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George Raymondo's Blog

By George Raymondo | Mortgage Broker
or Lender in Chino Hills, CA
  • IRS Form 2106 Unreimbursed Expenses. No longer a deal killer?

    Posted Under: Home Buying, Financing, Agent2Agent  |  February 27, 2014 8:51 AM  |  1,000 views  |  6 comments

    I can’t tell you how many calls I get from frantic borrowers who are in the 11th hour of an escrow only to be told their loan was denied. Why? It’s very simple. The Loan Officer they chose to work with or were referred to by their Realtor was not properly vetted.  With the seemingly never ending  lending regulations going into effect, many seasoned Loan Officers have finally thrown up their hands in frustration and have left the industry. The result is our industry has been inundated with Rookies who have not done their homework.

    They haven’t done their time, haven’t skinned up their knee or paid their dues. And guess who suffers? Of course, you do…the consumer. Nearly 25% of my closed loans are fall outs from other lenders. That’s huge, I wish I had a referral base of 25%. The truth is, I am successful because of others failures and I happen to find ways to helping many of those who were told they can’t be financed. So what am I rambling on about? Let me tell you. I have some awesome news I’d like to share with you.

    Many of you have been recently self-preparing your taxes with a program I won’t mention. In doing so, some of you are not taking full advantage of deductions that are afforded you under our current tax code. Conversely, there are some of you whom have overstated your deductions either by mistake or ignorance. The form used is the notorious IRS Form 2106. What people don’t know is dollar for dollar, any deduction listed on line 21 of the Schedule A, will be subtracted from your adjusted gross income and that can be devastating.

    Except now and this is what I want to focus on. If you are a W-2 Wage Earner (not self-employed) and you have been turned down for a loan because you filed a Sch A and used Form 2106, I have great news for you! As a Mortgage Banker-Direct Lender, we have multiple Investors that buy our loans after we close and some of our Investors do not require us to pull an IRS 4506-T for Federal Income Tax Transcripts. That’s right. We have no overlays so we can follow the AUS (automated underwriting system) findings and we only have to pull W-2 Transcripts. Meaning if you have claimed 2106 Unreimbursed Expenses on your past two years taxes it doesn't matter.

    So we are clear, there are a couple of caveats to this program. One, if you currently own a home, you will not fit into this is program as you file a Sch E. Second, if you receive Commissions, they must not exceed 25% of your total income. In closing, if you were turned down for a home loan or worry that you will be, please feel free to contact me.We offer this program on FHA, VA, or Conventional Products unless you are Self-Employed, currently receive a 1099 as part of your income, if you already own a home, or receive more than 25% of income from Commissions. Other than these few categories of borrowers, this program could be your saving grace. Click here for a FREE Consulation.


    George Raymondo

    NMLS#: 242639

    Branch Manager

    (951) 240-8634 Direct

    www.AFN-Loans.com

  • The USDA RDL- The best loan after a Short Sale, Foreclosure, or Bankruptcy?

    Posted Under: Home Buying, Financing, Credit Score  |  February 4, 2014 8:57 PM  |  1,841 views  |  No comments
    By George Raymondo


    In today's ever changing world of mortgage lending, for all intense purposes, a short sale is considered by most lenders to be just like a foreclosure. So depending on the loan program you are looking to qualify for, the waiting period can be vastly different. But the question remains, what loan program offers the shortest waiting period after a short sale? That question has two answers. So let's start with people who were late on your mortgage at the time of close, or who had multiple delinquent payments leading up to your short sale.

    The answer to that question I actually stumbled onto by accident. Other than the obvious private or hard money options, the answer is 1 year. Here's the story. I had just closed a loan for a client whose parents had recently sold their home by doing a short sale. My client's Mother was quite determined to find someone out there who would have compassion for their story and could see that they were good people whom had fallen onto hard times.


    She went on to explain their story and although I was certainly empathetic, I reluctantly explained, since her short sale was only 10 months ago, and they had multiple mortgage delinquencies leading up to the final sale, there was no options available to them for their particular set of circumstances. Since neither her or her husband were Veterans (VA loans provide the shortest waiting period after a short sale, deed-in-lieu, or foreclosure) and they lacked any substantial down payment, I told her they would be required to wait at least 3 years due to the fact that they were delinquent on their mortgage at the time of close.


    So she thanked me and said goodbye. A month later I received another call from her and she explained to me she have contacted at least a dozen or so loan officers to verify the information I had given her was correct. And of course, she received the same answers that I had given her plus a couple of
    ridiculously incorrect answers. So she asked me if I had any other ideas or if I was aware of any new programs relating to previous short sales. I apologized to her and told her no I hadn't heard of any new programs.

    Sure enough, just like clockwork, she called me back the next month. Frustrated and defeated and she asked me once again, are you absolutely sure I have to wait 3 years before I can buy again? she asked, "Why can't we get the same loan that you did for my daughter?" I shook my head and I finally realized the only way I was going to get this lady off my back was to make an actual formal inquiry so I could hand her something in writing validating what I was telling her to be true so she would just go away.


    I immediately contacted my local USDA loan specialist and posed this question. If someone had a hardship making it necessary to sell their home on a short sale, such as the loss of a job, failed business, forced to sell due to a transfer of employment, or death in the immediate family, and their mortgage was delinquent at the time of closing, what is the minimum waiting period in order to purchase another home under your guidelines? A few weeks later I received an email response and was absolutely floored when I read it.


    There is was in black and white, I had somehow stumbled onto something that apparently very few people even know about. As it turned out, I could actually fund this woman's loan as soon as 1 year after a short sale provided she had no late payments showing on her credit report AFTER the short sale and specifically in the most recent 12 months. And, I was not required to document  the hardship, only have the borrower write a letter of explanation. Suddenly it hit me like a ton a bricks. I thought to myself, how many people have I given the standard patented answer over the past several years? Dozens! Hundreds of people.


    Simply stated, because of one woman's stubbornness, shear determination and unwillingness to except no for an answer, I can now offer an alternative loan program to my borrowers and not be bound by the standard FHA, VA and Fannie-Freddie waiting periods after a Short Sale. Although this loan program will not work for everybody, it is surely a viable option for millions of Americans across this nation.

    If you have had a previous short sale, foreclosure, or bankruptcy please feel free to contact me and let's see what we do about helping you become a homeowner once again. For further information please click on the links below and read some the Comments at the end of the articles. I am sure you will find them enlightening. Click here for a FREE Consultation.

    George Raymondo
    Branch Manager
    NMLS#: 242639
    (951) 240-8634 Direct

    AFN is licensed in 38 states and several more pending

    USDA Rural Development Loan:

    Buying after a short sale, bankruptcy or foreclosure:

  • 97% Fannie Mae Is Going Away?

    Posted Under: Home Buying, Financing, Agent2Agent  |  October 21, 2013 7:59 AM  |  1,038 views  |  No comments
    Once again the mortgage industry is changing and the consumer is the one who will ultimately pay the price. Why is FNMA raising the required down payment from 3% to 5%? Well I have my suspicions. Since FHA has increased the MMI (monthly mortgage insurance) for all their products as of last April of 2013, FHA has seen a definite drop of home loans application being directed their way.

    So what does that spell? Lower market share thus producing a lower participation to help cover the cost with keeping FHA and especially HUD who is connected at the hip, afloat. Will this new tightening have an impact on those borrowers that have higher credit scores? In my book most certainly.

    Now those borrowers who were previously rewarded with a lower down payment and lower monthly mortgage insurance will in some cases have to put off their purchase until they can save additional funds or be forced to take the more expensive FHA loan. Remember, after April of 2013, FHA no longer self-releases their monthly mortgage insurance. What? That's right! Now those borrower will be strapped with MMI for the LIFE OF THE LOAN!

    So if you are a borrower wanting to get in the game under the current guidelines, you'll need to be Pre-Approved before November 16th, 2013 and close by March 31th of 2014. Meaining if you have been strattleing the fence wondering if this a good time to buy, I encourage you to get the party started and call me. If you have any questions, please feel free to contact me.

    To request a FREE Consultation, click on this link.

    George Raymondo
    NMLS#: 242639
    loanranger_afn@yahoo.com
    (951) 240-8634



     
  • USDA 2013 Eligibility Map Gets Put Hold...Only Until January 15, 2014

    Posted Under: Home Buying, Financing, Property Q&A  |  October 18, 2013 11:49 AM  |  1,279 views  |  No comments


    SFH Origination Updates

    From the National Office in Washington DC

    October 18, 2013


    Program and System Availability Update

    Several USDA websites/applications were disabled in connection with the recent Federal Government shutdown.  This has delayed USDA’s completion of fiscal year-end accounting processes.  This process will take several days to complete.  The Guaranteed Underwriting System (GUS) will become operational on Monday, October 21, 2013. 

    Other internal USDA systems will not be operational until late next week.  For example, USDA will be unable to process lender submitted loan closings until late next week.

    We are uncertain when fiscal year 2014 funding will become available in the system.  Thus, beginning on Oct. 21, 2013, we will begin issuing Conditional Commitments “subject to commitment authority.”  Any Conditional Commitments issued “subject to commitment authority” will contain the following language:


    “Funds are not presently available for this Conditional Commitment. The Rural Housing Service’s obligation under this Conditional Commitment is contingent upon the availability of an appropriation from which payment for contract purposes can be made. No legal liability on the part of the Rural Housing Service for any payment on this Conditional Commitment may arise until funds are made available to the Rural Housing Service State Office where the application was submitted for this Conditional Commitment and until the Lender receives notice of such availability, to be confirmed in writing by that Rural Housing Service State Office.  More specifically, this Conditional Commitment is subject to the Rural Housing Service receiving sufficient funds (in the Program Financial Control System for the Single Family Housing Guaranteed Loan program for the Type of Assistance and State of application submission) to fund this and all prior eligible outstanding applications in their entirety in the time and date order received in the State of application submission.  When such funds become available, Rural Development will notify the lender, and the guarantee process will continue subject to all applicable Agency regulations and conditions set forth in this Conditional Commitment.  Rural Development will not reserve loan funds for applications in process during this timeframe.  Lenders may close the loan as scheduled.  The lender will assume all risk of loss for the loan until Rural Development obligates funds and the Loan Note Guarantee is subsequently issued.  When the lender requests the Loan Note Guarantee, the lender must certify to the Agency, using the process provided in this commitment, that there have been no adverse changes to the borrower’s financial condition since the date the Conditional Commitment was issued by the Agency.  The lender will submit the appropriate guarantee fee at the time they request the Loan Note Guarantee.  The loan will be subject to an annual fee of 0.4 percent of the average scheduled unpaid principal balance of the loan. The Agency will not be able to issue the Loan Note Guarantee until these conditions are met and funding is obligated.”


    Eligible areas for USDA Rural Housing Programs:  The “Continuing Appropriations Act, 2014” (H.R. 2775) was signed into law by the President of the United States.  Therefore, barring further Congressional action, current eligible areas for USDA Rural Housing Programs will remain unchanged through January 15, 2014.  (H.R. 2775 extends Sec. 731 of H.R. 933 “Consolidated and Further Continuing Appropriations Act, 2013”)

    Questions regarding this message may be directed to the National Office at (202)720-1452.

    For further information regarding USDA Rural Development Financing please contact me.

    George Raymondo

    Loan Officer

    (951) 240-8634

  • USDA 2013 Eligibility Map Gets Put Hold...Only Until January 15, 2014

    Posted Under: Home Buying, Financing, Home Ownership  |  May 30, 2013 7:20 AM  |  2,086 views  |  No comments

    January 15, 2014

    The USDA has recently changed the look of their Eligibility Website. Previously it was any ones guess as to what areas would be affected if and when the new changes to the eligibility map go into effect. But it appears these changes will once again be on the table this October 1, 2014 barring Congressional Action to extend the current eligibility.

    In reality, the 2010 Census Data should have gone into effect last October 1, 2011, but under pressure from the mortgage and real estate industry as well as consumers and the fact that our Congress can’t seem pass a budget, the can got kicked down the road.

    So how will this affect the future of home loan applications for the USDA Rural Development Program this year? That remains to be seen, but it will provide some valuable insight to the homebuyer and Realtors involved with these types of transactions, as to areas that could feasibly be eliminated in the near future. 

    My best recommendation is if you or anyone you know wants to purchase a home and would like the opportunity to take advantage of this remarkable program, I would seriously consider getting on the stick and immediately starting the process of getting the pre-approval process started.

    To see if your area could be affected, please click on the link below and then click on "Future Eligible Areas". If you have any questions about this or any other loan program, please feel free to contact me.  AFN is licensed in 22 states, many of these states will be effected in the event the map is changed are implemented this October 1, 2014.

    George Raymondo

    Mortgage Banker

    NMLS#: 24639

    USDA Eligibility Website:

  • USDA Map and Website Changes for 2013 Could Affect Future Homebuyers

    Posted Under: Home Buying in California, Financing in California, Property Q&A in California  |  May 28, 2013 10:03 AM  |  1,740 views  |  No comments

    The USDA has recently changed the look of their Eligibility Website. Previously it was any ones guess as to what areas would be affected if and when the new changes to the eligibility map go into effect. But it appears these changes will once again be on the table this October 1, 2013 barring Congressional Action to extend the current eligibility.

    In reality, the 2010 Census Data should have gone into effect last October 1, 2011, but under pressure from the mortgage and real estate industry as well as consumers and the fact that our Congress can’t seem pass a budget, the can got kicked down the road.

    So how will this affect the future of home loan applications for the USDA Rural Development Program this year? That remains to be seen, but it will provide some valuable insight to the homebuyer and Realtors involved with these types of transactions, as to areas that could feasibly be eliminated in the near future. 

    My best recommendation is if you or anyone you know wants to purchase a home and would like the opportunity to take advantage of this remarkable program, I would seriously consider getting on the stick and immediately starting the process of getting the pre-approval process started.

    To see if your area could be affected, please click on the link below and then click on "Future Eligible Areas". If you have any questions about this or any other loan program, please feel free to contact me.  AFN is licensed in 18 states, many of these states will be effected in the event the map is changed are implemented this October 1, 2013.

    George Raymondo

    Mortgage Banker

    NMLS#: 24639

    USDA Eligibility Website:

  • Is there a Down Payment Assistance Program Available in Texas?

    Posted Under: Home Buying in Texas, Financing in Texas, Property Q&A in Texas  |  May 27, 2013 12:24 PM  |  1,611 views  |  No comments

    Actually I'll give you one better! In fact, this loan program requires NO DOWN PAYMENT.  As a new transplant to the DFW Area here in Texas and as a future homebuyer myself, I was amazed to discover that the USDA Rural Development Loan Program was actually available in several of the areas here in the Metroplex as well as many other areas in the State of Texas. My wife and I spent the first two months here visiting the nearby cities and researching the different areas and soon realized that we just love it here in Texas and decided this is where we would like to buy a home and settle down.

    We have the found the people here in Texas to be extremely welcoming, warm, genuinely polite, respectful, and down right friendly. Being from a more rural area of Southern California, the two areas believe it or not have many similarities. We have several nearby lakes, lots of beautiful Oak Trees, wide open spaces and have similar climates. So what would bring help someone decide on buying a home rather than renting? Simple!

    What if I told you that there was loan program with $O Down Payment like a VA loan, but you do not have to be a Veteran? What if I told you the qualifying was easier than a FHA or VA? Well, let me introduce you to the USDA Rural Development Loan and in my humble opinion, this is one of the best loan programs available for homebuyers who can qualify. At its core, RDL is a Conventional Loan Product with the lowest monthly mortgage insurance out there. The program has no loan limits, low rates, and does not require the borrower to be a first time buyer.

    This USDA RDL Program does have income limits determined by what County you are looking tto purchase in. For examaple, in Denton County the income limits are $80,650.00 for a household of 1-4 persons and has the maximum income limits of $106,450.00 for a family of 5 or more. In addition to the income limits, there eligible area restrictions but can easily be checked online at the USDA website. One more additional benefit of the $0 Down Payment, the USDA RDL loan program provides for the shortest waiting period after a short sale.

    If you have had a previous short sale and have late mortgage payments being reported on your credit report, providing they are over 12 months old, you should be able to qualify for the RDL Program. For more information or for a FREE Credit Analysis and Consultation, please contact me direct by clicking on my profile or calling the number below.


    George Raymondo

    Branch Manager

    NMLS#: 242639

    (951) 240-8634 Direct

    (817) 400-1897 Office

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