Every fourth Sunday, Regana Kooman-Henry discusses various aspects of the home buying process and home ownership experience.
Kevin Krall 0:00
You're listening to locally produced programming created in KU NV studios on public radio K, u and v 91.5. You're listening to special programming brought to you by Regatta. kumin. Henry of Coldwell Banker Premier Realty, the content of this program does not reflect the views or opinions of 91.5 Jazz and more, the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education.
Regana Kooman Henry 0:43
Welcome to the Southern Nevada real estate Show. I'm your host regatta and today I have a very special guest. It's been on our show a few times before a very, very valuable guests Keirsey am Bucky a loan officer with the loan depot mortgage company, welcome Keirsey
Kiersy 1:04
Thank you, we're gonna it's always a pleasure to be here and share knowledge with our listeners. So thank you again, I really appreciate the opportunity. Well,
Regana Kooman Henry 1:13
we we appreciate you being here. And you always share your wealth of knowledge with everything that is mortgages, and I'm sure the listeners out there are getting a lot of good, good information from you that they can call you after the show's done and ask you some more book an appointment with you. You are very knowledgeable and great at your field. And so Keirsey let's get started. Now, for example, are there any programs for borrowers that do not have a lot of money for the downpayment because, you know, people are like they want to buy they want to get out of renting or whatever the case may be, but they just feel that they never have enough to get the get the ball rolling with the becoming a homeowner.
Kiersy 2:05
Yeah, so there are programs for first time homebuyers. And first time homebuyers, of course are people that have not owned any property in the past three years. Because a lot of times people you know, they get confused Oh, I owned a property 10 years ago. So I'm not a first time homebuyer but the definition is the past three years. And then there's a couple of different options that provide some assistance for downpayment and closing costs. And then there's also programs that you can do that offer, you know, as little as 3% down, and then a lot of people don't know, but your downpayment can also come from a gift if you've got a family member that would like to gift you money from a downpayment, it's tax season, that's a great, great way to use your funds is those refunds that you're getting back, you could use that for downpayment and, you know, 401k, you can tap into your 401k. So there's lots of different options that we can look at that maybe buyers out there haven't really thought about. Yes,
Regana Kooman Henry 3:10
and that that's a very good explanation. And I'm sure there's listeners out there that are wanting further explanation on that so that they can use what they have, no matter how small towards a home and hopefully still make that work. And that's great to know that they don't have to be millionaires to buy a home. And Keirsey. Also, is there a way? For example, there's people out there that their credit is not the greatest and they're discouraged once again? And is there a way for a borrower to get approved for a loan? If let's say, for example, they have a middle score? Under 640? Because the people are aware that 640 A lot of times is the sweet spot for getting better terms and rates. But can you help someone that has under 640 care? See? Yeah, so
Kiersy 4:02
absolutely. And I run into this all the time, people say, Well, you know, my credits, not the greatest, and actually conventional loans will go down to as low as a 620 credit score. And then on your FHA and your VA loans, they'll actually go down as low as 580 in some circumstances. So, you know, don't get discouraged, you might actually even have a higher credit score than you think you have. So you just need to call in and let's go over it and make a plan with that. Yes,
Regana Kooman Henry 4:33
and Keirsey you know, there's people out there for example, that don't want to move twice, and they're feeling like okay, I have to get the money out of my home to get an A new home and I'm gonna have to you know, sell clothes on it, and then move somewhere temporarily to rent or stay with someone and then move again once we find a home. So Keirsey My question is for the listeners out there for borrowers Don't want to move twice and go through that hassle twice. And in case they already have a home, and they need to sell first in order to have a down payment for the new home. Is there a way that they can use some of the equity out of their existing home? To purchase the new home? So possibly they don't have to move twice? Yeah,
Kiersy 5:20
absolutely. You know, and this can be accomplished in a few different ways. So the first one I would say is you could do what's called a bridge loan. And this would allow you to borrow against your current home, to be able to purchase a new home, before you've completed the sale of the of your current home, it's really a short term loan that will be repaid as soon as you close on the sale of your departing residence. So if you wanted to do that, you know, that would be an option. And that would make the transition pretty seamless. And then secondly, you know, you can, of course close on a new home prior to the sale of your current home if you don't need to take the funds from the sale. And then this would allow you the time that you need to make to move and make the necessary arrangements on your own timeframe. And when you're when you're departing residence does close, then you could do what's called a recast on your on your loan that you just closed on. So what is a recast you probably ask a recast is when you want to apply a large amount of money towards the principal amount of your loan. Now, most lenders, they'll allow you to do this with a minimum of 10,000, summer as low as 15,000. So, but 10 to 15,000 is usually where they're at. You know, a lot of people when they sell their home, they have quite a bit of equity, and they want to use it. But they don't want to do all that hassle. And they want to put that money down. But you know, after you close the loan, you can't put money down. So the solution for this is to do a recast. So once the lender does the recast, then they'll re amortize your loan with the remaining principal and the remaining term of your loan. And doing this will allow you to lower your payment without refinancing your loan. You could also always do just a principal reduction without doing a recast, this doesn't lower your payment or anything like that. But it does shorten the time that you have the loan. And that's just going to totally be dependent on how much money you put towards the principal. But it doesn't adjust your current payment. So that's two options. A third option would be to take out a home equity line of credit on your current home. And then you can use that money to purchase either another primary home, second home vacation home or an investment property. And this is something that would be geared more towards if they wanted to keep their current home and then buy a new home either downsizing or upsizing. Just depending on what their needs are. And it would also allow you to keep the low rate that you have on your current home because during the pandemic, you know, we all know that rates went clear down into the two's which is unprecedented, and people don't want to lose that rate. So, you know, they don't want to refinance and take cash out and have their rate jump up, you know, three, four points. So this would be a good option to still tap into your cash that you have there without losing that great interest rate that you have.
Regana Kooman Henry 8:40
Well, that sounds like a good information for people that may be wondering and frustrated that they feel like they can't do this without moving drives if they own a home and need to sell it to get the money out. So that's a really good information. QRC for anyone that thought the worst about moving twice or having to move twice. Now Keirsey can a person for example, qualify for a mortgage? If they have had let's say a previous bankruptcy? And if so, how long do they have to wait after the bankruptcy has been discharged? Keirsey so
Kiersy 9:20
when you have a bankruptcy lenders, they want to make sure that you know after you filed bankruptcy after you're done with that scenario, that you're stable and able to manage your finances after it's complete. So really the only way to judge you know for the lender to judge that is to give you time to prove that after your bankruptcy gave you that clean slate that you can make your your obligation payments on time and the lender will also look to see if you have on time credit payment obligations after the bankruptcy. So if you have late payments after your bankruptcy, then you know lenders know really looked too favorably upon that, that doesn't completely disqualify you. But you want to keep that in mind that after your bankruptcy, you want to try everything that you can to make your payments on time. So with that being said, you know, there's different seasoning requirements for the different loan types and seasoning requirements is just a fancy term that we use in the mortgage world for, you know, how much time do I need after I filed the bankruptcy. So if you're, if you filed a Chapter Seven, or 11, a conventional loan will require four years from the discharge date. And if you had, if you're good doing an FHA or a VA loan, then that shortens that timeframe down to only two years. So that's a good option if if you're in that situation. And then for chapter 13, bankruptcy, a conventional loan is two years from the discharge date, or four years from the dismissal date. And on FHA and VA loans, you know, they require that you have at least one year payout period with satisfactory on time payments. So you can actually buy if you are in a Chapter 13 bankruptcy, while you're still in the bankruptcy as long as you've been making on time payments for 12 months. And then you know, the most important part of that one is you have to get court approval. So if you don't have court approval, then you know, then we can't, we can't waive that, you'll have to go to the court and make sure that they're okay with it. And they've given that that approval for you. Okay,
Regana Kooman Henry 11:43
that's good to know, cares, because I'm sure there's some people out there that really would love to purchase a home, and they feel like the bankruptcy is, like going to stop them. And that's good to know, all of the timeframes for the different types of bankruptcies is seven, the 11 and the chapter 13. And my number is 702-596-1267. That's 702-596-1267. If any of the listeners are listening, and then I will put you in touch with Keirsey and Keirsey. At the end of the show, we'll give her phone number out also for anyone that's interested in obtaining homeownership and getting a mortgage. So Keirsey, nother question for you. Are there any other financial events that require? Let's say, for example, waiting periods other than the bankruptcy? Let's say someone had a hardship of another type other than a bankruptcy? What would waiting periods before those other things? And what are those other things that require the waiting periods? So
Kiersy 12:48
this is a great question as well regarding the other financial events that would require waiting periods would be if you had a foreclosure or a short sale, or what we call a deed in lieu. So let's start our answer for these questions with first explaining what the difference is, between the three events. I'm sure a lot of people already know what a four foreclosure is, and a short sale. But deed in lieu, they probably haven't heard too much, it's not quite as common. So let's start with the foreclosure. And this is when you have failed to make three mortgage payments in a row, the lender will typically reach out to you to see if there's any other options that can be done to cure the past due amounts. You know, they might put you on a payment plan, they might do a, you know, there's a couple different options that they could offer you. But if no resolution can be reached, then they're going to file what is called a nod. And an OT D is just short for notice of default. So after they filed the Notice of Default, and that paperwork has been completed, then the home will be sold at an auction to the highest bidder. So if you can avoid having a foreclosure, I really advise you know, anyone that asked me these questions, I advise doing whatever you can to not go into foreclosure to avoid that, because it really tarnishes your credit for a substantial amount of time. So if you're wanting to buy a new home after a foreclosure on a conventional loan, you have to wait seven years. So that's quite a long timeframe to wait after that to purchase a new home. So and that's from the date that the title was transferred back into the bank's name. For FHA loans, you have to wait three years from the foreclosure date. And then on a VA loan, it's typically three years, but VA is a little bit more forgiving than the other programs and with extenuating circumstances that Um, can be shortened. So that was foreclosure. Our second one is short sale. And a short sale is typically done when you need to sell your home for any reason, like, you know, you don't want to want it to go into foreclosure or anything like that, but you owe more money on it than it's currently worth. So, you know, a short sale is really a good option. If you're facing foreclosure. If you catch it early, and you can do a short sale, then you can shorten your waiting period, of course. So on a short sale, the bank has to approve the sale, and the foreclosure proceedings are still in process. So really time is of the essence if if this is, you know, something that's happening to you, you need to reach out to a professional regarding myself, we're always available to answer any kind of questions regarding, you know, doing a short sale, or you know, how it's going to affect your, your credit or buying a new home. So, conventional loan four years, for an FHA loan, if you're in default, at the time of the short sale date, then you have to wait three years. And that just means if you've missed some payments, and you have a you know, and you're trying to do an FHA loan, you have to wait that amount of time. If you're current on your payments, however, and you have not had any late payments in the preceding 12 months, then there's no waiting period. So that's great, you know, from a foreclosure going seven years to a short sale, if you haven't any late payments, then you know, no waiting period, that's significantly reduced time. And then VA is just going to require it the same as FHA. And then lastly, a deed in lieu a deed in lieu is when you turn over your keys to the lender, because you can no longer make the payments. So it's kind of like a voluntary repossession, like they like say you would do with the car, you just get with the bank and say I need to do a deed in lieu, I'll give you the keys and sign over the home to you. So seasoning with a deed in lieu is going to mirror that of a short sale for both conventional and for the government loans. And the last thing to keep in mind is when you have a simultaneous bankruptcy and foreclosure. So what happens when you're filing BK, and you have a foreclosure at the same time, on a conventional loan, if you had a mortgage that was discharged to the bankruptcy, then you can just go off the bankruptcy discharge date, for a VA loan, it'll be three years from the bankruptcy discharge date. But on an FHA loan, they're a little bit more tricky. So if you have a bankruptcy, and even if the property was somehow included in there, but not reaffirmed, and the foreclosure date happens to come after the discharge of the bankruptcy date, then you have to go off of that foreclosure date. So that one's a little bit trickier. So you just want to kind of keep that keep that in mind.
Regana Kooman Henry 18:13
Okay, here's the well, that is a lot of explanation on the foreclosures, the short sells the deed in lieu and the simultaneous bankruptcy and foreclosure events. And that is really, really a lot of good information. Because you never know who's listening right now, there could be someone that has done a foreclosure in the past, and they feel like oh, they're doom and gloom, they can never buy again, they feel like oh, you they lost their house, how is someone gonna prove them again. And what you're saying is, time goes by and they're still able, they are able to do it again. So that's great. QRC Time heals all wounds. We're gonna that's that's that's right. And for the short sells, you know, people, you know, when back in Oh, wait, when we had quite a few short sells, that was like really, really something that, you know, every other house was a short sell. And, you know, there was good people that just got into trouble because they couldn't make the payments. But that was the way to go if they could avoid the foreclosure to do that short sell. And, you know, things happen to good people, but that shouldn't persuade the listeners out there to not pursue their dreams of homeownership. And, you know, that's why we're here this while you're listening, and Keirsey you know, can you and I know you can? Because we've had some people throughout the years that we've helped, right, absolutely. And they've had all kinds of situations, you know, and, you know, I'm gonna ask you, can you help the borrowers borrowers out there that are just so darn overwhelmed and don't know where to start? Because just thinking about it is so daunting. For them, it's just so frustrating. And, you know, Can you can you help them out? And with the process of getting approved, which I know you can feel a mortgage loan, and, you know, tell us about, you know, what you can do how you can help?
Kiersy 20:14
Hey, it all starts with a phone call, right? We're gonna, yes. You never know until you call and ask, right? I always say the answer is always no, unless you ask. So of course, you know, there's lots of people that they get really overwhelmed by the process, it's a huge life changing event for for anybody, you know, even myself, I've bought multiple homes. And even while I'm going through the process, I still get nervous, and I work in the industry, I know what's going on, you know, you know what's going on, but it's still, it's still nerve racking, it's, it's a giant purchase. And, you know, sometimes we get a little lost in our own heads. So, you know, it costs you nothing to do an application. Or even you know, even if you don't want to do an application, just have a consultation, and kind of go over what your wants and needs and concerns are, you know, I'm really happy to walk anybody through the process start to finish. And even if you've had some credit challenges, or, you know, you're just not sure how to come up with a down payment, then just give me a call, you know, a lot of people are just scared that there's just going to be judgment placed on them. And this is a completely judgment free zone, you know, we can put together a strategy to get you on a path to homeownership, whether it's your first home, you know, you've had issues with credit in the past, or, you know, whatever the situation is, you know, let's, let's just get you on a path to meet your goals for yourself, your families, stuff like that, you know, and, like you say, you know, I, we've worked with a couple of clients for more than a year. And, you know, to me, those are the most fulfilling they after we close on those, I I'm not gonna lie, I shed a tear or two, sometimes
Unknown Speaker 22:10
two, or these people I know, I know. So yep, it all starts with a phone call. Yes.
Regana Kooman Henry 22:16
And I know, me personally, I've had so many wonderful experiences, don't get me wrong, some of them are challenging. But the best thing is when I hand over keys to someone that thought that they could never own a home before, that is just the most awesome feeling. And I've had clients from eight to my youngest client was actually 18 years old, believe it or not, oh, and they had a job as a salesperson at a car dealership, way back in the early 90s. When I first started real estate, and their boss gave them a bonus. And they were, they were able to come up with a down payment from the bonus, and the seller actually helped with closing costs, and they are 18 going on, I think it was if he was 19 when he closed and as and but 18 When he started the process, and 19 when he closed and when I gave him the key was about to have his 19th birthday, my oldest client, I believe was like 92 years old. This is a true story. You know, I sold him a home out in Boulder City. This was also in the 90s, early 90s. And he was very much together, you know, more than a lot of people half his age. And he was able to purchase and go back to school and learn languages as what he said he learned to do. That's amazing. You know, I think a few years after that he did pass away but you know that I God bless him, it was like, his dream come true to move to Boulder City from Chicago, Illinois. So, you know, you're never too young, you're never too old. And, you know, this is what it's about life is very, very short. And if someone wants to explore the opportunity of owning a home or actually if you own a home, if you want to explore the opportunity of even selling your existing home and even moving up into a larger home a smaller home downsizing. That's what I'm here for. That's what Keirsey is here for. We're here for you, the customer, and what can I say we are dedicated to the cause. There is no such thing as a silly question or a bad question. We invite all your questions, no matter right your seat, no matter Absolutely. No matter how big or small it is, you know, this, you know what comes around, goes around. There's such thing as karma. And, you know, I know I sleep a lot better at night if I know I did all I could to help my clients and I'm sure you feel the same way. Keirsey I do. And you know, you know if if homeownership is something that you always thought of, or even if you've done it but For and you were discouraged by something or if you had some life circumstances that kept you from achieving your goal and if you're renting, you know, stop. You know, rents are not cheap anymore. You know, there is never a perfect time to start. We will let you know if there isn't a PERT if this isn't the right time. We're not going to force you into anything. So make that call, you know, and give us a call. We're here to help. And I am regatta kumin. Henry, your hosts with the Southern Nevada real estate show. I'm with Coldwell Banker Premier Realty. And we have this show every third Sunday of the month at 8:30am. And my number so that you can reach me with any questions or concerns is 702-596-1267 that 702-596-1267 And my license number is BS 27880. Everyone, thank you so much for listening to my show this morning. And I wish everyone that's listening out there a great Sunday and a great week.
Kiersy 26:18
All right, thanks for going to and I am QRC and Bucky with the loan depot. My number you can reach me at is 208-589-1181 again 208-589-1181 And my NMLS number is 1398336
Regana Kooman Henry 26:37
Thank you so much Keirsey for being on my show today. And again everyone have a wonderful Sunday and a wonderful week.
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