Due to recent changes to Conventional mortgage guidelines, I can help even more buyers qualify to purchase a condo should they desire to do so. Here are the changes:
1. Have a condo where one person owns more than 10%? Did you know that the single-entity ownership requirement can be waived when the purchase transaction will result in a reduction in the single-entity ownership concentration (maximum single entity ownership 49%, no delinquent dues, no pending or active special assessments) If our loan is not a purchase reducing the single entity ownership we will allow up to 20% of the project to be owned by one person.
2. Commercial percentage can now be 35% instead of 25%!
3. Pending litigation is usually okay! Call me when any pending litigation you have…
4. Last but not least on USDA loans DO NOT require the condo to be FHA approved. There are other ways to approve a project for USDA condo financing. Ask Me how.
ATTENTION ALL HOMEBUYERS!
A Plus Mortgage Solutions, Inc. is now offering to cover the cost of your appraisal (a $575. value) on all FHA mortgages for all homebuyers who are utilizing that program for their purchase mortgage and who are under contract this month, February 2019. We must receive your purchase contract by 2/18/19 and have your loan registered and rate locked by that date in order to qualify for this.
Older buyer with low income, but high assets….No Problem….and some other news from the mortgage world
Over the past decade, many older buyer clients have been challenged when trying to qualify for a mortgage as they are living on fixed income, but often have significant assets. Often, these buyers could pay cash out right for a property, but do not want to liquidate a substantial amount of assets in order to buy their new home. Freddie Mac has recently updated their guidelines now allowing for “asset-based income” to be used. The requirements and calculations are quite easy. The buyer must be age 62 or older, all assets (less funds needed to close) are added and the sum divided by 360. That figure is then used as additional qualifying income. This can help more older buyers get qualified!
Additionally, both Fannie Mae and Freddie Mac have increased their debt ratio thresholds to 50% (old guideline was 45%) without necessarily requiring compensating reserve funds. This change can help a lot more buyers of all ages qualify for a Conventional mortgage. This guideline carries over to the HomeReady program as well!
Please contact me if I can be of service to you or your buyer clients.