Does paying off collections hurt or help your credit scores?

I know it doesn’t make sense that you are punished for doing the right things, according to my friends and credit experts at Home Loan Assist (HLA), unfortunately that is the case when it comes to credit. My friends at HLA shared this with me today – A collection that is six years old and hasn’t […]

IRS Blames Budget Cuts for Lengthy Turn Times on Tax Trascripts – Will Your Closing be Delayed??

Let’s play a little IRS Tax Transcripts Jeopardy Answer: Because the IRS is ‘underfunded’ thanks in part to massive federal budget cuts Question: Why in the HECK are Tax Transcripts taking forEVER to process???? Update from one of the larger Third Party Validation Services explains why these transcripts, which lenders require to process a home loan, […]

Why is Now the BEST Time to be in Real Estate?

The rate of home ownership in America…..have we hit the bottom??….. It has been falling for nearly a decade and in the fourth quarter of 2014, it hit the lowest level in over two decades at 63.9 percent, according to the National Association of Realtors. The peak for the home ownership rate was just under […]

Mortgage Insurance = Tax Deduction

On December 19, 2014, legislation was passed once again allowing for the tax deductibility of mortgage insurance (MI) premiums for qualified borrowers. The deductibility is effective for purchase and refinance transactions closed after December 31, 2013. MI premiums paid or accrued after December 31, 2013 and through December 31, 2014 may qualify for tax deductibility […]

FHA Officially Reduces Annual Mortgage Insurance – Cutting Monthly Payments!

In the first Mortgagee Letter of the year FHA makes a HUGE change by reducing its annual mortgage insurance by 50 basis points across the board. The new rate will be 85 basis points (for loans with less than 5% down payment). Example – $200,000 mortgage with 3.5% down payment Previous FHA monthly mortgage insurance […]

FHA Loan Limits Increased! And other FAQ’s

Great news friends – homebuyers in the DFW metro (and surrounding areas) will see increased purchasing power thanks to FHA’s decision to increase loan limits beginning January 2015. Currently the max loan amount for DFW area is $287,500 which means buyers may buy a $297,900 home by putting the very minimum down. However, as of […]

USDA Fees to Increase…..tomorrow!

Fiscal Year End Conversion Process Due to Increase in Annual Fee On October 1, 2014 the annual fee for both purchase and refinance loans will increase from .4% to .5%. This change is required to maintain a neutral cost of the program. The USDA annual fee is paid monthly as part of your USDA mortgage payment. […]

most important Fed meeting of the year? what happened today?

Well, the supposed “most important Fed meeting this YEAR” per CNBC is over and the result…”meh..”. For those not aware, the recent run up in US Treasury rates (and thus Mortgage Rates) was primarily due to investor expectations of a change in the stance of Monetary Policy as directed by the Federal Reserve. In reality, […]

I Have to Explain the $500 Deposit in MY Bank?? WHY??

It’s suffice to say that my clients do NOT like lender required document ‘scavenger hunts’ – let’s be honest, who really does? In today’s world of tighter credit standards, loan ‘buy-backs’, uber compliance and 100% audits (vs the good ol days of 10% audits) it’s critical that lenders underwrite your loan to the inth degree, […]

Buying a Home: WHY So Much Paperwork!?

I am often asked why there is so much paperwork involved in a mortgage loan application when buying a home today. It seems that the bank needs to know everything about you and requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and […]