liverichly

Provide them a copy of the bankruptcy paperwork that shows the 2nd mortgage was included and subsequently charged-off. They'll have guidelines on how long ago that must be in order to qualify. If the lien hasn't been released from title then that is a different story, someone (you, the title company, the lender) will need to reach out to them and ask what their process is to file the lien release. If they are requiring to be repaid in order to release the lien you should speak with your BK attorney.

This might be a better question for the Advanced Credit Topics section since it has to do with actions that impact credit scores, but from my personal experience I haven't seen my scores drop as my mortgage balances decrease. I also haven't noticed it with borrowers I've helped in the past, although I'm seeing their credit reports only at certain points in time rather than monitoring them on a month-to-month basis.

Even with a large down payment most lenders will still require you to have enough qualifying income to repay the mortgage. There are some "no ratio" programs where income isn't factored into what you can get approved for (thus "no debt ratios" are required), as well as some lenders have an "asset depletion" program where they can take any remaining liquid assets you have and divide them over XX amount of months to come up with an income amount. You can also set up a trust to pay you a monthly amount and as long as it'll continue for at least 36 months from the time you close then it can be used as qualifying income.

I haven't seen any extra long mortgages like I've heard are in Japan, but I've definitely noticed an uptick of people buying homes with family - kids going on mortgages with their parents, etc. where they all live in the same home. Usually first time homebuyers, with the goal of the kids eventually moving out buying their own home once they've gotten into higher paying jobs. The longer mortgage terms would help lower the monthly payment, but a 30 year vs. 60 year term just reduces the P&I portion of the payment by about 15%. Interest only loans are available today and offer a greater discount on payments, but the interest only period ends after a certain amount of time and then mortgage convert into principal & interest which will have significant payment shock if just interest only payments had been made.

Sorry for the delay, I clicked on this thread 3x but always got interrupted with that pesky thing called work. So when lenders were doing COVID relief forbearance and you were current on the mortgage at the time it went into forbearance then there wasn't ever any negative reporting on to the credit bureaus, it just had a notation that it was in forbearance and sometimes the payments were still reported as on time and other lenders just didn't report any monthly activity (YMMV). Outside of the COVID forbearance plans it'll be up to each lender on how they decide to report, but from what I've seen is if you are current at the time you go into forbearance then majority of them do not report you are late each month and will just notate that the account is in forbearance. It's similar to when entering into a loan modification agreement for financial relief, if you are current and remain current until the forbearance is granted then there aren't monthly late payments added to the report. In situations where only the forbearance is mentioned on the credit report, without any late payments, I've never seen credit scores suffer. Keep in mind there are some waiting periods that must be met after you've completed forbearance before you can be eligible to get a new mortgage (6 months of payments post-forbearance is the most stringent requirement I've run into). If you can confirm that Wells Fargo won't report you late then I'd feel pretty confident about your scores not taking a hit.

You're fine to keep the funds in your brokerage account until they are needed to be brought in at closing, no need to transfer them for the pre-approval. Prior to closing you'll need to provide your loan officer: 1. Last 2 monthly statements for the brokerage account 2. Last 2 monthly statements for your checking/savings where you'll eventually be transferring the money to 3. You'll also need to document the paper trail of the funds going from the brokerage account to checking/savings, usually by providing an account activity printout from online showing the withdraw from the brokerage and the deposit into checking/savings If you haven't already, then I'd ask your brokerage if there is any way they can wire the funds directly to the title company/escrow company/closing attorney. If so, then you won't need to document #3 above since the funds wouldn't pass through your checking/savings.

Sounds like this was a logistics issue, not so much a qualifying issue. When buying a home usually you can have the attending borrower on the loan, assuming it's a family member, sign the closing documents on behalf of the non-attending borrower by getting a Power of Attorney (POA). The POA needs to be reviewed & approved by the title company and lender prior to closing. The seller can also use a POA and a buyer buying with cash can also use a POA, it can save quite the hassle.

Because the margin loans are secured against financial assets that can be liquidated then they wouldn't be counted against your debt-to-income ratio. It's similar to how loans against a 401k aren't included in the DTI. Fannie Mae's guideline on it is: When loans are secured by the borrower’s financial assets, monthly payments for the loan do not have to be considered as long-term debt.

They've been doing it for a long time now through a program called NACA, which takes 6-9 month on average. For this new program, here is some info from a Bank of America LO that was shared end of last week: Program is only available for properties located in majority black and/or Hispanic census tracts in select cities. Race of buyer does not matter. 132k income limit in Dallas. 50% DTI Max. All manual underwrites and a full doc underwrite is required for pre approval . We give 10k towards down payment and cover all non recurring closing costs (we do not cover escrow). No mortgage insurance. 2-4 unit allowed at 95% LTV. Primary residence only. Only first time buyers (no property owned in previous 3 years) In person 8 hour homebuyer education. Here are some basic credit guidelines. 12 months on 3 tradelines, traditional or non traditional. No lates in last 6 months, no more then 1 30 day late in 12 months. No reserves with 12 months rental history. 3 months reserves without rental history. Most of your other credit guides mirror conventional. Approximate pricing as of this morning 550 FICO 7.125%, 640 FICO 7.00%, 720 FICO 6.5%.

When income is variable (such as hourly income that isn't exactly 40 hours each week) then an average hours from the time you begun full time employment until the lender receives the employment verification form is used to calculate your qualifying income. So if you are working 38, 33, 35, 36, 40, 41, 40, 40 hours over the last 8 weeks then the average hours will be 37.875 multiplied by your hourly wage = weekly amount of qualifying income (x 52 weeks / 12 months) = monthly qualifying income.

If your employment is less than 40 hours a week but still is full time hours then it can still be considered full time employment, but most lenders will usually need at least 32+ hours worked per week. In your situation it's not a brand new job and you have a history of working less than full time, so you're really going to need to put in some effort documenting that it is actually full time. I'd recommend you get something in writing from your employer that confirms the hours you are working qualify you as a full time employee with full benefits, etc. Assuming you are paid hourly (vs. a salary) lenders will need documentation of your average full time hours in order to properly calculate your income, that can be obtained by your employer completing a Verification of Employment form.

There is something called "boarder income" which FHA, Freddie Mac and Fannie Mae's guidelines are below. FHA allows it with a 2-year history of reporting it on tax returns, but Fannie & Freddie only use it with live-in aides for disabled individuals. Boarders of the Subject Property (TOTAL) (a) Definition Boarder refers to an individual renting space inside the Borrower’s Dwelling Unit. (b) Standard Rental Income from Boarders is only acceptable if the Borrower has a two year history of receiving income from Boarders that is shown on the tax return and the Borrower is currently receiving Boarder income. (c) Required Documentation The Mortgagee must obtain two years of the Borrower’s tax returns evidencing income from Boarders and the current lease. For purchase transactions, the Mortgagee must obtain a copy of the executed written agreement documenting their intent to continue boarding with the Borrower. (d) Calculation of Effective Income The Mortgagee must calculate the Effective Income by using the lesser of the two year average or the current lease. The following chart contains requirements related to rental income from a Borrower’s 1-unit Primary Residence: 1-unit Primary Residence rental income eligibility requirements Eligibility Rental income generated from the Borrower’s 1-unit Primary Residence, including rental income from an ADU may be used to qualify a Borrower with a disability provided the rental income is from a live-in aide. Typically, a live-in aide will receive room and board payments through Medicaid waiver funds from which rental payments are made to the Borrower. Documentation Evidence that the Borrower has received stable rental income from a live-in aide for the most recent 12 months Qualification The rental income may be considered in an amount up to 30% of the total stable monthly income that is used to qualify the Borrower for the Mortgage Boarder Income Income from boarders in the borrower’s principal residence or second home is not considered acceptable stable income with the exception of the following: When a borrower with disabilities receives rental income from a live-in personal assistant, whether or not that individual is a relative of the borrower, the rental payments can be considered as acceptable stable income in an amount up to 30% of the total gross income that is used to qualify the borrower for the mortgage loan. Personal assistants typically are paid by Medicaid Waiver funds and include room and board, from which rental payments are made to the borrower. The HomeReady mortgage eligibility requirements include an additional exception. See Chapter B5-6, HomeReady Mortgage. The following table provides verification requirements for income from boarders. ✓ Verification of Income from Boarders Obtain documentation of the boarder’s history of shared residency (such as a copy of a driver’s license, bills, bank statements, or W-2 forms) that shows the boarder’s address as being the same as the borrower’s address. Obtain documentation of the boarder’s rental payments for the most recent 12 months.

There are certain loan programs, under the "Non-QM" umbrella, that will take the credit score from the higher wage earner to qualify. So if that would be your wife then her 680 would be used for eligibility and qualifying purposes. Think of it as a sub-prime loan, if you remember those from ~15 years ago, so it has higher rates than your traditional Fannie/Freddie mortgage but it allows certain flexibilities but require you to be better qualified in some areas (namely in the down payment category). Still, with a 550 score you would also be eligible for an FHA loan with a minimum 10% down and VA loans don't have a minimum score (if you or the Mrs. are a Veteran).

What you've been told is correct, in order to use a 2nd job as employment you must have a history of working 2 jobs for at least 24 months (full time or part time) and if you want to use part time employment to qualify then that also requires 2 years (that can be a mixture of full & part time employment). The reasoning is if there is an ample amount of time employed in that manner it's less likely you'll quit right after closing and lose that income you used to qualify with. In your situation you would've been employed for 24 consecutive months at both jobs but there was the gap during the pandemic, which unfortunately lender's don't make exceptions for. If you are short on the amount of income needed to qualify then it sounds like the way to increase your income would be to go full time at job B so the full time wages can immediately qualify and then keep job A as supplemental income. If that still doesn't give you enough qualifying income then there are "no ratio" loans which don't have a DTI requirement but they have larger down payment requirements (usually 20%+), reserve requirements (usually 12-18 months worth) and rates are higher. You could also look into a non-occupying co-borrower (co-signer) to help reduce your DTI on paper.

If there is a reduction of income that you can document then that should help you do forbearance/deferment with your lender. I am not sure of FHA's exact guidelines but it's worth reaching out to your mortgage company to ask about how to get the review process started. As far as going late for 2 months, you also need to completely catch up your payments before it'll start reporting on time. So if you don't make the payments for 2 months, and then in month 3 you are able to make all 3 monthly payments, then you'll only be 60 days & 30 days late for months 1 & 2 you missed... but if you aren't able to make all 3 month's payments in month 3 then you'll continue to have late payments reporting until you are current. Some things are more important than having a good credit score though, so just have to weigh out your options if the forbearance isn't successful.