90% loan to value with 10% down or 10% equity whether that be a purchase loan or refinance mortgage, is the requirement for a second home or vacation property. The property will have to located in a resort area and because it’s less than 20% equity, a monthly escrow/impound account will be required for principal…
Because one of the big benefits of working for yourself again to write off expenses you incur in the operation of your business. Because of this, this counts against income or rather the income is reduced to offset the liability. In order to qualify for a mortgage there have to be enough income to offset…
This it depends on all four factors of creating a mortgage, credit, debt, income and assets. Assuming you have the necessary assets for down payment and/or reserves in the bank and your credit score is considered good, let’s look at the meat and potatoes, is there enough income to offset all monthly liabilities? How the…
Great question! This comes up very frequently. When you’re applying for a mortgage, most mortgage companies are going to require two years of stable job history explaining any job gaps from one job to another as well as doing a full two year history showing all dates of employment began and when employment ended during…
First off, refinancing your home is a great decision, interest rates are low and there are many programs available to help homeowners refinance some even without loan-to-value restrictions, see more on the Harp 2 Refinance. In order to get the lowest possible interest rate, understand there’s two critical components most lenders will typically not sure…
The Harp 2 Refinance Program allows homeowners to refinance without any loan-to-value restriction. The program is slated to expire December 31, 2013, so if you qualify, start the process now. Despite what your current mortgage lender will tell you or what you might hear in the media, the program does have debt to income requirements…
The annual percentage rate is always higher than the actual interest rate, because the annual percentage rate takes into consideration all of the costs associated with financing including prepaid items such as property taxes, hazard insurance and mortgage interest lumps them all together against your loan and re-amortizes the figures over the life of the…
The lender wants to make sure future debt obligations do not impact the integrity of repayment on the loan they are making to you. If the lender allows you to pay off the credit card balances, who’s to say you wouldn’t take out consumer debt again and be in the same situation you’re in in…