Outsmart Debt

FHA stands for Federal Housing Administration.  FHA insures mortgage lenders against default.  It’s because of this that lenders will lend with as little as 3.5% down payment and be more flexible regarding credit, thus helping more people to become homeowners.  To learn more, click here. 

Yes, but it can only be another veteran that is also using their VA eligibility or it can be a spouse.  No other family member or significant other can co-sign.  Click here for more details on VA loans. 

Most mortgage lenders require at least 20% down payment on the purchase of an owner-occupied home (more for investment properties).  If someone wants to purchase a home with less than 20% down, they may do so with the purchase of mortgage insurance.  You need to understand that Private Mortgage Insurance (PMI) insures the lender against default, similar to what FHA does.  As the homeowner, you would pay a fee for this insurance. 

Sometimes people will confuse Homeowners Insurance and/or mortgage insurance with mortgage life insurance.  Mortgage life insurance is simply a life insurance policy that would pay off the mortgage balance upon their death of the policy holder. 

This can vary from lender to lender but it’s generally believed that credit scores over 740 is considered very good.  Learn how to boost your scores here. 

You can check your credit for free once per year for each of the three major credit bureaus by going to annualcreditreport.com.  If you just want a free estimate of your credit score, you can use a service such as CreditKarma.com.  If you’re considering the purchase or refinance of a property, I’d be happy to show you what you score if for free without any impact on your credit score.  Learn more here. 

Lenders consider investment properties (rentals) more risky than owner-occupied properties thus they may requirement a larger down payment and/or better credit scores.  There are some programs that make the process easier to qualify.  Check out this article. 

This will vary on the type of property, the amount of down payment, the loan program, your credit score and other factors.  But, it’s generally acceptable to allow 28 to 35% of your gross income go towards your monthly mortgage payment (including taxes, insurance and homeowner association fees).  To learn more, feel free to reach out to me. 

This will vary on the type of property, the loan program, your credit score and other factors.  The down payment can be as little as zero with a VA loan (for military veterans) or with the use of a Down Payment Assistance (DPA) program.  If you’d like to know how much would be required in your particular situation, please feel free to reach out to me directly. 

A Reverse Mortgage is a very good tool for specific situations.  This is a loan program that confuses many people.  That doesn’t make it a bad program.  If you’re considering one, you’d be wise to get the advice of a professional to evaluate your situation.  This is something I may be able to assist with if you’d like to reach out. 

Income is always required but the documentation of that income can vary from lender to lender and program to program.  The DSCR program is one example of not having to provide any income documentation.

This is considered “boarder” income.  Some programs do allow the use of all or portions of the income but most programs will require proof that it has been paid regularly for, at least, the last 12 months.  Some lenders may require a signed lease agreement and/or tax returns showing the income.  Other programs will consider boarder income as a compensating factor only, meaning that if your debt-to-income (DTI) ratios are high, this may help gain the approval. 

Having been in the mortgage business since 1982, I think I have a pretty good grasp on the industry and would be happy to answer your questions.