New tax law provisions for housing: 2017 vs. 2018 rules If you are wondering how the newly enacted tax bill will affect your 2018 tax returns, you are not alone. Mark Wells at Preferred Financial Services lists some significant changes in the way residential property will be treated for tax purposes. Primary-residence interest deduction—2017 allows for interest on the...
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VA loans benefit veterans, active duty, and long-term reservists Since World War II, the federal government has provided a mortgage loan benefit for those who have served in the U.S. Armed Forces. Originated under the GI Bill, this program is generally referred to as a VA (Veterans Affairs) loan. It has several advantages over other loan programs and has its own unique...
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Home equity lines and the new tax laws Just before the end of 2017, Congress passed a comprehensive tax bill that changed the landscape of mortgage interest deductions. For homeowners with home-equity lines, commonly known as HELOCS, the changes may warrant a reconsideration of how to best manage that debt. Here, Mark Wells of Preferred Financial Services answers...
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Collection accounts, tax liens and qualifying for a mortgage The economic climate of the past 10 years has left many borrowers facing collection accounts and civil or IRS tax liens, which can affect approval for mortgage financing. Mark Wells at Preferred Financial Services answers questions about handling these issues. Isn’t it best to pay off all liens and collection...
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Tax filing and loan qualifying for self-employed borrowers This is the ideal time of year for self-employed borrowers to enlist a mortgage broker’s help with tax returns—not as a tax preparer, but because a broker can suggest income strategies that will make obtaining a mortgage easier if they wish to purchase or refinance in the coming year. Self-employed...
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Loan limits to increase for conventional, FHA, and VA mortgages Like an early Christmas present, Fannie Mae, Freddie Mac, FHA, and VA have all announced increased mortgage limits for South Carolina and the rest of the country. The increase will go into effect for all VA and conventional loans closed after January 1 and for all FHA loans with application dates after...
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Supporting home ownership for the next generation – Part 2 Mark Wells at Preferred Financial Services continues the discussion on how parents and grandparents can help the next generation become homeowners. Sometimes it seems like my children are not that interested in owning a home. What should I tell them that might encourage them to take a look at the benefits...
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Supporting home ownership for the next generation Last week, Mark Wells of Preferred Financial Services discussed ways to assist new home buyers through financial gifts. Today’s column addresses other means of preparing them for home-ownership. This equally important, non-financial assistance can make all the difference in the next generation being able to purchase a...
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Gifts in the home buying process This Christmas season, you may have plans to help your children buy a home in the coming year by giving them some assistance with their down payment. Mark Wells of Preferred Financial Services discusses the various rules involving gifts, and answers questions about how this can be done to meet lending guidelines. Do all mortgage programs...
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Cash-out mortgage financing Borrowers often want to cash out equity from their homes to pay for home improvements, consolidate a home equity line into a single mortgage, consolidate debt, or pay for other expenses. Guidelines for cash-out loans vary from program to program. Mark Wells of Preferred Financial Services addresses questions regarding this type of mortgage...
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Mortgage lending and property types Day in and day out, Mark Wells at Preferred Financial Services talks to homebuyers planning to purchase a new residence. Questions often arise about whether a particular type of property can be purchased using standard mortgage financing programs. Here, he answers questions about how lenders view various property types in the mortgage...
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Mortgage financing for manufactured homes Manufactured homes have long been a practical housing option for many families in South Carolina. Mortgage financing for these properties has always been a bit more difficult to obtain than for other types of housing. Mark Wells at Preferred Financial Services discusses currently available lending programs for manufactured...
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Credit restoration services – helpful or harmful? Nearly every week, Mark Wells at Preferred Financial Services meets with clients who have entered into credit-repair contracts hoping to improve their credit scores. Some find they are unable to transact a mortgage because the credit-repair company has effected changes that will have to be reversed to adhere to...
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Credit breaches in the news The recent revelation that credit agency Equifax was hacked raises fears that almost anyone could become a victim of identity theft. Below are Mark’s responses to clients’ questions about the best ways to protect themselves. How serious is the treat of identity theft? Having processed over 10,000 mortgage loans, I have encountered very few...
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Income qualifying for mortgage financing: self-employed borrowers In the previous two columns, Mark Wells at Preferred Financial Services addressed qualifying income issues for borrowers who are salaried or hourly workers. Today, he looks at the rules for self-employed borrowers, which are quite different. I am self-employed and I made $100,000 last year. Is that my...
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Income qualifying guidelines for mortgage financing part 2 Various types of income are considered differently when determining whether or not a borrower qualifies for a loan. This column is the second in a series of three in which Mark Wells of Preferred Financial Services explains qualifying rules that apply to income from different sources. I am a new pastor and my...
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Income qualifying guidelines for mortgage financing “Not all incomes are equal” certainly applies in the mortgage world. There are substantially different ways of determining your qualifying income when applying for a mortgage. Here, Mark Wells of Preferred Financial Services covers the various scenarios that apply to income guidelines for borrowers who are not...
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When is a broker the best choice for a mortgage? There has long been debate about whether a mortgage broker or a direct lender is the best source for a purchase or refinance loan. Advertisements for each platform claim the higher ground, but what is best for you? Mark Wells at Preferred Financial addresses why a mortgage broker may be your best bet when seeking mortgage...
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USDA mortgage financing The USDA mortgage program continues to be available to many borrowers in the Upstate, and can be an excellent choice, providing the borrowers and the property meet the requirements and guidelines for the loan. Here, Mark Wells of Preferred Financial Services discusses the various aspects of the program. I have heard of RDA loans, but not USDA...
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Credit scores and mortgage rates Since the mortgage meltdown of 2008, all loan programs are subject to risk-based pricing. Your credit score is one of the biggest factors in determining the level of risk assigned to your mortgage. Mark Wells at Preferred Financial Services answers questions about interest-rate pricing, and how your credit scores can affect the rate...
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Refinancing with a home equity line With interest rates still low, many homeowners are refinancing. In cases where they have both a first mortgage and a home-equity line, questions come up about how to best structure their refinance. Mark Wells of Preferred Financial Services answers commonly asked questions: The rate on my equity line is low right now, but it can go up....
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New appraisal guidelines may make borrowing easier Prior to the crash of 2007-2008, Fannie Mae and Freddie Mac had instituted a national value-tracking system in which all appraisals across the country were stored in a giant database that could be accessed by any lender to cross-check the valuation given by an appraiser. After a number of years of tracking this...
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Financing renovations and repairs There are several ways to approach financing for renovations and repairs, each with its own advantages and disadvantages. Mark Wells of Preferred Financial Services provides answers to often-asked questions about how mortgage financing can be put to work for those projects. I have some general repairs that will cost a little under $10,000...
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Fannie Mae relaxes debt-to-income guidelines In an announcement last week, Fannie Mae indicated that it will incorporate higher debt-to-income ratios in its underwriting guidelines. Mark Wells at Preferred Financial Services discusses the impact this will have on borrowers buying or refinancing a home. How significant is this change in the overall picture of mortgage...
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Co-Signers, co-borrowers, and the mortgage process Mark Wells of Preferred Financial discusses which loan programs do and do not allow for co-signers, and when a co-signer can make a difference in getting loan approval. What is the difference between a co-signer and a co-borrower? A co-signer is someone who signs onto a mortgage loan to strengthen the loan, but...
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Financing options for second homes and vacation homes Second home (vacation home) financing has its own special underwriting guidelines and product offerings. Here, Mark Wells at Preferred Financial Services answers common questions he receives from customers looking to buy or refinance a second home. How do lenders define a second home? Very specifically—a second...
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Adjustable rate mortgages (ARMs) Adjustable Rate mortgages have been around for more than 30 years in various forms, and are still among the choices offered to consumers. Mark Wells at Preferred Financial Services discusses the pros and cons of ARMs. What are the advantages of an ARM compared to a fixed rate? The single advantage of an ARM is that the rate is lower than...
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Mortgage qualifying after a credit disruption: short sale Last week, Mark Wells of Preferred Financial Services discussed guidelines affecting mortgage financing after a foreclosure. Here, he covers a short sale event. Short sales occur when borrowers are forced to sell a house for less than what they owe on it. In a short sale, the lender must agree to the sale, because...
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Resetting after a major credit disruption: foreclosure There are five categories of credit disruption that require waiting periods before a borrower is eligible for mortgage financing, regardless of income or credit scores. These are: Foreclosure, a deed in lieu of foreclosure, a short sale, Chapter 7 bankruptcy, and Chapter 13 bankruptcy. In this three-part series, Mark...
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Mortgage qualifying after a major disruption: bankruptcy For homebuyers who have a bankruptcy filing in their past, there is good news: this event will not keep them out of the housing market forever. In fact, recovery from a bankruptcy can be as soon as 2-3 years after the discharge date. Waiting periods vary depending on which of the two types of personal bankruptcy was...
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