We are happy to be “Shielding” your loans against overlays…Motive-ated to offer the TRUE VA IRRRL.  And a new announcement.  Looks like some House bill was potentially passed through Senate and the President Obama may sign it.  It reverses the loan limits of VA loans.  Meaning there is no loan limits on VA loans and would allow 100% Financing.  Way to MOTIVE-ATE the VA Product.  This will help a ton of Vet’s that in certain areas have loan limits and that Vet is made to put a portion of some odd fraction equation together to the table.  (lol, Broker’s ask me loan amounts/loan limit and max loan amount calcs on VA all the time)

MOTIVE LENDING is a superior company in the VA product arena that goes by guidelines, allows for LP or DU approvals, and we will “Shield” your file from overlays.

IF your a Broker sending a check at the beginning of the year for 100 dollars to your lenders arsenal for sponsorship of VA products, LET’S MAKE MOTIVE LENDING one of them.  Applications to partnership with MOTIVE LENDING ARE FREE.

Contact me today.  Fill out the VA sponsorship with MOTIVE LENDING> Some BIG BIG changes “could” be finalized soon.  Make it Easy, Make it Motive!

To most originators now day’s FHA loans are something that can pertain to half a Loan Originators pipeline or more. I have compiled some of the coolest FHA tricks, debugged myths’ and special things done on FHA loans in a list to create the top 20 FHA tricks. Here they are;

1. FHA Streamlines have no income and no appraisal. Most companies require some form of a credit report. At Motive Lending we require a full tri-merge report but underwrite (look at) only the mortgage rating on the credit.

2. FHA allows transferred appraisals, most originators know this. The case number follows the property not the client. So if the case number is transferred to another lender the loan potentially can still be closed. **I say potentially because if you didn’t know most companies place a MCR on files (mortgage credit reject) if they have an overlay. At the new Lender they may review this MCR and not accept the loan if the MCR is marked for things like fraud.

3. FHA allows clients to have disputes on their credit report that do not need to be removed. If the cumulative balance of all disputed accounts is less than $1000, the disputes do not need to be removed.

4. 1×30 for a mortgage rating is allowed with Approved/Eligible findings. The client must be current at the time of funding.

5. Student loans can NOT be omitted on FHA any longer. Use 2% of the balance as a payment or gain a payment letter and we will use that.

6. FHA Allows collection accounts to be omitted if collectively less than $2000.

7. FHA Streamlines can be on investment properties.

8. FHA now requires a well cert to verify the purity of the water if the property has a private septic and well system.  **FYI newest guideline.

9. FHA allows different types of pay to be used and calculated in the income when you have at least 1 year of receiving that income type. Such as shift differential pay, or over time, or bonus income.. **Provided that the underwriter feels that it’s likely to continue you can use that income. Commission income you must be receiving for 2 years to use.

10. FHA allows you to be a buyers agent as a Realtor, and do the home mortgage for the same client. You just can not be a selling agent Realtor and do the loan. This rule only applies to any LO on a broker side of things, if any Lender is also fully endorsed with FHA they can not have an employed Agent do this.

11. FHA allows a client to combine a 1st and 2nd loan (even if not purchase money) and consider the transaction a rate and term transaction. Up to 97.75% LTV on refi’s.

12. FHA allows a client who had a modification to do a loan if they have been paying on time for 12 months proceeding the modification. They also have to be current on all installment debt. If they are late a 3 year waiting period is imposed.

13. FHA allows a manual underwrite with max ratios of 31/43 if you receive findings that are refer/eligible. With 1 compensating factor you can do 37/47 with ratios and with 2 compensating factors go to 40/50 with ratios.

14. FHA allows a client to do a loan 2 years after a Bankruptcy or 3 years after a foreclosure. If the client included a mortgage in the BK they have to wait 3 years.You can now even do a loan when someone just discharged a CHP 13 BK.

15. FHA allows non-occupied co-borrowers to help with the approval on loans.

16. FHA mortgage insurance will never fall off the loan now days, they once did have a time where MIP could be removed off a loan. The client would have to have 78% LTV and had the MIP for a minimum of 5 years.

17. FHA will insure loans with DTI’s up to 57% with approved/eligible findings.

18. FHA has announced they no longer will be charging client’s 30 days of interest if the loan is not paid off at the first of the month. FHA will only be allowed to charge interest until the day paid off. Just like conventional. Great news for Streamlines.  Now this was on case numbers originated at the beginning of FEB last year (2015).  When the change to monthly MI happened.  So we will start to see these loans coming soon.

19. With the MI amount dropping from 1.15 to .85 last year, if you find a FHA loan originated prior to 2015, you can do the streamline refi and achieve 5% payment reduction at the same rate.  That’s right, you read that right.  SAME rate on the loan amounts of about 115k or more will save 5% alone in the MI reduction to .85.  This was and is GOLD for those that work the right campaign..

20.  I got a guy questions come flowing in all the time to me about FHA manual underwriting guidelines.  Motive goes down to 580 FICO and we allow for manually underwritten guidelines.  – JUICEMAN

VA loans are awesome.  As an AE I wish when I was originating I knew what I know now about VA loans and would’ve marketed these like crazy.  A brokers 100% successful product market campaign that will drive results.  VA loan marketing.  Sometimes when a broker markets a specific target marketing they can get an array of qualified and unqualified individuals.  VA loan marketing will drive results as a result of product guidelines. VA’s guidelines are such a breath of fresh air to see the openness and leniency of guidelines.  I’ve taken the time to list a few guideline tricks to help add value to my network on VA loans.

Guidelines and overlays to look out for. Some lenders don’t allow all of these, ML does.

• No AVM on VA IRRRL or 2055 required. -ML goes off the original loan amount for the LTV
• Up to 135% of the original loan amount is allowed on VA loans
• VA loans with ML go down to 580 and we can do 100% CASH OUT.  Up to 1 Million loan amount.
• VA allows up to 100% cash out with a 700 FICO up to 1.5 Million (1-1.5 million a 700 FICO is needed)
• VA IRRRL’s can be done with a Mortgage Only credit report that shows the ficos. “Non-credit qualify” is an option with ML.
• VA allows any DTI on any “accept” finding.  VA can be run on DU or LP.  Some companies only allow for one or the other.  ML allows both.
• VA allows manual underwriting up to 50% DTI if the client has 3 months reserves and with ML you also need 150% residual income.
• Collection accounts do NOT need to be paid off
• Disputed accounts don’t disqualify the client (and you don’t need to remove them)
• On VA loans you can ignore charge off accounts.
• Judgements do need to be paid off.
• FLIPS are allowed on VA loans.
• Foreclosure and BK 7 wait is only 2 years

VA loan guidelines are more interesting than that of FHA in my opinion.  They are more advantageous to potential clients (Vet’s) with somewhat challenging circumstances.  Hence why a target marketing campaign for VA type loans is so successful in almost any area.  (helpful in area of Military Bases) I love helping serve others that helped serve us.  Motive Lending (ML) offer’s the “real VA IRRRL” and goes by findings.  We also manually underwrite and have great pricing.  And if you are sending in a 100 dollar check right now to some lender to sponsor you to do VA loans this year, LOOK NO FURTHER.  The JUICEMAN and his MOTIVE-ATING team can help. Please call me with all “I got a guy” questions on VA loans.  – JUICEMAN

Close more loans with Motive Lending! I keep a pile of inbound questions that come up over time and then I typically inform my network of these most recently asked guideline questions.

Sellers concessions or “Third party contributions” and the subject of “LARGE DEPOSITS” comes to the surface in the past month. Below is a cheat sheet on both;

Seller Concession Limits; FHA loans the max is 6% Seller Contributions. Conventional is a different story, and it depends on LTV. So Owner Occupied LTV > 90% the max is 3% Contributions. Owner Occupied or Second Home at 90 LTV or less the max is 6% Contributions. Owner Occupied or Second Home at 75% LTV or less the max is 9% Contributions. Now any occupancy type on anything for sale by owner the max is 2%. The max Contributions for any investment home transaction is 2%.

Large Deposit Clarification; FHA loan guidelines say that the large deposit would be considered a percentage of the purchase price. 1% of the purchase price or more is considered a large deposit an would need to be verified and sourced. Conventional loan guidelines define large deposits based on what the qualifying income is on the deal. On a refinance it is 20% or more of the qualifying income needs to be sourced as a large deposit. On a purchase it is 50% of the qualifying income or more as a deposit on bank statements that would need to be sourced and verified.

As we roll right into purchase season these are great guidelines to know! Happy Originations, and look forward to helping you. – JUICEMAN