Tag Archives: home loan

Part-Time Pay May Not Count When Seeking A Mortgage


It’s an issue that hasn’t gotten much attention but should be a red alert for first-time buyers and others who supplement their incomes with part-time work: Though part-time earnings are playing an increasingly important role in the post-recession American economy, the income you earn part time may not count when you buy a house.

Isn’t income always income? If you make $42,000 from your regular full-time job and $18,000 more by working part time at a second job, isn’t your gross income $60,000?

The IRS would tell you it is. But mortgage lenders may disregard the $18,000 unless you can document that you’ve been receiving the extra money steadily for two years and the pay is likely to continue.

There might be some wiggle room on this depending on your specific circumstances, but under rules established by the dominant players in the home loan market — Fannie Mae, Freddie Mac and the Federal Housing Administration — part-time income generally isn’t “qualifying income” for mortgage purposes until it has been flowing for a couple of years.

read more at: http://www.latimes.com/business/realestate/la-fi-harney-20130929,0,1029119.story

7 Key Steps to get a Home Loan

Mortgage rates have plunged to record lows, below 4 percent. That’s great — but only if you can actually qualify for a loan, and that’s not easy. After giving away the store during the housing boom with disastrous results, lenders have tightened their underwriting standards, leaving many would-be home buyers out of luck.

But there are steps homebuyers can take to find the right mortgage, and qualify for it. Here are seven:

1 Improve your credit score. A credit score below 620, as measured by the Minneapolis company FICO, will knock most potential buyers out of the running for a mortgage. And even if you can qualify for a loan, lenders reserve their best interest rates for borrowers with the highest credit scores — typically 740 and above. If a bad credit score pushes up your interest rate by even one percentage point, you could end up paying $85,000 more over the life of a $400,000 loan, according to Tracy Becker, president of North Shore Advisory, a credit repair company in New York state.

Read more at: http://www.chicagotribune.com/classified/realestate/sc-cons-0726-mortgage-tips-20120727,0,5656705.story

Disclaimer: for information and entertainment purposes only

San Diego – What is the median amount of time homeowners are behind on Mortgage?

The median amount of time that San Diego homeowners were behind on their primary mortgages when their lenders filed default notices was eight months, based on a report from local real estate tracker DataQuick, which captured the last quarter of 2011.

Those homeowners during that time frame owed $23,134 on a $392,000 mortgage. (Those are median figures. The median is the middle number in a data set.)

How did San Diego compare to California during 2011’s last quarter (from October to December)?

Statewide, homeowners were nine months behind on their home loans at the filing time of the default notice, the first step in the formal foreclosure process. They owed $19,949 on a $333,036 home loan, DataQuick stats show.

When did these loans originate?

In San Diego, the origination time was the second quarter of 2006, when weak underwriting standards allowed unqualified consumers to get loans. Statewide, it was the third quarter of 2006, which “has been the case for three years,” the latest DataQuick report says.

Although San Diego saw a small bump in foreclosures from November to December, they were down 16 percent when comparing the last quarter of 2011 to the same time period in 2010.

The number of trustee deeds, which signal a foreclosure, fell from 2,433 to 2,044. That drop also is mirrored in the statewide numbers, which show foreclosures falling to the second-lowest level in more than four years, DataQuick said.

Why the drop in foreclosures?

“Five years ago, almost all mortgage payment delinquencies would have triggered a default notice after a certain amount of time,” said DataQuick President John Walsh in a statement. “Strategies now include short sales, refinances, interest-rate changes, principal reduction as well as just plain waiting longer.”