All Posts Tagged With: "qualify"
How VA’s Residual Income Factor Keeps Vets Out of Foreclosure
There are multiple reasons why VA loans continue to have the lowest rate of foreclosure of any major lending program. Residual income is a big one. This is a unique credit and underwriting guideline that applies only to VA loans. At the outset, it’s important to differentiate residual income from a debt-to-income ratio. Unlike conventional [...]
12Apr2011 | Chris Birk | 0 comments | Continued
Why Do Lenders Want Tax Returns?
There are several reasons why lenders want to review tax returns for the past two or three years. First, they want to assure that the income you claim in your loan application is also the income you report to the IRS. Second, if you are self-employed lenders may be able to “add back” items which [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
Must I Pay Off All Credit Cards To Get a Mortgage Loan?
No. Mortgage lenders do not expect individuals to be debt free — though that certainly would be helpful. What lenders do expect is that prospective borrowers will have debt which is within their means — not too much in total, and not too much in terms of monthly payments and always paid in full and [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
Can Car Payments Reduce My Home Buying Ability?
Generally, yes. However, under some loan program guidelines (but not all), if you have 6 to 10 remaining car payments, and if you have generally good credit, your auto debt will not be counted against you for qualification purposes. The logic is that the loan will be paid off not long after you move into [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Is It Better To Own Or Lease A Car For Mortgage Qualifying?
Having title to a car means you have an asset, an addition to your net worth once all financing is paid. Having a lease means having a debt that must be considered when a lender looks at your financial ability. Lenders must also consider what is likely to happen when the lease is up. The [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Will Lenders Count Income From Boarders?
Lenders have traditionally refused to count income from boarders — those who rent a room or two — when looking at loan qualification standards. The logic has been that such income could not be estimated in advance of closing. However, Freddie Mac has announced that under certain conditions it would allow buyers to include income [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Is Bonus Income Okay With Lenders?
If bonus income is steady and expected to continue, generally yes. For details and required paperwork, speak with loan officers. Be sure to ask about verification requirements. Technorati Tags: bonsu, income, mortgage, overtime, qualification, qualify, verify
30Aug2008 | Peter G. Miller | 0 comments | Continued
Can A National Guard Volunteer Get A VA Loan?
According to the DVA, you need to review your call-up orders. If activated under Title 10 you may qualify for a VA loan if you are on an active-duty status for 90 days or the full period called (this could be less than 90 days). If you were called up under Title 32 you may [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Can I rent out a room to help me qualify for a loan?
Lenders have traditionally elected not to include rent from boarders because lenders have no assurance that such income will be regular and continuing. However, in recent years some — but surely not all — loan programs have been willing to count income from boarders when qualifying mortgage applicants. For specifics, speak with several loan officers. [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
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