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About seanote

  • Birthday August 24

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    Boston, MA
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    FICO scores, Mortgages, Baseball!

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  1. Hey nolimits, I'm a loan officer, and based on the rate you posted that you've been quoted, it sounds like the lender that provided it to you is qualifying you through a portfolio loan product, rather than a Conventional product (Fannie Mae or Freddie Mac) or an FHA product. I'm not sure why, but since you mentioned that you are self-employed, I am assuming that your debt-to-income ratio won't qualify for a Conventional product, which is common with SE borrowers, as they take the IRS deductions that they're eligible for. I'd suggest you ask exactly what kind of loan program you are being quoted on -- is it an agency product or a portfolio product? I'm in a BNI group, and all of my group members are self-employed. They all take as many deductions as possible (who doesn't?!), but unfortunately, the end result is that their net income on their tax returns is too low to qualify for a Conventional loan. The solution I provide them is to offer them a "Portfolio" loan product, called a "Bank Statement Mortgage". With a Bank Statement Mortgage, the loan is manually underwritten, rather than electronically underwritten, which Fannie, Freddie and FHA loans are. The manually underwritten Bank Statement Loan doesn't require any tax returns, but rather the last 12 months of your business bank statements. The way income is calculated, the underwriter identifies all of the deposits on the bank statements that are related to the business. They use a 12 month average of the business deposits only, multiple that number by 50%, and that figure is used for your monthly income. For example, let's say you have gross deposits of $22,000/month that are reflected on your bank statements. The $22,000 figure is multiplied by 50%, which is $11,000, and that is the amount used for your monthly income. Similar to a Conventional loan, you can go up to a debt-to-income ratio of approx. 43%, so in the example above, the maximum amount of your total mortgage payment, as well as any monthly liabilities that appear on your credit report, would have to be at or below $4,730/month. Based on today's interest rates, the rate is between 5.990% and 6.250%, with a 10% down payment and a minimum credit score of 600. Definitely ask your lender some "probing" questions, and use some industry jargon, just to let them know that you know what you're talking about. -Pat
  2. I'm a loan officer, and based off of current interest rates, YTD, as well as the fed announcing that they're not anticipating to hike rates for the remainder of the year, 3.875% in the near future doesn't look likely. I copied & pasted the "back-end" lender rates below. This is called "raw pricing", before there are any margins added and passed on to the consumer. Based on today's rates, the "par" rate is 4.125%, and your target rate of 3.875% has a cost of $970 for every $100k borrowed just to get to par. Fannie 30yr Fixed (04/19/19) Rate 30-Day Lock 3.875% .970 4.000% .548 4.125% (0.027) 4.250% (0.597) 4.375% (1.102) 4.500% (1.573) 4.625% (1.897) 4.750% (2.036) 4.875% (2.605) 5.000% (2.877)
  3. Hi ronkar, I'm a mortgage banker, and the waiting period to obtain a home mortgage varies, depending on what agency you're obtaining your mortgage from. The USDA waiting period after a foreclosure, short sale or deed in lieu is 3 years. The FHA minimum waiting period is 2 years. The waiting period for a Conventional home loan, either Fannie Mae or Freddie Mac, was previously 4 years, but both Fannie & Freddie reduced the waiting period from 4 years down to 2 years, as long as the foreclosure, short sale or deed in lieu was an extenuating circumstance, caused by a "Significant Derogatory Event". For example, if you can document that an illness/death, job layoff, or a divorce caused a significant decrease in income, that would qualify as a "Significant Derogatory Event", and you could possibly qualify to reduce the waiting period from 4 to 2 years. Also, the USDA is an attractive option because they allow 0% down payments, but even though the FHA minimum down is 3.5%, the FHA allows for 100% of the 3.5% down payment to come from DAP (down payment assistance) grants. Depending on where you live, I have resources for local and national down payment assistance programs.
  4. Thanks TampaDude... I'll read through that section of the FCRA.
  5. I am disputing a few public record negatives; a fed tax lien, state tax lien and a paid judgement. I did dispute one of them previously, and it came back as verified. The local county courthouses do not respond to credit bureau verification requests, and I know that EX/EQ/TU pull public record info online from LexisNexis or some other source when these accounts are disputed. My question is, once my disputes come back verified, should I just request a MOV? Is there verbiage in the FCRA that states that the bureaus must verify the info directly with the entity that is listed on the credit report as the data furnisher? Ultimately, I know I'm going to have to reply to EX/EQ/TU asking them how they verified disputes for the liens/judgement.. is there a certain section of the FCRA that I can cite when I send in a MOV?
  6. I already have a Barclay's US Air MC - can I apply for a second one?
  7. I just called Capital One 360 customer service - the rep told me that you can only receive one $100 bonus...can anyone confirm that they received both bonuses. Also - did you have to apply for the checking & savings separately? If so, what did you apply for first - the checking or savings account?
  8. I have a Lowe's store card with a $12k credit limit. I'm called them today to add somebody as an AU to my account. The only info they required from me was the AU's name. I asked them if I could provide their SSN, and also if my account history would report on the AU credit report. The Lowe's rep I spoke with was an Indian, and had no clue what I was talking about. Does anyone have any experience adding an AU to their account and having the account show up on AU's credit report? Thanks :-)
  9. I applied and was approved for a Lowe's store card, as well as a PayPal Mastercard. I believe there were 2 separate hard pulls for each application. I was interested in applying for an eBay Mastercard - the Lowe's/PayPal/eBay cards are offered through Synchrony Bank - has anyone had success applying for multiple Synchrony cards using the same credit report (1 hard pull)?
  10. I haven't tried getting inquiries removed from my files for about 5-6 years, but previously I was able to get them removed from one of the bureaus (can't recall whether it was EQ or TU), in addition to bumpage, by initiating a dispute. I would never dispute it as "Not Mine", but something more vague, like "please provide proof that XYZ creditor had permissible purpose to access my bureau file". I'm in a situation where I need a 1 point increase to a Equifax file, for a loan file. Has anybody had recent experience with either EQ or TU, in regards to disputing hard inquiries? I remember when I previously did this (and I'm pretty sure it was Equifax), the bureau would remove the inquiry within 24-48 hours after receiving the dispute.

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