Excluding Debts From Co-Signed Loans To Qualify For Mortgage
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Excluding Debts From Co-Signed Loans To Qualify For Mortgage

This guide covers excluding debts from co-signed loans to qualify for mortgage loans. Mortgage borrowers who are co-signers on debts often have a hard time qualifying for mortgage loans because the monthly payments of the main borrower are included in the calculations of their debt-to-income ratios. John Strange, a senior loan officer at Gustan Cho…

DTI Manual Underwriting Guidelines
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DTI Manual Underwriting Guidelines on FHA and VA Loans

The DTI Manual Underwriting Guidelines for FHA and VA loans are quite alike. Among home mortgage programs, only FHA and VA loans permit manual underwriting. There is common confusion regarding the distinctions between manual underwriting and files approved by an automated underwriting system (AUS). While manual and AUS-approved underwriting fundamentally serve the same purpose, manual…

Difference Between a Job Versus a Career
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Difference Between a Job Versus a Career As a Loan Officer

What is the difference between a job versus a career? Is my job a career? What is the difference between a job versus a career as a loan officer? Individuals just entering the workforce or have been in it for just a couple of years are probably asking themselves the same exact questions. Another thing…

FHA Mortgage Guidelines on Credit Disputes
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FHA Mortgage Guidelines on Credit Disputes

This blog will discuss FHA mortgage guidelines on credit disputes during the mortgage process. In general, you cannot have credit disputes during the mortgage process. There are a few credit disputes exempt from removal. Gustan Cho Associates is an expert in working with borrowers who have credit disputes. The following sections will discuss the FHA…

Delays in Mortgage Loan Closings
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How to Avoid Delays in Mortgage Loan Closings

This guide covers how to avoid delays in mortgage loan closings. When homebuyers enter a real estate purchase contract, the buyers and sellers agree on a tentative closing date. Normally, the closing date is set between 30 and 45 days from the purchase contract date. Many real estate agents will agree that delays in home…

Can I Buy a House in South Dakota With Poor Credit
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Can I Buy a House in South Dakota With Poor Credit

In this blog, we’ll address the common inquiry: Can I buy a house in South Dakota with poor credit and low credit scores? Purchasing a home with less-than-ideal credit in South Dakota might feel daunting, with the buying process seeming nearly insurmountable. However, it’s worth noting that there are mortgage options tailored for individuals with…

DSCR Mortgage Loans
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DSCR Mortgage Loans: Debt-Service Cover Ratio

DSCR mortgage loans, debt-service coverage ratio mortgages, is a type of no-income verification mortgage loan program. There is no income verification and documentation required on DSCR mortgage loans. DSCR mortgage loans benefit self-employed borrowers or real estate investors who do not have a consistent flow of qualified income. DSCR mortgage loans are underwritten just based…

FHA Loan With Recent Late Payments
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FHA Loan With Recent Late Payments in the Past 12 Months

One of the most common inquiries we receive daily pertains to the eligibility for an FHA loan with recent late payments. It’s important to note that you can qualify for an FHA loan even if you have outstanding collections and charged-off accounts. Settling these accounts is not mandatory for approval; instead, securing an automated approval…

Appraisal Transfer Policy
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Appraisal Transfer Policy From One Lender To Another

This blog will discuss the appraisal transfer policy from one lender to another when a borrower changes mortgage lenders. As you know, we do not have any LENDER OVERLAYS at Gustan Cho Associates. Meaning we can help more borrowers than most lenders. FHA and VA home appraisals are generally transferrable from one lender to another….

When Is Rental Verification Required
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When Is Rental Verification Required By Mortgage Lenders

One of the frequently asked mortgage questions we get from home buyers is when is rental verification required by mortgage underwriters. Rental verification is an extremely strong credit tradeline that will add strength to the mortgage loan borrower’s credit profile. There are times when the Automated Underwriting System (AUS) will require borrowers to provide verification…

Property Taxes on New Construction Homes
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How Property Taxes on New Construction Homes Are Calculated

This blog will discuss how mortgage underwriters calculate property taxes on new construction homes. Property taxes on new construction homes can often affect the homebuyer’s debt-to-income ratio due to being estimated versus an exact number. The exact property taxes on new construction homes are not known until a few years after the development has been…

Buying Home Near Railroad Tracks
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Resale Value of Buying Home Near Railroad Tracks

This article will discuss buying home near railroad tracks and its negative impact on appreciation and resale value. No doubt buying home near railroad tracks has a lower market price compared to a comparable home. During a booming housing market, when there is a shortage of homes, some homebuyers may only have the choice of…

1099 And Self Employed Borrowers
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1099 And Self Employed Borrowers Mortgage Guidelines

More and more people are choosing self-employment or contract work as their source of income. This trend means that mortgage guidelines for these borrowers are increasingly important to understand. This article overviews specific 1099 And Self Employed Borrowers Mortgage Guidelines. We’ll cover everything from how to verify income to the documentation needed and what to…

First-Time Buyer 3 Percent Down Payment Conventional Loan
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First-Time Buyer 3 Percent Down Payment Conventional Loan

What Are The 3% Down Payment Conventional Loan Requirements And Guidelines? Fannie Mae and Freddie Mac allow a 3% down payment on conventional loans for first-time homebuyers. A first-time homebuyer is a buyer who had no ownership of a home in the past three years.

Mortgage Case Scenarios
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Mortgage Case Scenarios of Borrowers With Bad Credit

This guide covers mortgage case scenarios of borrowers with bad credit and lower credit scores. If you have been following the blogs in Gustan Cho Associates for a while, you will understand that many of our clients have been turned down by their current lender. If you are reading our articles for the first time…

Bank Statement Deposit Only Mortgage
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Bank Statement Deposit Only Mortgage For Self-Employed Borrowers

This blog will discuss and cover bank statement deposit only mortgage for self-employed borrowers with no income tax returns required. Since the real estate crash 2008, the United States Federal Government stepped in to create mortgage guidelines and standards. One added rule required income calculations used for borrowers, including self-employed borrowers. This is part of…

FHA Loan With Low Credit Scores
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FHA Loan With Low Credit Scores Mortgage Guidelines

This article covers qualifying for an FHA loan with low credit scores mortgage guidelines for 2024. FHA loans are the best home loan program for homebuyers with low credit scores and a low down payment on a home purchase. Many homebuyers, especially first-time homebuyers, do not realize they can qualify for an FHA loan with…

Credit Report vs Credit Scores
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How Underwriters Look at Credit Report vs Credit Scores

This blog will cover how mortgage underwriters look at credit report vs credit scores. Minimum credit scores are required to qualify for government and conventional loans. Here are the credit score requirements: HUD requires a minimum credit score of 580 for a 3.5% down payment on home purchases. HUD allows borrowers under 580 credit scores…