January 24th, 2014
Hello, again! It is FRIDAY! Hope this finds you well and warm. Lots of great questions this week. Please feel free to send in any you might have. Here we go...
- I am recently divorced. I have my regular income, spousal support and a payments on a note. On the note, I will receive monthly payments for 4 years and have been receiving them since November, 2013, it is my ex-spouse's buyout of a business interest. I believe that I will need to use all of this income to qualify to purchase a home. I have saved some money toward a down payment but not much. Can I use all of these sources of income? The new FHA guidelines for 2014 will require receipt of income for 12 months and must be received for a minimum of 3 years to be able to use for prequalification purposes. However if you were receiving funds from your ex-spouse cumulatively totaling what you are currently receiving by formal decree, there is some latitude. It would be best to prequalify you on the income sources we can definitely use, provide proof of other funds previously received and let me review.
- I own a beach house in an LLC. The other managing member filed bankruptcy and is therefore disqualified from participating in our LLC. I am the only member. I would like to refinance the property. I owe approximately 700,000 on the property, and it is tax assessed at 1.132 mil. What are my options? In order to place a conventional mortgage on any property, it must first be titled in individual name, a Revocable Living Trust is possible. Currently, the options for refinancing a jumbo investment property would either be our portfolio ARM or to break the mortgage into a first and second mortgage, if you seek a 30-yr fixed program. I would highly recommend you first speak with an attorney and CPA regarding the disqualification of the other member to ensure you have clear title as well any tax implications in changing title. If it s recommended you transfer the property into a new LLC, a commercial mortgage would be your only option. This will have different terms than conventional mortgage.
- We would like to purchase a new home. We sold our home about 5 years ago and have been renting since then. I read somewhere that we are now considered first-time homebuyers. Is this true? Yes, it is. If you have not owned property in the last 3 years, you are considered a first-time homebuyer.
Please feel free to contact me with any questions you might have. I look forward to working with you and your clients.
Jennifer Keenan, Senior Mortgage Consultant
NMLS# 101837, Tidewater Home Funding (757) 366-8690