Monday, October 21, 2019

Perch, Open-door and the FHA Buyer

Here's something no one is talking about: FHA buyers and homes that are owned by Perch, Opendoor or companies like this. They don't go together.

With so many homes being bought and sold by companies like these above, there is one certain class of borrowers that are being left out: FHA buyers. Why? Because of the 90 day flip rule that FHA has in place.

FHA guidelines state: 

Re-sales Occurring 90 Days or Less Following Acquisition

If a property is re-sold 90 days or fewer following the date of acquisition by the seller, the property is not eligible for a mortgage insured by FHA.  FHA defines the seller’s date of acquisition as the date of settlement on the seller’s purchase of that property.  The re-sale date is the date of execution of the sales contract by the buyer that will result in a mortgage to be insured by FHA.

As an example, a property acquired by the seller is not eligible for a mortgage to be insured for the buyer unless the seller has owned that property for at least 90 days.  The seller must also be the owner of record. 

Basically, if you have a client that is or if you are an FHA buyer, you cannot even write a contract on a home that has been previously sold until 91 days have passed since the last title transfer. In today's crazy market, most homes don't even stay on the market for 90 days! Companies like these very unknowingly are taking a huge segment OUT of the market for their homes (I am sure it was not the intention). I know that they are not "house flippers" but under the FHA rules, they are. Ugh.

Basically, the only mortgage financing that is allowed when you have a seller like Perch etc. are conventional and VA. FHA peeps need to wait until 91 days have passed before they even think about it. IF the home is still on the market.

Why does this stink so bad? Well, its the demographic of the homes that these companies are buying.
  • Homes in non-gated communities
  • Homes that are generally cheaper in price
I think that one day, FHA might change its rules, but for the time being, FHA buyers are kinda getting hosed. They have to either get re-approved for a conventional loan with potentially less favorable terms (if they have a lower credit score) or just find a different home.

Realtors beware!! Please be cognizant of who the seller of the home is when you do have an FHA buyer because there is nothing worse than falling in love with a home that you cannot have :(

And THAT is my PSA for today!


Sunday, October 20, 2019

Random Thoughts on Aging, Complaining and Being Grateful

This morning, my head was full of all sorts of random things as you can see by the title.

I actually first thought about how important it was for me to thank God for all of the gifts that I am given. It is by His hands and by His doing that I get to do what I do. He is the one that has given me the gifts of this amazing life. It is not me. He leads me to do certain things and the credit is not mine to take. Thank you, God.

I think that sometimes, it is easy to get cocky and independent because of success...and I forget about how I got there to begin with. It is not my own doing, it is His. I want to always remember that, although I have strayed from this in the past...only to be smacked right in the side of the head by God Himself. Ok, I get it. I know.

Then my mind went to aging...because dammit, my back was so tight this AM when I woke up! I thought about how interesting it is that as we age, we get stronger on the inside at the same time as we get weaker on the outside. At the time where I am feeling the best I have ever felt in my mind, I can feel my body start to show the outward signs of getting older...the aches, the pains, the tight back in the morning...and my inside is full of condfidence, love, compassion, gratitude, understanding and happiness. It is really kinda cool when I think about it. What a neat thing, this life of mine.

Then my thoughts turned to complaining...for those who know me, you know that I have really never been a "complainer", but this past week or so, I feel like I have been one. I found myself complaining about how much stress I am under, how I felt like things were not going the way I wanted them to go with my loan flow in operations. This morning, I was reminded that when people complain, it really doesn't do shit except for making things worse. It effects everyone around us, sucking the life out of them. For this past week, I have been a "sucubus" and I am sorry. I seriously have NOTHING to complain about in the whole scheme of things. For those of you I have bitched to this past week, I am sorry. That is not who I want to be.

So there you go :)

This is WHY I do what I do.Thank you, God.

Thursday, October 17, 2019

Simplest Way to Establish Credit

If you have no credit score, getting one is easier than you think! Whether we like it or not, our world revolves around credit. If you don't have a credit score or have little credit, it affects your mortgage rates and about a trillion different other things. You might wonder where to I am going to tell you!

1. Get a secured credit card. You can get this from a bank and I have also seen places like Capital One have them. A "secured card" basically means that YOU give them $500 as a bond to hold onto and they give you a card with a $500 limit. It is really hard NOT to get approved for this type of card because they are basically giving you credit against your money.

The key though is this: DO NOT charge the card up the whole way and then just keep doing that and paying it off. If it has a $500 limit, be sure never to have a balance larger than 30% of that limit.

2. If willing, have someone that you know put you on as an "authorized user" on one of their credit cards. Now, the person that you want to do this will have to have excellent credit and will optimally have a super low balance on their card that they have had for a long time. You do not want to pick someone who is irresponsible with their credit because that won't help you! The reason why having someone putting you on as an authorized user works is that their card - a card that they have had for a while - will go onto your credit and it will lengthen the amount of time that YOU have had credit for...which will, in turn, boost your credit score or even give you a credit score when you didn't have one.

3. Take out a small installment loan. This is good because it is best to have a mix of different kinds of credit. Only do this though once you have revolving credit established. From what I have seen, installment loans alone on credit don't really help at all unless you have revolving with it.

4. Once you have done the above, you should have a score within 45-60 days...and then you can start establishing other kinds of credit like a few other cards and maybe even a mortgage one day!

The key is though....BE RESPONSIBLE. Just because you have a credit limit, doesn't mean that you should ever max it out. That is how BAD credit happens. Keep your balances low and make sure you pay everything on time. Also be careful of how much credit you apply for. Do it slowly and be very choosey about who you apply with. Too many inquiries will hurt you.

That's all I got for today!


Wednesday, October 16, 2019

Filters and Dressing Like a Ho in Business

Yeah, that's right...I just said that. Ladies, if you want people to take you seriously, you have got to show yourself some self-respect first. How you treat yourself and show yourself to the world will directly dictate how others treat you.

Now, I don't want to hear the BS of, "I can wear whatever I want and you still have to treat me with respect" all while you are wearing a shirt where your boobs are popped out and you are making a duck face while filtering the picture so you look flawless while taking a selfie from above so everyone can "see it all"...come on. Don't fool yourself or be self-delusional. Whether we like it or not, how others treat us has a direct correlation with what we put out there. That is how the world is.

Are you the woman who's Facebook is 1000 selfies that are all provocative? Or the one who posts constantly about how lonely you are or how you, "can't find a good man"...or are you constantly taking videos of yourself in super-revealing clothing and posting them for "work"? Do you send naked pictures of yourself freely to dudes and want the same in return? Come on ladies!! As a whole, we need to stop doing this crap. If you want someone to treat you with respect, then you have to command that respect!

It baffles me, especially on the real estate agent side, how many women Realtors and people in title etc. act and dress like total Ho's. Zero respect for themselves and also, it shows zero respect for the wives of the clients that they help. What happened with being professional? Are we worried that if we had to rely on our brains that we would not succeed?

Now, I don't want you to think that I am judging. I am not. I have been there and done that...until I realized what it brings. People can do whatever they want to...but learn the consequence. It is a self-respect thing and us women have become so engrossed in using our "sex" to sell and then getting mad when people treat us like crap.

Don't like the way a guy talks to you or treats you? Say something.

Want to be taken seriously? Have something to be serious about.

Want to be treated with more respect for your brain vs. how you look? Respect yourself first. Be good at what you do.

Do you want people to recognize you when they see you in person? Stop using so many damn filters!

Perfect Example!! I googled, "Filtered selfie with duck face" and this is one that came up. I don't know about you, but this does not make me think, "Oh, this lady must be a good Loan Officer"...

Tuesday, October 15, 2019

The Difference Between an Origination Point and Discount Point

Today's post is about teaching you a little something! YAY!

We are going to talk about "points" points. It has occurred to me that a lot of people don't truly have a grasp on what they are and what they do. So here you go...

First, 1 point is equivalent to 1% of the loan amount. So, on a $100K loan, 1 point = $1000.

  • .875 points = $875
  • .75 = $750
  • .5 = $500
  • you get the point (ha ha a funny pun!)
Now, what you don't know is that there are 2 different kinds of "points"!

  • Origination Point: This is a fee that a mortgage company charges you that is basically just pure profit. It is a fee in addition to their processing/underwriting/admin fees.
  • Discount Point: This is a fee that you are charged to buy down your rate to a particular lower rate than you would get if you did not pay the extra cost.

When a mortgage person talks about the "par" rate, it means the "even money" rate...the rate at which you are being charged NO discount points, but you have to be aware that they still may charge an origination point! So, check on that!

When is it a good idea to pay discount points in order to buy the rate down? The answer depends on cost vs. savings vs. time to break even in your investment. There are so many people that only care about getting a super low rate, that they think it is a a great idea to pay points to get there...but they don't think about the other "stuff" that should really determine what they should do. Sometimes, it is better to take a slightly higher rate and not pay all of those extra fees. It really depends on how long you plan on staying in the home, what your long-term plans are and of course, how long will it take you to break even. Maybe it's just better to save your cash!! I mean, is paying an extra $4k on a loan in fees really worth saving $40/month on? Prolly not, unless you are going to stay in the home for a long long time.

What about those low rates that I see advertised on the internet? I will bet you $50 bucks that they all have points associated with them. Quicken loans is one of the worst about this and I have written about them in a previous blog post. ALWAYS READ THE FINE PRINT! Scroll down to the bottom of that page, people! That is where the good stuff is...the real deal.

Why do some mortgage companies charge an origination point? Extra profit.

So, before you go paying any points, please do your homework! Think about your lifestyle, what your longer-term plans are and definitely read all of the fine print before you make any decisions.

The more you know! :)


This is me...the World Champion of Educating YOU! Ha!!

Monday, October 14, 2019

Why God Allows Suffering (The "Jennifer Answer" Version)

This is for someone very special to me. It is my answer as to why God allows I have wrapped my head around it.

Here goes...

Before I can answer that question for you, there is some background that needs to be covered :)

Free Will: God has given us the choice to love Him or not. To be close to Him or not. To ask for forgiveness or not. Either way, it's OUR choice. He is with us always, regardless.

Good and Evil: If we didn't have evil, we would not have good. All of us have sinned and all of us have some evil in us, even if we don't care to admit it. I know I do! If we didn't have good and evil, we would not have absolute truth...right and wrong. It would just be us "perfect good" people in the world with nothing to strive true standard of right and wrong.

When we look at things, we make the mistake of thinking that we know more than God does because the concept doesn't fit into our minds. We have a limited perspective...He does not. He doesn't see things like humans do, He doesn't think like we do. He's God. We are not. We cannot use our limited logic to understand all that He does.

When we try and wrap our heads around, "Why God Allows Suffering", the answer is more simple than you think...but you might not like the answer...

God dwells in eternity. Forever. Always. The Beginning and the End. There is no time or space or dimension that He is not present. Our fallen world sure does not dwell in eternity. Not even close.

This world is temporary. Heaven is eternity. The time we have on earth is NOTHING compared to eternity.

God's primary objective is to love and be loved in return (which, I also believe that we humans are hardcoded to want the same exact thing in our lives) by his

God tells us time and time again, that suffering in this world is temporary compared to eternity with Him.

Check out this link: What the Bible Says About Suffering

He uses the pain, suffering , trials and sadness of this world to prepare us for forever with Him. Our momentary time on earth is nothing compared to eternity. I know I keep saying that...

The cool thing is this: Suffering is going to happen, but God also promises us that He has a plan for everything to work out at the end. Best example that I can think of right now: Jesus. He died for our redemption. Good from bad. Always. Even if we can't readily see it or make "human" sense of it.

We have to stop looking at things from OUR limited human POV and remember that God looks at things from eternity.

All I know is this...when you accept God into your life EVERYTHING changes. You change from the inside-out and nothing is the same. THAT is how I know.


I posted this pic on Instagram/FB a while back...I read about using this as an example in a book once, so this is what I put together. The picture on the top represents "our" view...the view that we see. Messy as shit and you can't even hardly tell what it is supposed to be. The picture on the bottom is what God sees.

Saturday, October 12, 2019

Funny (to me, at least) Stuff I Like to Do...

One of my greatest pleasures in life is such a little thing...but it makes me smile and laugh every single time. I think that most times, people (down here at least...that don't have the northern sarcastic humor) don't know how to take me. It's totally OK. It makes ME its all good.

So....pretty much any time I write a check to someone, I write something SUPER embarrassing in the memo section.

Stuff like: "First place winner in the farting contest" or "Congratulations!! You don't have an infection anymore!" or "For a good time" or "Yodeling contest winner!" get it. It's super funny to me and I wonder if the bank people snicker when the checks get reviewed or cashed.

A fine example of my work! 

The other super funny (again, to me) thing that is fun to me (and definitely the Fed-Ex dude) is that I also love to write embarrassing things on the outside of the boxes that I send to there is no escaping how many ever people are lucky enough to see my "creations".

My father loves it when he gets a box from me that says things like, "Joe Z love to pick his nose and eat his boogies!" and stuff like that!!

This FedEx guy thinks my dad picks his nose!! It has been confirmed! HA

Oh the joys of getting a package from me!! should try it sometime!! It's FUN!! Promise.