• Primary residence or second home with less than 10% down = 3% of the purchase price
• Primary residence or second home with between 10% and 24.99% down = 6% of the purchase price
• Primary residence or second home with 25% or more down = 9% of the purchase price
• Investment property = 2% of the purchase price 

• Primary residence only (down payment does not matter) = 6% of the purchase price 

• Primary residence only (down payment does not matter) = no limit

• 5% down for a primary residence (3% is allowed, but the rates are higher and the mortgage insurance is higher)
• 10% down for second homes 
• 20% down for investment properties

• 3.5% down - can be a gift from a relative of the borrower
• $100 down if the property is a HUD home and the offer is for the full price 

• $1,000 minimum investment by the borrower - can be a gift from a relative of the borrower

• 0% down

1. Add up the total housing payment for the mortgage you are trying to get.  Add together the monthly principal, interest, taxes, homeowner's insurance, and any mortgage insurance and HOA fees.
2. To the sum above, add the minimum monthly payments that show on your credit report.  This number is your total monthly debt for mortgage approval purposes.
3. Divide your total monthly debt by your gross monthly income.  This will give you your debt-to-income ratio (DTI).
4. Once you know your DTI ratio, then you can tell which kinds of loans you can qualify for.  The maximum DTI for a conventional loan is 45%, and the maximum DTI for an FHA loan or a VA loan is usually 50% or slightly higher, depending on the lender.

• clearly identify the borrower as the account holder
• include the account number
• include the time period covered by the statement
• include all deposits and withdrawal transactions (for depository accounts)
• include all purchase and sale transactions (for financial portfolio accounts)
• include the ending account balance 

• 5% down for a primary residence (3% is allowed, but the rates are higher and the mortgage insurance is higher)
• 10% down for second homes 
• 20% down for investment properties

• 3.5% down - can be a gift from a relative of the borrower
• $100 down if the property is a HUD home and the offer is for the full price 

• $1,000 minimum investment by the borrower - can be a gift from a relative of the borrower

• 0% down

• The minimum borrower contribution of $1,000 may now come from a gift from the borrower's relatives.
• If the earnest money is more than $1,000, the excess can now be given back to the borrower at the closing.

• 36% for conventional loans
• 41% for VA loans
• 43% for FHA loans

• Minimum down payment is 3% of the purchase price.  You can get a cheaper rate if you put 5% down.
• You need mortgage insurance if you don't have 20% down.  The mortgage insurance is paid to a Private Mortgage Insurance company.  The premium for mortgage insurance depends on your down payment and your credit score.
• There is no limit to the size of the loan.  If it is $417,000 or more, it is called a jumbo loan and you need a larger down payment.
• You get the cheapest interest rate if your credit score is 740 or higher. 
• The maximum debt-to-income ratio is 45%.

• Minimum down payment is 3.5% of the purchase price.
• You always have to pay mortgage insurance for the first 5 years, regardless of how much you put down.  The premium for mortgage insurance is the same for everyone, regardless of their credit score.
• The maximum loan size depends on the county you live in.  For Metro Denver counties, it is $406,250.  For Boulder County, it is $460,000.
• You get the cheapest interest rate if your credit score is 640 or higher. 
• The maximum debt-to-income ratio for most lenders is 50%.

• 3% for conventional loans
• 3.5% for FHA loans
• 0% for VA loans

• 10% for conventional loans

• 20% for conventional loans

• The maximum loan-to-value (LTV) and combined loan-to-value (CLTV) ratios for adjustable rate mortgages (ARMs) is being lowered from 97% to 90% for 1-unit, primary residences for purchase and no cash-out refinances.  This means you will need 10% down if you're buying a house and financing it with an ARM.  The ratios are being lowered even more for other types of transactions.
• They are eliminating exterior-only appraisals and property inspections.  This means only full, interior appraisals will be allowed.  No more "drive-by" appraisals.
• They are raising the minimum credit score for ARM loans from 620 to 640.

FHA has changed their underwriting guidelines regarding collection accounts.  They instituted a new requirement earlier this year that made borrowers pay off collection accounts if the total of all collection accounts showing on a credit report was $1,000 or greater.

We don't often use this space to promote other businesses, but we're making an exception today. Kyla DeTienne, an entrepreneur I met through the Rocky Mountain MicroFinance Institute, is having a grand opening celebration this Friday at her new clothing boutique.

Kyla is a dynamic young business woman, and I predict she will have great success in her new venture. Stop by her store to introduce yourself and to shop. You'll be glad you did!

Here are the details:


Friends of birds & belles boutique,

We are proud to announce the GRAND OPENING of our location at 1113 S. Pearl St. in Denver. We hope you will join us in celebrating THIS Friday, June 22nd.

Birds & belles boutique embraces a buy-sell-trade model to obtain quality, brand name and designer clothing as well as modern accessories. So, stop by and have a cocktail while you shop!

• Complimentary drinks from Top Shelf Vodka & Cocktail Mixers
• Tapas provided by Confluence Catering
• Hair Bows & Butter baby bundt cakes
• The Filter coffee cart
• DJ Corytron of The Cardinal Grey
• Door prizes, including FREE haircuts & fitness passes from our neighbors, Dia Bella & Johnny Mac Fitness
• Free birds & belles boutique shopping bag with $100 purchase (get 10% off every time you shop with your birds & belles bag!)

Please stop by between 6-9 p.m. on Friday, June 22nd.

Happy Shopping!

Kyla DeTienne
Owner, birds & belles boutique
1113 S. Pearl Street
Denver, CO 80210


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Fannie Mae, the company that writes the underwriting guidelines for conventional loans, has made some changes to the income guidelines.

The most significant changes involve variable income. Fannie Mae now explicitly describes "how lenders should evaluate, document, and calculate income that fluctuates, such as hourly pay, overtime, and commission income." In the past, Fannie Mae allowed lenders a great deal of discretion in how they calculated and documented income. That has changed. Now, lenders are told exactly how they must calculate and document income.

Although the changes will probably have a big impact on some lenders, those lenders who are already using "common sense" underwriting will not notice any changes at all. After reading through the new underwriting guidelines, we discovered that Fannie Mae has finally put in writing what we have been doing for years.

This is very good news for real estate agents and borrowers because much of the guesswork has been removed from the loan approval process. If your lender knows the guidelines, their loans will close.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Many people think FHA loans are only for poor people and first-time home buyers. Nothing could be farther from the truth.

There is no income restriction with an FHA loan: no minimum income and no maximum income. Also, there is no requirement that a buyer be a first-time home buyer to get an FHA loan.

There is a maximum loan amount for FHA loans. It is currently $406,250 for the Metro-Denver counties, and $460,000 for Boulder County.

Why would someone want to get an FHA loan, rather than a conventional loan? There are three main reasons.

1. FHA loans allow much higher debt-to-income ratios, meaning a buyer can get a more expensive house
2. There are no additional, stricter mortgage insurance underwriting guidelines like there are with conventional loans, meaning more people will be able to qualify for an FHA loan
3. Interest rates are usually lower with an FHA loan if the borrower does not have very good credit (720 and above)

Why do some lenders try to talk borrowers out of getting an FHA loan? Because those lenders are not approved to sell FHA loans. Very few sales people are going to tell you how good a product is if they can't sell it to you.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

What credit score is needed to get the lowest interest rates? Here's what you need to know:

• For conventional (non-government) loans, a 740 credit score gets the lowest interest rate. Every 20 points below 740 has the potential to increase the rate. The amount of the increase depends on how the mortgage backed securities bond market is trading that day.
• For FHA loans, a 660 credit score gets the lowest interest rate. Scores between 640 and 660 pay a higher rate, and scores between 620 and 640 pay an even higher rate.
• For VA loans, scores above 660 get the lowest interest rate. Scores below 660 pay a higher rate.

Remember, there are many more things that go into determining the interest rate besides credit scores. If a lender quotes you a rate without knowing everything about your particular situation, they are just making it up.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

People are always asking us if stated income loans are back. For those of you who are new to the real estate business, a stated income loan allows a borrower to simply "state" their income. In other words, the borrower does not have to document their income with pay stubs. Instead, they just make up a number and get approved for a mortgage based on that phony income.

Stated income loans were the hallmark of the sub-prime mortgage days.

So are they back? The answer is NO, and here's why. The federal government now runs Fannie Mae, Freddie Mac, FHA, and VA - and that's where just about all mortgages end up. Congress has passed regulations saying that Fannie and Freddie cannot buy stated income loans, and FHA and VA never allowed them. So until there is a private market for mortgages, there won't be any stated income loans available. Anyone who thinks that foreclosures are bad for our country would agree that getting rid of stated income loans is one of the smartest things our government has ever done.

The only exception to this "no stated income" rule is for certain types of refinance loans, called "streamline refinances". With a streamline refi, a borrower does not have to prove their income if they are refinancing into the same type of loan that they already have (FHA, VA, etc.) and they have a record of paying their existing mortgage on time.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Can someone get a mortgage after a bankruptcy? Yes they can! And they only have to wait 2 years from the date that the bankruptcy was discharged.

The most important thing is that they "re-establish credit" after the bankruptcy. That means no late payments of any kind (including collection accounts) for the 12 months preceding the loan application date.

What are the down payment requirements for people with bankruptcies? They are that same as they are for anyone else: just 3.5% of the purchase price for FHA loans.

What are the interest rates for people with bankruptcies? They are the same as they are for anyone else.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!


Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

5280 magazine notified Debbie and Chris that they have been awarded the designation of FIVE STAR Mortgage Professional for 2012.

This marks the second year in a row that we have been recognized as being among the top lenders in the Denver area.

Thousands of recent home buyers were surveyed, and Debbie and Chris were each ranked among the top mortgage professionals in Denver, based on overall satisfaction and the willingness of those surveyed to highly recommend them to their friends.

Does that make us a TEN STAR team? We think so!

This presents a HUGE opportunity for Colorado real estate agents. When you refer your clients to The Mortgage Experts, you are referring your clients to a team that is recognized by home buyers - YOUR client base - as being the best. When your clients are satisfied - and they certainly are when you refer them to us - they will refer more business to you. Referring clients to us means more money in YOUR pocket.

Give us a call and join the winning team! Thousands of home buyers are extremely happy with what we do. You will be, too!

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

"Why are my HOA fees included in the loan payment section of the loan application if I don't pay my HOA fees to the lender?"

HOA fees are part of your monthly housing payment, even though they get paid directly to the HOA management company and not to the lender. HOA fees are a recurring debt and must be counted in the calculation of the debt-to-income ratio (DTI). The easiest way to do that is to include them in the monthly housing payment section of the loan application.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

• For a $100,000 loan, the total mortgage payment will increase by about $13 per month.  
• For a $200,000 loan, the total mortgage payment will increase by about $25 per month.

• Make sure you shop around for the lowest fees.  Different banks charge different fees, and some banks charge outrageously high fees for their secured credit cards.  Call at least 3 or 4 banks to compare fees before opening a secured credit card.
• A secured credit card is NOT the same as a pre-paid debit card.  With a pre-paid debit card, you do not have a line of credit - you just have a card that has some money loaded on it.  It will not improve your credit scores.

Want some great news regarding mortgage insurance for conventional loans? How about this?


• The maximum allowable debt-to-income ratio (DTI) for mortgage insurance is being increased from 41% to 45%, regardless of the borrower's credit scores.

• Mortgage insurance monthly premiums are going down by a little more than 10% for borrowers with credit scores above 760.

These changes are for conventional (non-government) loans only. The mortgage insurance guidelines for FHA loans remain the same, meaning anyone who qualifies for an FHA loan automatically qualifies for FHA mortgage insurance. No additional underwriting is required.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

CHFA (Colorado Housing and Finance Authority) offers down payment and closing cost assistance for Colorado home buyers and they only require the buyer to contribute $1,000 of their own money to the transaction.

However, if a buyer pays more than $1,000 in earnest money, they are NOT allowed to get the amount that is in excess of $1,000 back at the closing. So make sure that when your buyer is getting a CHFA loan, they only pay $1,000 in earnest money.

Have a buyer who needs a CHFA loan? Send them to us and we'll take care of everything for you.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

After a bankruptcy, a foreclosure, or a short sale, a potential home buyer must wait a certain period of time before they are eligible to get a mortgage.

In addition, the underwriting guidelines state that they must "re-establish" their credit. Many buyers are unaware of this additional requirement, and it prevents them from getting a loan.

Here's what re-establishing credit means: for the 12 months preceding the loan application date, the borrower must have a perfect payment record on all of their existing credit accounts. In other words, they can't have any late payments for one full year before applying for the mortgage.

If you have any prospects who have had a bankruptcy, foreclosure, or short sale, do them a favor and tell them to make sure they are paying all of their bills. Even one late payment will prevent them from getting a loan.

This "no late payments" rule ONLY applies to people who have had a bankruptcy, foreclosure, or short sale. Everyone else is allowed to have late payments on their credit report and they can still get a mortgage.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

It's almost tax refund time. Many people ask us if tax refunds can be used to pay for a mortgage down payment or closing costs.

The answer is YES! All a borrower needs to do to document the tax refund is to provide a copy of the refund check and a bank statement showing that the refund has been deposited into their account. If the refund was automatically deposited into their account, they won't have a copy of the check, but the notation on their bank statement will show that it is a tax refund. In the case of automatic deposits, the only documentation necessary is the bank statement.

The money does NOT have to be "seasoned", meaning it has been in their account for 60 days. As soon as the refund has been deposited, it can be used to pay the down payment or closing costs.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

By popular demand, one of the greatest ways to expand your sphere of influence is BACK!

If you're a Denver area real estate agent and you have a question about mortgages or credit reports, send us the question. If we choose your question, we'll answer it in our next email newsletter, AND we'll deliver a $25 Starbucks card to you as a way of saying "Thank You" for helping to expand the knowledge base of our local real estate industry.

We'll also include your name and contact information in our newsletter, which goes to more than 6,000 local people. We'll also post your question and contact information on our blogs, giving you outrageous exposure to thousands of people interested in real estate - buyers, sellers, and people who work in the industry.

Here's what you get, just for asking a question about mortgages:

• $25 Starbucks card - delivered to you personally.
• Your name and contact information sent directly to 6,000 Colorado Front Range people.
• Your question and contact information on our mortgage blog. We had 20,446 people visit our blog in 2011 - that's an average of 56 visits per day!
• Your question and contact information on our blog at Active Rain, a real estate blog with more than 210,000 members.The correct answer!
• A chance to help expand the local real estate knowledge base.

The debt-to-income ratio (DTI) is the ratio of your debts divided by your income, and is one of the main things that determines how large a mortgage you can qualify for. But do all of your debts count against you?

The answer is no, not all debts count against you when determining the size of the mortgage you can get. Here is a list of some of the things that do NOT count against you when a lender calculates your DTI:

• car insurance
• electricity
• water
• gas
• sewer
• phone - land line
• phone - cell
• Internet 
• cablecollection accounts
• health insurance 

We get many calls this time of year from borrowers who are worried that they can't get a mortgage because their lender told them that they need their W-2 for 2011 and they haven't received it yet from their employer.

Employers have until the end of January to give W-2s to their employees and underwriters know that, so instead of a W-2, underwriters will accept the final pay stub for 2011, provided it shows the year-to-date income. The year-to-date income on the final pay stub will be the total income for the year, which is the same number that the underwriter takes from the W-2.

So don't worry if you have not received your W-2 yet. You can still get a mortgage without it.

Call us with any questions.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
http://www.mtgsupportservices.com/

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.