Truth Archives | Fairfax Mortgage Broker
Loan Application
Questions? Call  (703)799-5626

All posts in Truth

Home Truth

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

Housing Hustle for Millennial and Gen Z Home Buyers

Housing Hustle for Millennial and Gen Z Home Buyers

How to buy your first home right out of college or grad school .. and begin building wealth sooner than you ever thought possible.

It seems that you can’t read an article on real estate without at least a paragraph bemoaning the “refusal” of Millennial college grads to purchase their first homes. Forget the fact that they graduated during the build-up and aftermath of the Great Recession. Forget unprecedented levels of student loan debt. According to some, these young, highly educated consumers are wasteful with money, unwilling to give up their everyday luxuries to save for a home. One Australian mogul even blamed avocado toast. In reality, of course, Millennial’s are enthusiastically looking for home-buying opportunities.

 

For Gen Z, the desire to buy a home is a paramount goal, and many are just as motivated as their Millennial friends, siblings, and colleagues to begin looking ahead to home ownership. For each of these groups, student loans and lack of wage growth may make home buying seem like a distant goal. The good news? There are a variety of options to help Gen Z and Millennial’s with every step of financial planning for their home purchase.

Your Complete Guide to Millennial and Gen Z Homebuying

Think ahead and create a plan for home ownership that gets you moving into your own home sooner.

Step One: Plan Ahead

If your goal is to buy a home as soon as possible after graduating from college or grad school, you need to begin early building your professional resume. When you first arrive at college, begin early attending job fairs, even if you are not sure what field you want to major in. The experience you will gain in interview skills and networking will help you when it is time to land your first professional gig.

 

Secondly, landing internships should be a big part of your professional planning. Landing an internship early in your time as an undergrad can help make you more competitive and make you a front runner for other highly desirable internships. Even college freshmen can and do get internships, especially when reaching out and networking with friends, family, and other acquaintances.

Step Two: Establish Good Credit

At your first opportunity, get a credit card, even if it is a secured card with a $300 limit. The key is to establish credit as early as possible. Mortgage lenders like to see that you have some credit accounts with at least a 12 – 24 month history.

 

I am often asked if someone can buy a house with no previous credit history and the answer is Yes. However, approval is dependent on the type of financing — FHA or Conventional Fannie or Freddie. These rely on the automated underwriting engine for approval in most cases.

 

The minimum standards get tougher if a manual underwrite is required. It is better to have a few established credit accounts with you as a primary account holder and not as an authorized user. The key, of course, is to ensure that you use the card sparingly and pay it off completely each month. Late payments or carrying the maximum balance will set back your financial goals and stay on your credit report for years. If you currently have blemishes on your credit report, go ahead and pay them now and begin rebuilding your score.

Step Three: Establish Work History and Income

Once you graduate, the key to moving toward homeownership is a salaried job and a work history of two years in your field. The game-changing news for young home buyers? That time you spent in the classroom counts toward your two years of work history! In fact, all of the preparation you did for your job — internships, field work, and classroom experience — counts toward the time requirement.

 

Because commissions and bonuses don’t count as income within your first two years of employment for mortgage underwriting, a salaried job is critical to meeting your lender’s income requirements. However, if your company will guarantee a minimum commission and bonus as part of your employment verification, you may be able to include these as part of your income.

 

As soon as you confirm your new job and salary, contact your lender to start the pre-approval process. Get educated on the cost of a home in your chosen market and the costs associated with your purchase.

Step Four: Save for the Down Payment and Closing Costs

Many College graduates ask how much down payment is required to be able to buy a home. The minimum is typically 3-5% or more depending on the type of financing. Most 3% and 5% down programs do allow a gift from a family member, or money that is remaining from a 529 college savings plan to be used as a gift. In addition, some loan products and programs offer down payment assistance and even grants to help offset costs.

 

Another strategy is to move back home and save money for 6-7 months to buy your home. Once you have saved $15,000 to $20,000 then you can contact a lender to get pre approved to buy a home. Share your goals and plans with your parents; they will usually be happy to help with this process. They may even choose to provide some gift funds to help you bulk up your savings. Be sure to use this time to save as much as possible; don’t allow yourself to spend more just because your living costs are reduced.

 

The final step in the home buying process is closing, where you will need to provide several thousand dollars in taxes, fees, and other expenses. These are called closing costs, and depending on the market they can be very expensive. However, most closing costs can be paid for by the seller, the lender, or the real estate agent or broker. In addition, different mortgage programs and first-time homebuyer programs may provide credits and adjustments to the amount of the closing costs.

Step Five: Put it all together

When you’re ready, talk to your lender about real estate agent or broker recommendations. Work with a trusted professional in your chosen market to ensure you have top-notch advice throughout the process. In addition, your agent will help during the negotiation process for the purchase and after the home inspection. The best part? The seller pays for all real estate commissions, so this professional representation comes at no cost to you.

 

In addition, your lender is a valuable resource for recommendations on title and settlement companies, as well as a variety of other professionals in your market. Don’t hesitate to reach out if you have questions or need a referral.

Benefits and Strategies for Home Ownership

You’ve been together through four years of college. Why not transition into your professional life along with your fraternity brothers, sorority sisters, or college roommates? Renting space to some of your best friends helps to defray your monthly expenses while paying down your mortgage and building equity.

 

You may also choose to purchase your home along with a trusted friend or family member. This can provide another source of income, helping you qualify more easily and helping to offset the cost of the monthly mortgage.

 

Delaying home buying because you might want to travel or you might transfer to a new city? No need. Purchase your home now and start building equity. If you find that your career takes you elsewhere, you can always rent out your home and have a property manager maintain it while you continue to build wealth.

Ready? Let’s get started!

Wherever you are in your college or post-graduate journey, there’s no time like the present to start thinking ahead to your home purchase. Let’s discuss the various strategies and financial products available to help you make your dreams of home ownership a reality. I’m here to help with expert guidance for your DC metro home purchase. Call 703-799-5626 for more information.

Click Here to download your personal guide.

Please share with those with whom this article may help .

 

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

Conforming Loan Limits

More Loans will Be Conforming in 2018

First Meridian Mortgage is pleased to announce that we are accepting the new limits announced by the FHFA for 2018 as of right now.  In the United States the 2018 maximum conforming loan limit for one-unit properties will be $453,100 – an increase from $424,100 in 2017.  This is a 6.8 percent increase from the previous year.  Also if you are in a high price index (HPI) area the allowance of 150% of the base limit is allowed. This will raise the High Balance Loan Limit to $679,650 for 2018. These are the loan amounts that Freddie Mac and Fannie Mae are allowed to purchase making up the largest portion of mortgage loans originated in Virginia, Maryland and Washington DC.

The net result of the loan amount changes will be that more clients will be eligible for conforming loan pricing, and more will be eligible for high balance conforming. Fewer clients will have to do a jumbo loan. This is a substantial increase versus the previous year increase. Please keep in mind that the loan limits have increased the last two years and do not always increase.  They have gone down before in the past.

This will allow some that are close to the Conforming loan amount at $453,100 or close to the High Balance Conforming loan amount at $679,650 to do a no closing cost refinance and save money by moving from a higher cost loan into a lower cost loan.

To view the county limit in your area Click here.

FHA and VA Loan Limits for Virginia Click Here.

FHA and VA Loan Limits for Maryland Click Here.

FHA and VA Loan Limits for Washington DC are $453,100 and $679,650.

If you have any question please contact Kevin Retcher at 703-799-5626, or email at Kevin@firstmeridianmortgage.com.

To apply for a loan Click here, or to check on live rates click here.

 

Rates as of 12/14/2017 and 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

 

 

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 →