For more on Rural Development Loans check out this detailed Video below.
Video starts @ 0:21
Can you hear me OK?
Are either Britney that I see works with Michelle.
She brags about all the time.
Yeah, I think I’m that one. I don’t know. I don’t know if the bragging is needed. Yeah. And we met in Vegas, too. We met at a bar.
It just since since Pete.
A tune in on another device, too, without an.
Well, I don’t want the. Mary can go, yeah. Not that I can see.
I do not I mean, I just I you know, I have I’m an escort right now, so. So, yeah. Like where?
I see you. Michael.
I just posted a link to the all the guidelines for the rural development loan on the Facebook and on the Zoom meeting.
Thanks for doing that.
This is actually really handy to have USDA, I think is the one that’s the one program that I just don’t understand as much. I mean, I obviously try to follow it as much as possible, but there’s a lot that I don’t understand about it.
Well, I bought my first house with nineteen ninety eight, so. And then I’ve been brokering it for a long time. So you let me know when I can start talking about it.
Hey, looks like a lot of people are starting to join. We’ll give them another minute or two and then we can get into it.
Well, all people are jumping in if there’s any skiers, legitimate skiers. A buddy of mine makes this hat. So if they want it, they have to Facebook friend me and ask me how to get the hat.
It’s awesome. You’re in. I remember when we chatted. You’re in Colorado, right?
That’s where I went to college. But I’m in Montana since nine.
That’s right. Right.
That’s why rule developments right up my alley. Because, you know, we’re in Montana. There’s nothing in Montana.
Yeah, I’ve only met one person from Montana. Up until you. So there’s a million of us.
But what a pretty big state. It’s like the size of Texas. A little bit smaller, but millions. Not that many for the size.
We’re just gonna give it just another minute and then we’ll we’ll get into it looks like we still have a bunch. People still join em. Hi, everybody.
So, Britney, are you like the moderator?
I said, I think so. I think I’m doing the moderation today. I’m doing the I’m all for Michelle today. She’s kind of under the weather, so.
Well, everybody wanted me to say something that I’m not saying.
Oh, of course. You know, I like all the comments.
So first I got like a list of things that I thought would be interesting, but I’d be happy to talk about anything that anybody’s interested in.
I’m here and I’m out. I’m listening. I just got pink eyes or something anyway, so. But, you know, just introduce everybody, Britney. And then I just introduced and then it’s casual. People usually ask question in the chat box. They take themselves off. Me too. Was pretty laid back. Call David. There’s not you know, there were rules like everybody just kind of learned the four questions that come from the group, the better off everyone is. And we kind of rock and roll like that.
Yeah. So that’s exact. I was just about to say we’ll just kind of like make it a casual thing. So why don’t you tell your.
Tell us about who you are and you know about your company and kind of lean into it from there.
Sure. So David Boye and I own Black Diamond Mortgage in Whitefish, Montana. If you look at a map of Montana or in the north northwest corner of the state, right next to Glacier National Park and Montana’s very rural. So in our Barkett, I’m not sure how it is every market, but in the United States Congress and our market defines rule as under twenty thousand people in a municipality. So in a lot of the communities of Montana, they’re called rule. And then there’s just a few cities that are bigger than that, that are not rules. So they’re not eligible for the program. But the majority of Montana is. And anyway, black out mortgage, we starting in 2009. And when the mortgage crisis happened, this is one of the cool products that you needed because it zero down and anybody went to the mortgage crisis. Remembers as a broker is really hard to originate. Mike, low down loans, right. After all, the subprime went away and everything. And then so real development V.A. Were the two best options for the broker to to help. First time homebuyer and even to this day, rule developments a great option and a lot of people don’t understand it. So we’ll go over a bunch of stuff that will help because it is a different loan and similar to the V.A. If you don’t know some of those little things you can get. You can have bad experiences because you weren’t preparing for some of the things that are unique to the rule of Ellen alone.
I’m just going to you just tell me if all this and you can’t hear me or something, but I’m going to start running through some things. If you’re talking rural development, there’s two kinds of rule. There’s probably more than two. But there’s two big categories, rule development. So there’s the direct and the guaranteed. And as a broker, you’re only going to do the guaranteed. And if anybody’s talking to you about the direct. Basically what it is, it’s a subsidized loan and they can only get it through the rural development office. And it’s a royal pain and they probably don’t want it. But if it’s the only loan that they can get, then it’s not something you can do as a broker. And honestly, I don’t want to. So, for example, in a four percent rate environment, you might be able to get a direct RD loan at one and a half percent or something like that. They would have to go through the Rural Development Office and the application process and everything. So when you’re looking up stuff on the Internet or people are talking to you about a rule development loan, if they are truly getting a direct that’s straight through the government and then otherwise the majority of the people are getting the guaranteed. And that’s all going to be talking about today. But you could waste a lot of time if you had a direct borrower working with you as a broker. You’re not going to be. I’ll do that loan.
The guaranteed is I set the guidelines on the Facebook page and I put him in this Zoome chat so everybody can see that. But if you click on that, it takes you to the rural development site and kind of like the V.A.. Most of the things that I’m going to tell you are something that you can look up there. And I recommend that if you’re going to try a rule the world alone, you spend a little of their time just looking at those guidelines and they’ll help you. The main benefits are zero down. That’s like the best thing about it. Barbara does not putting money down to buy a house to make it even cooler on the rule development loan. You can borrow above the purchase price to cover closing costs. If it appraises higher than the purchase price. So that’s unique to rule development. So, for example, if you have two percent of the four.
Yeah, selling me and yourself.
Ok. Is it my phone rang.
Is there a way to make my phone not able to do that?
I’m not sure.
Hopefully we’ll have it again. Almost every time. That’s what happens when you’re busy. It’s hit.
And then some clients know my cell phone number. Darn it.
So, anyway, barring above, the purchase price is pretty cool because let’s say the realtor doesn’t negotiate closing costs into the contract. A rule that all alone it can. It can be. You can borrow above 100 percent to cover closing costs and some of the things I’m going to tell you are not all lenders. So if you enter the rule development sphere, you’re going to find that some of the cool things I tell you, lenders have overlays. So if you do a lot of role development, you’ll want to start to have more than one rule development lender to work with because you’re going to come across like that thing I just told you. Borrowing over a half percent. That’s a real development thing. It’s not necessarily all lenders. And another cool thing, you can pick your own appraiser with role development. But not all lenders let you do that. So you if you need to be able to pick your own appraiser, you’ll need a lender that allows that. So be thinking about that as if you have a property that’s hard to finance and you kind of have an idea of some appraisers that are not as much of a pain to deal with. And maybe you want that specific appraiser. This is one of the few loan programs that we can broker that you actually can go pick the appraiser like you could before Dodd-Frank and all that stuff. So before ATCC, has anybody done that or on a rural development anyway, it’s allowed. It’s very conservative on the debt to income ratio. So the general gist of the rule development is if you’re getting the automated underwriting, your ratios are going to be somewhere in the 30 one, 40 two.
You might pull a good credit bar or with a little bit of reserves into a thirty four or forty four type approval. But like on FHA, where you get the higher ratios, you won’t get those on Aadi. So you need to be qualifying borrowers slightly more conservatively for the program. If you’re going to do Aadi, you need to figure out how to get Guss, which is the underwriting system. And so there’s it’s not you and it’s not l.P, it’s guts and it’s its own proprietary underwriting system. And you’ll need a lender sponsor to do it. And then you can actually run it from your broker office. If you get the right lender, who will sponsor you. And then you can get your automated underwriting findings, which is helpful, an upfront application process. And then the Guss approval is good. There’s a manual option. It just makes it a lot more conservative. So you can do what I like. This is going mention and this is when I do a real development loan, I generally try to manually underwrite it myself. Before I even trial, like if I’m going to Senate. Because if it does need to go to manual, you want to be able to still close it. And then if you are going to use the automated underwriting with slightly higher ratios or whatever, make sure you’re really good on those because it’s just the market servant of loan program.
And so a safer option would be like to make sure that the borrower could do a 12 month housing housing history and that you’re feeling pretty good about the ratio for the housing being under thirty one so that you don’t have a bad underwriting experience.
Right now, with rule development, a lot of the approvals need a little bit of reserves. And so, like, either one month or two months is common. So when you do that, you need to know that in rural development, the reserves have to be season two months. So if a borrower plumps, puts a bunch of cash in their bank statement or puts money, cash in their account. Those won’t count towards the reserves. Like other loans that we do FHA and stuff, they can just get the money in the bank and accounts for reserves if it’s sourced on rural development. It’s more conservative. The way they define reserves is the borrowers average balance consistently maintains that balance. And so if they’re struggling to have enough money for reserves, then that’s something you want to know, just to be aware of the fact that they do things more conservatively. One of the big deals with the rule development a lot of people don’t understand is there’s two kinds of qualifications. So there’s the annual income qualification.
And then there’s the qualifying income.
So the annual income sole purpose is to see if they make too much money annually. And they look at all members of the household. So even if they’re not on a loan application, they’re considered in the annual income. And so in my market, in flight and on that Web link that I send out, those annual incomes are defined there. And there’s a little calculator where you can go in.
Precisely calculate the maximum annual income of the household. But like in Fight County, Montana, where like ninety some thousand for a household of four people or less. And then if it’s more than four people, I think in good. Like one hundred and twenty thousand. And then they look at Lake like they might look at things that you can’t use to qualify the loan. They might look at like somebody who up small part time job and. Somebody that that maybe that wouldn’t work to qualify him. But on the annual income, they’re going to put all the income on the table and if they go over the max, then they don’t qualify for the loan.
And then you flip over to the qualifying income, they’re doing everything the other way. They’re averaging they’re making it more conservative. So what’s weird is your borrower might make a hundred thousand on annual income because they look at all income that they are able to get their hands on. And they’ll say, well, they can’t use Ardie because annual income is one hundred thousand. But then when you were on the qualifying side and they were using the income that they deemed to be reliable, they might come in at eighty something thousand because they’re not using like a part time job or something like that. So that’s a sign of our deal. They don’t want to help the people that make too much money. So the borrowers push it up against the top of the annual income limit. You’re going to want to really take a good look at that, because they’ll they’ll do it. They’ll they’ll deem the loan to be over the annual limit very easily. If there’s any way that they can do it, they even look in the bank account. It doesn’t matter now that nobody earns any interest on savings, but they actually calculate all the money that they have in savings.
And if they make like one percent on it, they add that to their annual income calculation.
So, like, if you were right up against it and they had a little bit interest income, that could push you over. So just be wary of the annual income cap and and look at the look at those guidelines and kind of know that that’s a completely separate calculation from the calculation where they qualify, whether this borrower can pay the loan back or not. And the underwriter does both calculations and then they make their decision about whether it’s eligible for each amendment. So I mentioned that you could pick your own appraiser, which is a feature I like in Montana, is a lot of the properties in Montana are older. If they’re but buying a house out in the country and it’s built 1930 or something like that. I don’t want to nit picky appraiser. So I have you know, we have lots of appraisers in our market and I have some appraisers that generally are kinder. And so we’ll we’ll send them the order directly. Appraisers like it better to because they’re not paying an AMC fee. So a lot of benefits there.
But you will have to check with your lender.
There’s some lenders that everybody likes in, ehm, that don’t do that. So some of them do. Some don’t. So you’ll want to vet that out if that’s important to you.
The rates are good.
They’re they’re tied to the Ginnie Mae. So they’re like the FHA. So like we’re doing already loans. You like to survive right now. So the interest rate is fantastic. The PMI is lower than on FHA. So FHA has a point eight five PMI. On rural development, it’s actually called the annual fee. It’s not called PMI, but it’s the same thing, basically, but it’s point three five. So your borrowers effectively getting something like a two point seven five interest rate in the current market. And the PMI or the annual fee is point three five. So their effective rate plus that is is like three point O or just under three point one.
So it’s it’s very attractive on the monthly payment side.
Most my zero down or low down buyers, if I’m able to get them into like any kind of a product, FHA already three percent down Fannie Mae or whatever. And if they’re eligible for the already. This is the best product and it’s the best for the are going to get him the lowest payment.
You do want to.
When I mentioned at the very beginning whether the community is rule or not.
That’s super important, especially if enter a market where there is a lot of urban populations.
So the Web site, you can geographically locate the property and get a determination off the Web site. So you just put in the address and it’ll tell you whether it’s eligible or not. I’ll give you a quick idea how it works in Montana. So in my county fired county, it’s really weird. We have one hundred thousand people in this county. The city of Kalispell, which is our largest urban center, has nineteen thousand nine hundred and fifty people per the last census. Which is actually like forty thousand people with the Kalispell address. But the city limits is 19 to anyway. Twenty thousand was cut off. So the entire town is considered rule. And you drive through it’s a downtown area. It’s got, you know, shopping centers and everything. And you can use a rural development loan anywhere in the town. Once the census deems it to be over, that population cut. So each time they take the census, it’s a big deal. And then that particular town can be in or out on the rural development loan. So in Montana, we have like three or four major towns or as Missoula, Bozeman, Billings and Great Falls, the city limits of those towns. You cannot use a rule development inside of them, but you can right outside of the city limits. So it’s important for you to check geographically where your property is located because your first time homebuyer might actually be looking right outside the city limits for affordability. And that might make it more.
They might be eligible if they go right outside the city limits for a Rulfo recommend that you test the property when you’re getting ready to put a building in the garage where it’s located.
Somebody has got their mike on picking up some sound out there.
Drive an hour drive and it’s not me.
I, I put the hood handbook.
I put the handbook on there and the link, so everything that we’ve talked about is accessible on that handbook. And I would just recommend that you go there and then there’s a link within that rule development Web site, too, like the handbook. It looks more like your FHA and your your V.A. guidebook. I didn’t get answers to a lot of your questions about how to know how to get those underwriting questions on already loan. So one thing that comes up the Tandi is when I was telling you that the annual income has a cap on it and the let’s say your borrowers push it right up against the ninety thousand dollar cap and they actually make ninety one thousand.
And so they’re just over whatever the number is, they can take childcare costs and they can be allowed to have more annual income. And so there’s like some little nuances like that where you can have more income and still be able to use the rule development loan. Some other little tricks are you can if your brother lives in the house and he has a job and he’s not on a loan, but he makes it five people instead of four people and maybe he doesn’t make very much money, then I’ll put you into the higher income bracket by having five people in the house instead. So you could declare on the loan application a fifth person is going to live in the house, if that’s a thing.
And it might help you get under underneath the annual income by having five plus people instead of four or less.
I always wore my rule development buyers. That if they’re gonna flip it to a rental in the future. The rule development alone prohibits renting for income. So it’s not like I mean, a lot of people kind of end up in that situation for some reason. You can do a couple of things. You can reach out to the Rural Development Office and get permission to rent because your circumstances don’t allow a sale.
And then you can maintain your rule development loan. But it’s all different than an FHA loan where an FHA loan can primary occupy for two years. And then you can say, I won’t make this rental and you don’t have to refinance alone. The rules about the loan, if you were to make it a rental file, that kind of a critical threshold is if you file Schedule E on your taxes, they might notice that you’re renting it for income. They might get reached out to by the rule developed office and be told that they have to get a new loan or stop renting and move back in.
So I’ve had a few borrowers that have come into my office that had ruled developed the loans from years ago, that got the notification from the real development office that they noticed that they had been renting it.
So they had to do something about it, either get a new loan or work it out.
So if a buyer absolutely wants to make a rental in the future, you might be putting in a loan that has to be right. Refinanced in the future. So you might not pick the rule development if they’re just buying it. And so primary, they have no idea. They should just use the rule developments, great product. And if they need to refine a future, it’s another loan. And hopefully it’s got equity then. But something to know that it’s not they don’t want them to be accumulating lots of properties using this loan. They also, if they own other real estate, might get declined for that reason. So they own another house. There are it’s very hard for them to get a rule value alone if they don’t sell that house first. They don’t want them owning multiple properties with Ruleville alone. Just another couple, a little dumb things, but I’ve run into this before where they’ll make the appraiser declare that the law is not subdivides, Bill. So they’re getting like a three to four acre parcel. And it’s easy to subdivide it. If the appraiser says that subdivide lable, then you can’t get the loan on it.
That’s kind of stupid because most counties have a subdivision process that you have to go through anyway. But the the rule of all that wants it to be an individual parcel, that’s not going to get broken up in the future. So I’ve been able to navigate that with appraisers in the past. But if you know that that could be a thing you might want to get in front of that. The rule of law looks a lot like the V.A. in one area, and that is that I’ve had a lot of loans where I’ve run into a problem. And the way that I solved it was I reached out to the rural development office and explained the problem to them and had them send me an email saying that I could do what I was trying to do.
And then I gave that to my lender and then they were able to do it on something that they might have think thought that they couldn’t do so. Like the V.A., where you can reach out to the regional office and get a little bit of cover for your lender. If you’re stuck on a weird guideline and you’re feeling like your underwriter is being difficult and maybe the real development doesn’t care, you can get them to write you an email and then you can forward that on your lender. And sometimes that’s helped you navigate an underwriting issue.
I do that on both V.A. and on Aadi from time to time.
Finally, there’s a streamlined option. So just like FHA streamline and V.A. streamline, you can get somebody with an existing Ardie loan and just drop the rate. And it’s pretty cool alone. Generally speaking, you got to drop the rate one percent to make it eligible. So, again, as with everything, R.D., it’s a little bit more conservative. You can’t roll quite as much stuff into the loan as you can on my B.A. and FHA.
But if you use the model that I like to use on streamlines, that kind of gives you all that a cover.
If you present a streamlined to borrower and say, hey, how about we get you set up with this lower rate, lower payment and you’ll skip a payment, but you’re going to make a payment at the closing table, that usually gives you that little bit of money that you need to close it. That maybe isn’t financeable is about a mortgage payment.
There’s your nutshell. You’ve got to question anybody.
Same question still there. When I worked for my last company or one of my last companies, I did a couple of USDA and someone was telling me that with USDA that there was a lot of restrictions on horse properties. Do you know if that is USDA guideline or is that like a lender guideline with it being a horse property?
I’ll go a little off the cuff here, but there are like they have a lot of restrictions on, you know, whether it’s commercial or whether it’s just single family, home, residential. So that’s probably a discretion item for an appraiser. So I think those are the kind of things where you really want to be able to pick your own appraiser. That makes sense. You know, there’s a manual. This is someone who’s going to bring up. So I’ll use this to bring it up. So on FHA, the appraiser is going to go through and they’re going to deem it to be acceptable per the HUD handbook. And they’re going to actually go through very specific items.
I think it’s like 40 items.
I’ve seen the checklist before, but on FHA, they’re going through a checklist and they’re they’re checking them all up already is, by the way.
Tell Jeff on the Web site you can pick the property right on the Web site for the real development. But on Ardie, the appraiser is just making a one sentence comment and the appraisal that the home appears to meet HUD handbook. Forty five oh one or wherever it is. So they’re not doing a checklist. And that helps a lot, because if your appraiser in their heart believes that this property ought to go single family, but there’s like little things that if they don’t have to check the box like they do on FHA.
So the appraiser has more latitude not to make a declaration, yes or no on all these different items on our deed. So if you have an appraiser that’s pretty cool to work with and they generally don’t over condition properties already is going to be a better experience than FHA because they don’t have to actually declare that they made a decision about every little thing. They just have to say that they literally just say this based on my experiences.
Appraisal of this property meets HUD handbook twenty five one. And then if they see something, they’ll write it up. But it’s a little softer than what you have to do on FHA and V.A.. So to answer your question, maybe maybe you can have like a horse arena on your property or something like that. And probably it’s going to come down to the appraiser, you know, because like in Montana, I mean, I’ve done horse properties lots of times, but I’ve also gotten into wars about dumb things because the appraiser made a big deal out of it, you know? So when they allowed us to pick the our own appraiser, which apparently was always allowed, but when the HPC came out, I had a hard time with lenders that wouldn’t do that. But now a lot of lenders are using that as a niche. And so you’re talking rural property. Having an appraiser discretion is pretty big.
So you mentioned that to have gas, you have to have a lender as a sponsor. So where do you choose to send your USDA deals? What’s your favorite lender for that?
So I have a I do quite a few. So, I mean, like I’ll name off some some.
There’s a guy named Jeff says you can hear the audio. Can you hear me OK?
I can hear. OK. OK. All right.
So feel like you can do.
Obviously you can do it at UW and at Calibur Flagstar probably. I haven’t I haven’t done one at home point.
But, you know, that’s this is it. Most the major lenders are doing already.
So then you get into all these nuance issues. So when I need to deal with nuance issues, I’m not going to I’m not always going to like UW because they don’t let me pick my own appraiser yet.
Maybe they’ve switched. But recently I haven’t been able to. So, like, there’s like maybe they do. Maybe they don’t. If they do, then that’s great. So one thing I do. I recommend all brokers pick a couple aim friendly lenders, but I recommend a partner with a regional bank that’ll go with a wholesale mortgage broker. If you’ve never tried that. So there’s a few regional banks that have reached out to me. There there’s one called my market called Windsor. And you guys never heard of them. But there are Sioux Falls, South Dakota. And what’s cool about it is they’re a bank and they they make loans and they service loans. So they’re softer on some of these things that the secondary market lenders that sell their loans get hung up on. So when you’re doing Aadi, if you have kind of more of a blended option where you’ve got like a regional bank, I also do a lot of business, a Flagstar there when I’m doing government loans there. And one of the reasons is, again, they they they’re an actual bank and so on. Some of these little nuance issues, they’ve got a little bit more ability to be more flexible.
So when I’m dealing with anything where I need flexibility, I’m kind of pivoting towards either a regional banker or Flagstar because I know I can handle those problems that make sense. I understand, but like the ones I used might not work in Georgia, you know, like so I would say look around to see who the regional banks all over the United States that do wholesale lending and they just don’t make a big deal out of it because they just they just kind of like do it in addition to what they’re doing. And then, you know, like this whole Kobe thing when it nuked all the govt loans. That was a I did I was able to offer the really good rates went on. A lot of my standard lenders were like, oh, our rates are high. And then I had these regional banks. So like, no, Perlow, Precious’s. The difference is they are servicing the loan. So when you’re dealing with nuance property issues, I recommend having a blended option. Some of the big names that we all know and trust and maybe try to get a relationship with our regional banks.
So Jeff had just said any way to search a large general area for target market reasons?
Well, the easier thing to do would be, I mean, go on to the role of all that Web site and. Kind of just verify what the regional population cap is. So I don’t want to speak for other states other than Montana in Montana. Twenty thousand currently, I think, is the municipal. And you’re using census data so that the municipal population in Montana exceeds twenty thousand.
Then then that municipality, wherever that geographic border is, is no longer eligible. And then everything else is eligible. So you could just map it out. And basically what you look at, your urban centers are not going to be eligible. And then you’re. And then I think you could just reach out to your role development office if you’re not able to figure it out that way and they can tell you a little bit like I found that their government people, so they’re not you know, they’re not like salesmen. Fun to talk to. But I call the government. I call the roll development office a couple of times a year to talk about something that I’m working on. And, you know, they’ll help me. I’ll like their job is those people’s job is to help these people get loans. And so they they can. But the Web say you should be able to do a map and you’re basically just need to find out in your market that you’re going to work on what is the cap on the population? Exclude that and then everything else should be eligible. And you could just test a few properties and then you can make a map and go after it. But it’s like in Montana, the majority, the state, other than the four major urban centers are rural and you’re seeing the low enough, the affordability tends to be outside of those metropolitan areas anyway.
So you’re borrowers that need to get a good deal on a property probably are going to buy outside the city limits.
Jeff, Jeff appreciates the information, he said. Thank you.
You bet. Record this, sir. Yeah, it’s recording. Go. So we’ll finish it later on, OK?
Does anybody have any questions about it?
I was just going to say personally, I’m happy to help any broker that gets my name and going to work on our deal and trying to figure it out. Like, definitely you can reach out to me personally, even if it’s not some I’m working on I. I like the product. I bought my first house with it nineteen ninety eight and I didn’t know anything about lending. I was buying a house and my mortgage broker was like, hey, you know, you just buy a house. No money down. And this is not a sub prime loan, you know. And so I, I bought my house with it and I’ve met with borrowers this week that are gonna use it. And, you know, you have a lot of outfits out there that are doing downpayment assistance and all those things that are harder for us to get our hands on.
But the real developments that zero down and it’s pretty awesome loans. It is different, though. Yeah, they are. They’re they’re a lot different.
I used to do a lot when I lived in Utah and now I don’t really do that many. And so it kind of I just haven’t done them in so long that the restrictions I never go with a lot of the things changing. And I said I tend to forget, like even deposits of a hundred dollars going in to a bank account can affect your deal because they look at things like that. You know, if he gets a hundred dollars from a certain part of their cell phone payment, that look that’s being looked at as income in, a lot of people don’t think about things like that. You know, as a processor, I don’t think about things like that until it’s too late. I’m like, oh, dang it, you know? Yeah. It’s such a minimal thing. You don’t think about stuff like that where they see a reoccurring weekly. Twenty five bucks from Venmo. They want to know what’s going into the bank account. And a lot of brokers don’t look at things like that.
Yeah. So that this is the big two principals with already just to protect yourself or just be more conservative, especially if you’re not doing it all the time and then and then do your annual income.
Right. Dich, don’t even wait like I had it on V.A. or you get beat up on the residual income because you forget about it and then you’re like, oh shoot, there’s that, you know. And then same thing with Aadi like the annual income is what you’re talking about. And so it’s a weird loan because you, you can’t make too much and you gotta make enough. And there’s a sweet spot, but again it’s it’s a zero down product.
I mean, I say this will go like if your borrower’s doing like super good, like they’re they’ve got reasonable ratios, they’re not overspending and they’re buying a reasonable house. This is like a cool product. But if they’re trying to push the envelope, they tend to get bumped out of the already product. And I just had a loan yesterday that I’d rescuing out of an already. Situation. And I’m going right to FHA because it’s easier. So so already is a little harder, but it’s a better payment and it zero down. So your bar is gonna love it if you get an already low.
Yeah, I definitely think it’s a it’s a good program for a lot of different people, so so I’m I’m a fan of it. It’s just getting your hands around it.
You know, I like to refer to it. Just manually underwrite the file yourself, though.
So you’re like not it’s not like anything you’re doing, like the UW conquest or anything like that. Like you’re you’re gonna manually underwrite the thing. You’re going to go even if they don’t need it. Like, I just go two taxes, W2 bank statements, everything I get my hands on. And then I try to. What if the borrower manually underwrote this loan? Would it qualify? You know, and then it just makes for a better experience because there’s a lot of little things the lender is gonna do on that loan. You’ll have a better experience if you just do it manually. Before you ever send it in. And then you can always use the automated to push push the details after that.
Well, I definitely appreciate the knowledge about it because I have a hard time with USDA for whatever reason. I just can’t wrap my head around them.
I will just punch out when you try one next. Just don’t be afraid to try it.
Oh well, we have one in the pipeline now. I just, I just kind of let them take that, take that bearings on it and then move it around and do what I have to do. So if nobody else has any questions, I think that that’s good. And they definitely if you want to just shoot out how people can reach you, that would be awesome.
Yeah, we’re we’re big on Google and our market. So we’re Black Diamond Mortgage, Montana. And I’m David Boy. And if you’re in brokers or better, you can find me there. You can email me. Just by going on our Web site or David at Black Diamond Mortgage dot com. And yeah, we’d love to help any broker get a deal closed for sure. So if you need something, let us know or if you just try and get point in the right direction and don’t be afraid of it. But you do have to learn it.
Awesome. Well, thank you very much for your time today. And you know what? Hopefully everyone reaches out to you when it seems like you have the most knowledge yourself. We appreciate it.
Thank you. No, I do not ski. I don’t go out to Montana and ski.
But I don’t know if you want to give me a little spiel. Whoever is looking for information about how to get his hat. How do they reach out to you?
They just have to reach out to me and tell me that they really want one.
All right. Thank you, everybody. You have a wonderful day.