Lesson 4: Residential Lending Playbook : Beyond Conforming

Government Lending — FHA, VA and USDA Explained Government-backed mortgage programs are among the most misunderstood options in residential lending. Some borrowers assume FHA is only for first-time homebuyers. Some eligible Veterans never seriously consider VA financing because they have heard that VA loans are difficult, sellers don’t like them, or the property won’t qualify.…

“But someone in the building just got a conventional loan last year.” I’ve heard variations of that statement many times when financing a condominium. A unit owner refinanced. A neighbor purchased a condo with 20% down. Fannie Mae or Freddie Mac financing was apparently available. So when the next unit comes on the market, everyone…

Sometimes the Lowest Price Isn’t the Biggest Opportunity…or the Biggest Risk. Recently, a first-time homebuyer contacted me about a condominium that immediately caught their attention. The listing price was attractive, the monthly HOA dues were only $270, and although the property needed cosmetic updating, the buyer was handy and eager to build sweat equity. On…

Why Good Borrowers Get Declined — And Why Another Lender May Say Yes Have you ever wondered why one lender declines a borrower while another lender approves the exact same transaction? It happens more often than many homebuyers and real estate professionals realize. A borrower may have excellent credit, substantial income, significant assets and a…

Recently, I visited a 6-unit San Francisco condominium building while on Broker Tour. As I walked through the property, something caught my attention: the building had an exterior staircase and railing elevated more than six feet above the ground. Given the increased attention being paid to exterior elevated elements in California condominium buildings, I asked…

A condominium buyer can have excellent credit, strong income, plenty of assets, and a substantial down payment—and still run into a financing problem. The reason may have nothing to do with the buyer. It may be the condominium project itself. Fannie Mae and Freddie Mac have recently made significant changes to their condominium project review…

A first-time homebuyer walks into a condominium and sees possibilities. A real estate agent sees market value. An appraiser sees comparable sales. And sometimes, two appraisers can look at essentially the same property and reach very different conclusions about its value. That was the situation facing Ray. A First-Time Buyer Finds the Right Condo Ray…

Lesson 2: Understanding Qualified Mortgages (QM) Why They Exist… and Why They Aren’t the Whole Mortgage Story In Lesson 1, we explored Non-Qualified Mortgages (Non-QM) and why many financially successful borrowers use financing that falls outside traditional mortgage guidelines. The natural follow-up question is: If there are Non-QM loans, what exactly is a Qualified Mortgage…

Most home buyers spend months preparing to purchase a home. They improve their credit, save for a down payment, gather documents, and work through the mortgage approval process. Then comes closing day. The loan funds, the deed records, the keys are handed over, and many homeowners assume the hard part is over. In reality, homeownership…

Lesson 1 of 12: What Is a Non-QM Loan? Welcome to Lesson 1 of the Beyond Conforming series. Throughout this 12-part educational guide, we’ll explore the mortgage programs that exist beyond traditional conforming financing and explain why many well-qualified borrowers use these strategies every day. This Beyond Conforming series is one section of my larger…