Linda Le - Hawaii Loan Officer

Hi Everyone!

I send out this e-newsletter every Friday. If you would like to recieve this e-newsletter, please contact me at my direct office line 808-947-8117 or email me at lle@pacificaccessmortgage.com.

If you can't see what it says... here is what the tip of the week was last Friday:

FHA guidelines are changing! The major guideline changes are the down payment and individuals who have more than one property. The borrowers will have to qualify for both the new property mortgage AND the old one. Rental income may not be used to offset the old mortgage. However, there are some exceptions.

•· Relocations: If the buyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance. The lease agreement with one year lease AFTER the loan is closed will be required. Evidence of the security deposit and/or evidence of the first month's rent was paid to the homeowner must be given as proof of valid lease agreement.

•· Sufficient Equity in the Vacated Property: 75% equity must be proved with an appraisal report no more than six months old.

Not every lender can provide FHA programs. So, be sure to check...

When your customers' signing appointments are made, your escrow officer will advise them to bring appropriate photographic ID.

For any document that affects real property and is to be recorded at the Bureau of Conveyances, the State of Hawaii requires that the person signing the document be "personally known" to the person notarizing the document, or that the person signing the document produce a "current idntification card or document issued by the United States, the State of Hawaii, or any other state, or a national government that contains the bearer's photograph and signature" Hawaii Rev. Stat. 502-48

Your escrow officer will not accept ID that does not contain a photograph, is issued by a County agency or private entity, or does not contain a photograph of the person signing the document. The following are common examples of ID that may be used:

• State of Hawaii Driver's License
• Out of State Driver's License
• State Identification
• Military Identification
• Passport

If you do not have any of the above, advise your loan officer (hopefully me) of it immediately so they may find solutions.

Escrow tip of this week is a reminder that the Home Exemption forms are coming due on September 30^th. This form must be turned in by the 30^th in order for your clients to qualify for the appropriate exemption on their property. This is a good opportunity to take the time to reconnect with past clients and remind them to turn in the form if they haven't done so already.

Again, the age breakdown for exemptions is as follows:

Under 65: $80,000

65 -74: $120,000

75-79: $140,000

80-84: $160,000

85-89: $180,000

90 & over: $200,000

This is for Hawaii. Please check with your escrow officer to see what the breakdown is for your state. Thanks!

Credit scores now play a larger part in determining mortgage financing. Borrowers with lower credit scores may pay higher points (depending on down payment and credit score). Therefore, it is important to know that a rate quote may change after credit is run. To pre-qualify your clients and have their credit checked, call your loan officer and if you are in Hawaii, give me a call.

For more on credit scores and where they come from see the blog on FICO scores below.

Mahalo,

Linda

By making bi-weekly payments, borrowers make 26 half payments which works out to be 13 full payments. That's one extra payment a year.

If you have foreign borrowers who will be signing overseas, ensure enough time is allocated for closing. And that the buyer has enough time to make an appointment with the consulate for notary.

Hope everyone is enjoying the long weekend! Hawaii is beautiful!!