Comments for Ask The Underwriter at 2rHouse.org http://www.2rhouse.org/underwriter Mortgage rate and credit advice for First Time Homebuyers Wed, 12 Aug 2009 19:35:28 -0400 http://wordpress.org/?v=2.8.4 hourly 1 Comment on Send a Question or a Link by The Underwriter http://www.2rhouse.org/underwriter/?p=43&cpage=1#comment-3675 The Underwriter Wed, 12 Aug 2009 19:35:28 +0000 http://www.2rhouse.org/blog/?p=43#comment-3675 Greg, your HELOC (Home equity line of credit) is added to your 1st ratio as part of your housing payment. HELOC payments are sometimes interest only for up to 5 years and then amortized over 15 years, so if it's brand new, you might be able to just use the interest payment. The problem is that interest rates go up and down, so the Underwriter might want to quality you at 1 % over current rate, depending on how conservative their qualifying policies are. Greg, your HELOC (Home equity line of credit) is added to your 1st ratio as part of your housing payment. HELOC payments are sometimes interest only for up to 5 years and then amortized over 15 years, so if it’s brand new, you might be able to just use the interest payment. The problem is that interest rates go up and down, so the Underwriter might want to quality you at 1 % over current rate, depending on how conservative their qualifying policies are.

]]> Comment on Send a Question or a Link by Greg http://www.2rhouse.org/underwriter/?p=43&cpage=1#comment-3674 Greg Mon, 03 Aug 2009 02:10:28 +0000 http://www.2rhouse.org/blog/?p=43#comment-3674 How does a HELIC count against your Debt to Income ratio? How may years is it ammoritized? How does a HELIC count against your Debt to Income ratio? How may years is it ammoritized?

]]> Comment on Facing foreclosure? by poor credit mortgage http://www.2rhouse.org/underwriter/?p=89&cpage=1#comment-3671 poor credit mortgage Fri, 10 Jul 2009 21:22:28 +0000 http://www.2rhouse.org/underwriter/?p=89#comment-3671 <strong>poor credit mortgage...</strong> ... poor credit mortgage…

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]]> Comment on Assumable Mortgages by Radley http://www.2rhouse.org/underwriter/?p=57&cpage=1#comment-3665 Radley Wed, 11 Mar 2009 08:36:49 +0000 http://www.2rhouse.org/?p=57#comment-3665 Great post, thanks for the info Great post, thanks for the info

]]> Comment on Facing foreclosure? by Justin Sherman http://www.2rhouse.org/underwriter/?p=89&cpage=1#comment-3651 Justin Sherman Fri, 17 Oct 2008 02:23:29 +0000 http://www.2rhouse.org/underwriter/?p=89#comment-3651 My Question for the underwriter is: I am considering taking advantage of the HUD's new Hope for Homeowners program. I originally purchased my home with an 80/20 (ARM/fixed) from New Century (no longer around), 1st is now by JP Morgan Chase and 2nd is with Wilshire Credit, in May 2005 for $523K. It adjusted two years later and my wife and I were able to work with Chase to re-nogiate the terms into a 30yr fixed (7.9% outrageous rate). We have been wanting to refi for a better rate, but we just had the county lower our property taxes to a now appraised value of $350K I see that the H4H would have the banks write off the difference, of the balance of the loan, to 90% of the appraised value. Then refi or have another bank mortgage the property at 90% with the clause of a sliding scale to split any equity earned on the property with HUD. After 5 years the equity is split 50/50, and there is no penalty to refi out of this loan. That beginning is to hopefully give you enough information to better answer my question... By their guidelines, I qualify. If I apply and the creditor agrees to doing this, when the creditor writes down (I may not be using the right terminology) that loss (approx. $200K) will this information go into my credit report and what kind of impact would that have for me to be able to refinance out of the H4H loan terms within 5 years? I did call the IRS and asked them about any tax implications on me for that loss. They said that one of the provisions in the bailout bill would protect me from the tax liability as long as it was under $250K. This H4H program looks like it could help out many people, but at the same time, I think there is some way or clause that HUD or the FHA is going to make it almost impossible to get out of their loans, therefore, any equity I make 10 years down the road will have to be shared. Thank you for any assistance in this, Justin San Diego, CA My Question for the underwriter is:
I am considering taking advantage of the HUD’s new Hope for Homeowners program. I originally purchased my home with an 80/20 (ARM/fixed) from New Century (no longer around), 1st is now by JP Morgan Chase and 2nd is with Wilshire Credit, in May 2005 for $523K. It adjusted two years later and my wife and I were able to work with Chase to re-nogiate the terms into a 30yr fixed (7.9% outrageous rate). We have been wanting to refi for a better rate, but we just had the county lower our property taxes to a now appraised value of $350K

I see that the H4H would have the banks write off the difference, of the balance of the loan, to 90% of the appraised value. Then refi or have another bank mortgage the property at 90% with the clause of a sliding scale to split any equity earned on the property with HUD. After 5 years the equity is split 50/50, and there is no penalty to refi out of this loan.

That beginning is to hopefully give you enough information to better answer my question…
By their guidelines, I qualify. If I apply and the creditor agrees to doing this, when the creditor writes down (I may not be using the right terminology) that loss (approx. $200K) will this information go into my credit report and what kind of impact would that have for me to be able to refinance out of the H4H loan terms within 5 years? I did call the IRS and asked them about any tax implications on me for that loss. They said that one of the provisions in the bailout bill would protect me from the tax liability as long as it was under $250K.

This H4H program looks like it could help out many people, but at the same time, I think there is some way or clause that HUD or the FHA is going to make it almost impossible to get out of their loans, therefore, any equity I make 10 years down the road will have to be shared.

Thank you for any assistance in this,
Justin
San Diego, CA

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