Deanna Valeo
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Don't File Your Taxes If You Are Self Employed and Need a Mortgage February 13, 2012

"If we all did the things we are capable of, we would astound ourselves." ~ Thomas Edison 

This time of year many of our self employed client's approach us about using their 2011 income to qualify for the purchase or refinance of their new home.  We can help give guidance on whether their income will be enough to purchase the home they desire.

The rule is that any borrower with 25% ownership in a company or more must supply their personal returns and the company returns in which they have 25%+ ownership status.  We will also need 2011 W2s and any 2011 K1s.

In today's lending environment something called a 4506T is executed by all lenders.  This form is used to get the borrowers 2009 and 2010 (and 2011) tax transcripts.  Since the client has not filed his/her taxes when they apply we must find a work around with regard to the required tax transcripts necessary to close their loan.

The only way to use the 2011 income right away is for the borrower to complete all necessary taxes immediately and go personally to the local IRS office file their taxes and pay any outstanding tax liability.  They must bring copies of their returns and copy of their check paying the taxes to the local IRS office and get them stamped received.  

CLIENTS' MUST NOT FILE THE RETURNS ELECTRONICALLY OR MAIL THEM IN THIS WILL CAUSE DELAYS IN CLOSING ON YOUR NEW MORTGAGE. 

Filing your return electronically can delay your closing by up to 45 days and mailing in the returns may cause a delay of up to 90 days.  The issue is simply we must pull a 4506T on your 2011 returns and it takes time for the IRS to generate your transcripts.   With stamped copies we pull the 4506T to confirm there are no 2011 returns filed and them we use the result to prove the stamped copies are legit.

I recently had a client who filed their extended return and go their refund immediately (two weeks), it took an additional 40-days for their electronically return to show up using the 4506T form.  This delayed closing and cost the borrower a rate extension fee. 

Having success is about knowing the rules so please remember we are here for you and your self employed borrowers. 

Have a fantastic week and we will see you soon!


The Valeo-Croy Team - Call today

Todd Croy - NMLS #91428 NC, SC (704) 488-7763
Deanna Valeo - NMLS #91421 NC, SC, VA (704) 488-1421

Accessible | Program Expertise | On-Time Closings

Due to new Federal Laws we are now providing a link to Mortgage News Daily average rates for mortgages - please see the note below regarding the rates listed.

http://www.mortgagenewsdaily.com/mortgage_rates/

**Please note the rates quoted are at the absolute best loan amount, the highest credit score and lowest LTVs allowed with a 1% origination fee and indicate the absolute lowest rate possible. You should use this list as a guideline and trend indicator and get a specific quote for your project (often it may be slightly higher).
                           
Facebook link: http://www.facebook.com/valeocroyteam?v=app_4949752878

The Valeo-Croy Team and New American Mortgage Bankers are Equal Housing Lenders.This information is for illustration only. It does not constitute an application for a loan or an offer or commitment for New American Mortgage to make a loan on these terms. Interest rates are subject to change until an application is completed and you lock in your interest rate. The figures noted are estimates and may vary depending on discount points, taxes and insurance. Programs, terms and conditions are subject to change without notice. Mortgage loans are subject to credit qualifications. Normal credit standards apply.   Date: 2/13/2012


USDA 100% Financing - Limits in the Charlotte MSA February 20, 2012

"Kind Words are the Music of the World." ~ F. W. Faber 

USDA for the most part is the last of the 100% options open for buyers.  An important feature of USDA is the need for the property to be in a qualified area and the need for borrowing family's income not to exceed income limits.  

In the Charlotte MSA income limits are as follows:

·         Anson Co (NC) and Lancaster Co. (SC) the Limits are based upon the # of family members.

o   Four or less members = $74,750

o   Five or More = $98,650

·         Other Surrounding Counties in the Charlotte MSA based upon the # of family members.

o   Four or less members $78,800

o   Five or more = $104,000

An often overlooked rule is part-time custody for a family of children from past marriages will count towards the family count; a separation agreement or divorce decree is needed for proof of the part-time custody.

Also often over looked is income brought to the family from working High School children; this part-time income counts towards overall family income and must be included in the total.

BTW: No pools & No other homes owned

If you have a customer needing 100% financing USDA lending may be the right solution for you and your client's.  Many homes have been built in the USDA areas surrounding Charlotte for that very reason.

Give us a call can we can make sure that you have no other issues with USDA prior to your client shopping for a home. 

Have a fantastic week and we will see you next week!


The Valeo-Croy Team - Call today

Todd Croy - NMLS #91428 NC, SC (704) 488-7763
Deanna Valeo - NMLS #91421 NC, SC, VA (704) 488-1421

Accessible | Program Expertise | On-Time Closings

Due to new Federal Laws we are now providing a link to Mortgage News Daily average rates for mortgages - please see the note below regarding the rates listed.

http://www.mortgagenewsdaily.com/mortgage_rates/

**Please note the rates quoted are at the absolute best loan amount, the highest credit score and lowest LTVs allowed with a 1% origination fee and indicate the absolute lowest rate possible. You should use this list as a guideline and trend indicator and get a specific quote for your project (often it may be slightly higher).
                           

Facebook link: http://www.facebook.com/valeocroyteam?v=app_4949752878

The Valeo-Croy Team and New American Mortgage Bankers are Equal Housing Lenders.This information is for illustration only. It does not constitute an application for a loan or an offer or commitment for New American Mortgage to make a loan on these terms. Interest rates are subject to change until an application is completed and you lock in your interest rate. The figures noted are estimates and may vary depending on discount points, taxes and insurance. Programs, terms and conditions are subject to change without notice. Mortgage loans are subject to credit qualifications. Normal credit standards apply.   Date: 2/20/2012