Ask a loan processor.

I found a house i would like to buy that is B of A owned. I have been pre approved through a mortage broker but need B of A pre-approval to buy this house. i have applied on line with B of A for pre-approval, Is there anything i can do to speed up the process with B of A?

 

If the appraiser is "another lender's" appraiser, then they're not independent.

 

I understand what you're saying and I know you think my comment is ridiculous but it still stands. If you can't accept any appraiser's appraisal, then they are not independent. For example, stock brokers are licensed to sell stocks. They are independent. I can go to any stock broker to make a stock transaction as long as they are licensed.

If appraisers were independent, I could go to any appraiser and get my appraisal and it would be accepted. The problem is that the burden of monitoring the appraisers has been put on the lender and not the government.

 

I refinanced my home two years ago with Quicken Loans and my loan was sold to BOA. I've refinanced other previous homes with other banks but nobody compared to Quicken Loans, they have their shit together, it was a no surprise smooth experience with them. I make my house payment online to BOA and I have no complaints about them. The BOA website is great for keeping track of my balance, escrow, taxes, etc.

 

I have a question about H-06 insurance. We're still trying to refinance and this is the latest "issue". Our condo was appraised at $225K. So my understanding is that my insurance has to be 20% of the appraised value or more. We currently have about $59K with an insurance policy with Allstate.

The lender is saying that the declarations page of my insurance must mention that coverage must replace 100% of the loss. My insurance agent has said that's incorrect. He states that the insurance will pay 100% up to the policy limit but that it only has to be 20% of the total loss (walls-in coverage) as the HOA insurance would cover the other 80%.

The loan broker has contacted several insurance companies but none of them have been able to meet what the lender is requiring.

 

It has to do with selling the loan to Fannie Mae:
http://www.google.com/url?q=https:/...EQFjAA&usg=AFQjCNGA_wT1QYGb87X4Saq4_HgFCwH7bg

 

I am in the process of refinancing a condo in Florida with BoA. Even though I have a tenant, BoA asked me for contents insurance. That seems silly to me, but I already had it when I looked at my declaration page. Of course the HoA covers the exterior of the building.

 

I have insurance as well but what the loan company seems to be tripping over is the fact that the declarations page doesn't say "100% coverage" or restore fully. My loan processor has been told by the loan company that AAA offers what they're looking for so he's calling them.

 

In most cases, the HOA insurance does not cover interior finishes, like cabinets...floor covering...lighting & plumbing fixtures...HVAC equipment...and even drywall and insulation.

Known as "from framing in" in the condo world.

so, BoA may be referring to this...not "contents" as in furniture and/or personal belongings.

 

This might be a question for a mortgage broker and not a loan processor, but I'll ask anyway. My brother and his wife are looking to buy a home but have credit history problems. A local builder who pushes USDA loans told them because they have a prior foreclosure they do not qualify.

My question is can they get an FHA loan? I've read that 3 years after a foreclosure you qualify for an FHA loan, but I can't find what the other qualifications may be. The foreclosure was 4-5 years ago, his wife had a car repo around the same time and they both had a couple of defaults back then. Since then, they have just not used any credit. They have one car loan but that is about it. Both have jobs and make about 30% above the median income for the area. They are looking at properties well within their budget, but are just very discouraged after the builder told them 'no'. Should they look into other options?

 

I'm not a mortgage broker, but I am a licensed Home builder and a licensed Realtor.

It does not look good for your brother and sister-in-law.

I would think a local bank who holds mortgages in house may give them a chance. Or, possibly a owner financed property.

Another possibility...if they are making above average income as you stated, maybe they could reduce their lifestyle to near zero...and save up enough money to pay cash for a modest home.

Good luck to them.

 

Just an update.

So far, no insurance company we've contacted is willing to put that language in the insurance policy. So we decided to sell the condo rather than refinance. The Fannie Mae policy makes it impossible as no insurance agency we contacted would give them what they're asking for in terms of coverage language. The only way it's ever going to be resolved with Fannie Mae is to have the Condo HOA carry 100% coverage including walls-in coverage or for them to change the policy. The issue is that no insurance agency will declare 100% coverage guarantee because there would be double coverage issues (if something goes wrong, who pays?). This is a new Fanne Mae policy that took effect April 1st.

My loan broker asked some of the real estate agencies what they're doing because some condos in my complex have sold (which would require the same guidelines). They said that most of the loan companies did the loans without the guidelines in the hopes that Fannie Mae will change the policy. My loan broker feels that they're going to be forced to keep the loan rather than selling it to Fannie Mae because they don't meet the terms of Fanne Mae's language.

My loan broker spoke with some of the higher ups at Fannie Mae and let them know of the catch-22 problem and they said they'd look into it so maybe something will change.

This problem only affects the sale or refinance of Condo units.

The upside is we had our offer on a house accepted and we put our condo on the market and accepted an offer for it after having it listed for only 7 days. We didn't even need an open house.