Is the Claim of an Unfair Mortgage Rule on Borrowers With High Credit Scores True?
News outlets recently reported a rule focusing on mortgage borrowers with higher credit scores. The reality is that changes are being made to the Loan-Level Price Adjustments (LLPA) matrix by the Federal Housing Finance Agency (FHFA) in May 2023 to address housing affordability challenges in the US. The LLPA matrix applies pricing adjustments to base […]Read More
Why Entrepreneurs Benefit From Using Bank Statement Loans
According to Legal Zoom, there are 31 million entrepreneurs in the U.S. Unfortunately, self-employed borrowers looking to purchase a primary, second home, or investment property face varying challenges when trying to obtain a mortgage with conventional lenders. Traditional lenders often turn down good borrowers despite their ability to afford the monthly housing costs. For this […]Read More
How Fluctuating Mortgage Rates Affect the Housing Market
In 2020, interest rates were at an all-time low. This made it possible for borrowers to buy larger homes or refinance their current property at a lower rate. However, all-time low-interest rates could not last forever. By January 2022, interest rates began to increase, limiting borrowers’ purchasing power and eroding the refinance market. Mortgage and […]Read More
Why Self-Employed Borrowers Embrace Bank Statement Loans
What is a bank statement loan, and who benefits from it? A bank statement loan is a type of loan that allows a borrower to qualify for a mortgage using only their personal or business bank statements as documentation for their income. Today’s tax codes allow entrepreneurs to write off business expenses. Although reducing tax […]Read More
Why Non-QM Loans Are Not The Same As Subprime loans.
Today, Non-Qualified or Non-QM loans are growing in popularity, but there’s some confusion about what they really are. Let me start with the elephant in the room, they are not the same thing as subprime loans. Non-QM loans are a great solution for brokers to consider in helping those customers qualify for loans they otherwise […]Read More
Non-QM Is Set To Reach $80 Billion In Loan Originations In 2022
Are you leaving money on the table by only offering agency home loans? Non-QM loans have been increasing in demand since their inception in 2015. As a result, Non-QM is set to reach $80 billion in loan originations in 2022. Non-QM is predicted to double and gain 10% of the mortgage market this year. This […]Read More
Borrowers May Be More Suited For Non-QM Loans In Today’s Soaring Housing Market.
Brokers who offer conforming and high-balance loan products may be feeling lighter in the pocketbook with today’s soaring home prices. 2022 California Conforming limits are as high as $970,000 for a one-unit property based on FHFA House Price Index Report. A typical home value in California is $745,000 Zillow Indicated, a 20.5% increase over the […]Read More
Make-Up For Lost Production With Non-QM Loans
Agency rates have been hovering at record lows for the past couple of years, traditional lending experienced a boon. However, in 2021 $40 million in Non-QM loans were originated and that number is expected to double in 2022. A recent HousingWire article indicated that agency business will shrink and get more expensive, and an increasing […]Read More
CoreX Allows Homeownership After a Major Credit Event
With Federal stimulus and additional unemployment payments ending, and thousands of dollars in forbearances and foreclosure moratoriums ending, bankruptcies are sure to rise in 2022. Bankruptcies can impact a borrower’s credit report for up to ten years and borrowers looking to step into homeownership may find it difficult to qualify under conventional underwriting guidelines. A […]Read More
Foreign National and ITIN Loans
Foreign National is defined as an immigrant, Resident Alien, admitted for permanent residence. This community can remain in the United States indefinitely and work if they comply with regulations relating to their visa. Currently, there are 44 million immigrants who live in the U.S today, with an estimated 1 million foreigners migrating to the U.S […]Read More