Sunday, September 21, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Do I even qualify for a home loan?

By
From page AHW5 | April 05, 2014 |

The question I get most often lately is: Do I or can I qualify, as a first-time buyer, or qualify again after a short sale or foreclosure for a home loan? The average person truly is getting so many different messages from so many different “experts” that they do not know who or what they can trust anymore.

Some lenders have capped their back-end ratios, which is total income divided by total credit report monthly debt, at 43 percent and they have capped the amount of points and fees charged on a loan so it does not exceed 3 percent of the mortgage value. When they do the above, they have what is called a “QM” qualified mortgage, which is a safer loan.

But other lenders will allow higher ratios. Some lenders do not let VA buyers purchase again after a foreclosure for four years, while others will allow it after only two years.

Wait! Someone said: “After only one year I could come back in and purchase again?” Well yes, if you can completely document a 20 percent or greater loss in income for a minimum of six months preceding your foreclosure or short sale date, and you have re-established perfect credit since the date of your foreclosure for a minimum of 12 months, and you have taken a HUD-approved class, then you quite possibly can.

Some lenders will do FHA loans down to a 640 FICO credit score only, others down to 600 or even 580 scores. If you have a 583 score, will you automatically qualify to purchase a home? Not if you have current late payments and are not being financially responsible. If you had a traumatic medical event and are 12 months past it and your 585 score is attributed to that specific event, can you purchase? Very possibly.

There is no specific, absolute answer. It all depends on the circumstances and how well-packaged and complete your application is when it is delivered to an underwriter.

Some of these restrictions are called “overlays.” They are put in place to make a lender’s portfolio of loans more enticing or saleable on the open market. They might get an investor to pay a premium for not getting any loans under a 640 score. They would also gain a premium by making a block of loans a bit higher quality by requesting a rate of return of 4.25 percent paying for 30 years and are secured by 10 percent or more down payment.

Above is only a taste of what kind of different “standards” there are in the mortgage industry in our new age of the Financial Reform Act or the Dodd-Frank Consumer Protection Act, and that is only on the conforming or FHA/VA side. The jumbo side has its very own quirks that are just as confusing. It is critical that you are getting good, solid information so you can determine whether or not you can actually purchase a home.

So when you are thinking about looking for a home, do not be discouraged until you have spoken to two or even three different lenders. You need to get to a lender who has the least amount of overlays, one who can structure a loan highlighting your positive attributes. Get to a mortgage officer who gives you good, solid, specific information on the questions you have.

You will immediately know who that is once you have spoken to two or three of them. Then it will become very obvious who will be able to answer the question, “Do I even qualify for a home loan?”

George R. Kalis has 20 years as a mortgage consultant. He works at FirstCal Mortgage, 1300 Oliver Road in Fairfield. Reach him at 759-5129 or George@MyMtgMan.com.

George R. Kalis

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

County makes recommendations for crude-by-rail

By Barry Eberling | From Page: A1 | Gallery

 
Hartley House offers look into Vacaville’s past

By Amy Maginnis-Honey | From Page: C1 | Gallery

New toilet paper sizes will wipe me out!

By Brad Stanhope | From Page: A2

 
Coastal Cleanup helps get rid of trash in area

By Susan Hiland | From Page: A3 | Gallery

Travis teachers bring creativity to Shakespeare

By Susan Winlow | From Page: A3

 
Olympians to participate in swim Lap-a-Thon

By Amy Maginnis-Honey | From Page: A3

Circle of Friends director to speak in Fairfield

By Amy Maginnis-Honey | From Page: A3

 
Be alert to stroke warning signs

By Marilyn Ranson | From Page: C4

Recovery community works for lifelong sobriety

By Amy Maginnis-Honey | From Page: A4 | Gallery

 
Musical merry-go-round at Jazz Festival

By Amy Maginnis-Honey | From Page: A5 | Gallery

Deadline looms for lobster boil tickets

By Glen Faison | From Page: A5

 
2 die after car slams into tree on Nut Tree Road

By Susan Hiland | From Page: A5

Crashes blocks parts of eastbound I-80 in Fairfield

By Susan Hiland | From Page: A5

 
Seven Artisans opens tasting room

By Barry Eberling | From Page: B7 | Gallery

BABA makes big spash

By Bud Stevenson | From Page: B7

 
Old Kmart site sees signs of new life

By Brian Miller and Karl Dumas | From Page: B8 | Gallery

Veterans with PTSD could see discharge upgrades

By Tom Philpott | From Page: B10

 
Airmen with local ties finish basic training

By Nick DeCicco | From Page: B10

Fairfield police log: Sept. 19, 2014

By Susan Hiland | From Page: A12

 
Suisun City police log: Sept. 19, 2014

By Susan Hiland | From Page: A12

.

US / World

Potential push for Obama to expand military effort

By The Associated Press | From Page: A1

 
Teams assess damage as California wildfire burns

By The Associated Press | From Page: A1

McInerney, Duka help Impact beat Earthquakes

By The Associated Press | From Page: B3

 
Old pets, new chances: The case for senior adoption

By Mcclatchy-Tribune News Service | From Page: C4

Jailed, some mentally ill inmates land in lockdown

By The Associated Press | From Page: A6

 
Custer youngest winner at 16 in NASCAR series

By The Associated Press | From Page: B6 | Gallery

Retro-hip barber is growing an ‘empire’ by staying on the cutting edge

By Mcclatchy-Tribune News Service | From Page: C6

 
Tense hunt in trooper ambush case hits 8 days

By The Associated Press | From Page: A7

Tour ship runs aground by NYC’s Statue of Liberty

By The Associated Press | From Page: A7

 
Astronauts getting 3-D printer at space station

By The Associated Press | From Page: A10 | Gallery

Chrysler recalling nearly 189,000 SUVs

By The Associated Press | From Page: A10

 
Fire captain injured in ice bucket challenge dies

By The Associated Press | From Page: A10

More than 1K people search for missing UVa student

By The Associated Press | From Page: A10

 
Second man arrested trying to enter White House

By The Associated Press | From Page: A10

Pope chooses a moderate for Chicago archbishop

By The Associated Press | From Page: A10 | Gallery

 
Turkish hostages freed, but questions linger

By The Associated Press | From Page: A11

Sierra Leone staggers in Ebola isolation effort

By The Associated Press | From Page: A11 | Gallery

 
El-Sissi ready to back anti-IS fight

By The Associated Press | From Page: A11 | Gallery

NATO chief: Ukraine has cease-fire ‘in name only’

By The Associated Press | From Page: A11

 
Kurdish fighters head to Syria to face militants

By The Associated Press | From Page: A11

Polly Bergen, versatile actress, singer dies at 84

By The Associated Press | From Page: A12

 
.

Opinion

Stores miss bus on public transit

By Letter to the Editor | From Page: A8

 
Sunset Animal Hospital is the best

By Letter to the Editor | From Page: A8

Sound off for Sept. 21, 2014

By Daily Republic | From Page: A8

 
Pulse poll: Will the drought end this year?

By Daily Republic | From Page: A8

New car’s fuel mileage accuracy put to the test

By Glen Faison | From Page: A8

 
Obamacare enrollees actually paying premiums

By Megan Mcardle | From Page: A9

 
Will they ever get the message?

By Rod Keck | From Page: A9

 
.

Living

Today in History: Sept. 21, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Sept. 21, 2014

By Susan Hiland | From Page: A2

There is no message of hatred of violence in Christianity

By The Rev. Rick L. Stonestreet | From Page: C3

 
St. Paul pastor’s pulpit? A food truck

By The Associated Press | From Page: C3 | Gallery

Horoscopes: Sept. 21, 2014

By Holiday Mathis | From Page: C4

 
My child’s father and I worked things out – but now I’m not so sure

By Kathy Mitchell and Marcy Sugar | From Page: C4

.

Entertainment

Erdrich wins lifetime achievement literary prize

By The Associated Press | From Page: C2

 
Designer Donna Karan memoir expected next year

By The Associated Press | From Page: C2

PUBLISHERS WEEKLY BEST-SELLERS

By The Associated Press | From Page: C2

 
Author says Christian novel plagiarized, sex added

By The Associated Press | From Page: C2 | Gallery

Springsteen picture book out in November

By The Associated Press | From Page: C2

 
TVGrid

By Daily Republic Syndicated Content | From Page: B11

.

Sports

Williams beats A’s for third time with third team

By The Associated Press | From Page: B1 | Gallery

 
Cardinals look to shake off distraction vs. 49ers

By The Associated Press | From Page: B1 | Gallery

Cashner, Padres beat Giants 3-2

By The Associated Press | From Page: B1

 
Prep boys soccer preview: Indians, Vikings off to fast start

By Paul Farmer | From Page: B1 | Gallery

Patriots big favorites vs. Raiders despite mediocre start

By The Associated Press | From Page: B1 | Gallery

 
Schumacher, Hagan win rain-delayed Carolina event

By The Associated Press | From Page: B3

College football Top 25

By The Associated Press | From Page: B3

 
No. 1 Florida St survives against No. 22 Clemson

By The Associated Press | From Page: B3 | Gallery

Sprint car driver killed in Wisconsin

By The Associated Press | From Page: B3

 
Vacaville Christian volleyball team falls in playoffs

By Daily Republic staff | From Page: B3

Stars Recreation results

By Daily Republic | From Page: B4

 
Estimated 7,000 fans trade in Ray Rice jerseys

By The Associated Press | From Page: B4 | Gallery

Travis Bowl results

By Daily Republic | From Page: B4

 
Mi Jung Hur, Paula Reto share lead in Alabama

By The Associated Press | From Page: B4 | Gallery

This date in sports history for Sunday, Sept. 21, 2014

By The Associated Press | From Page: B5

 
Sports on TV for Sunday, Sept. 21, 2014

By Paul Farmer | From Page: B5

Harvick dismisses wins as key to Cup title

By The Associated Press | From Page: B6 | Gallery

 
Gaughan snatches Nationwide win at Kentucky

By The Associated Press | From Page: B6 | Gallery

.

Business

Extended warranties a big sell. Are they worth it?

By The Associated Press | From Page: B7 | Gallery

 
Recalls this week: fire alarm bases, swings

By The Associated Press | From Page: B8

US tobacco growers brace for tougher competition

By The Associated Press | From Page: B12 | Gallery

 
Marijuana industry battling stoner stereotypes

By The Associated Press | From Page: B12 | Gallery

.

Obituaries

George Junior Rhode

By Nancy Green | From Page: A4

 
.

Comics