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Divorce Lending

Divorce Lending

Navigating a divorce is hard enough but when property is involved it does add another layer of issues.  Learn how a lender will look at your financial picture when you have a home that is part of a divorce.  The approach is different for a purchase or a refinance. These are not the only scenarios but the most common.

Purchase with Contingent Liability

  1. If your borrower wants to buy a house but is still on the mortgage of their current house, this debt does not have to affect their buying power. When a borrower has outstanding debt that was assigned to another party by a court order (such as under a divorce decree or separation agreement) and the creditor does not release the borrower from liability, the borrower has a contingent liability. However, the lender is not required to count this contingent liability as part of the borrower’s recurring monthly debt obligations. The lender is also not required to evaluate the payment history for the assigned debt after the effective date of the assignment. The lender cannot disregard the borrower’s payment history for the debt before its assignment. If a buyout is still needed see below. Download divorce lending flyer

Refinance – Spousal Buyouts

  1. If the borrower has a court order (such as a divorce decree or separation agreement) and one spouse is buying out the other spouse on a conforming loan, the loan is not considered cash- out as long as the spouse keeping the property does not receive any cash-out and all funds are itemized to the spouse on the closing disclosure.
  2. The key in most divorces is that one spouse wants to be removed from title and liability (mainly to protect credit or receive funds). This is the main catalyst in needing to divide up and settle the assets at the earliest possible time frame. The cash to buy out the other spouse is also an issue if cash on hand is not available. Most agreements will state a timeline for removal of the liability and/or sale. Having a court document allows the refinance to be expedited as a non cash-out which saves money.

Value of property

  1. The value of the property (not including alimony, and/or child support) is usually the hardest battle in negotiating the property settlement. Both sides are not usually in agreement on the value of a property. The Appraisal Independence Requirement can help with this. The appraisal is randomly ordered through an Appraisal Management company. All that is required is that the appointment is made by the spouses. This is an excellent tool to use that will save everyone time and money. Alimony, child support and Separate maintenance payments

Alimony, Child Support and Separate Maintenance Payments

  • When the borrower is required to pay alimony, child support, or separate maintenance payments under a divorce decree, separation agreement, or any other written legal agreement and those payments continue to be made for more than ten months, the payments will be considered as part of the borrower’s recurring monthly debt obligations. However, voluntary payments do not need to be taken into consideration and an exception is allowed for alimony. A copy of the divorce decree, separation agreement, court order, or equivalent documentation confirming the amount of the obligation must be obtained and retained in the loan file.
  • For alimony and separate maintenance obligations, the lender has the option to reduce the qualifying income by the amount of the obligation in lieu of including it as a monthly payment in the calculation of the DTI ratio.

** while these are not all the guidelines pertaining to divorce lending, these are the most common that need to be understood. All guidelines and rates are subject to change without notice. **

Call Kevin Retcher 703-799-5626

Licensed in Virginia, Maryland and Washington DC

First Meridian Mortgage Corporation

KSA Insurance Agency

Kevin Retcher, President
kevin@firstmeridianmortgage.com  | Apply Now | Website |NMLS 116922,180004

8305 Richmond Hwy, Suite 12A, Alexandria, VA 22309

703-799-5626 office Ext. 16 | 703-201-6138 cell | 703-799-5636 fax

Top Mortgage Broker in Fairfax Virginia Kevin Retcher

Scotsman Guide Releases Top Originators 2018 Rankings

First Meridian Mortgage Corp.’s Kevin Retcher Ranked as One of the Nation’s Top Originators

Fairfax, VA – May 15, 2019 – First Meridian Mortgage Corp. congratulates Kevin Retcher for ranking as a Scotsman Guide 2018 Top Originator. Kevin Retcher was ranked #26 in Top Originators – Top Mortgage Brokers.

Scotsman Guide, the leading resource for mortgage originators, released its ninth annual Top Originators rankings on April 1. The list, which ranks the nation’s top mortgage producers, appears in Scotsman Guide‘s April 2018 residential edition, and the rankings are available online at ScotsmanGuide.com/Top2018.

Kevin Retcher was ranked among entries from more than 3,000 mortgage professionals across the country. To be eligible for initial consideration in Scotsman Guide’s Top Originators rankings, originators must have had at least $40 million in loan volume or 100 closed home loans for the 2018 calendar year. After receiving submissions, Scotsman Guide required written verification of top entrants’ volume data from a certified public accountant, the chief financial officer at the originator’s company or a similar source.

From the Company: Kevin Retcher has been the owner of First Meridian Mortgage since 1996,a Veteran Owned Mortgage Broker, and has specialized on Purchases in Virginia , Maryland and Washington DC. There most known for their ” NO Closing Cost Refinance Program” or the “Zero Closing Cost Refinance Program”. As a Mortgage Broker Located in Fairfax, Virginia he has access to over 30 major lending institutions to find you the very best programs to fit your financial needs. Kevin has been named a Top Producer in the Scotsman Guide multiple times going back to as early as 2009 and is not a stranger to making the list of the Top 200 Loan Originators in 2009,20010,2012 just to name a few. Kevin, prides himself that he takes every loan application himself and does not have anyone else do the most important part of the transaction, “Advising the client,and making the loan application”. Yes he says he could do more volume if he delegated that to an assistant but he feels the one on one with the client is more important.  He Thanks Scotsman guide once again for the acknowledgment and looks forward to making the list in the future.

Scotsman Guide Media Inc. has been the leading provider of digital tools and resources for the mortgage industry for nearly three decades. Scotsman Guide Media publishes a residential edition and a commercial edition of Scotsman Guide, in addition to Scotsman Guide News, Loan Post and other offerings at ScotsmanGuide.com. Each month, the magazines reach tens of thousands of subscribers nationwide. Scotsman Guide connects mortgage originators with wholesale and commercial lenders.

For more information, call 703-799-5626 or visit www.firstmeridianmortgage.com .

Kevin@firstmeridianmortgage.com

 

Looking For Low Down Payment Options | 3% Down | FHA | Home Ready | Home Possible

Looking For a Lower Down Payment? Here Are Your Options.

A low down payment doesn’t have to limit you. There are a variety of options designed to help you find the right 3% down financing plan for your home purchase. My favorites are the Home Ready and Home Possible options — aimed squarely at the Millennial and Gen-Z Home Buyers Hustle. If your Seller gives a credit of 3% of the loan amount to help with closing costs and prepaid elements, you can get into a home with as little as that 3% down. Check out these options and let’s talk about the right choice for your home purchase.

Let’s Get Started

When you first think about buying a home, you may find your head filled with thoughts of interior design, landscaping, and entertaining. The reality of home finance, however, is that there are a number of up-front costs associated with the purchase itself, which can leave you short of cash to do the things you’ve planned. Managing those costs ensures that you have the funds you need to both buy your new home and enjoy it.

If you’re thinking about home ownership, one of your biggest concerns may be saving up for your down payment. Alongside closing costs, moving expenses, and other charges associated with a home purchase, the down payment is probably the most expensive part of buying your new home.

The traditional down payment associated with a conventional loan is upwards of 20%. In expensive markets, this could mean tens of thousands of dollars for even the most modest starter home or condo. In order to support the goal of home ownership, therefore, many lenders have created loan products designed to allow for lower down payment amounts; among the best deals are 3% down products.

 

A low down payment doesn’t have to limit you. There are a variety of options designed to help you find the right 3% down financing plan for your home purchase. My favorites are the Home Ready and Home Possible options — aimed squarely at the Millennial and Gen-Z Home Buyers Hustle. If your Seller gives a credit of 3% of the loan amount to help with closing costs and prepaid elements, you can get into a home with as little as that 3% down. Check out these options and let’s talk about the right choice for your home purchase.

Home Ready

This program is sponsored by Fannie Mae. The Home Ready loan requires as little as 3% down payment for fixed rate loans of either 10, 15, 20, or 30 years. Here are some of the highlights:

  • Minimum credit score of 620
  • No up-front MIP
  • Gift funds allowed from family
  • 1-4 Unit Properties eligible
  • Flexible source of income eligible
  • Not required to be first-time homebuyer
  • At least one borrower must take a home ownership course
  • Primary borrower must occupy as their primary residence
  • Available for purchase or refinance
  • Higher Ratio’s to 49.99 Debt to Income
  • Seller can pay 3% toward closing cost, and 6% at 90%

Home Possible

This program is sponsored by Freddie Mac. The Home Possible loan requires as little as 3% down payment for fixed rate loans of either 15, 20, or 30 years. Here are some of the highlights:

  • Minimum credit score of 620
  • No up-front MIP
  • Gift funds allowed from family
  • 1-4 Unit Properties eligible
  • Flexible source of income eligible
  • Not required to be first-time homebuyer
  • If all borrowers are first-time homebuyers, at least one borrower must take a home ownership course
  • At least one borrower must occupy as their primary residence
  • Available for purchase or refinance
  • Higher Ratio’s to 49.99 Debt to Income
  • Seller can pay 3% toward closing cost, and 6% at 90%

Home One

This program is sponsored by Freddie Mac. The Home Possible loan requires as little as 3% down payment for fixed rate loans of either 15, 20, or 30 years. Here are some of the highlights:

  • Minimum credit score of 620
  • No up-front MIP
  • Gift funds allowed from family
  • 1 unit properties only
  • No borrower income or geographic limits
  • At least one homeowner must be a first-time homebuyer
  • At least one borrower must take a home ownership course
  • Available for purchase or refinance
  • No restrictions on income Seller can pay 3% toward closing cost, and 6% at 90%

FHA

Insured by the US Federal Housing Administration, the FHA loan requires as little as 3.5% down payment for fixed rate loans of either 15 or 30 years. Here are some of the highlights:

  • Minimum credit score of 580 to qualify for 3.5% down
  • Minimum credit score of 500; maximum 90% Loan-to-Value (LTV) for credit scores under 580
  • Mortgage Insurance Premium (MIP) required: 1.75% up-front, .45-1.05 annually for the life of the loan ( avoiding fha allows you to not have to pay the 1.75% upfront fee)
  • Gift funds allowed from family
  • 1-4 Unit Properties eligible
  • Loan limits determined by county/state location of property
  • Not required to be first-time homebuyer
  • Available for purchase or refinance
  • Higher ratio’s are allowed to a 55 DT
  • Seller can pay 3% toward closing cost

Which 3% down loan product is right for you?

Interested in financing your home with a low-money down financing option? Choosing the right loan depends on a variety of factors.

 

  1. Your credit score: If you haven’t yet had time to build an extensive credit history or if you have made some financial mistakes in the past, an FHA loan might be a better option since it is available for borrowers with lower FICO scores. Keep in mind, however, that this will require a higher down payment in some cases, so it is in your interest to start early working on raising your credit score. That will give you the largest number of options.

 

Little to no credit does not mean you are out of luck! As long as you have credit scores and the automated underwriting engines give you an approval, you will be fine.

 

  1. Your income: Different products favor different types of income. If your income is stable and based on a regular, consistent salary, you might find a Fannie Mae product like the Home Ready loan is a better option for you. If your income is more variable and based on commissions, bonuses, or contract work, you might better qualify with a Freddie Mac Home Possible loan. Either way, be sure to keep good records so that you can adequately document your income.

 

And don’t forget: new salaried employment straight out of college does not need a two year employment history; college will count as time on the job.

 

  1. Your market: Since some loans, like the FHA mortgage, are market-dependent, you may find that the requirements and availability varies according to the type of home, the location of the home, and the price of the home. Home Ready and Home Possible can also be restrictive on income vs. FHA, while being lenient on adjustments for credit scores with potentially a much lower mortgage insurance rate. Be sure that you are working closely with both your lender and your real estate agent to ensure that you choose the right option for the right property and market.

 

  1. Down payment: All of these programs include the ability to have your down payment gifted from a family member. In addition, many, including Home Ready, feature lower cash reserve requirements. Generally, two months of mortgage payments or less in reserve will work for these loans.

 

  1. Refinancing: Refinancing can be done on all of these programs, so in some cases a Home Ready or Home Possible mortgage can help a borrower get out of FHA or refinance when in a higher LTV position without paying upfront mortgage insurance.

Depend on Kevin Retcher and First Meridian Mortgage Corporation

As a loan officer, an insurance agent, and a REALTORⓇ, I can offer you the experience, expertise, and market knowledge you need to make the right choice about both your property and your financing options. Let’s talk about your budget and take a look at the numbers to find the right low-money-down loan for you.

Low Down Payment pdf

First Meridian Mortgage NMLS ID# 180004, Kevin Retcher NMLS ID# 1116922

www,nmlsconsumeraccess.org, Kevin Retcher – Realtor – Jobin Realty, 5592 Backlick Rd, Springfield, VA 22151 703-642-8500, lic# 0225055584. KSA Insurance Agency NPN 8036794,VA LIC# 624093, Rates are subject to change

2019 Fannie Mae and Freddie Mac Conforming Loan Limits

New Conforming Loan Limits for 2019

The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2019.  In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018.  The average increase  for the House price Index rose 6.9% for the year which is the reason for the increase over the 2018 loan limits.

In High Cost counties they are adjusting  between 115% to 150% of the Baseline which can result in a new max loan amount in high cost areas of $726,525. This is calculated by taking the baseline $484,350 multiplying by 150 to equal a max of $726,525.

Normally FHA and Veterans administration will follow will follow soon with there new limits if they are going to make any changes. The loan amounts for FHA and VA do not always follow the FHFA limits.

This brings us back to within a .5% of the all time high in the Loan limits which were at a max of $729,750 in July 2007 to Dec 2008.  This was done during a stimulus period and they used 175% of $417,000 standard loan limit vs. the 150% of $484,350 they are using now.  Shortly thereafter the limits were lowered when the recession and mortgage crisis occurred. Since then we have slowly increased loan limits as the economy has recovered. The new standard loan limit is technically the highest it has been at the new level of $484,350. These limits will allow for better pricing vs some jumbo products available and should be seen as a positive. Refinancing Adjustable Rate Mortgages with no Closing Cost into new fixed or Adjustable Rate Mortgage may benefit from the mortgage increases, allowing to roll in seconds, consolidate debt  and lower the rates as they adjust up at there respective change dates.

As Always Semper Fi

For reference https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx

 

Rates are subject to change.VA MC-928 | MD4272 | DCMLB3295 | KEVINS RETCHER 116922

Notice; Information about the author: Kevin Retcher is the Owner of First Meridian Mortgage since 1996 and can be reached at 703-799-5636, kevin@firstmeridianmortgage.com. His opinions are his and his alone, and not to be taken as legal advice. Always consult with a licensed professional. Also excuse grammar and spelling, I work with math for a living. © First Meridian Mortgage Corporation. NMLS# 180004 www.nmlsconsumeraccess.org, ©KSA Insurance agency, License NPN 8036794 VA License, Rates are subject to change without notice. Kevin Retcher is a licensed Realtor with Jobin Realty , Springfield Virginia, 703-642-8500

 

Feb 13
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First time home buyer / Fixed Mortgage / Mortgage Broker / Realtor Credit / REALTOR INFORMATION / VA LOAN

Why I would not go to a Credit Union for a VA Loan.

Why you should Never Get a VA Loan from a Credit Union

I am a veteran owned Mortgage Company and I do not like our veterans overpaying on their mortgages. Often many of the serviceman’s first choice is to use one of the Credit Unions because they were on each base we served, but we need to help them understand that they should shop elsewhere. I will walk you through the simple steps to check the interest rates through Navy Federal, USAA, and Pentagon Federal. You will then be able to compare the difference to First Meridian Mortgage’s current Interest Rates. I contend that the most efficient place to get a mortgage is through a Mortgage Broker like First Meridian Mortgage.  First Meridian Mortgage is  a licensed mortgage broker in Virginia, Maryland and Washington DC.  A Mortgage Broker will have 20 to 30 lenders to choose from for each product not just one.  They can pick and choose which one has the best individual product. The lender that has the best VA Loan might not be the lender that has the best FHA Loan. Having multiple resources for each type of loan is what gives a Mortgage Broker the competitive advantage against on source operations like a Bank or Credit Union.

If you are a Realtor  I  know you have a  tough time trying to steer Veterans away from using the big 3 – Navy Federal, Pentagon Federal, and USAA but showing them this video might help them understand the differences that are available. First Meridian Mortgage is located in Alexandria Virginia just outside of Fort Belvoir, In Fairfax County Virginia and can be contacted at 703-799-5626, or www.firstmeridianmortgage.com

 

Kevin Retcher – Semper FI – kevin@firstmeridianmortgage.com

VA Loans, Entitlement, Funding Fees, Loan Amounts,

 

1% down with 2% equity Boost By Lender

This program Has down payment assistance for the buyer. It is designed to help the first time home buyer put only a 1 percent down Payment and receive a 2 percent gift from the lender. This results in a 3 percent down payment to be used with the Freddie Mac 3 percent down program. This program has the option of no mortgage insurance paid by the borrower in conjunction with using lender paid mi program.

The main requirement is a 700 credit score and a max debt to income of 43%. No other home can be owned and the borrower will need to do a quick online home education class. This program gives the client an Equity Boost. The client can receive a gift from a family member for down payment and closing cost. Please call First Meridian Mortgage Corporation for details at 703-799-5626.

Many other First Time Home Buyer programs are available, FHA, Fannie Mae Home Ready, Freddie Mac Home Possible, and others.

TWO POSITIVE CHANGES HIGHER CONFORMING LOAN LIMITS, LOWER FHA MORTGAGE INSURANCE

Two Positive Changes That Will Allow You to Buy More House and Pay Less!

The positive change is that the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA) have increased loan limits for 2017. The second change is that the Federal Housing Administration (FHA) has decided to lower the Annual required mortgage insurance (MI) on loans. Basically one agency (FHFA) is allowing you to buy bigger homes and the other agency (FHA) is allowing you to pay less for that home. These new loan limits, as well as their impact to pricing and underwriting, are summarized below.

 

Conventional Conforming Loan Limits – are for Conforming – VA and FHA

The following tables outline the difference in maximum loan limits from 2016 to 2017, based on number of units, for Standard and High Balance/Super Conforming loans. In most of the country, the 2017 standard maximum loan limit for one-unit properties will be $424,100. In high-cost areas, higher loan limits will also be in effect.

conforming-loan-limits

NEW CONFORMING,FHA ,VA LOAN LIMITS 2017

Low Cost Area

(Set at 65% of the national conforming limit of $424,100 for a one-unit property.)

low-cost-area

FHA LOW INCOME COUNTY LIMITS

For specific county loan limits, refer to the FHFA website for additional details. linkhttps://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx

FHA – Mortgage Insurance Change

FHA has reduced the annual mortgage insurance rate by .25 basis points effective with closings on or after January 27, 2017. The annual mortgage insurance is collected on all FHA loans and is the insurance monies used to meet claims in case of defaults. You can see the proposed changes in the chart below.

FHA ANNUAL MORTGAGE INSURANCE RATE CHART

FHA MORTGAGE INSURANCE 2017

 

 

EX: $424,100 (@3.25= $1845.71 PI) New loan amount

Previous MI rate (.85) = $300.40 per month

New MI rate (.60)= $212.05 per month

 

Previous          $417,000@3.25=$1814.81 PI + $300.40= $2115.21

New LA            $424,100@3.25=$1845.71 PI + $212.05= $2057.76

 

These exciting new developments show that the housing market is continuing to come back. The change in the FHA premium basically saves a client $88.40 on a max conforming loan at $424,100. The savings on the MI depending on the interest rate; pays for the loan increase or allows higher purchasing power for same cost as before. The combination of both of these changes allows for more purchasing power with the same payment or a lower payment buying the same house. A true win win for the industry.

 

Notice; Information about the author: Kevin Retcher is the Owner of First Meridian Mortgage since 1996 and can be reached at 703-799-5636, kevin@firstmeridianmortgage.com. His opinions are his and his alone, and not to be taken as legal advice. Always consult with a licensed professional. Also excuse grammar and spelling, I work with math for a living. © First Meridian Mortgage Corporation. NMLS# 180004 www.nmlsconsumeraccess.org, ©KSA Insurance agency, License NPN 8036794 VA License, Rates are subject to change without notice.

Why You Should Not Trust A Lender Pre-Approval Letter

Realtor Dilemma: Mortgage Broker Pre-Qualification vs. Lender Pre-Approval

When given the choice between a Mortgage Broker Pre-Qualification and a Lender Pre-Approval, realtors should avoid the lender’s loan officer simply because more often than not these types of loan officers do a verbal application, pull the credit, and write a pre-approval letter based on information discussed in a conversation.  They usually do not collect the required documents for an approval and often are not authorized to use the appropriate underwriting engines. They do not have lending or underwriting authority to approve loans, but are giving out a document that has the word approval on it. Due to this, most pre-approval letters from lenders should only be called an opinion letter. Continue reading →