Category: MA

The Definition of Active Contingent

The true definition of a home that is active contingent is that the home has an offer on it, but the buyer has contingencies on their offer. Continue...

Just because you can view active contingent homes, doesn’t mean you will be able to buy it. If the original buyer is able to clear all of the contingencies, the home changes to pending status and is no longer. Read More.

In many cases, yes. As rates have dropped and home values have risen, many homeowners have an opportunity to remove their PMI while reducing their overall monthly payment. Talk to your loan officer about the specific requirements of the loan products you qualify for.

Keep in mind that many loans have a ‘seasoning requirement’ that requires you to wait at least 2 years before you can refinance to get rid of PMI. So if your loan is less than 2 years old, you can request that your PMI be removed with a new refinance but you’re not guaranteed to get approval.

order to better understand a Non-QM, it is helpful to be familiar with the criteria of a qualified mortgage. A qualified mortgage (QM-loan) is a home loan that meets certain standards set forth by the Consumer Protection Act and the Dodd-Frank Wall Street Reform Act, signed by President Obama following the 2008 housing crisis.

The requirements for a qualified mortgage include:

• Verification of income is required, otherwise known as the “ability-to-repay” rule
• The debt ratio cannot exceed 43%
• Points and fees should not exceed 3% of the loan amount
• The loan cannot have risky features such as negative amortization or interest-only
• The loan term cannot exceed 30 years

These guidelines were adopted by the Consumer Financial Protection Bureau (CFPB) to help prevent poor lending practices that sparked the previous financial crisis.