Laguna Niguel Bird Houses

 

Some photographs I took with my iphone of birdhouses in Laguna Niguel and

San Clemente California this week as a treat for the eyes.

Reminder for spring:

If you have birdhouses clean them out for new nests in the coming months!

Niche Mortgage Birdhouse or Castle

How to Close your Problem Mortgage?

ceramic house

Not all houses are the same. Bird houses are each special as well.

Perhaps you went to a bank and they aren't answering your calls?

Perhaps they told your they can't help you with a loan?

We have special niche products to fit your needs.

Eagle Home Mortgage is owned by Lennar Homes

Because we are not a bank, we offer a greater

variety of loan products to help Realtors, Real Estate

Agents, Borrowers and Home Buyers close on time

with the product they want. If you are buying a tiny

birdhouse, a six million dollar home or commercial

project – we have the loan solution for you.

A brief list of some of the out of the box products:

Call and speak with C. G. to fix your stalled or broken deal

wood bird house

- Foreign National Loans, ITIN loans

- Condo/Hotel Loans

- Condos not warrant-able with low owner occupancy or lawsuits

- Financing for more than 10 properties

- Investor products

- Spec. Construction

_ Owner Builder Construction

- Loans closed in a corporation or LLC.

- Grants Gifts MCC CHDAP CHAFA

- Jumbo, Super Jumbo

- FHA 203k remodel

- Reverse Mortgage

- Cooperative

- VA – VA IRRL Streamline

- Higher Debt To Income Ratios

- Fannie DU Refinance

_ Freddie Mac

- Cross Collateralization loans when Borrower

has not sold current residence but finds the

Dream property

I have been a lender twenty five years.

My team can close you quickly

We have in office Underwriters, in office Funding and

in office Document drawing.

What does that mean?

No shipping your file to Minnesota.

No limbo wait turn time.

Experience that will find solutions.

Call me (949) 784- 9699

NMLS #324982

Wooden bird house 

handmade bird house

barn style bird house

Freddie Tightens Underwriting AGAIN

Freddie Mac rules for conversion of a property to investment or second home revised. More reserves for the property conversion are now required , and you will have to qualify with both payments and extra appraisals needed.

 

Borrower converting Primary Residence to second home:

 

If the Borrower is converting a Primary Residence to a second home, and purchasing a new Primary Residence, the following requirements apply:

 
The monthly payment amount for the property being converted to a second home and the monthly housing expense for the subject property must be included in the monthly debt payment-to-income ratio in accordance with the requirements • The reserves requirements must be met.

 

Borrower converting 1-unit Primary Residence to an Investment Property:

 If the Borrower is converting their 1-unit Primary Residence to an Investment Property and purchasing a new Primary Residence, the following requirements apply:

The Seller can use rental income from the property being converted to qualify the Borrower, provided that:

The loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit TLTV (HTLTV) ratios of the property being converted are less than or equal to 70%, as evidenced by an appraisal with at least an exterior-only inspection that meets Freddie Mac requirements

 

And the Borrower's federal income tax returns must reflect a two-year history of managing investment properties when a signed lease is used to determine the net rental income

The rental income is documented with a copy of the fully executed lease and, in addition, the receipt of a security deposit from the tenant with evidence of the deposit into the Borrower's designated account

 

Borrower converting 2- to 4-unit Primary Residence to an Investment Property:

 

If the Borrower is converting their 2- to 4-unit Primary Residence to an Investment Property and purchasing a new Primary Residence, the following requirements apply:

• The Seller can use a maximum of 75% of the gross rental income from the unit previously occupied by the Borrower to qualify the Borrower, provided that:

o The LTV/TLTV/HTLTV ratios of the 2-to 4-unit property being converted are less than or equal to 70%, as evidenced by an appraisal with at least an exterior-only inspection that meets Freddie Mac requirements, and o The rental income is documented with a copy of the fully executed lease and the receipt of a security deposit from the tenant with evidence of the deposit into the Borrower's designated account • Rental income for the units not previously occupied by the Borrower may be used to qualify the Borrower

 

Additional reserves required for Mortgages secured by Primary Residence when Borrower's current Primary Residence is pending sale or being converted to a second home or Investment Property:

Pending sale or conversion of 1- to 4-unit Primary Residence to second home or Investment Property - Additional required reserves:

• Six months for the subject property, and • Six months for property pending sale or being converted

 When loan-to-value (LTV)/total LTV (TLTV)/ Home Equity Line of Credit TLTV (HTLTV) ratios are <=70% for property pending sale or being converted:

• Two months for the subject property, and • Two months for the property pending sale or being converted

Translation:
You are buying another home and not selling your current residence.
You must have rental properties on your past two years taxes to be able to use any rents.
If you do not own any rentals, you will need to qualify with both principle interest taxes insurance and Home Owner Association fees.
Freddie Mac is tightening up once more for the millionth time. Fannie will follow suit on conventional loans.
Tighten that belt on the American Home Buyer again Freddie.

 

 

California State Tax After Short Sale?

 

Hang your hat on if you owe on a short sale

Former President George W. Bush's "Mortgage Forgiveness Debt Relief Act and Debt Cancellation" of 2007, changed Federal laws. Before this date, all debt forgiven in a short sale was taxed as ordinary income.

To translate:
 the difference between what you owed a lender and what the house sold for was treated as income for the tax year.  Before 2007 you would receive a 1099 for the gain of forgiveness of debt. The Mortgage Forgiveness Debt Relief Act ended the claiming this as additional income on your Federal income tax return. MFDRA allows taxpayers to exclude debt forgiven from the short sale of a principal residence from 2007 extended through 2013 year end.

Cancelled mortgage debt through a short sale of up to two million dollars for couples filing jointly is excluded on your federal IRS returns. Or one million dollars if you are married filing a separate tax return from your spouse. This rule was extended until the end of 2013 and has not been extended into 2014, yet.

States are dealing with this separately. California has no law in place that allows you to file this April 2014 with an exclusion. If you live and work in California and sold your primary residence short last year how will your accountant show the income on your State income tax filing due in just twelve days?
 

There are some ins and outs to this law.  Acquisition debt, or purchase money loans are treated differently than home equity debt or cash out refinances. Acquisition debt and home equity debt are not the same under the law. It is important to know what you can file, and hopefully you received advice from your Realtor and tax advisor if you closed a short sale in 2013. Acquisition debt is debt or a mortgage loan used to buy, build, or improve a principal residence. Home equity debt is any loan whose proceeds were not used to buy, build, or improve the residence. Note this is  ONLY for a primary residence.

Acquisition debt can be excluded from tax under the Mortgage Forgiveness Debt Relief Act. Home equity debt cannot be excluded under this new law. Instead, home equity debt may qualify under the insolvency or bankruptcy exclusions. In order to qualify under this exclusion assume you will have to show you have close to zero assets.

For divorced couples, the rules on canceled mortgage debt are uniform but applied differently. Using that same example, if $350,000 of the value of the debt is canceled, both homeowners will get the 1099-C. How will you decide how to will split the responsibility? Hopefully your divorce attorney is aware of this pickle. The easiest, of course, is a simple 50-50 cut, which means each will report $175,000 in canceled debt.

If you've used a home-equity line of credit for home improvements and the like, that too is spared of tax consideration if canceled. Be prepared to show documentation supporting those claims. You will need to save any construction receipts, Home Depot bills, breakdowns of major landscaping or a pool, plus cancelled checks. Save these for seven years with your tax returns, in case you are audited. Assume is you are paying Alternative Minimum tax, you will be audited for this exclusion (they will be looking for deeper pockets).

Home-equity lines of credit used to pay off credit cards or buy a new car, boat, toys... are taxable if canceled via a short sale or foreclosure.

This is not tax advice, it is a call to Jerry Brown...