Mortgage Application

Mortgage Application online step by step description how to begin.
Apply for your FHA, VA, USDA, Jumbo, Conventional Mortgage Loan from your home or office.
Video shows easy link to
http://eaglehomemortgage.com/carolinegerardo/  apply now

We have an amazing number of mortgage products for you.
Perfect credit, a year after foreclosure, foreign national, Super Jumbo
we have it all.
Call C G from 7:00 AM to 7:00 PM seven days a week for answers to your questions
Even if you just need advise how to fix your broken deal we are here to help

FHA VA with low credit scores

Caroline Gerardo Senior Loan Officer NMLS #324982     Office 949-784-9699 eFax 855-883-4303 CarolineGerardo@eaglehm.com http://www.eaglehomemortgage.com/carolinegerardo Committed to Seeing You Home. Eagle Home Mortgage 100 Spectrum Center Drive Suite 500 Irvine CA 92618 NMLS #849059 CA #813I609 Universal American Mortgage Company of California, dba Eagle Home Mortgage of California. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. RMLA #4130383, NMLS #252392, NV #3244. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify.

Big Storm For Credit Reporting Agencies

JOHN BRIOSO painting storm coming

Storm brewing for Credit Reporting

Credit Cops get a Spanking from New York
Soon Nationwide

NBC news on Monday as the most radical change to credit reporting in decades and New York Attorney General Eric T. Schneiderman said his agreement with the three major national credit reporting agencies (CRAs) will reform the entire credit reporting industry and protect millions of consumers across the country.

The agreement between Schneiderman and Experian, Equifax, and Transunion reported on Monday requires the CRAs to institute a number of reforms to increase protections for consumers, over a three year period.  While the agreement is specific to New York State, it is expected that most of the reforms will be instituted nationwide.  

The three major CRAs maintain consumer credit information on an estimated 200 million consumers.  Information provided by "data furnishers" such as banks and collection agencies includes the type and amount of debt, both current and extending back seven years, and how consumers have managed that debt.  The CRAs aggregate information on individuals into files and provide reports to companies who use them to determine whether to grant credit to potential borrowers and at what cost.  The credit reports are also frequently used by employers to check on potential hires.

The Attorney General's office said that in a 2012 study by the Federal Trade Commission 26 percent of participants found at least one potentially material error in their credit report and 13 percent received a higher credit score after successfully disputing an error.  These findings, Schneiderman's office says, suggest that millions of consumers have material errors on their credit reports.

 "Credit reports touch every part of our lives. They affect whether we can obtain a credit card, take out a college loan, rent an apartment, or buy a car - and sometimes even whether we can get jobs," Schneiderman said. "The nation's largest reporting agencies have a responsibility to investigate and correct errors on consumers' credit reports. This agreement will reform the entire industry and provide vital protections for millions of consumers across the country. I thank the three agencies for working with us to help consumers."

The new agreement calls for reforms covering some of the most commonly expressed complaints from consumers about the credit reporting process including accuracy, the fairness and efficacy of complaint resolutions, and the harm done to credit histories due to medical debt.

• Improving the Dispute Resolution Process. Rather than relying as they do entirely in some cases on a fully automated complaint resolution process, the agreement requires that the CRAs have specially trained employees review all documentation submitted by consumers claiming that incorrect information belonging to other consumers has been mixed into their files or that they are the victim of fraud or identify theft. Even in cases where an automated dispute resolution system is employed a CRA employee must review the supporting documentation.
• Medical Debt. Medical debt constitutes over half of all collection items on credit reports and often results from insurance-coverage delays or disputes. Under the new agreement CRAs must institute a 180-day waiting period before medical debt is included in a credit report. In addition, while delinquencies ordinarily remain on credit reports even after a debt has been paid, the CRAs will remove all medical debts from a consumer's credit report once the debt is paid by insurance.
• Increasing Visibility and Frequency of Free Credit Reports. While current federal law provides consumers with the right to receive one free credit report a year from each of the three major CRAs, many are not aware of that fact. The agreement requires the CRAs to include a prominently-labeled hyperlink to the AnnualCreditReport.com website on the CRAs' homepages. Consumers will also now be entitled to receive a second free report each year if they successfully dispute an item on their report in order to verify the accuracy of the correction.
• Furnisher Monitoring. The Attorney General's agreement requires the three CRAs to create a National Credit Reporting Working Group that will develop a set of best practices and policies to enhance the CRAs' furnisher monitoring and data accuracy. This group will develop metrics for analyzing furnisher data, including: the number of disputes related to particular furnishers or categories of furnishers; furnishers' rate of response to disputes; and dispute outcomes. Each CRA will implement policies to monitor furnishers' performance and take corrective action against furnishers that fail to comply with their obligations.

Two additional provisions included in the settlement announcement make specific reference to New York State and were not mentioned in a joint credit release from the three CRAs so is not clear if they apply nationally.  The first relates to so-called "payday loans" and prohibits the CRAs "from including debts from lenders who have been identified by the Attorney General as operating in violation of New York lending laws on New York consumers' credit reports."  The second requires the CRAs to carry out an extensive three-year consumer education campaign in New York focusing on the free credit reports, and consumers' rights to dispute errors.  The campaign must be carried out via public service announcements and paid placements on television, radio, print media, and online and requires the CRAs to expand the consumer education materials available on AnnualCreditReport.com.

Experian, Equifax and TransUnion in a press release on their respective websites announcing the launch of the National Consumer Assistance Plan to implement the agreement's reforms.  The release says "This new plan builds on years of work by the credit reporting agencies to enhance accuracy and extends consumer protections beyond the requirements of state and federal law," and lists the five major changes in the agreement.  

It concludes, "The U.S. credit reporting system helps consumers build their future by accessing credit for homes, cars, small businesses and even a good education. Both consumers and businesses benefit from reports being accurate as possible, and this National Consumer Assistance Plan will mark a significant step forward."

"This agreement addresses some of the most egregious problems in credit reporting that consumer advocates have complained about for many years," said Chi Chi Wu, National Consumer Law Center staff attorney. "We commend Attorney General Schneiderman and his staff for getting these changes, which should benefit consumers enormously."

http://www.nclc.org/issues/foreclosures-and-mortgages.html/

http:/eaglehomemortgage.com/carolinegerardo/ 

Raise Your FICO Score

Lead a horse to water, take a drink for them?

I am working on a number of refinances. Some are streamline

FHA refinances into lower rate, lower MI premium. Often

Borrowers choose a FHA loan product not just because of

the low down payment, but because their FICO score is

low or they have credit challenges.

For some reason credit habits are like any other habit-

drinking five glasses of water or closing your eyes to bills

when money is tight. Many of the customers who I fixed 

their credit now are back again in the same low score situation.

All credit can be repaired. It takes letter writing, juggling some

balances, making sure everything going forward is current and

some tips and tricks. I am again sharing with you tips on how to

get your FICO up:

Opt out - do a consumer credit opt out and stop all the

junk mail and soft credit pulls, also helps prevent fraud

Balances below 69% of available line

Ask me about a letter writing campaign for free

Get everyone current and pay on time.

DON'T close accounts

Do not ever give your social to CarMAx

Don't let people pull your credit file

Open a Bank Account Open a bank account and use it responsibly. This is the first step to establish a financial history. Secured Credit Card Apply for a credit card. Shop around & only apply for a card if you can meet the lender�s requirements. Responsible use will help build a good credit history. Get a Co-Signer A good way to establish credit is to piggy-back onto someone who already has a good credit history established and is willing to co-sign, but be aware that any default of credit on your part affects the credit of the co-signer. http://eaglehomemortgage.com/carolinegerardo C. G. Barbeau (949) 784- 9699 NMLS # 324982 Store & Gas Credit Cards Since some gasoline credit cards are not revolving they are sometimes easier to obtain than regular credit cards. Similarly department stores offer revolving credit for a specific purchase and this is sometimes easier to obtain. It is also a great way to establish credit.

Did FICO Lie to You?

Old school house

Fair Isaac announced in the news this week that they are now offering a kinder gentler credit score the FICO 9. Who is running the schoolhouse?

 What they did not say is:

They were forced to do this by the Consumer Financial Protection Bureau. Richard Cordray is more powerful than President Obama. If Cordray can get William J Lansing to change his business model, imagine the possibilities ahead...

Fair Isaac Corp. creates products and services that help businesses to automate, improve, and connect decisions to enhance business performance. It provides a range of analytical solutions, credit scoring, and credit account management products... They are used in mortgage lending, commercial loans, employment applications, and information gathering. Consider them the inventor of constantly improving and growing software that snoops, measures and predicts.

How did CFPB get FICO to change how they award points?

CFPB saw inequities in credit scoring for the “underserved.” Perhaps CFPB just wanted some of the secret sauce of exactly how the mathematical models make up and individual’s score from day to day. 

So what changes will now inflate FICO scores?

A bad debt later paid off through collections, that bad debt won't affect FICO scores anymore.

Yesterday I dealt with a collection company for a Borrower. Amy sat at my desk while we called the company that four years ago wrote a letter stating they knew this was not her debt, that it belonged to someone else in another state with a similar name. The collection had been cleared from her credit in 2010. This same collection company now reinstated the account against her name.

We called the owner of the collection company, as his name is on the letter.

“Mr. Norman may I fax you the letter you wrote to me in 2010 that states you researched and discovered this tow truck collection is not mine?”

“Hell no I’m not giving you my fax number. Go take it up with the bureaus.”

“I did Sir but they state your company is reporting this again.”

He hangs up.

The frustration of dealing with clearing an erroneous collection is great. It’s difficult to prove information from years in the past. Victims of identity theft have it even harder.

Any debt relating to medical problems will have less impact on scores. In fact, if the only bad debt someone has relates to a medical problem, those people might see an increase of 25 points or more in their FICO numbers.
This one is important because if you ever went to a hospital, even with health insurance, the bills fly in from all directions. It is easy to miss one.
Fair Isaac will evaluate people with little credit history using a new algorithm that will give them a higher grade.

Steve Brown, president of the National Assn. of Realtors, excited about the new score's potential that he predicted it would "make a real difference in the lives of millions of Americans who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores." Perhaps Mr. Brown is just looking for any good news with the fights NAR has with Zillow ahead, but I digress.

What the news media missed (and the CFPB is probably already planning) is this won’t help consumers. It gives the CFPB a second phase step into regulating the software and hardware that every private and public mortgage lender, bank, credit offer(er) uses.

Fannie Mae and Freddie Mac announced they aren’t going to use FICO 9. They respectively have their own software – DU and LP which lenders access nationwide. Fannie and Freddie are not going to add in updates or new software to allow for FICO 9. Think of it this way: I love Netflix but they aren’t going to allow a Film company to tell them they have to use smell-vision. Also all the direct lenders, banks, credit unions and mortgage companies have twenty different platforms they use that would have to be changed or trashed to add in a new score.

Why would thousands of companies change? Can we expect CFPB will make it so?  Tell me what you think. Tell me your story about errors on your credit.

Fair Isaac is a NYSE traded stock as FICO they are based in San Jose California

Cute bedroom with teddy bears on the beds the kind of dream home everyone wants

Glass house guess I shouldn't throw stones

Fair Isaac is a NYSE traded stock as FICO they are based in San Jose California

Protect Your Assets and Credit from Hackers

...

PROTECT YOUR CREDIT AND ASSETS from HACKERS

Your social security number should be kept private. The easiest way for a criminal to steal a social security number from you is by going through your trash. Mail sometimes has your number, name, address and account numbers.

Reduce the amount of mail that comes to your home. 

Throw away junk mail in your recycle bin, envelopes and items that are not credit card, brokerage, or asset related. All asset related items should be shredded and separated half in the recycle and half somewhere else.

Pay your utility bills by auto pay online.

Opt out of junk mail and soft credit offers.  HERE is link: https://www.optoutprescreen.com/opt_form.cgi  
My eighty two year old mother has been a victim twice. I reviewed her habits and we came up with a plan to change. Mom likes the comfort of receiving stock statements and saves some for ten years. This information is available without keeping all that paper in her garage. I took the statements and scanned them and put on labeled CD's that she keeps in a secure place. Then I shredded the three boxes and discarded a third in the recycle, a third into my office shredder and kept a third to discard the next week. Seven years ago her brokerage accounts had her social and the full account numbers prominently printed on each page. It wasn't quite as easy to convince her to change her habit of paying for gas with a card at the pump. She doesn't like to carry a pile of twenties in her small wallet. She even dangerous used stand alone ATM machines which are often skimmed. Solution was to open a checking account at a bank down the street whereby she could easily walk up (during the daytime) and withdraw a hundred dollars, and the account doesn't have a large balance. Inconvenient, yes, but she hasn't had the problem occur again.

TIPS: 

Don’t close your existing accounts, that can lower your FICO score. 

Look at the monthly bills and mid month look at the charges online. 

I suggest you DO NOT signup for any service that monitors your credit. DO Not pay for any service that runs your credit every month. This is another source of possible fraud.

There are many ways bad guys can get your information.

Superhero Captain Credit Saver at the Turkey Trot in Dana Point

·         Never give out your social security number to any third-party unless you know they need it (e.g. a credit application or mortgage loan). Medical offices should not be using your social as I. D.

·         Before handing over your social security number to any company, ask if it will ever appear on a document they send you in the mail. Also find out how it is securely stored on their servers so it will be protected in case of a hack. All systems can be hacked (Target is an example, and many banks don't publicly report being hacked.)

·         Avoid entering your social security number online unless you are absolutely sure you're on a secure connection and dealing with a company you trust. If you're not, call them to verify or don't do it.

·         Set up activity alerts on your accounts. Most bank and credit card online accounts let you set text or email alerts for activity, such as charges over a certain limit.

·         DO NOT USE BILL GUARD, CREDIT SESAME, FREE CREDIT REPORT.com, Mint, Life lock, TRUSTD ID… none of these services are there to protect you. They hold your information in the cloud, on paper and are just as likely to be hacked as anyone else. Some guy in Kazakhstan and Mongolia will be able to get in with your user name and password tomorrow.

·         DO NOT USE A CREDIT CARD OR DEBIT CARD EVER AGAIN AT SHELL and CHEVRON gas pumps. Perhaps all gas stations are targets of the Armenian Mafia and organized crime in India and elsewhere. CHEVRON and SHELL will tell you a bogus story about how they have identification bar code tape covering the computer box on every pump thus preventing skimmers. This is a joke. The criminals can get your debit code password by a remote camera and the electronic strip on the card is duplicated sometimes thousands of times. Use cash at gas stations. IF you MUST use a card, pay inside. The register inside the store is manned by a person, and assuming they aren’t the gangster at least there is some protection from skimming your card.
    If you use a debit card, NEVER leave a large balance sitting in the debit account. Don’t choose overdraft protection. Transfer small amounts from savings or deposit small checks as needed.

·         CHANGE YOUR PASSWORDS.
    Don't carry your social security card in your wallet

IF you have been compromised:

Notify the police and FTC, and keep the report

Notify your banks, credit card companies, the IRS and social security office IN WRITING and call.

Putting a fraud alert on your credit with Trans Union, CBI and Equifax will slow down a thief but it doesn’t stop the pretty teenager at Bloomingdales from opening a fraudulent $1000 line for the criminal to buying a Chloe purse and then return it for cash.

Identity theft is painful, messy and time consuming. It can crash your FICO score and make it difficult to get a mortgage.
As always I am happy to answer your questions and help you fix your FICO for free.

Erase Your IRS Tax Lien

Many Americans are struggling with getting back on their feet after the downturn, you know the Third Great Depression. Here is a tip that doesn't cost anything, but can greatly improve your credit and FICO score

The IRS will withdraw a federal tax lien after it has been released.

What?

You can clean up your credit and raise your FICO score by filing Form 12277

You do not need an attorney. You can file this yourself! You will have to follow up.

Form here:  http://www.irs.gov/pub/irs-pdf/f12277.pdf/

This greatly benefits taxpayers who pay the tax they owe after the IRS has filed a Notice of Federal Tax Lien (NFTL) against them. Taxpayers who could not pay taxes due after notice and demand during this past economic downturn end up with a lien arising in favor of the United States upon all the property and rights to property of the taxpayer.

Unless the IRS “perfects” this lien by recording a NFTL in the public records, other creditors of the taxpayer, such as purchasers and holders of security interests, may obtain priority over the IRS. A NFTL adversely affects a taxpayer’s credit rating. Depending on the size of the paid lien and date paid it can reduce FICO scores by eighty to two hundred points. This more often harms taxpayers who own small businesses. Small business owners struggle the most with
the IRS, the State and regulatory agencies.

The program is called Fresh Start. There are terms and conditions to qualify. It takes 45 days minimum to complete and see your FICO score pop up.

You must have paid and they released the lien, and you filed

subsequent.

The IRS must release a tax lien, by issuing a certificate of release of lien, not later than 30 days after the underlying liability is fully satisfied through full payment of the tax, or is legally unenforceable (e.g., the statute of limitations for collecting the tax has expired). The IRS also has the authority, under certain circumstances, to withdraw a NFTL. If a NFTL is withdrawn, the tax laws shall be applied as if the NFTL had not been filed.

The circumstances that permit withdrawal are any one of the following:

Filing of the NFTL was premature or otherwise not in accordance with the IRS's administrative procedures.

Taxpayer enters into an installment agreement to satisfy the liability for which the lien was imposed.

Withdrawal will facilitate the collection of the tax liability.
With the consent of the taxpayer or the National Taxpayer Advocate, the withdrawal of the NFTL would be in the best interests of the taxpayer and the United States. The difference between a released or withdrawn NFTL is vital because of the way credit reporting agencies show withdrawals verses releases. Releases remain and lower FICO score, withdrawals disappear…erased from your credit history!

When a credit reporting agency receives a notice of the withdrawal of a NFTL, they delete any reference to the tax lien in the taxpayer's credit history. In contrast, when the credit reporting agencies receive a release of a lien, while they note the filing of the release in the taxpayer's credit history, the filing of the release does not operate to remove the references to the tax lien from the taxpayer's credit history.

In fact, typically a released NFTL remains noted in the taxpayer's credit history for seven years from the date of the release. (Credit reporting agencies are required to remove references to released tax liens after seven years under the Fair Credit Reporting Act.) - 

File the form - follow the directions - poof magic it is ERASED in about 45 days.

http://eaglehomemortgage.com/carolinegerardo/

In California and  you received a notice from your

County that they are increasing your property taxes?

You may only have weeks to file an appeal. Don't be hoping Howard Jarvis is going to assist you - you must file

http://cgbarbeau.blogspot.com/2014/07/reduce-your-property-tax-bill.html?q=property+tax

Fix Your Credit

Marah Macrocarpus Laguna Canyon,

Fix your Credit
Everything spiny and thorny can be repaired

This post is one of several where I offer consumers methods to improve their FICO score to get a mortgage loan. FICO scores determine a part of the interest rate you can get on a home loan. If you are shopping for a house in Newport Beach, Laguna Niguel,  or anywhere it is time to do a tune up on your FICO BEFORE you get into contract or apply for a mortgage.

·         Opt out don’t let them pull your credit and leave your information in a dumpster, don’t give people your full social security number and full driver’s license number.

 http://www.consumer.ftc.gov/articles/0148-prescreened-credit-and-insurance-offers/

 

·         Apply for a secured credit card: If your situation is that you will not qualify for an unsecured credit card, than a secured credit card may be a great option. Secured credit cards require a deposit into an account to serve as security for the card ($500 or terms according each individual bank). Make all payments on time, as months pass the history boosts your score.

·        
 Become an authorized user on a family members’ credit card: Being added as an authorized user on a family members’ credit card can help add positive credit. When added as an authorized user, you will be issued a credit card (which I would encourage you DO NOT use) and that trade line will begin being reported on your credit bureau. As time goes forward, you can benefit from the family member’s positive credit. Make sure the family member is using that credit card responsibly so that you are benefiting from a positive score.

·         Credit Unions: Establishing positive credit requires a mix of credit types (revolving and installment).  Often times, credit unions are a more gracious in dealing with consumers with less than stellar credit. Apply for a small ($500 or less), short term (12 months or less) installment loan which, when properly repaid, can add valuable points to the credit score.

Here are some other suggestions on how you can begin making some changes.

· Pay your bills on time. This sounds simple, but this is the biggest thing you can do to keep your score high. Delinquent payments and collections have a major negative impact on your score.
· Keep your balances low on unsecured revolving debt like credit cards. High balances still owed can affect a score.
· The amount of unused credit is an important factor in calculating your score. You should only apply for credit you need.
· Make sure the information on your credit report is correct. If it is not, dispute it with the Bureau Company or lender directly.
· Removing negative accounts on your credit report has the biggest impact on your score.

 

How Credit Is Counted:

· 35% Payment history
· 30% Amounts owed
· 15% Length of credit history
· 10% New credit
· 10% Type of credit

Stay away from small department store cards; they have a low limit and tend to bring down your overall score.
You must use credit in order for it to report to the bureaus

Stay away from Finance Cards- HSBC, furniture, mattress stores and such. Larry is not a good credit reference, it looks as if you were desperate to get no payments for six months.

 If you do not use a card it may be cancelled by the bank – this WILL hurt your score, closed accounts are not positive.

Never use more than 60% of your available credit line

Do not trust car dealers such as CARMAX here in Orange County that tell you they will only soft pull your credit. They will pull ten to fourteen inquiries to purposely make your score go down so you cannot get a car loan anywhere else.

You have a legal rights to dispute anything on your credit profile.

The Fair Credit Reporting Act gives you the legal right to dispute items on your credit reports that may be inaccurate, out of date, incomplete or unverifiable. This process must be completed in writing.

Exercise your legal rights pursuant to the Fair Credit Reporting Act, the Fair Credit Billing Act, Truth in Lending Act, and Fair Debt Collection Practices Act, as well as other applicable Federal Statues. Borrowers with higher FICO scores get lower interest rates.

this is one of 4 posts about credit repair also see  http://cgbarbeau.blogspot.com/2010/05/fix-your-fico-free.html

USDA Mortgage Takes Weaker Credit

Begonia in my yard blooming in blue pot

 

 

 

 

 

 

USDA Mortgage can help you buy an owner occupied home with no down payment!

Cash reserves are not required

The minimum FICO score requirement 640.

This mortgage loan is also easy on the credit items:

·          Foreclosure or deed-in-lieu of foreclosure allowed after three years from completion

 

·         Outstanding tax liens or delinquent government debt with no satisfactory arrangements

·         No court-created or affirmed obligation (judgment) caused by nonpayment that is currently outstanding or has been outstanding within the last 12 months.

·         Two or more rent payments paid 30 days or more past due within the last 3 years

·         Accounts which have been converted to collections within the last 12 months (utility

·         bills, hospitals bills, etc.)

·         Collection accounts outstanding, with no satisfactory arrangements for payments, no

·         matter what their age as long as they are currently delinquent and/or due and payable.

·         The lender is responsible to determine what collection accounts, if any, should be paid

·         in full by the applicant prior to or at closing based upon the strength of the credit profile.

·         Evidence of meaningful financial reserves and if the accounts have the potential to

·         affect the lien position or diminish the borrower’s equity must be considered.

·         Any debts written off within the last 36 months.

·          

·         A bankruptcy in which applicant was discharged more than 36 months before

·         application

·         A satisfied judgment completed more than 12 months before the date of mortgage application

·         _ The lender may consider mitigating circumstances to establish the borrower’s intent for

·        USDA mortgages accept weaker credit than FHA and case by case  when the applicant provides documentation that:

·         The circumstances were of a temporary nature, were beyond the applicant’s control,

·         and have been removed (e.g., loss of job; delay or reduction in government benefits or

·         other loss of income; increased expenses due to illness, death, etc.); or

·         The adverse action or delinquency was the result of a refusal to make full payment

·         because of defective goods or services or as a result of some other justifiable dispute

·         relating to the goods or services purchased or contracted for.

·         _ A 24-month history of residency is required on all files.

·         _ Non-purchasing spouse in Community Property States: Except for obligations specifically

·         excluded by state law, the debts of NPS must be included in the applicant’s qualifying ratios when

·         the applicant resides in a community property state or the property guaranteed is located in a

·         community property state. The NPS credit history is not considered a reason to deny a loan

·         application. However, the NPS obligations must be considered in the debt-to-income ratio unless

·         excluded by state law. A credit report must be obtained for the NPS in order to accurately

·         determine the debts that must be counted in the total debt ratio.

·         _ Community property states include: Arizona, California, Idaho, Louisiana, Nevada, New

·         Mexico, Texas, Washington and Wisconsin.

·         _ If borrower is legally separated in a community property state, the Legal Separation

·         Agreement signed by the judge is accepted the same as a divorce decree.

·         _ If the non-borrowing spouse has no Social Security number, due diligence must be

·         completed to assure that indeed there is no SS# assigned. Indications may show up on the

·         tax transcripts or other misc. documentation in the file. The required credit report is run with

·         only zero’s (0) in the SS# fields. It is not acceptable to run the credit report using an ITIN

·         number.

 

_ Short Sales: Evaluation of a borrower’s creditworthiness for borrower(s) who have pursued a

short sale

Collections: Underwriter discretion as to whether they will be required to be paid off or not. Must

not affect first lien position and cannot affect the ability to repay the mortgage debt. If the Underwriter

determines collection accounts may remain open, they must document an adverse credit waiver

and addressing the circumstances surrounding each collection account; specifically,

that the situation was temporary in nature, and beyond the mortgage applicant’s control.

_ Child care expenses are not required to be considered as a recurring liability when calculating

debt-to-income ratios. Child care expenses are utilized to calculate the adjusted gross income in

determining mortgage program eligibility.

Declared Disaster Areas _ From time to time, FEMA announces counties that are affected by natural disasters. For example after the Laguna Beach fire of 1993.

Certain areas of Orange County that are within the scope of this type of mortgage such as Silverado Canyon and Trabuco Canyon.

Property must be located in a rural area as defined by the RHS

o Populations of 10,000 or fewer

o Populations up to 20,000 if located outside a Metropolitan Statistical Area (MSA)

_ To determine if a property is located in a designated rural area, visit the RHS Web site at:

http://eligibility.sc.egov.usda.gov/eligibility/. Click on “Single Family Housing” under

“Property Eligibility”.

oBorrowers adjusted income may not exceed 115% of the Area Median Income (AMI)

_ To determine the income and eligibility limits, the following website walks through the household

members, income, etc. and determines if it fits within the 115% requirement:

http://eligibility.sc.egov.usda.gov. Click on “Guaranteed” under “Income Limits”.