Friday's FAQ's!

  • We are receiving a gift for our down payment.  It will be in excess of 20% of the purchase price.  Someone told us part of that money has to be our own funds.  Is this true?  If the down payment is in excess of 20% of the purchase price, then no, you do not have a funds contribution requirement.  At that level of down payment, gifts are allowed without borrower contribution.
  • What is the conventional lending difference in waiting period between foreclosure vs. pre-foreclosure (short sale)?  When can I buy again?  I prefer a plain ole' vanilla 30-year fixed.  With a foreclosure, the waiting period is seven years, three years with extenuating circumstances.  With a pre-foreclosure or short sale, the waiting period is four years, 2 years with extenuating circumstances.  Extenuating circumstances include but are not limited to death or severe illness of a major wage earner or loss of employment due to lay-off or corporate cuts of a major wage earner.  While very sad, divorce is never considered an extenuating circumstance.     
  • We are buying a home before our existing house sells.  We keep hearing we need reserves.  How much do we need?  If your equity position in your current primary residence is 30% or more, you will need 2 months reserves for the new home and 2 months reserves for your existing home.  If the equity is less than 30%, you will need 6 months reserves for your new home and 6 months reserves for your existing home.        

Please feel free to contact me with any questions you might have.  I look forward to working with you and your clients.  Please remember, I am licensed in Virginia, North Carolina and Florida.

Jennifer Keenan, Sr Mortgage Consultant, NMLS# 101837

Tidewater Home Funding,  757-272-4199