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About Jim Root
Expertise
Real Estate Financing of all types/styles--Government & Quasi-Governmental loan such as FHA & VA; Conventional "Fannie Mae" & "Freddie Mac"-backed Mortgages & all sorts of "Creative Financing" techniques! Credit Underwriting & Property Value & Condition Requirements of standard Home Loan Programs. Purchase Money Mortgages or Refinancing! Gale, shown with me here, has been a licensed Real Estate Agent & Office Administrator & my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional," including Real Estate Marketing & Sales, Mortgage Banking & Residential Appraisal businesses.Past certifications as a Mortgage Co. Manager, Underwriter, Staff Review Appraiser, Compliance Inspector & Loan Officer with a nationally known Mortgage Company. 12 of the 30 plus years of experience was with the Dept. of Housing & Urban Development (HUD) as a Homeownership Program Officer, trained & proficient in all aspects of the Real Estate Sales,Appraisal, Inspection & Financing areas.
Organizations
Former Member of Nat'l Ass'n of Realtors (NAR)& Mortgage Bankers Ass'n of America.(MBAA) Currently with National Ass'n of Review Appraisers & Mortgage Underwriters.(NARA/MU)
Publications
Published in local, regional & national Real Estate industry magazines & newsletter on various Real Estate-related topics.Co-authored numerous Goevernment Manuals, Handbooks & Panphlets on Home Mortgage Programs while with HUD/FHA.
Education/Credentials
Associate Degree with emphasis in Real Estate Studies plus:
Over 20 "Special Courses" relating to Real Estate, including Financing, while in Private Sector & with HUD's FHA Homeownership Division.
Bachelors Degree in Mass Communications &
Masters Degree in Education/Teaching.
Awards and Honors
Professional Designations include: Certified Resiential Originator (CRO) with MBAA,Registered Mortgage Underwriter (RMU)& Certified Review Appraiser(CRA) with NARA/MU. Past awards include Outstanding Performance Awards for 10 of the 12 years with HUD/FHA & numerous
Real Estate Sales,Appraisal Reporting & Mortgage Loan Origination
awards while in "private practice"
Past/Present Clients
Currently Director of a Company that provides Professional Development Seminars & Workshops to Real Estate Agents, Appraisers & Mortgage Lenders & both free(as needed) & fee-paid (sliding scale)consulting & inspection services to the general public.This "Expert" is a "Disinterested Third Party" who will not try to sell you Real Estate, nor Appraise or Inspect your Home, nor attempt to put you into a Mortgage Loan--all questions will be answered with your best interests in mind!
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You are here: Experts > Shopping > Home Buying/Selling > Real Estate Home Mortgages > Home Buying Road block
Expert: Jim Root - 11/8/2009
Question
My fiance and I are in the process of buying a home. We were going with a VA loan. We had a pre-approval letter and sent in all the papers, and after the papers were sent in, the lender told us that there were collections on my fiance's credit so she needed to know the status of those. We told her the status and explained each of them. And now we haven't heard anything from her. Our offer on the house that we want has been accepted and there is also a security deposit down on the house. We are now trying to find a plan B as to getting a loan for this house. I have excellent credit, 730 or higher but am currently unemployed but I am receiving unemployment checks every month. We are getting married in a week and I was wondering if I can apply for a loan and get accepted? Do I need to use his as a co-borrower and if I do, will his collections stop us? If I don't use him as a co-borrower, can I use his income for our household, family income? If you have any advice, we'd greatly appreciate it. Thank you!
Answer
Hi JAIME--
If your Fiance is the VETERAN,without him on the loan, as Borrower or Co-Borrower, a VA Loan is NOT available to you!If YOU are the Veteran of Military Service, his non-Veteran status doesn't matter.FHA &, VA allowes unmarried couples to buy a home together and use their loans to purchase subject to the couples meeting all other income,assets,credit,debt "standards" set for their loan programs. Most "Conventional" Mortgage Loan Progams (backed by "Fannie Mae" or "Freddie Mac") are also O.K. with financing unmarried couples home purchases.
I suspect that he's the Veteran--although there have been more & more Females in the Military
over the past years! If so, without him, there's no VA loan. If YOU are the Vet,even though you have a g-r-e-a-t Credit Scores of 730+ your unemployment likely makes your "Debt-to-Income Ratio"(DTI) DISQUALIFY you.Using him as a Co-Borrower,and his Income I'm guessing your Combined DTI has you facing loan DENIAL untill all of his Collections are PAID OFF.And with Collections on his Credit Reort, I'd bet his Credit Scores are in the mid-500 to low 600's.
So, he needs your GOOD CREDIT & you need his INCOME! One of you needs VETERAN STATUS for the VA Loan.Unless you get back to work and he pays off his Collections,your getting any Home Loan
(VA,FHA or Conventional) TOGETHER doesn't seem possible! Your GOOD CREDIT is "cancelled out" by his BAD CREDIT, his INCOME is "cancelled out" by your being UNEMPLOYED.
You say you "If you have any advice,we'd greatly appreciate it" I won't give you advice, but will give you some OPTIONS;
1.Call off next weeks Wedding and reschedule it for 1 Year from now.You get back to work; he pays off his collections. Every Month for the next 12 you both put some money in a Savings Account specially set up for the Downpayment & Closing Costs of the Home you purchase together.
2.Go ahead with the Wedding.If your Accepted Offer contains a "Financing Coningancy" (and MOST do!)Get your Loan Officer (LO) to provide you with a LOAN DENIAL LETTER ,get your Accepted Offer CANCELLED and your Earnest Money Deposit REFUNDED!
3.PEER-TO-PEER Financing*
4.LEASE w/OPTION to BUY*
*Both need more explanation, but either COULD help you into the Home you're about to lose 'cause of your lack of income/his colections! E-mail me a real-t-pro@comcast.net or
call me @ 1(509) 220-6886 and I'll discuss these Options with you.
--JIM
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