American Pacific Mortgage

American Pacific Mortgage

Friday, October 13, 2017

How Parents Are Helping Their Kids Buy a Home!

I recently closed a refinance for a couple whose parents provided the funds for them to buy a home all-cash. Why? In today's market, this made their offer much more attractive to the sellers, since they could close quickly and without any loan or appraisal contingencies. After closing, I was able to assist them with a refinance to recoup funds to repay their parents. A total win-win. The article in today's Wall Street Journal details exactly the same scenario, and how many younger couples are getting this same assistance from their parents. go to:

Millennials’ New Weapon in Bidding Wars: A Parent’s Home Equity

Parents refinance their own homes to help their children compete as all-cash buyers in hot housing markets. When the purchase closes, the children pay the parents back.

Tuesday, October 10, 2017

Loans for Self-Employeds

I can't begin to tell you how many times I've had the opportunity to close a home loan for a self-employed individual or family after they have been turned down elsewhere. Maybe it is because I care enough about my clients to take the time to carefully analyze both individual and business tax returns, to understand what their real income is, at least according to standard underwriting practices.

Are there loan programs out there for those who can't qualify with income shown on tax returns? Yes, but they usually rely on deposits either to individual or business bank statements...and they typically require a larger down payment, and carry higher interest rates. Some programs today only require one year's business returns, without averaging income over a two-year period--which helps many.

Any way it works out best for the client, I love solving problems--and seeing them achieve their dream home, or dream loan. Today I am helping an artist who wants to buy a home but doesn't show much income on her tax returns. By eliminating her studio rent, which she she won't need once she is a homeowner, we can attribute more income to her in order to help her qualify for a larger loan.

Sometimes I will completely eliminate a self-employed spouse from the loan application, and just take the W-2 employee in order to qualify. It does take thinking outside the box. And TEAMWORK