United Lending

Investment Property as a College Savings Fund

Silvia Ward Carden — Wed, 07 Mar 2012 18:16:12 +0000

Over the years, I’ve helped many families purchase investment property as a means to save enough money for their young children’s college education. While there are vehicles available to help with this cost (like the 529 college savings plan, scholarships, grants and student loans), investing in real estate should be another avenue you investigate.
Starting a rental property college fund is a long-term investment strategy and makes sense for the same reasons that investing in real estate makes sense as a retirement savings strategy.
1) Cash-flow: The rent you charge to your tenants will provide monthly cash-flow to pay expenses related to the property (mortgage, property taxes, insurance, maintenance) and any amount in excess is cash in the bank.
2) Appreciation: While there is a lot of pessimism about home prices on a national level, in Austin we’ve been fortunate to see steady appreciation. In the long-term, real estate has shown a consistent increase in value, even when the economy is unstable.
3) Low interest rates: Mortgage rates are still at record lows, meaning that investors can keep their monthly payments low or increase their purchasing power.
4) More renters/rising rents: As lender guidelines have gotten more restrictive, renters have been flooding the market. This means that you can be more selective in who you choose as a tenant. And basic supply and demand rules apply to rents: more renters in the market creates a higher demand for properties to rent and leads to higher rents.
5) Tax advantage: Many of your real estate costs (property taxes, insurance, maintenance, etc…) can be used as income tax deductions.
It’s crucial to surround yourself with professionals before making the decision to invest. You’ll want to partner with a realtor who will provide the data and experience to help you research and select the right property (or properties). You’ll also want to talk with people who are investors themselves to discuss the pros and cons of being a landlord. It’s also crucial to speak with your accountant about how investing real estate will affect your tax planning. And last but not least, if you’d like to learn more about the mortgage financing options for real estate investors, I’d love to hear from you.

United Lending Recognized By Austin Business Journal for 2010

Silvia Ward Carden — Wed, 21 Dec 2011 21:02:37 +0000

For the second year in a row United Lending LLC received recognition from the Austin Business Journal. We were ranked the #3 mortgage banker in the Austin area for 2010. We are immensely proud and humbled by this accomplishment! It is our clients, partners, and dedicated staff who make this continued success a possibility. It is our goal to provide unparalleled customer service to our clients. Here at United Lending LLC we make it a priority to provide a smooth and seamless transaction while keeping all parties updated throughout the process. Our proven systems make the process extremely smooth, allowing our loan originators to concentrate on service and relationships. We are looking forward to the future and another successful year.

Changes in the Homestead Exemption Law

Silvia Ward Carden — Thu, 06 Oct 2011 20:08:52 +0000

Starting on September 1, 2011 applicants applying for the homestead exemption will be required to provide documentation to prove that they live in the house they claim as their primary residence. The new law (House Bill 252) requires that a copy of the homeowner’s Texas driver’s license or state identification card and the owner’s vehicle registration receipt be sent with the homestead exemption application. If a homeowner does not own a vehicle they can send a current utility bill showing name and address. All required documents must match the physical address of the residence for which a homeowner is applying.
The new law affects only new applicants, not homeowners who already have exemptions. And it is not only for the general homestead exemption, but for the over-65 exemption, the disability exemption, the disabled veteran’s exemption, the extended exemption for a homeowner’s surviving spouse and the manufactured (mobile) home exemption.
Reminder: you should never pay someone to file your homestead exemption. Filing is free and you can download the application at the Travis County Appraisal District website: http://www.traviscad.org/pdf/Forms/Exemptions/50-114_ResidentialHomestead.pdf

Upcoming VA Funding Fee Changes

Silvia Ward Carden — Thu, 22 Sep 2011 16:25:12 +0000

Important update as of 11/8/2011–VA believes it is highly likely that Congress will pass a bill keeping funding fees at their present level. If a bill is passed and signed into law, the funding fees will not decrease as scheduled. VA is closely monitoring the situation and will post notices as soon as they receive definite information.

Great news from the Veterans Benefits Administration! On September 8, 2011, VA announced that there will be changes in their funding fees for loans closed October 1st, 2011 through October 1st, 2012. The decreased funding fees will benefit Veterans, Reservists and National Guards for first time and subsequent uses. I have included charts below so you can see the changes for VA purchase loans.

First Time Use:

Down Payment	Old – Veteran	New – Veteran	Old – Reservist/National Guard	New – Reservist/National Guard
Less than 5%	2.15%	1.40%	2.40%	1.65%
5% – less than 10%	1.50%	0.75%	1.75%	1.00%
10% or more	1.25%	0.50%	1.50%	0.75%

Subsequent Use:

Down Payment	Old – Veteran	New – Veteran	Old – Reservist/National Guard	New – Reservist/National Guard
Less than 5%	3.30%	2.80%	3.30%	2.80%
5% – less than 10%	1.50%	0.75%	1.75%	1.00%
10% or more	1.25%	0.50%	1.50%	0.75%

If you have any questions, don’t hesitate to call or email me.

We are excited to announce great rates on our new Jumbo Loan Program

Silvia Ward Carden — Wed, 01 Jun 2011 17:06:51 +0000

Are you looking to finance or refinance a loan over $417,000? Unlike a normal 5 year Adjustable Rate Mortgage (ARM) with an interest rate that adjusts every year (or 6 months), on our new 5/5 ARM loan program the interest rate is fixed for 5 years at a time. This means the starting rate is fixed for 60 months, then adjusts and stays fixed for another 60 months, and so on for the rest of the 30 year term. The best news is that start rates today are in the mid 3s. With max adjustments of 2%, that means that even after the first adjustment, your interest rate will still be lower than today’s going rate on a 30 year fixed jumbo loan for at least 10 years.
Here are just some of the guidelines and features of this program:

• Loan amounts from $417,000 to $4,000,000
• Fixed for 5 years (60 months at a time)
• Low start rate
• At each rate adjustment the new rate will be the lower of:
1. The index plus margin, or
2. The current rate being offered for new 5/5 ARM loans, or
3. The loan caps of 2/2/5 (2% first adjustment max/ 2% second adjustment max/ 5% max for life of the loan)
• Available on primary homes/condos and second homes. (1 Unit properties only)
• Super Jumbo loans (greater than $750,000) require 2 appraisals
• Loans from $417,000 to $750,000 require 20% down
• Loans greater than $750,000 require 25% down
• Primary purchase requires a minimum of 6 months PITI in liquid reserves
• Second Homes and condos require a minimum of 12 months PITI in liquid reserves.

This is a great opportunity to purchase or refinance your home at an unbelievable rate. Please call or email me today for more details or to pre-qualify.

FHA with a 600 FICO?

Silvia Ward Carden — Fri, 27 May 2011 18:47:01 +0000

In today’s mortgage world, it has become the norm to see more conservative credit requirements making it more difficult for buyers to qualify. In a few short years, we’ve seen many lenders go from no minimum credit score on FHA loans to our current minimum of 640. As a result, many potential homeowners were eliminated from the buying pool.
At United Lending, we feel that on occasion a credit score may not be indicative of someone’s attitude towards the responsibility of credit and now allow borrowers with at least a 600 FICO to obtain FHA financing. In those cases, we have created qualifying guidelines (over and above the standard FHA guidelines) that establish if a borrower is willing and capable of making their payments when due. Here are some of the highlights:
• A FICO score of 620-639 would require the borrower to put down 5% and have two months of PITI (total monthly mortgage payment) in liquid reserves.
• A Fico score of 600-619 would require the borrower to put down 10% and have three months of liquid reserves.
• Any cash required at closing must be from the borrowers own funds; no gifts or seller concessions are allowed.
• The housing experience of all borrowers must be verified; meaning that they must have an immediate prior mortgage or rental history. Twelve months of cancelled checks (if rent checks are made out to an individual) or verification from an apartment or rental property management company will have to be provided.
• Borrowers may not have had any short sales, public records, judgments, bankruptcies, or tax liens in the most recent three years and no foreclosures in the past 5 years. There can also be no delinquent credit since any of those occurrences.
• Borrowers may not have had any collections, including medical, in the last 12 months and no 30 day late pays on mortgage, rent, or installment debt in the previous 12 months.
• Borrowers must have a 24-month job history and must have been employed with the same employer with the same or greater position for at least 12-months.
• The property must be a single-family home (no duplexes), condo or PUD.
For the right buyer, this is an excellent opportunity. Finally, after hearing lenders say we can’t do this and we can’t do that, it’s refreshing to hear that we can help more buyers. If you have a client you think could fit in this scenario, call or e-mail me to see if we can help them with the purchase of a new home.

The Skinny On Disputes

Silvia Ward Carden — Wed, 13 Apr 2011 20:18:59 +0000

Did you ever have something on your credit report that wasn’t yours? Or maybe it was yours but the information was being reported wrong? You would think your first line of action would be to call the creditor and “dispute” the inaccurate information. The whole idea is to have a credit report that shows your ability to pay on time and have a score that shows you’re a responsible person! You don’t want anything negative on there and these days disputes can be just that. Though you’re trying to better your credit situation, you are actually making it harder to get financing.

If you are thinking about purchasing a home soon, you’ll want to play it safe and not dispute anything. If you already have disputed an account on your report, regardless of what the dispute consists of, your loan guidelines just got sterner. This has been a BIG issue lately for people getting home loans.

So what do we mean by more stern? Most loans today are run through and approved by an automated underwriting system (AUS). Your loan file will still be reviewed by an underwriter but it’s a much easier, streamlined process. If you have a dispute on your credit report your loan will be downgraded to a manual underwrite. This means that, no matter what the decision was through the AUS system, it now has to be reviewed in depth and documented in depth in order for an underwriter to make a decision.

The biggest factors coming into play are:

Your debt to income ratios cannot exceed 31/43%. This means that you cannot spend over 31% of your gross monthly income toward your house payment or over 43% of your gross monthly income toward your house payment and other monthly debts. This is a steadfast rule and does not allow for any exceptions.
You must have 2 months of total mortgage payment in reserves left in your bank account after closing. This can include retirement funds. But for most first time home buyers coming up with the down payment and closing costs is hard enough, now you have to have 2 months saved in the bank.
Your rent or mortgage payment history over the last 12 months will need to be verified and there cannot be any late payments.

If your lender has already pulled your credit report and there are disputes, even “dispute resolved” on your report, then you might need to “un-dispute” them with the credit bureaus. That process in itself is both frustrating and time-consuming, so be prepared and make sure you document, document, document.

Effective April 18th, FHA changes mortgage insurance premiums (again)

Silvia Ward Carden — Thu, 24 Mar 2011 21:40:59 +0000

On February 14, 2011, FHA issued a Mortgagee Letter which announced a 25 basis point increase to the annual mortgage insurance premiums. The increase applies to all 30- and 15-year loans. The upfront mortgage insurance premium (UFMIP) remains unchanged at one percent.

Remember that FHA loans have two types of MIP: 1) an annual premium (which is divided by 12 and included in the buyer’s monthly mortgage payment) AND 2) an up-front MIP (which is typically financed back into the loan).

The increase in the annual mortgage insurance premiums is effective for FHA case numbers assigned on or after Monday, April 18, 2011.

Purchase and Refinance loans with loan terms Greater than 15 years:

Down Payment	Type	%
Less than 5%	Up-front MIP	1.00%
	Annual MIP	1.15%
5% or More	Up-front MIP	1.00%
	Annual MIP	1.10%

Purchase and Refinance loans with loan terms of 15 years or less remain unchanged:

Down Payment	Type	%
Less than 10%	Up-front MIP	1.00%
	Annual MIP	.25%
10% or More	Up-front MIP	1.00%
	Annual MIP	.50%

To see the effect of these changes for a typical buyer I ran the numbers on a $200,000 sales price with 3.5% (minimum) down payment on a 30-year loan. Compared to the current MIP structure, the new structure increased the buyer’s monthly mortgage payment by $40. Fortunately, the net impact is minimal, but please keep this in mind for your buyers.

To help your clients avoid the MIP increase, we will need to order their case number before Friday April 15^th. To order the case number I’ll need a signed purchase contract.

If you have any questions, don’t hesitate to call or email me.

Mortgage Insurance Is Tax Deductible Through 2011

Silvia Ward Carden — Wed, 19 Jan 2011 20:51:37 +0000

Great news for the New Year! The mortgage insurance tax-deductibility law has been extended through 2011. The law provides for an itemized deduction on federal tax returns for the cost of private mortgage insurance (PMI) paid by eligible borrowers. Borrowers who qualify are those with: 1) adjusted gross incomes of $109,000 or less, 2) who purchased or refinanced a qualified residence from 2007 through 2011, and 3) who pay mortgage insurance premiums. This is not just a tax deduction for only first-time home buyers and the deduction is not limited by loan type or loan amount.

Borrower-paid MIP that can be allocated to tax years 2007-2011 will be fully deductible for eligible taxpayers who are married, single or head-of-household and who earn up to $100,000. The amount of the deduction incrementally phases-out for those who have adjusted gross incomes between $100,000 and $109,000 annually. For married homeowners filing separately, there is a $50,000 adjusted gross income threshold per person. The MIP tax deduction is reduced by 10% for each $500 that the married borrower’s adjusted gross income exceeds $50,000.

Qualified residences generally include a taxpayer’s principal residence and up to one other residence (which must be used for personal purposes by the taxpayer for 14 days or 10% of the days during the tax year that the unit is rented for fair value, whichever is greater, among other tax code criteria).

Individual savings will vary depending on the size of the loan, the taxpayer’s adjusted gross income and tax bracket. According to an analysis by Bankrate, a leading source of consumer financial information, a homeowner with an $180,000 mortgage would save about $351 in taxes a year with this deduction.

United Lending recognized by Austin Business Journal

Silvia Ward Carden — Tue, 30 Nov 2010 22:42:32 +0000

We at United Lending are extremely excited to announce that we have been recognized by the Austin Business Journal as one of the top mortgage companies in the Austin area!

It is our belief that we achieved this notoriety in just two short years, by strictly adhering to our mission statement of striving to provide unparalleled customer service to our clients and their Realtor®. Our hand-chosen in house processing and underwriting teams allow us to keep control of the file and give our clients the most accurate loan information at any moment. Our proven systems make the process extremely smooth, allowing our loan originators to concentrate on service and relationships.

We would like to a moment to thank all our clients and partners who have made this possible for us. We would like to sincerely thank each and every one you for allowing us to serve you. We can honestly say that it is an honor.

In addition we would like to thank our entire staff. It took a joint effort and true TEAMWORK to achieve this recognition. Great people make a great company and we believe that we have the best!