Vintage Mortgage Professionals

Lenders! I could only tag a few...Please get this info out. This is what I’ve been talking about. This is one of the first examples I have personally seen of ...a mortgage forbearance comment hitting a report. In this case the actual verbiage was mortgage deferred. The verbiage alone of any kind dropped the scores within days by 38 Points. Please help educate consumers properly. I’ve heard guest speakers from NAR and other highly respected organizations state boldly that credit won’t be impacted and it’s simply not true. Not only can the verbiage itself drop the scores but the lack of any payment being made can negatively impact the score. It doesn’t have to be 30 day late payments that drop the scores. By the way...this particular client didn’t even obtain a mortgage deferment...she simply called to inquire which is even worse For more information contact us Dedicated Credit Repair 951-246-7754 Www.dcrusa.com See more

Borrowed but a great explanation. Let’s do some ‘mortgage forbearance math’. Mom and Dad have a mortgage.... It's currently $1,500 per month. Dad gets laid off, calls the servicer, and asks for forbearance. In one phone call, he gets 6 months "off" from paying. Seven months later, Dad is finally back to work, and hasn't been able to save any money during the forbearance. Forbearance is lifted and servicer says, "That will be $9,000 + $1,500, which is now due". ($10,500) Dad almost passes out and says, WHY??" Servicer: "That's the 6 months of forbearance plus the current month. Dad: "I can’t do that, can we work something out?" Servicer: "Sure, we will spread out the $9,000 over 12 months." Dad: "Phew....ok, good. What will that look like?" Servicer: That will be $2250 a month for the next 12 months." Dad: " Oh my goodness!!! I can't afford that." Servicer: "Sorry....." Dad: "Can I refinance?" Servicer: "No because the loan went into forbearance." Dad: "What can I do?" In a nutshell, this is forbearance, folks. Forbearance is not forgiveness. We need to keep putting this message out there, because there’s a ton of confusion. Be sure to understand both the seriousness of this and all your options. If you still have questions, we are here for you.

For information on qualifying for a home loan watch this TV episode that am guest speaker. :)

Very informative and easy for all to understand.

USE IRA FUNDS PENALTY FREE TO PURCHASE A HOME: Early withdrawals from IRAs to help first-time home buyers are penalty-free. IRA owners can take out up to $10,000 to help buy or build their primary home or one for a spouse, child, grand kid, parent or grandparent. The funds must be spent within 120 days. You can be a first-time homeowner even if you owned a home before, as long as you and your spouse didn’t own a home in the previous two years. (source: The Kiplinger Tax Letter 2-23-19)

PACE also known locally as HERO financing is not allowed on financed homes. There are usually much better ways to finance solar and home energy improvements.

The Federal Reserve gave a BIG Gift for interest rates!!

Tax Education for Veterans

New FHA loan limits announced today. New single family home limit for Riverside and San Bernardino is now $431,250! This translates to a max purchase price of $446,891 with only 3.5% down payment!

Awesome news for 2019, conforming loan limits are being raised to $484,350 for Riverside County (currently at $453,100) this means that you can purchase a home up to $510,000 with only 5% down using conventional or $499,329 with just 3% down!!

Info to help explain the challenges with the "HERO" home energy renovation financing program and why lenders do not allow them.

New rules on taking the mortgage deduction on your income taxes: Interest can be deducted on Schedule A on up to $750,000 of acquisition debt on a primary and a secondary residence down from $1 million. This new limit generally applies to home mortgage debt incurred after Dec. 14, 2017. Older loansand refinancings up to the old loan amount get the $1-million cap. No write-off is allowed after 2017 for interest that you pay on existing or new home equity loans from which the proceeds are used to buy a car, pay down credit card debt, etc. The law’s crackdown on home equity loans doesn’t apply to debt secured by a first or second home and used to remodel or improve the place. (source: The Kiplinger Tax Letter 9-7-18)