Friday Mortgage Brief - Friday, October 28th 2011
The Friday Brief
OCTOBER 20th LUNCH AND LEARN-Q&A Answers There were lots of great questions at the Q&A portion of the Lunch and Learn. There were a few that I mentioned I would research and email everyone the answers. Since the questions came from some of the top realtors in our market, I thought it would make sense to post them in the Friday Brief to share them with others that might have the same questions. Next time I will try to post the entire Q&A to also include the questions that were answered during the event.
1. The buyer pays cash and then wants to do a cash out refinance. How soon can they do a cash out refinance in this case and what is the maximum amount they can finance?
There is a continuity of obligation requirement of 6 months. This means they have to be on title for 6 months before they can do a cash out refinance. For a primary residence the maximum LTV is 80%, Investment property LTV 75% under 417K.
2. For a Condo Investment Property Purchase what is the investor ratio restriction?
Investor ratio may not exceed 49%.
3. What are the credit score requirements for VA?
Minimum credit score requirements for VA, under 417K-min credit score 620, 417K-750K min credit score 680, 750K-1,033K min credit score is 700
4. What is the percentage of rental income a buyer can use from a rental property for VA?
75%
5. When a buyer has an investment property, what is the minimum length of time they need to own the investment property to use rental income to qualify?
There is no minimum requirement as long as they have a current lease agreement in place. 75% of the rental income may be used.
Please note: There are always many different scenarios and requirements for each guideline. Please use this information in the general sense.
If you have a buyer and have questions about their specific scenario, please consider me a resource, I'm happy to discuss your buyer in detail and do more research to help.
From Bruce
Everything should be made as simple as possible, but not simpler.
Albert Einstein
Have a great weekend,
Bruce
Bruce Rosenberger
Chairman's Team
SunTrust Mortgage, Inc
Cell 703.850.1349
Buying or Selling a Home in Northern Virginia? Contact Kim Darwaza of RE/MAX Allegiance for all of your Real Estate needs at 703-856-2254 or kim@kimdarwaza.com. To search the MLS please visit http://www.kimdarwaza.com.