Can a seller credit be used to pay off the buyer’s debt so that they qualify for a mortgage loan? In markets where seller credits are normal, you may wonder how these credits can be applied to help you buy a home. For conventional or FHA loans, you can use seller credits to pay for closing costs, prepaid expenses, or even points to lower your rate. However, you cannot use them to pay down your debt to qualify for a loan. There is one exception to this, however, and that is a VA loan for Veterans. For VA loans, the credit from the seller can be used to pay off borrower debt to qualify. If you are thinking about buying a home, let’s talk!
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Can a seller credit be used to pay off the buyer’s debt so that they qualify for a mortgage loan? In markets where seller credits are normal, you may wonder how these credits can be applied to help you buy a home. For conventional or FHA loans, you can use seller credits to pay for closing costs, prepaid expenses, or even points to lower your rate. However, you cannot use them to pay down your debt to qualify for a loan. There is one exception to this, however, and that is a VA loan for Veterans. For VA loans, the credit from the seller can be used to pay off borrower debt to qualify. If you are thinking about buying a home, let’s talk!

ByBrandon Butler

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Significant Changes to Using Trust Income to Qualify for a Home Loan! Lenders will now require documentation that the trust income has been received for at least a year. Additionally, if the borrower is the account’s trustee, a letter documenting the trust income will not be permitted as proof of continuance. Instead, a bank statement will be necessary. Let’s talk if you are receiving Trust Income and want to finance a home!
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Significant Changes to Using Trust Income to Qualify for a Home Loan! Lenders will now require documentation that the trust income has been received for at least a year. Additionally, if the borrower is the account’s trustee, a letter documenting the trust income will not be permitted as proof of continuance. Instead, a bank statement will be necessary. Let’s talk if you are receiving Trust Income and want to finance a home!

ByBrandon Butler

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Fannie Mae will now permit 30-year payment schedules for Cash-Out Refinances on Manufactured Homes. Previously, they only allowed a 20-year payment schedule. Adjusting their guidelines will help more people qualify for this loan and offer additional options for pulling cash out from your property. This may be an excellent option for some homeowners, so let’s talk!
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Fannie Mae will now permit 30-year payment schedules for Cash-Out Refinances on Manufactured Homes. Previously, they only allowed a 20-year payment schedule. Adjusting their guidelines will help more people qualify for this loan and offer additional options for pulling cash out from your property. This may be an excellent option for some homeowners, so let’s talk!

ByBrandon Butler

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If you work for a business owned by a family member, home finance lenders may require more information from you to prove that you do not have ownership of the business. Additionally, they may require a longer history of employment to demonstrate that you are receiving income consistently from the business. If you work for a family member, let’s talk, and I will answer any questions you have about buying a home.
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If you work for a business owned by a family member, home finance lenders may require more information from you to prove that you do not have ownership of the business. Additionally, they may require a longer history of employment to demonstrate that you are receiving income consistently from the business. If you work for a family member, let’s talk, and I will answer any questions you have about buying a home.

ByBrandon Butler

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Did you know that the seller of a property can pay for the VA Funding Fee on your home loan? This is a fee charged by the VA and is usually financed into the loan. However, a seller is permitted to provide a “seller concession” to pay this fee and more to help you own your own home. If you are a Veteran, let’s talk about your VA benefits and buying a home. It is probably more achievable than you realize!
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Did you know that the seller of a property can pay for the VA Funding Fee on your home loan? This is a fee charged by the VA and is usually financed into the loan. However, a seller is permitted to provide a “seller concession” to pay this fee and more to help you own your own home. If you are a Veteran, let’s talk about your VA benefits and buying a home. It is probably more achievable than you realize!

ByBrandon Butler

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Restricted Stock Units or Restricted Stock as Income – What You Need to Know When Buying a Home! Lenders will first look at how the income has been distributed to you, followed by the likelihood that the income will continue. How the income is calculated to qualify for the loan depends on whether the income is received in the form of shares or cash and the length of time you have received compensation. If this type of income is part of your compensation, let’s talk, and I’ll answer your questions about using this income to buy a home.
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Restricted Stock Units or Restricted Stock as Income – What You Need to Know When Buying a Home! Lenders will first look at how the income has been distributed to you, followed by the likelihood that the income will continue. How the income is calculated to qualify for the loan depends on whether the income is received in the form of shares or cash and the length of time you have received compensation. If this type of income is part of your compensation, let’s talk, and I’ll answer your questions about using this income to buy a home.

ByBrandon Butler

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If you work for a family-owned business, there are some changes to the guidelines that you need to know! Conventional loans will no longer allow future employment contracts or salary increases from a family-owned business that are effective after the closing date to qualify for the loan. However, future employment or salary increases for non-family-owned companies are still permitted. If you work for a family-owned business, let’s talk, and I’m happy to answer your questions.
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If you work for a family-owned business, there are some changes to the guidelines that you need to know! Conventional loans will no longer allow future employment contracts or salary increases from a family-owned business that are effective after the closing date to qualify for the loan. However, future employment or salary increases for non-family-owned companies are still permitted. If you work for a family-owned business, let’s talk, and I’m happy to answer your questions.

ByBrandon Butler

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What happens when you use a variation on your legal name and apply for a home loan? While nothing prohibits you from using another variation of your name when taking title to the property, the title company will verify your identity through a Driver’s License or Passport. If the name on your ID does not match the loan application, then the loan application will need to be changed, which will delay the closing process. So, my best advice is to apply with the name listed on your ID to avoid any last-minute issues!
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What happens when you use a variation on your legal name and apply for a home loan? While nothing prohibits you from using another variation of your name when taking title to the property, the title company will verify your identity through a Driver’s License or Passport. If the name on your ID does not match the loan application, then the loan application will need to be changed, which will delay the closing process. So, my best advice is to apply with the name listed on your ID to avoid any last-minute issues!

ByBrandon Butler

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Did you know that self-employed people can use their business assets to purchase a home? For conventional loans, business assets are considered an acceptable source of funds for your required down payment, closing costs, or reserves.  If this sounds like your situation, let’s talk!  I’m here to help you make the dream of homeownership a reality.
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Did you know that self-employed people can use their business assets to purchase a home? For conventional loans, business assets are considered an acceptable source of funds for your required down payment, closing costs, or reserves.  If this sounds like your situation, let’s talk!  I’m here to help you make the dream of homeownership a reality.

ByBrandon Butler

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Freddie Mac announced they will no longer allow Non-Occupant Co-Borrowers for Cash-Out Refinances. There is a small window of opportunity before the effective date of this new rule change, so if you are considering a Cash-Out refinance, let’s talk immediately!
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Freddie Mac announced they will no longer allow Non-Occupant Co-Borrowers for Cash-Out Refinances. There is a small window of opportunity before the effective date of this new rule change, so if you are considering a Cash-Out refinance, let’s talk immediately!

ByBrandon Butler

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Will a lender count a debt against me if someone else pays the loan? When someone has a loan that they are obligated under, and another person pays that loan each month, we look at the payment history. Generally speaking, if we can document that the other person has made 12 on-time payments or more, we do not need to count that debt against you when qualifying for a home loan. If this is your situation, let’s talk!
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Will a lender count a debt against me if someone else pays the loan? When someone has a loan that they are obligated under, and another person pays that loan each month, we look at the payment history. Generally speaking, if we can document that the other person has made 12 on-time payments or more, we do not need to count that debt against you when qualifying for a home loan. If this is your situation, let’s talk!

ByBrandon Butler

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What happens if you co-signed for someone’s debt and want to buy a home? Depending on the financing, you must show at least a 12-month history of someone else paying the debt on time. Otherwise, the lender will count it as your debt. If you would like the “What to Consider Before Co-Signing a Loan” tip sheet, comment below, and I’ll send it to you. If you already co-signed for another person’s loan, let’s talk about your situation and structure a plan.
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What happens if you co-signed for someone’s debt and want to buy a home? Depending on the financing, you must show at least a 12-month history of someone else paying the debt on time. Otherwise, the lender will count it as your debt. If you would like the “What to Consider Before Co-Signing a Loan” tip sheet, comment below, and I’ll send it to you. If you already co-signed for another person’s loan, let’s talk about your situation and structure a plan.

ByBrandon Butler

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Is “Per Diem” income counted as income to qualify for a home loan? Unfortunately, no agencies allow per diem income to be counted as qualifying income because it is meant to cover the employee’s expenses. Therefore, a lender will not count that as part of your regular income.
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Is “Per Diem” income counted as income to qualify for a home loan? Unfortunately, no agencies allow per diem income to be counted as qualifying income because it is meant to cover the employee’s expenses. Therefore, a lender will not count that as part of your regular income.

ByBrandon Butler

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2-4 Unit Property Financing Just Got Better! Recent guideline changes now allow for a 95% LTV when buying a 2-4 unit property as an occupant of one of the units. Previously, the maximum LTV was 75%, so this change means a lot less of an investment on the homeowner’s part! If you are interested in purchasing a 2-4 unit property where you can live in one unit and rent out the others, let’s talk!
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2-4 Unit Property Financing Just Got Better! Recent guideline changes now allow for a 95% LTV when buying a 2-4 unit property as an occupant of one of the units. Previously, the maximum LTV was 75%, so this change means a lot less of an investment on the homeowner’s part! If you are interested in purchasing a 2-4 unit property where you can live in one unit and rent out the others, let’s talk!

ByBrandon Butler

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Do you need “Reserves” to buy a home? For some clients, Yes; for others, No. It depends on the financial strength of your file. While it is always a great idea to have money left over after buying a home for decorating or an emergency, you may get a loan approval condition that requires reserves after closing costs and down payments.  This means that your loan can be approved if we can document that you have assets available to you “just in case” there is a financial hardship issue that makes it difficult to pay your mortgage.  Reserves can vary based on loan type, borrower, and property type.  The good news is that reserves can be many different types of assets!  Buying a home is a significant investment, so call me with any questions, and I’m happy to help!
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Do you need “Reserves” to buy a home? For some clients, Yes; for others, No. It depends on the financial strength of your file. While it is always a great idea to have money left over after buying a home for decorating or an emergency, you may get a loan approval condition that requires reserves after closing costs and down payments.  This means that your loan can be approved if we can document that you have assets available to you “just in case” there is a financial hardship issue that makes it difficult to pay your mortgage.  Reserves can vary based on loan type, borrower, and property type.  The good news is that reserves can be many different types of assets!  Buying a home is a significant investment, so call me with any questions, and I’m happy to help!

ByBrandon Butler

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