Back to Basics:Mortgage Lending

101Part #2October 16, 2015

Emily C IngramNew American Funding

Who is Emily C Ingram?• Local mortgage lender with New

American Funding• 14+ years experience • Loan originator, processor, and

underwriter• Bachelor’s degree in mathematics• Board member, Jefferson Co Home

Builders Association• Board member, Real Estate

Professionals for Affordable Housing• Extra lumbar vertebrae

Obligatory Disclosures

• I’m pretty smart, but I don’t know everything.• Change is inevitable.

Objectives

• Discuss current regulatory environment• Identify (and sell) “problem” property types• Utilize mortgage for programs and products to

increase buyer’s purchasing power.

Regulatory Environment

How can you help?• Set appropriate expectations.• Allow ample time.• Fees to escrow two weeks prior to closing.• Encourage buyers to use email.• Electronic disclosures save time!

Categories of Mortgage Loans

• Conventional ConformingFNMA / FHLMC

• GovernmentFHA / VA / USDA

• Conventional Non-ConformingJumbo Loans / Funky Properties / Funky People

Conventional Non-Conforming

• Funky products, people, or property

• Lenders determine guidelines

• Lenders determine interest rates

• Fewer options

Jumbo Loans

• Loan amounts > $417,000• Intense competition• 20-25% down payment• Credit scores 680+• Lower debt to income ratios• Reserves required• Other non-conforming products: interest only,

construction loans, lines of credit

Funky People

• Recent major derogatory credit

• Asset dissipation• High debt to income ratio• Stated income• Foreign national

Funky Properties

• Non-warrantable condos• Hobby farms• Acreage• Log homes• Handled case-by-case

Condominiums• Condo project must be eligible• No “spot” approvals• FNMA/FHLMC, FHA, and VA all have slightly

different guidelines• If you list a condo, have it pre-approved by

your lender!

Manufactured Homes

• Fewer options• Doublewide• Built after June, 1976• Moved only once• Permanent foundation• Foundation inspection• L&I inspections

Renovation Loans• FHA or Conventional• Same underwriting standards• Finance the cost of renovation/repairs• Work with a specialist

Energy Efficient Mortgages

• Used with FHA/VA financing• Finance energy efficient improvements• May require energy savings estimate• Eliminate baseboard heaters and crappy metal

framed windows

Down Payment Assistance• Available through WSHFC • Second mortgage used for down payment• Some have deferred payments/no interest• Follow standard underwriting guidelines • No FTHB requirement• Must work with an “approved” lender and LO• Income limits• Home buyer education

required• Higher interest rates

Mortgage Credit Certificate

• Tax credit equal to 20% of annual interest• Program can be combined with any mortgage• Must work with an “approved” lender and LO• First time home buyer• Income limit $65,000 (1-2 people)• Acquisition limit $235,000• Home buyer education required

Refer to Emily C Ingram(AKA shamless self promotion)

• More product options• Local presence• Local appraisers• Go the extra mile

Contact Me!

emily.ingram@nafinc.com

www.facebook.com/emilycaryl

www.linkedin.com/in/emilycaryl

www.slideshare.net/EmilyCIngram1