Mortgage Blog

Self Employed Borrower Success Story

Over my entire career in the mortgage field, self-employed borrowers always stand out as the more challenging opportunities.  The self-employed borrower often finds themselves in a tug of war between their accountant’s guidance and the demands of the mortgage underwriter as it relates to qualifying income for a mortgage loan.  The accountant presses the deductions and works to minimize your taxable income with fancy terms such as “accrual basis” and the loan underwriter often demands pretty much the opposite.  At the end of the day, the self-employed borrower c...

November 9th, 2018 | Non QM, self-employed borrower, QM, Specialized Forward Mortgages, bank statement loan, mortgage, Mortgage Loan Process, Self Employed Borrower Success Story

Self-Employed Workers Face Mortgage Hurdles - WSJ Article

It is true that the Self Employed borrower normally hits a wall when it comes to qualifying for a mortgage when asked for their Federal tax returns. The process by which your accountant works their magic is the often the exact opposite of what the lenders want to see with regards to income. After a long exercise of averaging income in conjunction with preparing a year to date profit and loss and reviewing allowable add backs the self-employed borrower usually gets stuck not qualifying. The borrowers run businesses and earn income but they just are unable to satisfy the lender requirements for ...

April 19th, 2018 | self-employed borrower, bank statement loan, Mortgage Loan Process, Traditional Mortgage, Self-Employed Workers Face Mortgage Hurdles - WSJ Article

QM versus Non QM...What is its significance for you?

A Qualified Mortgage (QM) represents a definitive set of qualifying criteria as defined by the government under Federal Dodd Frank regulations.  You can think of this as a prism, more or less, with the perfect loans by definition falling inside the protective prism and all of the other loans falling outside into the Non QM or Non-Qualified Mortgage bucket. The difference between QM and Non QM to you could be something as subtle as a slightly higher debt to income ratio or slightly lower credit score or profile.  A QM loan may have the most attractive rate and cost profile for yo...

April 5th, 2018 | Non QM, Mortgage Loan Process, Specialized Forward Mortgages, QM, foreclosure, Short Sales, QM versus Non QM...What is its significance for you?

The Mortgage Conundrum

Based on Dodd Frank regulations, access to mortgages for people of all ages is constrained by the ATR Rule.  This rule requires that a borrower must demonstrate the ability to repay the mortgage.  We no longer have the easy to qualify mortgage types readily available and this has created the Conundrum. Many people are unable to get new loans and many more who have existing loans are unable to refinance to take advantage of the lower rates.  This has strapped people into high cost and unscrupulous loans from the past and has hit retirees and seniors especially hard.  With...

October 14th, 2015 | Reverse Mortgage, HECM Reverse Mortgage, Financial Planning, Loan modification, Mortgage Loan Process, The Mortgage Conundrum

Are Banks Too Big To Fail or Too Big to Follow The Rules?

How should we feel about homeowners possibly not getting a fair shake with their lenders? I think we can all agree that it is pretty clear that underwater homeowners and those struggling to make their payments want to be treated fairly.  Here is where we are with the mortgage crisis. Attached is an example of how homeowners are being treated.  After seven years, are they really getting a fair shake?  You be the judge. The lenders must play by the rules, especially those that agreed to the recent $25 billion plus settlement with the fifty state attorney generals.  For tho...

March 5th, 2014 | Short Sales, Mortgage Loan Process, Traditional Mortgage, Are Banks Too Big To Fail or Too Big to Follow The Rules?

New Mortgage One Year After a Short Sale -Update - Expanded Options

It’s not news that it is difficult to get a new mortgage. The good news is the government and the markets are just beginning to recognize that the crisis was historic and not everyone who got caught should be permanently labeled a dead beat. I guess it’s fair to say the pendulum swung too far to the right with regard to underwriting standards and now we are beginning to see signs of flexibility.  If you completed a short sale as a result of an economic event or catastrophic occurrence out of your control that can clearly be documented you may be eligible for a new...

October 25th, 2013 | Short Sales, Mortgage Loan Process, Traditional Mortgage, forgiven mortgage debt, New Mortgage One Year After a Short Sale -Update - Expanded Options

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Jefferson Mortgage Group LLC

2536 Leeds Rd.
Oakton, Virginia 22124
703-319-2198
FAX: 703-773-6946
info@jeffersonmortgage.com
NMLS: 935554

Located in Fairfax County, Virginia. Serving all of Virginia, Maryland, DC & Pennsylvania. 

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Jefferson Mortgage Group LLC is licensed in Virginia, Maryland, DC & Pennslvania.
Virginia State Corporation Commission License Number MC-5659 and the Pennsylvania Department of Banking & Securities #46259 
The DC Department of Insurance, Securities, and Banking License #MLB935554
Maryland DLLR License #21586

An Equal Housing Lender

By refinancing the consumer's existing loan, the consumer's total finance charges may be higher over the life of the loan.

This material is not from HUD or FHA and has not been approved by HUD or any government agency.