Approved Vs Denied “What it takes to make it through the home

Approved Vs Denied “What it takes to make it through the home buying process”

About Me 3 Years Mortgage Experience 2nd Generation Mortgage Professional Started as a Call Center MLO (Mortgage Loan Officer) Formerly an MLO Training Manager Currently an Affinity Retail MLO

How do Lenders determine the quality of a borrower?

Capacity: Ability To Repay Credit: Payment History Capital: Liquid Assets Collateral: Subject Property The 4 C’s

Capacity: Ability To Repay INCOME EMPLOYMENT HISTORY SAVINGS MONTHLY DEBT PAYMENTS

Credit Score (When qualifying Lenders use the Middle Score) Number of accounts open Credit: Payment History Credit Balances in proportion to credit limits Late payments 30, 60, or 90 days overdue Bankruptcies Recent Inquiries

Capital: Liquid Assets Investments that can be converted to cash Savings Money Market Funds Gift’s from Family Members Down payment Assistance Programs Grants Equity

Collateral : Subject Property Home you are buying Investment Properties Houses you own

What makes Lenders say Yes or No?

Mortgage Loan Programs Conventional FHA Loan VA Loan USDA Loan Non-Qualified Mortgage Products

Factors We Look At When Determin ing a Loan Program LTV Credit Score (Loan-to-Value Ratio) DTI Occupancy Status (Debt-to-Income Ratio) (Primary, Secondary, or Investment)

Conventional Loan Minimum Credit Score: 620 Maximum DTI: FE 28% / BE 36% BE can go up to 45% and in some cases 50%

FHA Loan Minimum Credit Score: 580 Maximum DTI: FE 31% / BE 43% BE can go up to 50% and in some cases 55% Max LTV 96.5% Borrower’s must put at least 3.5% down. Only available for a Primary Residence

VA Loan Minimum Credit Score: 580-620 Maximum DTI: BE 41% BE can go up to 50% and in some cases 55% Max LTV 100% VA loans do not require a Down Payment. Only available for a Primary Residence

USDA Loans Minimum Credit Score: 640 Maximum DTI: FE 29% / BE 41% BE can go up to 50% and in some cases 55% Max LTV 100% USDA loans do not require a Down Payment. Only available for a Primary Residence in a Rural area

Non-Qualified Mortgage Loan Programs that are offered by Private Investors Some Features include: No DTI Loans DSCR (Debt Service Cover Ratio) Loans Qualify using just reserves (12 or 24 Months worth)

Q&A