Who Qualifies?
Your New Updated US Treasury Guidelines Issued On March 4th, 2009 Have Dramaticly Changed Your Qualification Requirements.
Your US Treasury Department reset your maximum front-end income-to-debt ratios (Only monthly housing related expenses) - They have also increased the maximum back-end debt ratios exceeding 55% (Total monthly expenses.)
A common myth is that you need to be in foreclosure or behind on your payments to qualify for these programs.
THIS IS FALSE.
Your approval package does need to demonstrate a financial hardship. Here are the most common reasons our clients are approved even with a perfect mortgage payment history:
1) A job loss resulting in your need to access your retirement or other assets to pay your monthly obligations.
2) A lower household income resulting in the need to access your retirement or other assets to pay your monthly obligations.
3) Increased property taxes or HOA/Association/Condo dues resulting in the need to access your retirement or other assets to pay your monthly obligations.
4) Increased mortgage payments resulting in the need to access your retirement or other assets to pay your monthly obligations.
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Let's Be Perfectly Clear On This Issue.
If you have perfect credit - Money in the bank - And have always made your payments on time - YOU WILL NOT QUALIFY.
There are possible programs in the near future to assist these clients - And we can notify you if you simply send us an email.
(We update all clients on the "waiting list" every two weeks...)
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Here is a brief explanation of the US Treasury income-to-debt ratio calculations.
Your maximum front-end (housing costs only) need to be lower than 38% of your gross pay.
Example: If your monthly household income is $3000 - Your total housing expense is required to be $1,140 or less.
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If your current total housing expense is higher than $1,140 - Lowering your payment is accomplished through a combination of lowering your interest rate, reducing your principal balance, and eliminating your second mortgage. It is important to note here that lenders ARE NOT required to automatically lower your rate to 2% - Or reduce your principal - Or eliminate your second mortgage.
This is why it is so critical your approval package is structured to meet your specific lenders "approval points" - Including your future cash-flow model spreadsheets - Showing the lender exactly why it makes more sense to allow your modification/reduction/elimination - And your case file proves you can afford the programs requested.
(Your approval package will include the exact same financial spreadsheets the lenders prepare and review every day. Click here to see your "NPV Spreadsheet" here.)
Your approval package with all the supporting documentaion including your spreadsheet analysis - Makes it much easier for the lender to gain US Treasury approval - Resulting in a Win-Win-Win situation.
Click "Get Started Now" for more details on how to order now...
