Hey there, it’s Bruce Woodburn with CrossCountry Mortgage and WDBO Radio, and here are the “Three Big Things You Need to Know”

1. First big thing you need to know is that I have taken on a new radio show. I’m not leaving WBDO, but I’m adding on News Radio WFLA AM540. It’s also got a couple of other syndicated channels that I’ll be on, including iHeart Radio. I’d love for you to tune in to my brand-new show on Saturdays at 2:00pm. I’m going to be interviewing local builders and local real estate agents that have something to bring to the table. I’m really excited about my new show and it’s called, “Loan Arranger Radio.” So that’s the number one thing, again, I’m very excited about this new venture.
2. The number two thing is about Fannie Mae guidelines. Now, I don’t care if you’re a real estate agent a builder, or if you are somebody that’s looking to purchase or refinance a house; this is super important to all of you. If you are furloughed, meaning you’ve been out of work due to COVID this is going to affect your income calculation. Now, let’s just say you were furloughed for four or five months and you now are called back to work, but your work hours are fluctuating. Before furlough you worked 40 hours and now you are working 34, or 37 or even 39. If you are trying to purchase or refinance a home, you are going to have to have your income averaged over the entire year! This is ridiculous and I’m not big on this guideline, but it’s Fannie Mae, Freddie Mac and HUDs guideline. Now, if your hours are consistent, then you’re okay to use current hours. So, if you are considering buying a home, you’re going to want to make sure that you don’t fluctuate in hours at all, or it’s going to be a problem for you.
3. Alright, now number three big thing you need to know. I ran into a recent situation where I had a client that was buying a home that they were already living in. They had done a lease with an option to purchase or lease purchase contract, and they were paying the seller a certain amount of money for rent, and then a certain amount of money toward the purchase of the house. Be aware that regardless of the arrangement that you make with the seller and how much money you give them, only the amount that is over and above the average rent (typical for the area that you’re purchasing in) can go toward the down payment or closing costs to be paid by the seller or, considering the money that you would have in escrow. So, let’s just say that you are living in a home that’s $300,000, and you plan on buying it, and the typical rent in that area is $2,000 a month. Well, if you’re paying $2,000 a month, and the seller is putting $500 a month away out of that $2,000 towards your purchase, you can’t use any of it if the average rent is $2,000. Now if you’re paying $3,000 and the average rent is $2,000, then the $1,000 a month that you’re paying toward the down payment, can be contributed toward either your down payment or your closing costs paid by the seller money already in escrow. Just keep that in mind because it can be a little tricky.

You know if you ever have any questions, feel free to give me a call, you can always reach me at the office at 407-869-8830 or visit me on my website at WeBringYouHome.com. Those are the three big things you need to know, and I can’t wait to hear from you soon. Thanks again for all your loyalty and The Loan Arranger is always here to help you and guide you through your process, so we can make sure we get you to a closing table smoothly and on time. Have a great day.