Washington Loans-Frequently Asked Questions!

Here are some frequently asked questions regarding Washington‘s loans and the answers to these questions.  For more details, please give our lenders a call!

Question: The home is missing appliances, do we need them to finance?

Answer:  APPLIES TO ALL LOAN PROGRAMS:  If you have a home with missing/no appliances the appraiser will need to address marketability and have like comparables and/or adjustments.

•   Range:  Required. Exception on a case by case basis only
•   Refrigerator:  Not required
•   Dishwasher:  Not required unless the dishwasher is “Built In.”  In this case it must be functioning. Get a Kelowna plumber because the existing plumbing must be capped if built-in was removed.
•   Built-In Microwave: Required if microwave is part of the range hood/vent fan.  It is not required if it is just cosmetic.  There may be additional requirements if wiring is exposed.
•   Clothes Washer/Dryer:  Not required

Question:  Is HomePath financing available for investment properties?

Answer:   Yes!  HomePath is a great financing option for investment properties and second homes with as little as 10% down.

HomePath Benefits:

No mortgage insurance! No appraisal required! No condominium resale certification required!

Eligible Property Types

Fannie Mae owned properties Single Family Condos 2-4- unit properties

HomePath: Auction Sales 

Fannie Mae has recently partnered with several auction companies to help reach the largest, most targeted audience possible when selling their REO properties.  At any time, Fannie Mae may remove a home from their posted inventory on www.homepath.com  and sell through an auction.

Maximum loan to value requirements must be reduced by 5% for investment properties sold through auction.

Question:  My buyer owns a home now and wants to buy a new home.  If they convert their current residence to a rental can they use the rental income to help qualify for the new home?

Answer: This scenario requires careful consideration by mortgage professionals as guidelines vary by loan product.  In general, the mortgage industry has observed an increasing number of homeowners who are choosing to vacate their existing principal residence and purchase new residences.  In response, mortgage guidelines have been implemented to help assure that the buyer can make payments on both properties or have an equity position not likely to result in default on the present mortgage.  These guidelines are designed to prevent the practice known as “buy and bail.”

“Buy and bail” occurs when a homeowner purchases a more affordable home with the intention to cease making payments on the previous mortgage.

This is a general response as each person’s situation is unique.  If anyone you know is in this position, we would appreciate the opportunity to speak with them to explore their options.

Question:    How do I help prepare my buyers for today’s lending requirements  and assure a smooth transaction?

Answer:    This is a great question since we are in a complex lending environment.  Agents and lenders should work hand in hand through out the transaction to educate buyers regarding rules affecting the home buying process.

Below is a  flyer to share with your buyers that outlines 9 rules to follow during the loan process, I recommend you to take a forbrukslån uten sikkerhet.  In addition to these rules, there are few more  to consider.  Please instruct your buyers to consult with their loan officer prior to taking action in the following areas:

• Getting married during the home  loan process
• Paying off collections –  paying off collections can reduce credit scores
• Depositing large sums of money – large deposits must be well documented
• Applying for purchases with  deferred payments– these transactions appear on the credit report
• Close accounts

Credit reports  are valid for 90 days.  Transactions exceeding 90 days will require a  new credit report.  Also, credit is refreshed a few days before or on  the day of funding of the loan.  Therefore, the credit picture  should not be changed during the home buying process.  Changes can  result in closing delays or loan denial.

Teamwork and  communication is the key to successful transactions!