fix their FICO scores?
Do they change jobs without telling their lender or broker?
Do they mistakenly wire their down payment to a cyber criminal in Russia?
All of the above can be mortgage destroyers — and not like the KISS kind of Destroyer — the one that captivated me as a child.
So, let’s take the mask off the Top 10 ways unsuspecting homebuyers and those looking to refinance encounter the God of Mortgage Thunder. Don’t be next!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Living in a “crowded house” but can’t find a way to buy that perfect new home before selling your existing one? Don’t dream it’s over! There are mortgage programs that are specifically created to allow you to use proposed rental income from your existing home — also known as a “departing residence” in this case — to help with your mortgage qualification. After all, most Americans are working hard enough to afford one mortgage payment, let alone two.
If you’ve been told that you don’t qualify for a new home until you sell your current home, but you otherwise have a down payment saved and ready to go, get in touch and let’s see if a departing residence mortgage is a good fit for you.
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Why go home to your grungy apartment when you can buy your first home instead? Oh, what’s that? Haven’t saved the full 20% down payment? Live in a part of the country where home prices and loan sizes easily outpace the capacity of conforming, FHA and even VA loans?
Let’s learn how to rock the best of the 10% down jumbo mortgage options, some without PMI, and jam on why with a changing real estate market, you may be in luck with half the down payment you thought it might otherwise take.
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Fifty years ago, when the Doobie Brothers were flying high and the folks in China Grove were rising for another day, it would have been hard to imagine that marijuana would eventually be legal in some states. But, not legal in all states and not legal at the Federal level and that means those who work in the marijuana and cannabis industries can see their mortgage opportunities go up in smoke if not aligned with a lender who knows which programs and investors can navigate this relatively new industry.
So let’s take it to the streets and find out just how a homebuyer or homeowner can get a mortgage approval if they are employed in a cannabis business and get income from a business in the cannabis space.
Need some solid advice about mortgages and marijuana and cannabis income? Give me a like or subscribe on YouTube!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
The mere mention of the words “bitcoin” or “cryptocurrency” or “blockchain” is sure to evoke comments and reactions that will be far-reaching. There will be the speculators who rolled the dice and came up winners, or who are still white-knuckling their wild ride. There will be financial technicians who have been forced to grasp how this technology has the potential to disrupt the exchange of currency as we know it. But more than the reactions of either of these two subsets, you’ll encounter the expressions of the mostly and mildly bewildered. Because really, when it comes to cryptocurrency, most people are downright confused:
About what it is.
About how it works.
And for us in the real estate world, about whether you can use bitcoin and other digital currencies to buy residential real estate.
So take a quick video tutorial with me on how to rock the use of cryptocurrency as your down payment!
Thinking about rocking the rebel currency on your next home purchase? Give me a like or subscribe on YouTube!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
It’s a sobering fact that nearly 50% of married couples will decide to go their separate ways each year. But what happens when there’s jointly owned real estate involved? And what if that home has a mortgage on it as well? What’s the process for one spouse “buying out” the other and how can any couple best plan for this division?
Obviously, a marital separation is stressful enough. The short video below aims to make it a little less so, at least when it comes to understanding the home loan options. Oh, and we rock some Frontiers-era Journey while we’re at it…
Ready to take a journey with us and rock the divorce buyout process? Please give me a like or subscribe on YouTube!
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Despite some recent setbacks that see COVID cases increasing, many of us are optimistic that vaccination rates will continue to go up and all of America will eventually commit to getting the worst of the virus behind us once and for all. There is no doubt that as we headed into the summer, we could feel the economy coming back on line and the country getting back to work. Sure the recovery has been uneven, but compared to the uniform bleakness of last summer, there could only be reason for hope this time around.
Not surprisingly, the progress we’re seeing in the general economy has carried over to what we’re seeing in the mortgage industry — many homeowners who took advantage of COVID forbearance and payment deferral plans are now back to work, back on their feet, seeing those arrangements draw to a close and contemplating their best options for long-term, future financing. This happens to coincide with an ongoing low rate environment, and that has opened the door to a refinance for a good percentage of owners. But wait… If a borrower has had a recent forbearance or deferral, and has a jumbo loan, can he or she even refi at all?
The answer is “Yes!” But if you have had a forbearance or deferral plan, you have a jumbo loan and you are out there researching a refinance, you are very likely going to get some conflicting information. A key thing to remember is that not all jumbo lenders are created. Because they are not required to follow the “Agency” guidelines, that is, the rulebook that governs conforming loans as dictated by Fannie Mae and Freddie Mac, jumbo mortgage lenders will have different demands for refinancing post-COVID. Here’s what we’re seeing for the most lenient of our investors:
Repayment Plan
The homeowner must have completed the full repayment plan or made at least three consecutive timely payments (and not missed any other payments under the program).
Payment Deferral
The homeowner must have made at least three consecutive timely payments following the effective date of the deferral agreement.
Modification Trial Payment Plan
The homeowner must have completed the trial payment plan.
If you are in doubt about whether or not you will meet the requirements above, get in touch and we can figure it out — often without any credit checks or exchange of any other personal documents. From there, if a refinance looks promising, the process is IDENTICAL to the one employed by a borrower who has not gone through any sort of hardship plan. We understand the nature of these inquiries and the place from which they stem. If you need a hand with your scenario, extend yours to us today.
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283
Right now, immigration is a hot topic in the United States. Also right now, real estate is a hot market in the United States. And also right now, at the intersection of these two, I field a lot of questions from those with H-1B visas who are looking to get a jumbo mortgage in order to buy or refinance a home. Here are the three most common:
“Can I get a jumbo mortgage if I am on an H-1B visa?”
“What are the requirements for getting a jumbo mortgage if I am on an H-1B?”
“Are the terms any different for a visa holder compared to a US citizen?”
Let’s look at the answers for each, but first delve into just a little bit of the technical definitions of both the H-1B visa and a jumbo mortgage.
Citizenship Status and the H-1B
In mortgage lending, we generally recognize four statuses for citizenship; US citizen, permanent resident alien (green card), non-permanent resident alien and non-resident. In the eyes of most jumbo guidelines, US citizens and permanent resident aliens are essentially treated the same. Non-residents, also known as foreign nationals, are generally not eligible for conventional financing, though there are loan options that exist for them which I have covered in a separate post. The H-1B falls into the non-permanent resident alien status.
An H-1B visa allows an individual to temporarily work in the US in a “specialty occupation.” Specialty occupations may include those in high tech, science, medicine and business/finance. So the question remains, how does the lending industry treat an H-1B/non-permanent resident alien?
Jumbo Mortgages
One might think that a jumbo mortgage could most easily be defined by loan size — and there is some truth to this. However, in many higher-cost areas of the US, the conforming loan limits differ. Across most of the country, the one-unit conforming loan maximum is presently $548,250. But here in Marin County, for example, our conforming limit is $822,375. So yes, a jumbo loan would be anything over the conforming limit, regardless of location, but there are also some lending options that will allow a jumbo loan below the high-balance conforming loan limit ($822,375, in our example) but above $548,250.
Therefore, “jumbo” is not exclusively tied to loan size and a better definition might go something like this: A jumbo loan has a loan amount that is typically above the conforming loan limit and that follows the qualified mortgage (QM) requirements. Jumbo loans are not securitized by the “agencies,” Fannie Mae and Freddie Mac. Jumbo loans are most often underwritten to a specific investor’s guidelines and funded with that investor’s deposit base. The investor has additional discretion over the qualifying guidelines of the loan itself and this may result in a more intensive process, additional documentation from the borrower and a more restrictive qualifying standard when compared to conforming loans.
Putting It All Together
Now that we’ve established that we have an eligible visa holder and the need for a jumbo mortgage, what will this borrower face once in the loan process? First off, the answer is “yes” an H-1B holder can get a jumbo mortgage! Often at the exact same terms as a citizen or green card holder.
The key sticking points for these borrowers often tend to revolve around history. Lenders like to see a two-year credit history (US credit, FICO scores, etc.) and a two-year tax return history. It’s very difficult for a newly minted H-1B holder to get financing based on the historical proclivities of the lending industry, but once there is a track record, things open up substantially. As for loan amounts, rates, and loan programs, again, so long as the history piece is met, we generally do not find there are any additional restrictions or restraints for a non-permanent resident alien. And yes, we see these applicants all the time here in the tech-heavy Bay Area.
If you are a visa holder and have questions about a jumbo mortgage, don’t hesitate to get in touch. Pre-approval is free and does not obligate any applicant, but before the application is completed, I am available to answer any questions you may have.
Welcome!
Rob Spinosa Senior Vice President of Mortgage Lending
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283
When we talk about credit tradelines and credit depth, most of the prominent jumbo mortgage banks like to see recent credit activity (that is, use of credit and timely payment) to consider any account active. And that’s really what a “tradeline” is — an account. An individual tradeline might be a mortgage, an auto or student loan or a credit card. All are different types of “trades” but in the case of revolving debts like credit cards, use of those cards in the last year or two is what really brings the tradelines into active status and works to meet the jumbo lender’s requirements. By far, the gold standard for jumbo credit is three active tradelines with activity in the last twelve months, per borrower.
So in that spirit, I’m going to let you all in on a secret for getting a great jumbo loan if you are thinking that a mortgage application may be in your future in the coming months. Here are three GREAT ideas for taking that seldom-used credit card lurking in the back of your wallet or purse, or that forlorn department store card that you forget you had, and turning it into a bona fide active tradeline which, in turn, makes you eligible for the widest selection of jumbo loan programs.
1) The Starbucks Triple Mocha Frappuccino (Venti): $4.95
This frosty beverage will set you back both 500 calories and 500 centavos — but don’t you dare pinch pennies to pay this time. Instead I want you to reach for the least-used credit card in your quiver and rack this hefty charge on that piece of plastic. By doing so, you’ll bring this credit card to “active status” within the last 12 months and you’ll be on your way to both cardiac arrest and credit qualification.
2) Nashua Tape 1.89 in. x 120 yd. 300 Heavy-Duty Duct Tape (2-Pack): $10.88
Race fans! Hot rodders! Weekend warriors! Remember when you bought your house and your mother-in-law gave you a $100 gift card to Home Depot? Remember when you used it all plus another $400 on that initial visit and they convinced you to open a store card, take advantage of the discount and then pay the rest off later? Remember too that you haven’t used the card since that day twelve years ago? Well, now’s the time to repair everything in the house with duct tape. We already knew of its all-purpose abilities, so you’re burnin’ daylight, pardner. Get crackin’ on those DIY projects and the ‘honey do’ list and pick up a two-pack just in case.
3) The Warren Plaid Boxer: Now $15.00
One other thing that we know is that if someone is going to have a collection account on his credit report, and it’s going to be of the variety of which he’s unaware, it’s either going to be a medical bill or a Banana Republic store card (close third to a cell phone bill never received). I’m not sure why this is, but people go bananas over Banana’s billing. So let me help you save your credit shorts and get into a clean, fresh pair of undies while at the same time giving you an excuse to A) actually locate your Banana Republic card, B) place an order on it before they call you to tell you it’s been inactive since Marky Mark made skivvies the shizzle and, C) bring your store card to active status in the eyes of Equifax, Experian and Transunion.
My point(s) above are simple. Active credit tradelines are a critical component to getting a great jumbo loan, but you can’t create them after you’ve applied for a mortgage. When we pull your credit report as part of the pre-approval process we’re looking at both credit history and recent activity but the time to address both is BEFORE you’re in the mortgage process. Or while you’re saving for your down payment. Or while you’re waiting for more inventory to hit the market, etc. Bringing your unused tradelines to active status is a little step you can take that will pay a big dividend later — opening up the widest array of jumbo options and, as a result, giving you access to the most competitive rates. Let me know if you have questions about this aspect of getting a jumbo loan and I’ll be happy to help you craft a road map to success and hey, I might even let you in on a few more bargains as well…
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283
“Our Realtor said it’s very difficult to get a jumbo loan these days.”
“We tried to do a cash out jumbo refi on our place but our bank told us that they’re not doing those anymore.”
“We wanted to refinance our jumbo loan but by the time we did the research the rates weren’t any lower than what we have already.”
“Is it possible to refinance a jumbo loan without having to move our savings and investments to the bank who’s making the mortgage?”
“We have a 20% down payment and are looking to buy a house that requires a jumbo loan. We had no idea that would be so difficult. Why are banks now telling us we need more than 20% down?”
As we go into the second half of 2020, it’s unquestionably true that we’ve seen a complete reshaping of the mortgage industry due to financial turmoil wreaked by the COVID-19 pandemic. And one of the products under most pressure has been the jumbo loan — programs that accommodate loan amounts greater than the conforming or FHA limits. Access to this tier of credit is essential to the higher-cost coastal real estate markets as well as to larger cities with luxury markets, like Chicago. So is the home buyer or owner looking to refinance out of luck if he or she needs a competitively-priced jumbo loan? Fortunately, the answer is a resounding “NO!,” though some research may be required to find it.
As of June 1, 2020, here are some of the jumbo mortgage options we will permit:
20% down payment purchase jumbo mortgages to $3MM. Max purchase price is $3,750,000 in this case.
Cash out refinances to 70% loan-to-value (LTV). Cash out amounts can exceed $250K.
Jumbo purchase and refinance mortgages that do NOT require transfer of assets to us.
10% down payments on jumbo mortgage options.
“Rate and term” refinances to 80% LTV, up to a $3MM loan amount.
While we are not out of the pandemic woods yet, we expect that our jumbo options will continue to strengthen and expand so long as real estate sales remain robust. While much of the country can make do with conforming loan products there are many key markets that rely on efficient and cost-effective jumbo loans. We’re here to address that need if it applies to your scenario.
Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709
*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.
Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283
