Premier Nationwide Lending » Alternative Documentation http://rob-spring.com Premier Nationwide Lending Wed, 05 May 2010 18:38:15 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Loan Application Checklist http://rob-spring.com/loan-application-checklist http://rob-spring.com/loan-application-checklist#comments Mon, 30 Nov 2009 08:00:22 +0000 Rob Spring http://swf-mortgage101.com/?p=371 Loan Application Checklist

In general, the documentation you will need for a “FULL DOC” loan:

 

 (Download a copy of this list in PDF Format)

Documents needed for a Full Doc Mortgage- PDF.pdf
Property Information (if you already have a contract on a house)
  Purchase Agreement (signed by all parties).
  Copy of legal description and MLS sheet.
  If you are selling your current home, copy of listing contract.
  If you have sold your current home, copy of the settlement statement.
Income & Assets
  Pay stubs for the last 30 days.

 

 For the past two years:

 

 

 Names, addresses and phone #’s of each employer.

 

 W-2s
  Statements for each bank, mutual fund, and/or investment account for the last three months.
  Estimated value of personal property and furniture.
  If you have made any large deposits to your accounts:

 

 

 Explanation and source for deposit.

 

 If large deposit was a gift:
 

 

 Signed gift letter (lender can supply).

 

 Copy of gift check.

 

 Copy of deposit receipt.

 

 If you own more than 25% of a business:

 

 

 Corporate or partnership tax returns.

 

 If self-employed:

 

 

 Tax returns for the last three years (with schedules).

 

 Year-to-Date Profit and Loss Statement prepared by an accountant.

 

 If you own rental property:

 

 

 Tax returns for the last two years and current rental agreements.

 

 If you are retired:

 

 

 Pension Award Letter.

 

 If you receive Social Security:

 

 

 Social Security Award Letter.

 

 If you are counting child support as income:

 

 

 Copy of divorce settlement.

 

 Proof of reciept of the child support for the past 3 months.
Debts
   
  A Letter of Explanation of credit report anomalies, including:

(We will help you with these)

 

 

 Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgments and/or liens.

 

 Bankruptcy filed within last seven years (bring a copy of your bankruptcy papers).
VA Loans
  Copy of DD Form 214, Report of Separation.
Miscellaneous
  Photo ID and proof of Social Security number.
  Residence addresses for the past two years.
  If applicable, a copy of your divorce decree.

 

 If you are not a citizen, a copy of the front and back of your green card.
]]> http://rob-spring.com/loan-application-checklist/feed 0 FHA Loans – Qualifying Using Non-traditional Credit http://rob-spring.com/fha-loans-qualifying-using-non-traditional-credit http://rob-spring.com/fha-loans-qualifying-using-non-traditional-credit#comments Mon, 30 Nov 2009 03:55:58 +0000 Rob Spring http://swf-mortgage101.com/?p=346 There are numerous reasons why an FHA loan might be the best choice for your loan.  One of the greatest reasons is that non-traditional credit can be used to help you qualify.  Non-traditional credit also called “Alt-tradelines” do not show up on a traditional credit report, but FHA allows those types of accounts to be a source of credit and lets lenders use them to evaluate credit worthiness.

Effective 5-29-2008 FHA and the department of Housing and Urban Development (HUD) released a new set of guidelines for alternative tradelines.  They divided these types of accounts into 2 groups to help lenders and underwriters evaluate borrower credit worthiness:

Group One – rent/housing payments, gas, electricity, cable and land-line phones.  These tradelines need to be paid separate, and not be included in the rent payment.  Also if the borrower is renting from a family member, HUD requires lenders to request independent documents to prove regularity of payments, such as cancelled checks.

Group Two – consists of receipts of paid auto insurance, renter’s insurance, cell phone, internet, school tuition, child care providers, etc.  These types of accounts are acceptable but do not hold as much weight as Group One accounts.

Verifying Nontraditional Credit – HUD prefers all non-traditional credit references be verified by a credit bureau reported back to the lender as a nontraditional mortgage credit report (NTMCR) in the same manner as traditional credit references.  If a method is used to verify credit and rental references other than NTMCR, all references obtained should be backed with the most recent 12 months cancelled checks.

Evaluating Nontraditional Credit -

  1. No history of delinquency on rental housing payments allowed.
  2. No more than one 30-day delinquency on payments due to other creditors.
  3. No collection accounts/court records reporting (other than medical) filed within the past 12 months.
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