All Forum Posts by: Jeff Shumway

Hey Stephen, since you are buying it as an investment property, you will likely have to put down at least 15% down. The only way you would be able to purchase it for a lower down payment (or a gift of equity down payment) would be if you were going to use the home as a primary residence or vacation home immediately after closing. 

Never heard of them. What are you trying to finance?

@Natanya Vidales the area is USDA eligible. Below is a snip from the USDA map. It can be a really great program to purchase with no down payment requirement.

Hey Robert, the answer any vary depending on the occupancy of the property you're buying. If you are buying an investment property, there are loan programs that do not look at your student loans/Debt to Income ratio at all. A borrower could be unemployed and still qualify so long as they have sufficient credit and assets and the rental income from the property covers the monthly mortgage.

If you're buying a primary residence, it gets a little more tricky. If your loans are from medical school and you're a doctor/resident/veterinarian etc., some loans may exclude the student loans from your calculation. Or if your monthly payment is actually $0 every month (and the loans are not just in deferment), that may work as well. 

Definitely not. Lenders are required to take into account all expenses with the property, including principal, interest, taxes, and insurance (and HOA if applicable) when qualifying you for a property. Lenders legally have to abide by metrics to make sure you are able to repay the loan and giving you a loan you could not afford would spell serious trouble for the lender.

Hey Sunny, I've used GreenLeaf Title numerous times and they have taken excellent care of all my Veteran/Active Duty clients. They also will take clients to closings in a limo. I'll message you their information.

It doesn't really matter so long as it's in a bank and traceable. No bank will approve you if the down payment/reserves/closing costs are in cash under your mattress.

Lenders use any debts that appear on your credit report as well as an recurring withdrawals from your bank account. Utilities do not count. If your student loans are in forbearance, lenders will use 1% of the outstanding balance to calculate your monthly payment for your debt to income ratio. If you have $10,000 in student loans that are in forbearance, then we would count $100 against your DTI.

To calculate your income, lenders use the gross pre-tax number. The max debt to income ratio for a conventional loan is 50%. For example, if you gross $10,000 every month, you would be allowed to max a maximum of $5,000 in monthly expenses (including mortgage for the property you're buying, student loans, credit card payments, any other installment debt, etc.)

Steve, for a conventional loan you are limited to 75% LTV. This is a hard and fast conventional rule. You can find the LTV requirements on Fannie Mae and Freddie Mac's site. There may be other loan programs out there that go above 75% LTV but they usually will have higher rates than a conventional loan.

Anna this is true but there are other loan options out there without this requirement.