Guide For Parents Of Cash-Strapped Millennial Home Buyers

There are several ways parents can help their adult children achieve homeownership: loans, co-borrowing, and gifts.

Source: Guide For Parents Of Cash-Strapped Millennial Home Buyers | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

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qtq80-rzoHvNMortgage and real estate experts often discuss the importance of marketing to millennials.  It stands to reason.  Millennials are a vibrant and growing niche in the real estate and lending markets. 

Millennials have not had it easy in this economy.

It is true that this economy has not been kind to many market segments, especially mellennials.  Because many millennials graduated with student loans in a stagnant job market, they do not have the financial ability to fulfill the down-payment and income requirements of mortgages.  Consequently, the mortgage industry has continued to develop safe products for a wide consumer base.  Products like FHA, Home Ready, USDA, VA, and Non-Prime responsibly support the changing needs of the real estate industry.  

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Buying A House: How To Deal With Tough Competition

Buying a house in a hot market requires a cool head. Consequently, would-be buyers must be prepared to act fast and pursue effective strategies to win their desired dwelling.

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Source: Buying A House: How To Deal With Tough Competition | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

Mike Nelson Equity PrimeI was looking at a list of mortgages I have worked over the past few months and came to the conclusion that I have met a lot of really interesting people.  I have worked on all sorts of deals – USDA, Foreign National, Bank Statements, FHA, Conventional, High Balance Conventional and Jumbos over $1,00,000.  There we a few refinances in the mix but most of the deals were purchase.  Each one of these products represents a different buyer with a different financial situation and certainly different goals for home ownership.

 

 

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Mortgage Rates: Predictions For 2017

Where will mortgage rates head next year in 2017? Find out what the experts think today. [shareaholic app=”share_buttons” id=”24213484″] Source: Mortgage Rates: Predictions For 2017 | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports Experts give their opinions on mortgage rates for 2017     This article is …

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Warrantable & Non-Warrantable Condo Mortgage Loans

Demand for condos is increasing nationwide and getting approved for a mortgage just got a little easier.

Source: New Rules: Warrantable & Non-Warrantable Condo Mortgage Loans 

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Equity Prime - Michael Nelson  There is  confusion about  condo financing versus financing for detached single family residences.   I suppose this is why buyers and agents ask me about the financing differences between these two property types.

What is a warrantable condo and does it affect financing?

A warrantable condo satisfies Fannie and Freddie conventional financing guidelines.  Loans that satisfy Fannie and Freddie guidelines qualify for purchase and sale on the secondary market.  This is important because lenders buy and sell mortgages on the secondary market.

Equity Prime - Michael NelsonDo lenders think condos are more risky than detached homes?

Yes, condos are  more risky for a lender than a detached home.  The lender on a single unit shares some of the risk for the entire complex.   Because of this shared risk items such as liability, fire, foreclosed units, vacant units, and delinquent HOA fees are all risks carried by both the lender and the individual owner.  Before the lender will loan money for the condo, the lender does the research necessary to quantify the financial risk of the property.

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There’s No Rule Against Re-Applying For A Mortgage

Don’t give up if your mortgage application is turned down. You might be very close to an approval. Ways to try again.

Source: There’s No Rule Against Re-Applying For A Mortgage | Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports

 

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75% of Applicants Are Approved For Their Mortgage!

Michael Nelson - Equity PrimeAccording to Ellie Mae the 75% approval rate is at its highest level in more than a decade. That is obviously great news for those purchasing a home and for those existing homeowners who are taking advantage of the robust refinance market.

What Do The Other 25% Do?

Michael Nelson - Equity Prime

 

Denial of credit is, usually, not permanent.  This is good news.  Loan offers and underwriters analyze many financial factors in every loan file. Automated underwriting systems (AUS), FICO scores, debt to equity ratios, loan to value ratios, and the appraised vale of the home are indicative of a borrowers ability to repay a mortgage.  None of these factors are permanent and all can be improved with good financial planing.

A reputable lender will work with borrowers who are denied credit.  The loan officer must take time to explain the reasons for the denial and offer suggestions for improvement.  For a fee, credit repair companies  provide recommendations for retiring debt that is responsible for the mortgage denial.   Frequently the loan officer will check the AUS findings and make recommendations that will improve FICO scores.

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