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PMC is Your Conventional, Govi, Alt-A, Hard $, Commercial and Business Financing Guru

September 26, 2017

Platinum Mortgage Company has a solution for you whether you are seeking capital for investments, need additional cash-flow to build your business or just wanting to consolidate high interest debt.

 

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PMC Can Help!

 

Cash-out refinancing is a great way to turn high-interest debt into low-cost debt.  Since,  the loan is secured by real property, mortgage financing is one of the least expensive ways to pay for anything. There are no restrictions on the use of the funds. Lenders will require an itemized cash out letter to be noted in your loan application file.  By consolidating high-interest debt and improving their mortgage interest rate, borrowers may be able to stretch their income further, get their finances under control, and correct overspending habits.

Cons: Cash-out refinancing is considerably more expensive than taking out a second mortgage due to 3rd party fees.  Cash-out refinancing loan-to-value limits tend to be more restrictive (VA up to 100%, FHA up to 97.75% and Conventional Cash-out up to 80% LTV) than second mortgage limits, which can go up to 90% LTV.  It may also be risky to move unsecured, high-interest consumer debt to a mortgage secured by your home. If the homeowner becomes unable to make the higher mortgage payment, he or she may lose the home in a foreclosure.

Pros: A cash-out refinance can be used for the same reasons as a traditional refinance such as converting to a fixed rate from an adjustable rate, lower monthly outgoing payments, add flexibility, or obtain a better interest rate (typically lenders want to see a 5% reduction in payment for a net tangible benefit). The cash taken can be used for any purpose, from paying off debt, remodeling your home or for your children’s tuition to college. Additionally, mortgage interest is probably tax-deductible (homeowners should verify this with a tax professional).

Refinances can take on an average of 30 days to close.  Some of our lenders have quicker turn times depending on the loan scenario.

Remember, when buying a home or refinancing it is best to make sure your score is as high as possible since it is one of the largest purchases you will make.  A .25% better in rate is thousands of dollars in savings over the life of a 15 or 30 year fixed mortgage.  720+ is your target score.  Payoff any credit cards you can 90+ days prior so that it has time to update with the bureaus.

Download this helpful FICO tip booklet from http://www.fico.com: UnderstandingYourFICOScore

Apply Online and get pre-approved www.pmccanhelp.com.

PMC has over 50 loan programs and all of our lending specialists are dedicated to finding the right loan with the best rates, terms and costs to meet our client’s unique needs, but this is just the beginning of our service.

Visit Our Website:
www.pmccanhelp.com

FOR A FAST PRE-APPROVAL:
Complete a loan application on our website
APPLY NOW

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CA, OR & WA NMLS 266371

Great Find on Pinterest from Credit Sesame on refinancing to lower your interest rate:

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Any Home Can Become a Dream Home

September 15, 2017

Ask PMC About a Home Renovation Loan

PMC RenovationWhile rates are still low it is a good time to refinance or become a homeowner. 

Our goal is to find you the best financing available to save the most money. 

Just ask the experts at PMC.  Email your scenario to info@pmccanhelp.com.

 

Make sure to visit our website:  www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA, OR & WA brokerage for since 1989.  Visit our Careers website and apply online today! www.pmccareers.com

Follow our Mortgage on:

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Conventional vs FHA – No Score Borrower

August 29, 2017

Buying a home with a no score borrower/co-borrower?  Here is some helpful information:

Fannie Guideline:

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Read more:

https://www.fanniemae.com/content/guide/selling/b3/5.4/01.html

https://www.fanniemae.com/content/guide/selling/b3/5.1/02.html

FHA Guideline:

The lack of a credit history, or the borrower’s decision to not use credit, may not be used as the basis for rejecting the loan application.  Some prospective borrowers may not have an established credit history. For these borrowers, including those who do not use traditional credit, the lender must obtain a non-traditional merged credit report (NTMCR) from a credit reporting company, or develop a credit history from

  • utility payment records 
  • rental payments 
  • automobile insurance payments, and 
  • other means of direct access from the credit provider, as described in HUD 4155.1 4.C.1.e.

Only if a NTMCR does not exist, or such a service is unavailable, may a lender choose to obtain independent verification of credit references. Lenders must document that the providers of non-traditional credit do exist, and verify the credit information. Documents confirming the existence of a nontraditional credit provider may include

  • public records from the state, county, or city, or 
  • other documents providing a similar level of objective information.

To verify credit information, lenders must use a published address or telephone number for the credit provider and not rely solely on information provided by the applicant.
If a method other than NTMCR is used to verify credit information or rental references, all references obtained from individuals should be backed up with the most recent 12 months of cancelled checks.

A rental reference from a management company with payment history for the most recent 12 months may be used in lieu of 12 months of cancelled checks.

TOTAL Scorecard Accept/Approve Recommendation If TOTAL Scorecard has issued an Accept/Approve recommendation, additional development of a credit history is not required.

When analyzing a borrower’s credit history, the underwriter must examine the overall pattern of credit behavior, not just isolated occurrences of unsatisfactory or slow payments.  A period of past financial difficulty does not necessarily make the risk unacceptable, if the borrower has maintained a good payment record for a considerable time period since the financial difficulty occurred.

Read more from HUDCLIPS:

https://portal.hud.gov/hudportal/documents/huddoc?id=4155-1_4_secC.pdf 

Manual Underwriting:

Compensating factors which can be used for a higher DTI on manual loans below…

  • Payment shock–current housing payment vs. new housing payment (must not go up more than 5% or $100.)
  •  Reserves—3 mos. of reserves are needed (2-4 units need 6 mos.)
  •  Residual income- the amount of income left over after paying all debts; please see worksheet to figure out the calculation (family size, gross living area of home, debts are needed to calculate)

Website to calculate taxes, SSI, etc.  used for #5 on the calculation chart (attached)   https://www.paycheckcity.com/calculator/salary/; 

DTI limits depending on # of comp factors

  • Manual with no comp factors 31/43
  • Manual with no comp factors and no consumer debts 40/40
  • Manual with 1 comp factor 37/47
  • Manual with 2 comp factors 40/50

See HUD link below for more details:

http://portal.hud.gov/hudportal/documents/huddoc?id=14-02ml.pdf

It is best to establish 4+ open lines of credit 90+ days prior to applying for credit.  Secured cards are helpful to establish a score.  It is best to have a $0 balance on the cards.  Buy something small to activate the card sooner as it can take up to 90 days to report with the bureaus.  Check creditkarma.com prior to getting pre-approved.

Our goal is to find you the best financing available to save the most money.  Just ask the experts at PMC.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:  www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA, OR & WA brokerage for since 1989.  Visit our Careers website and apply online today! www.pmccareers.com

Follow PMC on:

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Low Doc Business Purpose Loans Up to 80% LTV

May 30, 2017

Self Employed

Check Out Other Niche Programs:

  • NEW INTEREST ONLY now on our NON PRIME program
  • NEW ITIN program 
  • NEW 12 month BANK STATEMENT program 
  • STATED (NO INCOME) to 2 MILLION 
  • NEW ATR in FULL with qualifying just on the assets alone – NO income & NO job verification – A NO DOC
  • Loan amounts up to $3 MILLION
  • Up to 90 % LTV NO MI (use 24 months of business or personal bank statements, or assets as income)
  • Can use asset depletion income with bank statement or full doc program to get under 50% DTI
  • Stated to 75% LTV non-owner (NO income verification)
  • 1 DAY out of SHORT SALE, BANKRUPTCY AND FORECLOSURE OK
  • No reserves required ON majority of our programs
  • higher DTI’s than conventional loans
  • Gift of Funds OK for OWNER OCCUPIED and NON OWNER OCCUPIED (can be for FULL DOWN payment)
  • Late mortgage payments in the last 12 months are OK
  • Non-Owner or 2nd homes to 75% LTV Purchase and up to 70 LTV for REFI
  • Stated owner occupied cash out for business purpose loan only
  • Non-warrantable condo’s (loans for condo’s that Fannie and Freddie will NOT purchase)
  • No pre-payment penalty on all programs & INTEREST ONLY option 
  • FICO scores down to 500 (and below on exception)
  • Can finance someone who owns 20 properties!
  • going up to 75 LTV on our STATED (No income verification) loans
  • going up to 75 CLTV on our 2nd MTG product
  • going up to 75 LTV on our 2nd HOME product
  • going up to 70 LTV for our TRUE FOREIGN NATIONAL program – STATED
  • STATED NO INCOME FOREIGN NATIONAL now to 2 MILLION

Our goal is to find you the best financing available to save the most money.  Just ask the experts at PMC.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:  www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA, OR & WA brokerage for since 1989.  Visit our Careers website and apply online today! www.pmccareers.com

Follow our Mortgage on:

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Need a Low Doc Loan for Business Purposes (CA, OR & WA)?

May 10, 2017

Normally a consumer credit transaction will be subject to the provisions of the Federal Truth in Lending Act (“TILA”), Regulation “Z”, the Real Estate Settlement Procedures Act (“RESPA”), and Regulation “X”. However, TILA and Reg “Z” provided a number of exemptions for:

•Business Purpose Exemption;
•Credit Extension to Acquire, Improve, or Maintain Single Family Rental Property;
•Credit Extension to Acquire, Improve, or Maintain Owner Occupied Rental Properties of Two (2) or More Units;
•Credit Extension to Foreign National Borrowers;
•Loans on Properties of Twenty-Five (25) Acres or More; and / or
•Cross-Collateralized Properties With One Being Owner Occupied.

The mission of the Outside Dodd Frank Loan Program is to provide financing to loan requests on a stated income with verified assets loan request under specific terms and conditions.

Outside Dodd Frank Loan Program

Lending Program on case-by-case basis is designed to address any lending opportunities that do not conform to Non-Prime Guidelines (NPG). Among those opportunities will be loan requests for Ability-to-Repay (ATR) complaint loans such as:

•Property listed for sale currently or in the very recent past;
•Borrower’s with insufficient credit depth;
•Properties that are in need of repairs but are not subject to withhold of funds to make such improvements; or
•Any other request of a nature that does not conform to NPG but has merit with Senior Management approval.

Normally a consumer credit transaction will be subject to the provisions of the
Federal Truth in Lending Act (“TILA”), Regulation “Z”, the Real Estate Settlement Procedures Act (“RESPA”), and Regulation “X”. TILA and Reg “Z” provided a number of exemptions; one of which is the business purpose exemption. To wit:
Credit transactions involving extensions of credit primarily for business, commercial, or agricultural purposes.

A seasoned real estate investor with 2+ rental properties (or if purchasing a 2nd rental property) will be held as an exemption to these rules in that their business is the ownership of real estate in their personal name. For qualification purposes, they will need to provide the same documentation as a standard Non Owner Occupied product.

The investor/lender will consider mortgage loans secured by a Borrower’s Personal Residence analyzing the proposed loan transaction as a whole for classification for a Business Purpose Loan provided that:

1.The Borrower is currently self-employed or will be purchasing a business or franchise;
2.The primary purpose of the loan is more than one-half (50%) proceeds are employed for the stated business purpose;
3.The Borrower’s primary occupation is or will be related to the current business or any acquisition for entry into or expansion of a business;
4.Documentation is presented in the form of contracts or offers to purchase that provide the reason for the loan and how loan funds or a portion thereof will be deployed;
5.The Borrower’s statement of purpose for the loan; and
6.Loan funds are credited to borrowers business directly through the HUD-1at closing.

Specific examples of acceptable needs that may be fulfilled by a Business Purpose Loan:

1.A loan to expand a business.
2.A loan to improve a principal residence by building out a business office.
3.A loan to buy equipment specific to a business.
4.Loans on Property of twenty five (25) acres or more.
5.Investment in a Corporation, LLC, or other type of entity from which the Borrower intended to personally benefit.
6.A borrower with 2+ rental properties (or if purchasing a 2nd rental property) may use either the Debt-Service Coverage Ratio method for the subject property on its own or an aggregate of net rental income for all rental properties to qualify.

Borrowers eligible under the Foreign National Program are:

•Non-Resident Alien is a Foreign National who is not authorized to live or work in the U.S. A true Foreign National may periodically visit the U.S. for various reasons including vacation and / or business. They may purchase property for either personal use or investment.
•Borrowers who are holders of Individual Tax Identification Numbers may be considered on a case-by-case basis for this program.

Rehab:

Investor/lender will consider for funding loans on properties that require rehabilitation and or improvements. Such loans are not to be considered construction loans but simply “home improvement” to improve or make a property habitable.

Listed for Sale:

Investor/lender will consider for funding any property(s) listed for sale currently or in the recent past. While atypical, each such request will be considered on its own merit to a maximum Loan-to-Value of 65% based on a current appraisal and Broker Price Opinion.

Cross Collateral:

Investor/lender will consider more than one property as collateral for a loan request in the instance where there is insufficient equity to provide a reasonable Loan-to-Value. While it is preferable to have a first lien on any and all property offered as collateral for a loan, CSC will consider a second or junior lien position on one property from time to time.

Matrix:

  • Property Types – SFR / Low and High Rise Condos / Townhouse / 2-4 Units
  • Occupancy – Owner – User / Second Home / Non Owner
  • Credit Scores – 500+
  • Documented ATR may be applicable under certain scenarios
  • Loan Terms – 30 Year Amortization & Term – 7/1 Hybrid ARM
  • Index & Adjustment Caps – Floored at Start Rate / 1-Year CMT / 6.950% Margin – 2.0%
  • Initial Change Cap / 2.0% Annual Cap / 6.0% Life Cap
  • Refinance of Property Listed for Sale within last
  • Loan Amounts – $100,000 – $2M (Round Down Loan Amount to $50 increments)
  • Loan Amounts >$1,000,000 require Senior Management Approval
  • Loan Amounts >$1,000,000 require 600 Minimum FICO
  • Loan Amounts >$1,000,000 require an Appraisal & BPO
  • Loan Amounts >$1,500,000 require two Appraisals
  • Foreign National Loan Amt. >$1,000,000 considered for NOO only
  • Foreign National – Funds to Close Must Be Verified in U.S. Dollars with Valid Banking Relationship in Country of Origin
  • Foreign National cash out ≥ 65% Case-by-Case basis
  • Stated Income / Verified Assets (If Applicable)**

PMC offers other low docs loans or bank statement loans, which require CPA/P&L/Balance Sheet and 12-24 Personal/Business Bank Statement Loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save  you the most money.  Ask the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA, OR & WA brokerage since 1989.  Visit our Careers website and apply online today! www.pmccareers.com

Follow our Mortgage on:

www.facebook.com/pmccanhelp

http://www.twitter.com/pmccanhelp

http://www.linkedin.com/in/pmccanhelp

Let us know how we can help. 

 

Tax-Time: 101+ Real Estate Agent Tax Deductions

April 5, 2017

101+ Real Estate Deductions

Sweating?  Yes, it is that time of year…and you have procrastinated again.  Lucky you can get 3 extra days to extend or file your personal return as long as you e-file or postmark it by April 18, 2017.  It makes sense to wait if you owe the government money, since they would earn interest on your money.

We found this great list of legal tax deductions for real estate agents, any small business or independent contractor.  We also suggest getting QuickBooks for Self-Employed.  They have a special for $5 month for their basic program or $12 a month, which includes e-filing:

Separate business and personal expenses in a single click

  • Maximize your deductions with Schedule C categorization
  • Quarterly estimated taxes calculated automatically
  • Automatic mileage tracking helps you identify money saving deductions
  • Pay quarterly estimated taxes online
  • File faster by exporting Schedule C to TurboTax
  • One federal and one state tax return filing included

We hope this was informative.

PMC offers CPA/P&L/Balance Sheet and Personal/Business Bank Statement Loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save  you the most money.  Ask the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA, OR & WA brokerage for over 28 years.  Visit our Careers website and apply online today! www.pmccareers.com

Follow our Mortgage on:

www.facebook.com/pmccanhelp

http://www.twitter.com/pmccanhelp

http://www.linkedin.com/in/pmccanhelp

Let us know how we can help.  Happy Filing!

 

New Program: Home Equity 360

March 28, 2017

PMC 360 Wholesale Combo HELOC 2017_1

 

 

 

PMC 360 Wholesale Combo HELOC 2017_2

Home Equity 360 is as an alternative option to our HELOC Interest-Only, the Home Equity 360 offers a 30-year term (10-year draw, 20-year repayment period) with a principal-reducing payment structure that allows for predictability and planning through the draw and repayment period.

Property Types

·        Eligible Property Types: Single Family Residence (SFR), 2-4 units, PUDs, Condos

·        Ineligible Property Types: Modular Pre-Cut/Panelized Housing/Manufactured Homes, Leasehold Estates, Co-ops/Condo Hotels

General Underwriting

·        For topics not covered in this matrix, refer to the Fannie Mae Selling Guide

·        Qualifying payment calculated over 20-year term at qualifying rate

·        Qualifying rate equals start rate (index + margin) plus 2.00%

·        Maximum first mortgage balance of $1,000,000

·        For investment properties, maximum number of financed properties is four (4)

DTI

Maximum Debt to Income Ratio (DTI): 50%

Income & Asset Doc Requirements

·        Follow first lien guidelines for income documentation and calculations

·        Follow first lien guidelines for asset documentation and calculations

·        IRS 4506 tax transcripts are required on all self-employed borrowers.

·        A Verbal Verification of Employment must be obtained prior to funding

Derogatory Credit

Borrower is not required to provide a letter of explanation for any significant derogatory credit

Funding Credit Reports

·        A single bureau credit report is not required to be pulled PTF.

·        If the first lien has Undisclosed Debt Monitoring a copy of the first lien UDM report pulled at funding must be placed in the HELOC file.

Appraisal

·        Follow the first lien appraisal requirements

·        All HELOCs with line amounts > $250,000 require a 1004/1073 (or equivalent) appraisal report

Existing HELOCs

For an existing FB HELOC being subordinated (including loans located out of the FB footprint) the Combo matrix guidelines do not apply if they meet ALL of the following:

1.      Subordinated at the existing line limit (no modifications)

2.      Qualifies at the existing HELOC balance and payment ( no pay down of the existing balance required to qualify)

3.      HCLTV < 80% 4.   DTI < 50%

Existing FB HELOCs being subordinated that do not meet the above requirements are subject to all terms and requirements outlined in this Combo matrix

Other

•        All exceptions to this matrix or other underwriting requirements require completion of the exception screen and must align with the Residential Lending and Consumer Lending Authority Limits Matrix

PMC has a wide array of loan programs including Lite Doc Income Loans (CPA/P&L/Balance Sheet and Personal/Business Bank Statement Loans) (single account – using average monthly deposit averages – 100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save you the most money. Ask the experts. Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA & WA brokerage for over 28 years. Visit our Careers website and apply online today! www.pmccareers.com

Follow our Mortgage on:

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http://www.twitter.com/pmccanhelp

http://www.linkedin.com/in/pmccanhelp

Bad Credit, No Credit or Low Scores? Simple Fixes.

March 23, 2017

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Do you know what is showing on your credit report?   Have you checked lately?  If not, then maybe you should today.  CreditKarma has a handy “soft pull” system (no hit to your FICO) to see what changes have occurred with all three major credit bureaus.  You can get updates every 7 days and even look at past pulls to compare how you have improved.  Remember, as a consumer you do have legal rights to protect yourself from companies injuring your credit.  You can also get a free annual credit report from each bureau on http://www.annualcreditreport.com.

Cleaning up your credit before a major purchase is vital.  The cleaner the credit the less riskier you will seem to the creditor and the better the rate/terms you will receive.  This could equal thousands of dollars in savings.  You work too hard.  So don’t throw your money away.

You can request disputes online and receive email notifications once the disposition has been updated.  Many don’t realize they can remove name variations, incorrect addresses, old phone numbers or even past employers if needed.   Many times there are duplicate accounts or illegally re-aged collections that are being reported that can also injure your score too.  We find some clients that have child support and student loans in collections that will be required to be current and good standing when applying for a home loan.

Good news is the credit bureaus have decided to remove tax liens and judgments from public records sometime in July for liens and judgments reported that do not contain all of the information: a name, an address, and either a date of birth or a social security number.  This will help many improve their scores.  Read: http://fortune.com/2017/03/13/fico-credit-scores-personal-finance/

Our best advise is to payoff any small credit cards to get the maximum points and to even request credit line increases about 90 days prior to applying for credit.  It can take up to 90 days to update balances.   Keep in mind that you are measured on how much credit you are granted, how much you are using and how old the account is.  We recommend having at least 4 open good standing accounts to continue building your credit.  Many people think you are required to use the credit cards every month and to maintain a balance…this is not true.  Just use the card every so often and pay it off before the grace period to keep the account open.  If you call and verbally close a good standing account you will lose about 20 points when doing so, but if the creditor closes the account due to no activity you will not lose any points.

When applying for a mortgage all disputed accounts will be required to be settled, deleted, or resolved prior to closing your loan.  This can be tricky and time consuming to get the bureaus to update this.  You can call, request online or by mail.

To get the best financing promotions/rates, your goal is to maintain a 720+ mid FICO.  It is best to always stay on top of your credit profile.  You don’t have to hire a credit repair company and pay high fees to clean up your credit.  You can do this on your own.  Here is some great information e found online regarding errors reported by credit bureaus:

From: http://www.creditinfocenter.com/forms/sampleletter12.shtml

The following is a sample letter informing a credit reporting agency that you have filed suit against them.  Make sure to edit this one carefully to include all of your correct information. Some of the language in this letter was from an identity theft case so you will have to tailor the verbiage to fit your situation. You will also want to provide them with a copy of the filed lawsuit.

This letter is part of our debt validation section. We have other sample letters to handle a variety of credit situations. Here is the list.

Date

Your Name
Your Address

Credit Bureau
Bureau Address

RE: Your Social Security Number

Dear Credit Bureau,

Enclosed is a copy of the lawsuit that I filed against you in (your county) court on (date of filed). Currently, the Pretrial Conference is scheduled for (insert date and time and location). The case number is (insert case #).

The lawsuit was filed due to the utter lack of response from your company. When someone is the victim of identity theft, it is simply a nightmare trying to get false information removed from a credit file. I have contacted all of the false creditors listed on my credit file. I have challenged all of the false listings on my credit file. Nothing ever happens to fix the situation.

Over 90 days ago I wrote each the creditors in question and demanded proof that I am their customer. I asked for proof of the alleged debt, including specifically the alleged contract or other instrument bearing my signature. So far none of them has been able to provide such proof to me. I have sent follow-up letters to each of them and there is still no proof. I have attempted phone contact, but I simply get transferred around and nothing ever gets accomplished.

I have fully investigated my rights in this matter. Under the doctrine of estoppel by silence, Engelhardt v Gravens (Mo) 281 SW 715, 719, I may presume that no proof of the alleged debt, nor therefore any such debt, in fact exists. I have copies of the certified letters and dates prepared to bring to court on April 10th. Also, under the Fair Credit Reporting Act, these disputed items may not appear on my credit report if they cannot be supported by any evidence.

Under the Fair Credit Reporting Act, if they cannot verify the debt within 30 days, then it must be removed. Your letters to me claim to have “verified” the debt, but this is in fact not true under law. Simply contacting the alleged creditor and asking them to match up numbers in their database is no sufficient verification for identity theft. Of course the information matches up. Someone clearly used my information without my authorization.

Now I am suing Equifax for being such a pain in the posterior to me. I have provided more than sufficient evidence to get these false accounts removed.

You may contact me before (insert date) via letter at my address listed at the top of this letter. This matter can be settled simply by your agreement to remove the false information from my credit file.

I require a response, on point, in writing, hand signed, and in a timely manner. If I get another pointless letter from you saying that it has already been “verified” then there will be no more opportunity for negotiation. This will proceed in court until I have successfully proven to a judge that this false information must be removed from my credit file. I will also be aggressively pursuing the full judgment that I can get against Equifax for violation of the Fair Credit Reporting Act and Defamation.

I have already won a similar lawsuit against TransUnion. Enclosed is a copy of that settlement. I will agree to a similar settlement with Equifax, if you contact me before (insert date). If you accept the same terms as TransUnion did, then I will dismiss my lawsuit against Equifax and you will not need to appear in (my county and state).

The items to be removed from my credit report are listed as follows:

(list all accounts and account numbers)

I look forward to your response.

Sincerely,

Your Signature

Your Name
SSN# 123-45-6789
Attachment included

More great info:

http://www.experian.com/blogs/ask-experian/category/credit-advice/report-advice/dispute/delete-information/

We hope this was informative.  Let us know how we can help.

PMC offers CPA/P&L/Balance Sheet and Personal/Business Bank Statement Loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save  you the most money.  Ask the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

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FHA Reverse Mortgages (HECMs) for Seniors (Purchase or Refinance)

March 21, 2017

 

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If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, and are eligible, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program.  The HECM is FHA’s reverse mortgage program that enables you to withdraw some of the equity in your home with limitations or a single disbursement lump-sum payment at the time of mortgage closing.

You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

How the Program Works

There are many factors to consider before deciding whether a HECM is right for you.  To aid in this process, you must meet with a HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable.  Upon the completion of HECM counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs.  You can search online for a HECM counselor or call PMC 800-385-3657 to have one of representatives help you.

General Requirements

  • You must be at least 62 years or older – Since reverse mortgages were designed to help seniors to afford to stay in their homes, this loan is only available to individuals in retirement age.
  • You must own your home – You must be on title of the home. You must also either own your home outright, or have a low enough remaining mortgage balance for the reverse mortgage loan to pay it off.
  • Your home must be your primary residence – Again, because this loan was meant to help seniors stay at home, borrowers must live in the home and cannot live elsewhere for more than 12 consecutive months.
  • You must complete a HECM counseling session with a HUD-approved counseling agency – The U.S. Department of Housing and Urban Development (HUD) provides a list of third party agencies for you to choose from. The purpose of this requirement is to inform the homeowner of all of their, and can evenly weigh the pros and cons of each.

Home Qualifications

  • Your home must be a 1-4 unit (multiple family) home with one unit occupied by you. – According to HUD, the most common type of property eligible for a reverse mortgage is a single family home. If your property is a multiple family home, then one of the units must be your primary residence.
  • Your home can be a manufactured home as long as it meets FHA requirements. – You can check the Federal Housing Administration’s (FHA) website for these requirements.
  • Your home can be a condominium if it is HUD-approved. – More information about HUD-approved condos can be found on their website or ask a PMC representative.

There are certain kinds of homes that simply do not qualify for a HECM loan. Vacation homes or secondary homes are not approved under reverse mortgage qualifications because they aren’t considered the homeowner’s primary residence. Also, if your home is on income-producing land such as a farm, then it is not eligible either.

Financial Qualifications

  • You must be financially able to pay your property taxes, insurance, and home maintenance and any applicable HOA fees. – One of the most important things to remember about reverse mortgages is that you are still responsible for paying your property taxes, home insurance, and any home fees like Home Owner’s Association (HOA) fees for the life of the loan. The benefits of reverse mortgages only apply if you comply with all loan terms, because otherwise you may be at risk of defaulting on the loan.
  • You cannot be delinquent on any federal debt.

These reverse mortgage qualifications and requirements may seem daunting, but don’t let that prevent you from applying.  A PMC representative can walk you through the whole process and let you know if there are other location-specific, property-specific, or borrower-specific requirements that you should be aware of.  Many homeowners have found that once they satisfy the requirements for reverse mortgages, the benefits of this unique loan helped them achieve a better quality of life.

HECM for Purchase Frequently Asked Questions

The FAQs on this page were written for lenders and housing counselors, however, seniors may find them helpful for an overview of the program.

What is HECM for Purchase?

HECM for Purchase allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.  

What is the purpose of the program?

The program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, one level properties, ramps, wider doorways, etc.  

What if the HUD-1 Lines 303 and 603 do not match the figures from the Loan Amortization Schedule?

The HECM for Purchase closing will use many of the acceptable practices used for insuring forward mortgages. Because the HUD-1 Settlement Statement is the final statement, it will reflect final adjustments (e.g., adjustments for fuel, electricity, etc.) not captured on the Reverse Mortgage Loan Amortization Schedule.

Is the fixed interest rate eligible in a HECM for purchase loan?  Yes.  

What documentation should be used to document the 60-day physical requirement to occupy the property after closing?

The HECM security instrument requires the HECM mortgagor to establish a legitimate principal residence in the home. Lenders are encouraged to ensure the HECM mortgagor lives in the home prior to submitting the case binder for endorsement. Lenders may, but are not required to, obtain a letter from the HECM mortgagor stating he/she lives in the home.  

Are lenders required to submit form HUD 92541, Building Certification of Plans, Specifications & Site and 10-year warranties in the case binder?

No. Newly constructed properties must be 100% complete at the time of inspection and initial application.

Under what conditions may a senior cancel the purchase transaction?

The senior may decide to cancel the purchase transaction at any time prior to the date of closing. If the senior decides to cancel the transaction, he/she must notify all parties in writing. Where earnest money has been provided, the senior should review the sales contract to determine if the earnest money is refundable. The Federal Reserve Board of Governors should be contacted for right of rescission and Truth in Lending Act guidance.  

Are the mortgage proceeds paid to the seller through escrow?

The title company (settlement agent) is responsible for disbursing funds in accordance with state law.  

Is this a HECM for purchase or a traditional HECM?

A senior purchases a principal residence using 100% seller financing, signs a HECM loan application the next day or shortly thereafter and meets all eligibility criteria for obtaining a HECM. Does the Federal Housing Administration (FHA) consider this transaction to be a traditional HECM or a HECM for purchase transaction?

This scenario describes a traditional HECM. Consistent with existing policy guidance, the HECM loan proceeds will satisfy a recorded lien that was created from the seller financing. Lenders may request a copy of the executed HUD-1 and warranty deed, or its equivalent, to ensure transfer of title to the prospective HECM mortgagor.  

Once a principal residence has been purchased using HECM loan proceeds, can the property serve as collateral for another secured loan?

Yes, only after the mortgage insurance certificate has been issued. Lenders are responsible for ensuring additional secured liens are subordinate to the HECM first and second liens. Such financing may not occur concurrently with the HECM closing.  

What property types are eligible?

Existing one-to-four unit properties where construction has been completed and the property is habitable as evidenced by local jurisdiction issuance of certificate of occupancy or its equivalent.  

Can a HECM for purchase be used to satisfy outstanding payment obligations associated with a land contract?

Yes, if the property will be used as collateral for the HECM and the mortgage will be held in fee simple, or on a leasehold under a lease for not less than 99 years which is renewable, or under a lease having the remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest mortgagor.  

Can a lender take application on a property that is under construction and not habitable?

No. The lender may only take application once the Certificate of Occupancy or its equivalent has been issued.  

What property types are ineligible?  

  • Cooperative units
  • Newly constructed residences where a Certificate of Occupancy or its equivalent has not been issued by the appropriate local authority
  • Boarding houses
  • Bed and breakfast establishments
  • Existing manufactured homes built before June 15, 1976; and
  • Existing manufactured homes built after June 15, 1976 that fail to conform to the Manufactured Home Construction Safety Standards, as evidenced by affixed certification labels (e.g., data plate and HUD certification label) and/or lack a permanent foundation as required in HUD’s Permanent Foundations for Manufactured Housing Guide or homes that are installed or were occupied previously at another site or location.

Are set asides for property charges allowed (i.e., ground rent, tax, insurance, Homeowner Association fees, etc.)?

Yes. Mortgagors will continue to have the option of electing to have the lender withhold funds from their monthly payments or by charging such funds to the line of credit.  

Are set asides for repairs allowed?

To be eligible for federal insurance, the property must meet FHA minimum property requirements. All repairs to correct major property deficiencies that threaten the health and safety of the homeowner and/or jeopardize the soundness and security of the property must be completed by the seller prior to closing. Appraisers must complete the appraisal report as “Subject To” the completion of these repairs.

Major Property Deficiency Examples:

  • No running water
  • Leaking roof
  • No primary heating source
  • Inadequate electrical system (including lighting)
  • Inoperable doors and windows (inhibited ingress and egress)
  • State or local code violations

Is the Amendatory Clause required?

Yes. An appraisal is required for all HECM transactions, including purchase transactions. The execution of the Amendatory Clause does not negate federal and state mandates on providing a copy of the appraisal to the consumer.   

Are there special procedures for foreclosure homes that will serve as collateral for a purchase transaction?

No. FHA has sufficient valuation guidelines related to comparable sales and declining markets to address the resale of foreclosed properties. HUD has imposed a standard of accountability to which lenders, sponsor lenders, and loan correspondents will be held is the same as the standard used to impose civil money penalties for program violations, and that standard is one of knowing (actual knowledge) or had reason to know.  

If the lender suspects the senior has become involved in a property flipping scam, who should be contacted?

If a lender suspects a senior has become a victim to a property flipping scam, contact the Processing and Underwriting Division of the local HOC. Complaints may also be reported to HUD’s Inspector at: HUD Office of Inspector General Hotline, GFI, 451 7th Street, SW Washington, DC 20410.

Are gifts an acceptable source of funding?

Prospective mortgagors may use their own money or money obtained from the sale of assets. The monetary investment requirement can also be met by the use of approved funding sources as defined in HUD Handbook 4155.1 REV-5, section 2-10, with the exception of the following funding sources which may not be used:

  • Sweat Equity
  • Trade Equity
  • Rent Credit
  • Cash or its equivalent, in whole or in part, from the following parties, before, during or after loan closing: – The seller or any other person or entity that financially benefits from the transactions, or – Any third party or entity that is reimbursed, directly or indirectly, by any of the parties described in the previous bullet. 

What would be an “allowable FHA funding source” for gap financing of the equity portion?

A withdrawal from the mortgagor’s savings or retirement account would be an acceptable funding source.

How is the maximum claim amount and principal limit calculated?

For HECM purchase transactions only, the maximum claim amount will be the least of: 1) the appraised value; 2) sale price; or 3) FHA mortgage limit for a one family residence. The principal limit is determined by multiplying the maximum claim amount by the principal limit factor corresponding to the age of the youngest mortgagor, the expected interest rate and the initial MIP option that the borrower selects.  

Can prospective mortgagors apply credit card cash advances towards the required monetary investment or closing costs?

No. This would be a violation of 24 Code of Federal Regulations 206.32(a), which requires all outstanding obligations connected to the HECM transaction, purchase or otherwise, to be satisfied prior to or on the date of closing.  

Are seller concessions allowed?

No. Seller concessions are applicable to forward mortgages only.

Is seller financing permitted? No.  

Is the Real Estate Certification required? Yes.

When purchasing a new principal residence, if the HECM proceeds do not cover the sales price, can part or all of the property’s indebtedness be subordinated behind the first and second HECM liens if the existing lien holder is willing to execute a subordinate agreement?

No. All existing liens must be satisfied at the HECM closing.

If the source of funds comes from the sale of the homeowner’s principal residence or other owned property, and the sale is occurring the same day as the closing on the HECM, can a copy of the executed HUD-1 and cashier’s or certified check, evidencing the sale, be used to verify the funding source? Yes. In addition to the HUD-1, a copy of the sales contract executed by all parties and a copy of the cashier’s or certified check bearing the name of the seller can be used to verify the funding source.  

Can prospective mortgagors obtain a secured or non-secured loan from another asset (i.e., car, home equity line of credit, or investment property or second home) to satisfy the monetary investment or closing costs?

No. Consistent with existing policy, bridge loans and other interim financing methods associated with HECM transactions are prohibited, unless the unpaid or outstanding obligation can be satisfied prior to or on the day of closing.

In lieu of providing a Verification of Deposit with the most recent bank statement, what other alternative documentation will FHA accept? Note: Full Doc vs. Alt Doc-one is a compliment for the other.

FHA will accept the two most recent, consecutive original bank statement(s), belonging to the borrower, which covers the most recent (three-month period) and previous month’s balance. Bank statements that are more than 120 days old prior to the closing date are not acceptable.   

Is the finance transaction of Loan A prohibited in this scenario?

Senior currently owns Home A. Senior wishes to purchase Home B. Senior borrows money (with Loan A) and uses Home A as collateral for Loan A, and uses the money from Loan A for a down payment on Home B. The remainder of the Purchase proceeds for Home B, which will be the senior’s principal residence, comes from a HECM for Purchase transaction.

Yes the transaction is prohibited. Although Loan A served as a secured loan tied to Home A, the money was applied toward the HECM for purchase transaction and would violate 24 CFR 206.32 (a) which provides that there shall be no outstanding or unpaid obligations incurred by the HECM mortgagor in connection with the HECM transaction.

Can the HECM mortgagor participate in a rent back/leaseback agreement with the seller?

No. When purchasing a new principal residence, the HECM mortgagor has 60 days to occupy the home. Unlike a forward mortgage, there is an increased risk to FHA when the home is not occupied by the HECM mortgagor. Prior to closing, the HECM mortgagor and seller should agree to a date for physical occupancy of the property and the lender should confirm occupancy prior to their submission of the case binder to the local HOC for endorsement.

Does FHA have special eligibility requirements for first-time homebuyers?

No. FHA encourages all first-time homebuyers to meet with a reverse mortgage counselor that offers pre-purchase counseling to educate themselves on the responsibilities of becoming a homeowner. Prior to signing a sales contract, FHA encourages a home inspection of all properties that will serve as collateral for HECM for purchase transactions. The inspection serves two purposes, to determine the magnitude, if any, of repairs and/or rehabilitation the home as well as helps the buyer to negotiate the purchase price in situation where a home requires repair or rehabilitation.  

For Reverse Mortgage Loan Amounts, see the State/County limits at https://entp.hud.gov/idapp/html/hicost1.cfm

PMC offers CPA/P&L/Balance Sheet and Personal/Business Bank Statement Loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save  you the most money.  Ask the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA & WA brokerage for over 28 years.  Visit our Careers website and apply online today! www.pmccareers.com

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Yes…Jumbo Up to 95 LTV w/o PMI, Interest Only Option to $2.5M w/ 40 year term!

December 28, 2016

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These are just some of the basic parameters for jumbo financing, but PMC also offers a variety of low doc/stated/bank statement loans.  Many require a CPA letter with a signed/dated YTD P&L/Balance Sheet and/or 12/24 months Personal/Business Bank Statement Loans (single account – using average monthly deposit averages – 100% from personal and 50% from business), 500+ FICO borrowers and up to 90% LTV.

For those that need a no income and no asset verification business purpose loan (self employed borrowers/investors), we can go up to 75% LTV with no prepayment penalty on a 7/1 Hybrid ARM.

Our goal is to find you the best financing available to save the most money.  Just ask the experts at PMC.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA, OR & WA brokerage for since 1989.  Visit our Careers website and apply online today! www.pmccareers.com

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Should I Buy in 2017 or Wait Another Year?

December 26, 2016

Happy Holidays from All of the Staff at Platinum Mortgage Company!

cost-of-waiting-kcm

PMC offers CPA/P&L/Balance Sheet and Personal/Business Bank Statement Loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save the most money.  As the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA & WA brokerage for over 28 years.  Visit our Careers website and apply online today! www.pmccareers.com

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New Credit Line Program (5OK TO 5M) for New Construction General Contractors & Sub Contractors

October 5, 2016

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PMC is now offering an amazing credit line product. You know how most lenders won’t lend to General Contractors and Sub Contractors, because of the issues with payment schedules? Well this product is revolutionizing the way Contractors grow their business!

Here are details on the program:

1. Program is for General Contractors and Sub Contractors that purchase their owns supplies and pay their labor for the completion of construction projects.

2. PLEASE NOTE- This is not real estate financing. It is a business product for the General Contractors and subcontractor and not the real estate owner.

3. Amounts from 50k-5M

4. Funding occurs within 24 hours of approval. THATS RIGHT- 24 HOURS- this is possible as it is a Fintech lender

5. Client interested in the program must be able to provide 3 trade references 6. 2 year tax returns required for requests of 500k

7. Contractor can have existing senior debt (credit line, bank loan, etc), existing accounts receivables financing, existing MCA’s and the Fintech lender does not care. They will lend behind these products

8. Credit score is not of major interest

9. Client must have an invoice for at least 50k minimum they can supply for funding of the materials they are looking to purchase

10. Residential Contractors ok but Fintech Lender prefers commercial contractors 11. Program allows contractors to bid on more projects even if their existing capital is tied up in current projects

12. Fintech lender will pay the supply house immediately upon being provided the invoice. The supply house that provides the materials direct benefits because instead of the materials sold on a net 30 or net 60 day the accounts receivables go down as Fintech lender pays within 24 hours.

13. Contractor gets up to 150 days to repay the Fin tech lender.

14. 1% interest a month cost on the line

15. 3.5 points charged per draw

16. Line can be repaid at anytime

17. Contractor can be located in any of the 50 states

18. Not lending to international contractors

19. Government Contract work is of interest

20. Increases the liquidity of a contractor for paying for materials and labor

Here is what is needed to get started:

1. Contractor Company Name

2. Owner Name

3. Email

4. Phone Number

5. Address

6. Type of work done

7. 3 Trade References

8. Target amount requested

9. Must provide a “live” invoice of supplies needed to be paid with minimum request size of 50k

To get started send in those items and lets spur on new construction across the U.S.!

Email to info@pmccanhelp.com or fax the items above to 866-598-9987.

PMC offers 2 to 24 month bank statement loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save the most money.  As the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA & WA brokerage for over 27 years.  Visit our Careers website and apply online today! www.pmccareers.com

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Tired of Paying Rent? Need Help With a Down Payment?

July 3, 2016

CA, OR & WA residents can apply for a 3%, 4% and 5% Sapphire Grant to go towards their down payment, closing costs, pre-paid fees and even the earnest deposit.  A borrower may not need to use their own funds or have very little out of pocket to become a homeowner.  The grant is not a lien, it does not require repayment or have a recapture as long as 6 months of mortgage payments have been made.  How is this possible?  The rate for the program is higher to account for the cost that the lender to absorb for the grant.  No buy downs are permitted.

The Sapphire program is designed to increase homeownership for low-to-moderate income individuals and families. Co-Borrowers are allowed, but non-occupant co-borrowers are not permitted.  You can contact Platinum Mortgage Company to see if you qualify.

The grant may be used towards a FHA 3.5% down, VA 0% down or USDA 0% down loans. The grant may only be use for owner occupied properties.  The borrower(s) must have a 640+ mid FICO score and 680+ for manufactured home purchases.  The maximum loan amount cannot exceed $474,100 (not including MIP) or the maximum loan amount permitted by HUD.  The program can be combined with the Mortgage Credit Certificate program and other . The borrower’s income cannot exceed them county limits in which the property is located

Washington:

County Program Income Limits
Adams $84,295
Asotin $84,295
Benton $84,295
Chelan $84,295
Clallam $84,295
Clark $84,295
Columbia $84,295
Cowlitz $84,295
Douglas $84,295
Ferry $84,295
Franklin $84,295
Garfield $84,295
Grant $84,295
Grays Harbor $84,295
Island $84,295
Jefferson $84,295
King $103,845
Kitsap $89,815
Kittitas $84,295
Klickitat $84,295
Lewis $84,295
Lincoln $84,295
Mason $84,295
Okanogan $84,295
Pacific $84,295
Pend Oreille $84,295
Pierce $84,295
San Juan $84,295
Skagit $84,295
Skamania $84,295
Snohomish $103,845
Spokane $84,295
Stevens $84,295
Thurston $84,640
Wahkiakum $84,295
Walla Walla $84,295
Whatcom $84,295
Whitman $84,295
Yakima $84,295
Updated 04/12/2016

California:

County Program Income Limits
Alameda $107,640
Alpine $90,505
Amador $80,960
Butte $80,500
Calaveras $80,730
Colusa $80,500
Contra Costa $107,640
Del Norte $80,500
El Dorado $80,500
Fresno $80,500
Glenn $80,500
Humboldt $80,500
Imperial $80,500
Inyo $82,800
Kern $80,500
Kings $80,500
Lake $80,500
Lassen $80,500
Los Angeles $80,500
Madera $80,500
Marin $123,855
Mariposa $80,500
Mendocino $80,500
Merced $80,500
Modoc $80,500
Mono $85,215
Monterey $80,500
Napa $94,875
Nevada $82,455
Orange $97,750
Placer $80,500
Plumas $80,500
Riverside $80,500
Sacramento $80,500
San Benito $84,295
San Bernardino $80,500
San Diego $84,525
San Francisco $123,855
San Joaquin $80,500
San Luis Obispo $87,860
San Mateo $123,855
Santa Barbara $88,665
Santa Clara $123,165
Santa Cruz $97,865
Shasta $80,500
Sierra $80,500
Siskiyou $80,500
Solano $89,240
Sonoma $87,285
Stanislaus $80,500
Sutter $80,500
Tehama $80,500
Trinity $80,500
Tulare $80,500
Tuolumne $80,500
Ventura $101,545
Yolo $85,215
Yuba $80,500
Updated 04/12/2016

Great news is there is no housing counseling required for this program.  It is also not limited to first time homebuyers.  Borrowers can own a properties, but must meet debt to income guidelines.  To omit the departing home house payment the borrower must complete a drive by appraisal to show 30%+ equity and have a lease with deposit from a proposed tenant. Two months reserves are required.  Debt to income ratio is capped at 50%.

ELIGIBLE PROPERTY TYPES  SFR

 Agency Approved Condo (not allowed with Standard Conv)

 PUD

INELIGIBLE PROPERTY TYPES  2-4 Units

 Co-op

 Second Home

 Investment Property

 Manufactured Housing

PMC offers 2 to 24 month bank statement loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save the most money.  As the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA & WA brokerage for over 27 years.  Visit our Careers website and apply online today! www.pmccareers.com

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Debt Ratio Too High? Add a Non-Occupant Co-Borrower.

May 22, 2016

PMC back 2016

You may not show enough or make enough income to buy the home that you really want, but you don’t want to settle for a smaller home.  There is a solution.  It is possible to add a Non-Occupying Co-Borrower to the mortgage loan in order to qualify due to income and asset requirement in order to qualify for the loan. There are two options through Conventional or Government financing. This would be ideal for a college graduate who has student loan debt that is out of deferment and the debt ratio may be too high. For self-employed borrowers that have filed two or more years of business tax returns (Schedule C, 1120 or 1065) this can help an Occupying Borrower that shows low income due to write offs.

FHA Non-Occupying Co-Borrower

FHA requires 3.5% down if the Non-Occupying Co-Borrower (s) is  related to the borrower(s) by marriage, blood or law which includes parents, siblings, grandparents, uncles, aunts, nieces, nephews, and step-relationships. Interesting enough, cousins are not allowed. There is an option to add a Non-Occupying Co-Borrower that is not related by marriage, blood or law to be on the mortgage loan, but when the Non-Occupying Co-Borrowers are not related to the borrowers the mortgage requires a 25% down-payment to qualify. They must also have some type of document-able long-relationship to the borrowers. For example, a long-time family friend or co-worker, employer of the borrower of the mortgage loan. Be prepared to fully document the relationship in these types of cases as FHA wants to make sure that people are not being used as straw-borrowers for illegitimate or fraudulent purposes.  The down payment can come from family or the non-occupant co-borrower.

One draw back of an FHA loan is that the loan requires an upfront mortgage insurance premium, which  be financed in the loan or paid upfront and there is monthly PMI on the life of the loan.  Saving up to put 10% down will help reduce the term to 11 years.  If 10% down isn’t possible, then putting 5% down will at least help reduce the monthly PMI rate.

FHA allows a college graduate who just began a job qualify with the base salary of a new job with 30 days of check stubs, a verification of employment and an (signed/dated) executed offer of employment letter (on company letterhead). FHA requires the Non-Borrowing Spouse’s debts be added into the ratios. Also, if the Non-Occupying Co-Borrower is married, the debts of the Non-Borrowing Spouse would also be factored into the ratios. It is okay for both to be on the loan if needed.

FHA is easier to qualify with credit requirements; such as having only one FICO score being reported with Transunion, Equifax and Experian due to a lack of credit. FHA requires a minimum of 580 Mid FICO for the 3.5% down requirement or 10% down with 500-579 a Mid FICO. Non-Traditional trade-lines are allowed. An account history for 12 months will be required on the creditors letterhead listing the name of the borrower, address and account number.

Freddie Mac Non-Occupying Co-Borrower

Freddie Mac differs from FHA both in that the Non-Occupant Co-Borrowers must be related to the occupants of the home, and the Freddie Mac program requires a minimum of 5% down. In addition, the Freddie Mac program will not have the up-front Mortgage Insurance Premium that you will find with the FHA mortgage program. Conventional loans can pay for private mortgage insurance in one lump sum outside of loan, it can be absorbed in the rate (lender paid PMI) or it can be paid monthly (borrower paid PMI). The down payment must come from the Occupying Borrower. Conventional only requires the borrowing spouses debt be added into the ratios. Freddie Mac requires a 620 Mid FICO score and most lenders require a minimum of 3 tradelines reporting on a tri-merge credit report with over $1000 limit reported over 12 months.

Down Payment Requirement

The funds to close for the down payment and any closing costs not paid by escrow must be sourced and seasoned for 60 days in a US bank account. The last 60 days of asset statements will be required (all pages and nothing crossed out). Copies of all checks deposited in the accounts shown on the asset statements other than payroll direct deposits will be required along with a letter of explanation for each.   If unable to source the funds will be omitted and not allowed for the purchase transaction. The closing costs/pre-paid fees can be paid with gifted funds.

Sources of Down Payment Funds

  • Checking Account
  • Savings Account
  • Money Market Account
  • Surrendered Life Insurance Accounts
  • Certificates of Deposit
  • Stock and Bond Investments
  • Retirement Account Funds (terms of the withdrawal must be supplied)

Mortgage Credit Certificate (MCC Tax Program)

One last way to lower the debt ratio is to use a MCC program (federal income tax credit), which can be used with a Conventional or Government loan.  There may be an additional lender fee to utilize this program and not all lenders offer this.  You may also be required to take a in-person or an online (First Time Home Buyer) housing counseling course (certificate is required as proof).  The fee for this program is usually about $50 and can take up to 8 hours to complete.  Email PMC for more information: info@pmccanhelp.com.

PMC offers 2 to 24 month bank statement loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save the most money.  As the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA & WA brokerage for over 27 years.  Visit our Careers website and apply online today! www.pmccareers.com

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Self Employed Lite Doc Home Loan Program

March 23, 2016

PMC Lite Doc Loan 2016_01

PMC Lite Doc Loan 2016_02

PMC Lite Doc Loan 2016_03

PMC Lite Doc Loan 2016_04

These are the guidelines for one of our low doc programs.  We have several to offer our clients in CA, WA and OR.

Many self employed borrowers cannot qualify with traditional full documented income financing, due to tax write offs when filing their returns.  Conventional loans require a 45% debt to income ratio, High Balance loans are up to 43%, USDA is up to 43%, FHA is up to 56.99% and VA is up to 60%.  Good news is that lite doc loans are available again.

There are 6 more in pages to this program.  Email info@pmccanhelp.com for the complete set of guidelines.  There is also a overview available on what  is required for a CPA letter and successful bank statement loan.

PMC offers 2, 12 and 24 month bank statement loans (single account – using average monthly deposit averages-100% from personal and 50% from business) and also has other low doc home loans for 500+ FICO borrowers.

Our goal is to find you the best financing available to save the most money.  As the experts.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? PMC has been a premier CA, OR & WA brokerage since 1989.  Visit our Careers website and apply online today! www.pmccareers.com

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JUMBO FINANCING: BUYING YOUR DREAM HOME?

February 25, 2016

PMC Jumbo to $2.5M 2016_01

PMC Jumbo to $2.5M 2016_03

PMC Jumbo to $2.5M 2016_02

PMC also has low doc home loans.  Email your scenario to info@pmccanhelp.com.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? Now is the time to see how PMC Can Help you earn what you deserve!  Visit our Website and apply online today! www.pmccareers.com

Follow our Mortgage on:

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Did You Know About These FHA Guideline Changes?

January 20, 2016

credit report 101

Earnest Money 

Old Rule – Document source of earnest money if the amount exceeds 2% of the sales price

New Rule – Document source of earnest money if the amount exceeds 1% of the sales price

CAIVRS 

Old Rule – defaulted federal debt makes borrower ineligible

New Rule – VERIFIED defaulted federal debt makes the borrower ineligible

Part-Time Income

Old Rule – Underwriter discretion allowed when received less than 2 years

New Rule – Two years uninterrupted part-time income is required.  Average income over prior 2 years or use 12-month average of hours at the current pay rate if the lender documents an increase in pay rate.

Rental Income on Retained Primary Residence

Old Rule – Rental income may be counted when relocating outside of reasonable commute distance for job and borrower has 25% equity.

New Rule – Rental income may be counted when relocating and the new residence is at least 100 miles from previous residence.  If no history of rental income since the last tax filing, borrower must have 25% equity.

Non-taxable income 

Old Rule – Gross up using tax rate evidenced on last tax return.  If borrower did not file a return, use tax rate of 25%.

New Rule – Gross up using the greater of 15% or actual tax rate.  If borrower did not file a tax return, use tax rate of 15%

Installment Debts Less Than 10 Months

Old Rule – May be excluded from ratios.  If manual underwrite—may be excluded if debt will not affect ability to pay the mortgage.

New Rule – May be excluded ONLY if—they have cumulative payment of less than or equal to 5% of the borrower’s gross monthly income AND the borrower may not pay the debts down to achieve this percentage.

Multiple FHA Loans

Old Rule – If relocating for employment, borrower may obtain a second FHA loan for a new principal residence if current residence is more than a reasonable commute to new residence.

New Rule – If relocating for employment, the commuting distance between the old residence and new residence must be more than 100 miles.

Get Help From the Experts.  Platinum Mortgage Company also offers Stated, Low Doc, Alt-A, Sub-Prime, Non-Prime and Bank Statement Home Loans.

Credit issues? PMC Can Help….ask your loan officer about credit enhancement to get the best rate possible and save thousands of dollars in interest.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? Now is the time to see how PMC Can Help you earn what you deserve!  Visit our Website and apply online today! www.pmccareers.com

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Stay Informed. Download our app:

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Go 203k: Any Home Can Become a Dream Home

January 5, 2016

PMC 26 Years (2)Are you planning on making 2016 the year to become a homeowner?

House hunting can be a tedious task of the whole process.  Some homebuyers can look at as many as 50 homes.  If the home has all of the basic necessities that you are looking for, but is a bit of an eye soar or just needs updating then it may be good idea to look into rehabbing the home.  Look at the home’s  “potential” to become the home of your dreams with upgrades.  Remodeling the kitchen or bathrooms can add value into the home and build equity sooner.  The program allows you to create additions with county permits.

FHA offers rehabilitation home loans.  The 203k Standard program allows up to $35,000 in repairs, which includes the fees for the work to be completed.  There is also a 203k Full program which allows unlimited repairs.  There are specific repairs that the funds can be used for.  Make sure to get pre-approved and check the guidelines before putting in an offer.

Yes, the drawback is that the rate will be higher than a standard FHA loan and it may be an inconvenience to have the work completed.  Lenders and Banks no longer offer equity line of credit over 80% loan to value so the 203k loans are perfect for many buyers.  The end result will be worth all of the trouble.  Don’t forget that you can always refinance into a conventional loan once you have 20% equity to remove the private mortgage insurance and possibly a better interest rate to save money.

The work can be completed post closing with draws made by the licensed contractor.  A final appraisal will be required once the repairs have been completed.  HUD has an approved list online: https://entp.hud.gov/idapp/html/f17cnsltdata.cfm. You can also request to do the repairs yourself if you have experience and tools.

You will have to meet the standard FHA requirements for credit and income.  Make sure to check with the lender to see what their minimum credit score requirement is.  Some lenders require a 580 and others may require a 640.

Download this 203k cheat sheet and training guide:

FHA_203(k)_Rehab_Loan_ProgramPP[1]203K-Overview_of_Renovation[1]

FHA_203(k)_Rehab_Loan_ProgramPP[1]

Read more:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k

Get Help From the Experts.  Platinum Mortgage Company also offers Stated, Low Doc, Alt-A, Sub-Prime, Non-Prime and Bank Statement Home Loans.

Credit issues? PMC Can Help….ask your loan officer about credit enhancement to get the best rate possible and save thousands of dollars in interest. Email info@pmccanhelp.com your questions.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? Now is the time to see how PMC Can Help you earn what you deserve!  Visit our Website and apply online today! www.pmccareers.com

Follow our Mortgage on:

www.facebook.com/pmccanhelp

http://www.twitter.com/pmccanhelp 

http://www.linkedin.com/in/pmccanhelp

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Why Don’t More Buyers Use USDA Financing?

December 6, 2015

 

 

 

usda

USDA Single family Housing Guaranteed Loan Program helps low-to-medium income borrowers qualify for home loan financing to improve the quality of their lives.  The reason why many buyers do not take advantage of USDA financing is plain and simple; many loan officers an real estate agents aren’t familiar with the USDA program.  Therefore, they do not offer the option to their clients.  USDA follows the same guidelines as FHA.  A newer real estate agent may not have been informed that their market area qualifies for USDA financing, but surprisingly many suburbs do qualify.  First time homebuyers are also extremely overwhelmed and may not know that this program is available, but there are many lenders  that offer this program.

Here are some of the differences in loan programs:

  • USDA allows up to 100% financing for purchases and rate and term refinances. FHA is up to 96.5% financing for purchases and 97.75% for refinances. Conventional loans finance up to 95% loan to value and MyCommunity financing will go up to 97%.
  • USDA does not allow cash out refinancing.  FHA and Conventional loans do.
  • USDA financing is capped at 31/43% debt ratio.  With a 660+ FICO lenders may make exceptions to go to 45% back end ratio.  FHA allows debt ratios up to 56.99% backend and Conventional loans are max at 50% purchases/rate and term or cash out at 45%.
  • USDA monthly private mortgage insurance is extremely low at .50 annually (annual premium is divided by 12 to arrive at the premium charge per month). FHA is at .85 annually for 90% loan to value an .80 annually for 89.99% loan to value or lower. Lenders that offer 95-97% loan to value financing offer lower private mortgage insurance for higher credit score borrowers (typically 720+).
  • FHA interest rates tend to be a bit lower than USDA, which helps to offset this.  Both USDA and FHA have lower interest rates than Conventional loans due to their annual private mortgage insurance, which now are required to be paid over the life of the loan.
  • On Conventional loans, private mortgage insurance will automatically discontinue being charged at 78% of the original value (which is computer generated and automatically set at the closing of the loan). On Conventional loans, if values increase sooner and you are 80% loan to value or lower, you can request an appraisal to be completed by your mortgage lender to remove the private mortgage insurance earlier.
  • USDA Upfront Guarantee Fee is 2.75%.  FHA is at 1.75%. Conventional offers lender paid private mortgage insurance with an upfront fee to omit or reduce the annual fee.
  • USDA and FHA purchase loans are only available for owner occupied purchases.  FHA will refinance an owner occupied home that has become a rental after one year of being owner occupied.
  • USDA allows down payment assistance programs to help cover the closing costs and is very beneficial if the seller isn’t offering any seller credit to cover closing costs and pre-paid fees.  USDA comes in handy for those that qualify for a down payment assistant program, which normally require a 620 Mid FICO to qualify.
  • USDA and FHA allow 550+ Mid FICO borrowers and Conventional requires a 620+ Mid FICO.
  • USDA, FHA and Conventional loans have rehab financing for homes that need renovation.  Make sure to ask your loan officer about these programs.

Current Turn Times:

Lenders that offer USDA financing have to approve the loan and send the package, typically by email, to USDA for a final approval.  Current turn times is 3-4 business days for GUS loan submissions and 7-10 business days for manual submissions. Business days exclude weekends (Saturday and Sunday) and all federal holidays.  Rush requests are not be honored. Loans are reviewed in the order they are received.

Check to see if you qualify:

Income Requirements

Property Eligibility

PMC USDA_1

Read more about USDA financing:

Single Family Housing Guaranteed Loan Program

The Best Loan You’ve Never Heard Of—And How You Can Get One

Get Help From the Experts.  Platinum Mortgage Company also offers Stated, Low Doc, Alt-A, Sub-Prime, Non-Prime and Bank Statement Home Loans.

Credit issues? PMC Can Help….ask your loan officer about credit enhancement to get the best rate possible and save thousands of dollars in interest.

Make sure to visit our website:   www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? Now is the time to see how PMC Can Help you earn what you deserve!  Visit our Website and apply online today! www.pmccareers.com

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What is a CPA Letter?

November 15, 2015

untitled

A CPA Letter can also be referred to as a Comfort LetterThis may be required for low documented loans for self employed borrowers.

CPA Letter for Verification of Self Employment

CPA Letter for Verification of Self Employment is a document issued by the loan applicant’s CPA or Tax Preparer who affirms that they prepared the applicant’s tax returns and that the applicant is self-employed. The primary purpose of the letter is to independently verify the self-employment status of the loan applicant(s).

Contents of the Letter

  1. Content: The letter should contain:
    1. Applicant’s name
    2. Applicant’s business name, address, and phone number
    3. Nature of business
    4. Number of years the applicant has been in this business
    5. Percentage of ownership
    6. Time since when the CPA has prepared the applicant’s tax returns
    7. Fact that the applicant reviewed the tax returns prior to their filing by the CPA
  2. Signature: The letter should be signed by the CPA.
  3. CPA Active License Number Listed (this will be verified by the lender)
  4. Letterhead: The letter should be on the CPA’s letterhead.

Considerations for the Loan Applicant

The applicants should obtain a copy of the letter and ensure that it contains the elements listed above and any additional information required by the lender. Also, ensure the accuracy of the information in the letter.

Considerations for the Lender

Document Review

The review of the letter is generally performed by the processing or the underwriting department of the lender. The lender’s review of the letter may include the following.

  1. Content: The letter contains information listed above and any other information that the lender requires.
  2. Independent Verification: Verify the CPA License for the State in which the CPA is licensed.
  3. Comparison with Tax Returns: The CPA’s information in the letter should be compared to the information in the tax returns that were provided by the loan applicant. Ideally, the CPA’s information on the two documents should match.
  4. Delivery: The letter should be received directly from the CPA. Do not accept letters forwarded by the broker or the loan applicant(s).

Considerations for CPAs and Tax Preparers

Prior to issuing any letters, tax preparers and CPAs must consider the scope of their relationship with the borrower. Only affirm factual information and do not provide any forward looking statements, projections, or opinions. It is advisable to make it clear in the letter that the CPA is not providing any assurance as to the creditworthiness of the borrower. The lender assumes has to perform its own due diligence and the letter does not create any legal relationship or obligation of the CPA.

Tax Preparers and CPAs are recommended to check their professional code of conduct and standards before issuing such letters.

Document Summary

Purpose The letter is issued by the loan applicant’s CPA or Tax Preparer who affirms that he/she prepared the applicant’s tax returns and that the applicant is self-employed.
Use in Mortgages The letter is used as a means of independent verification of self-employment.
Other Names CPA Letter
Type Letter
Provided By Loan applicant’s CPA
Provided To Lender
Notarization Required No
Signed By CPA or tax preparer issuing the letter
Life Cycle Stage Origination, as part of underwriting
Recordkeeping The letter must be maintained in the loan file while the loan is outstanding.
Model Form None
Applicable Laws None

 

Read this article regarding concerns: http://www.journalofaccountancy.com/news/2009/mar/20091528.html

Get Help From the Experts.  Platinum Mortgage Company offers Stated, Low Doc, Alt-A, Sub-Prime, Non-Prime and Bank Statement Home Loans.

Visit Our Website:   http://www.pmccanhelp.com

FOR A FAST PRE-APPROVAL: Complete a loan application on our website APPLY ONLINE

Job Opportunities? Now is the time to see how PMC Can Help you earn what you deserve!  Visit our Website and apply online today! http://www.pmccareers.com

Follow our Mortgage on:

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http://www.twitter.com/pmccanhelp

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Stay Informed. Download our app:

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