1. Had a 3.50% 15 yr cash out 80% paying off a 2nd mortgage the borrower opened about 5 yrs ago.
Value came in low of course. Now I have a cash out 90%.
As you know, we can’t do cash a out 90% !
Now I’m @ 85% max with PMI and Borrower needs to bring in the cash to close??…..not a super easy sell.
Pretty much a dead deal right?
Wrong: ( FHA DOES NOT CONSIDER PAYING OFF A 2nd MORTGAGE OLDER THAN 12 MONTHS CASHOUT! )
Went from a 3.75% no cost cash out 15yr to an FHA 3.50%, 90% rate and term, sold the .35% PMI.
( NO CASHOUT LLPAs EITHER!!! ) Can you imagine a cashout adjuster @ 90%?? ( what -4.25?? )
The MI is only .35%...EZ sell especially when offering a .25% drop in rate!
I had to cancel out the loan, re-submit the loan back to processing.
Not out of the woods yet but that’s how you save a deal from the loan reaper!
Cashout >80+15yr term = FHA ALL DAY!!!
2. FHA Purchase ( $155K )
97.50 LTV
1st time buyer
Borrower has a regular W2 with good income but about $1000/mo comes from overtime.
We get the WVOE back, "WE CANT VERIFY OVERTIME INCOME AS IT'S AGAINST COMPANY POLICY"
DTI is now 63%...Sheeeeit!
I got the year end paystubs from 2 previous years showing the breakdown, BAM!.DTI 44%.. ( FHA will go 50% DTI)
Apprisal came in $15K Short!
Sellers wont budge!
F...we may loose the deal but learned as good tip!
3.
Value came in low of course. Now I have a cash out 90%.
As you know, we can’t do cash a out 90% !
Now I’m @ 85% max with PMI and Borrower needs to bring in the cash to close??…..not a super easy sell.
Pretty much a dead deal right?
Wrong: ( FHA DOES NOT CONSIDER PAYING OFF A 2nd MORTGAGE OLDER THAN 12 MONTHS CASHOUT! )
Went from a 3.75% no cost cash out 15yr to an FHA 3.50%, 90% rate and term, sold the .35% PMI.
( NO CASHOUT LLPAs EITHER!!! ) Can you imagine a cashout adjuster @ 90%?? ( what -4.25?? )
The MI is only .35%...EZ sell especially when offering a .25% drop in rate!
I had to cancel out the loan, re-submit the loan back to processing.
Not out of the woods yet but that’s how you save a deal from the loan reaper!
Cashout >80+15yr term = FHA ALL DAY!!!
2. FHA Purchase ( $155K )
97.50 LTV
1st time buyer
Borrower has a regular W2 with good income but about $1000/mo comes from overtime.
We get the WVOE back, "WE CANT VERIFY OVERTIME INCOME AS IT'S AGAINST COMPANY POLICY"
DTI is now 63%...Sheeeeit!
I got the year end paystubs from 2 previous years showing the breakdown, BAM!.DTI 44%.. ( FHA will go 50% DTI)
Apprisal came in $15K Short!
Sellers wont budge!
F...we may loose the deal but learned as good tip!
3.
