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Check out the latest news and mortgage advice from Pam Marron

“No thief, however skillful, can rob one of knowledge, and that is why knowledge is the best and safest treasure to acquire.”

― L. Frank Baum, The Lost Princess of Oz

By Pam Marron 14 Feb, 2023
Accessory Dwelling Units (ADUs) are small, separate living spaces that are built on the same property as a single-family home. They have gained popularity in recent years as a way to provide additional housing options in urban areas. In this article, we will examine how ADUs can benefit cities, including through increased revenues, multigenerational living, vacation and rental opportunities, and increased security. ADUs Increase Revenues For Cities One significant advantage of ADUs for cities is the potential for increased revenues. Because ADUs are separate living spaces, they can be rented out to generate additional income for the property owner. This can be especially appealing for homeowners who may be struggling to afford the mortgage on their primary residence. By allowing ADUs, cities can tap into this potential new source of income and potentially increase their own revenues through property and other taxes. ADUs Encourage Multigenerational Living ADUs can also provide a space for extended families to live together, encouraging multigenerational homes. This can be especially beneficial for families with aging parents or adult children who may not be able to afford a separate residence. By allowing ADUs, cities can support families in staying together and provide a more affordable housing option. ADUs Add Vacation And Rental Units In addition to providing additional living space for extended families, ADUs can also be used as vacation or rental units. This can be a great opportunity for homeowners to generate additional income by renting out their ADU to travelers. For cities, this can provide a new source of tourism revenue and can help to support local businesses. Increased Security Of ADUs Another potential benefit of ADUs is increased security. Because ADUs are often occupied by family or friends of the property owner, they can provide an additional layer of security for the neighborhood. This can be especially appealing for homeowners who are concerned about their safety or the safety of their property. Common Misconceptions About ADUs Despite the many potential benefits of ADUs, there are still some common misconceptions about them. Some people may believe that ADUs are inhabited by unwanted residents or run by slumlords, but this is not necessarily the case. In most instances, the owner of the property lives next to the ADU and takes care of its maintenance. Additionally, most ADUs are occupied by people who are known to the landlord. How Fannie Mae And Freddie Mac Support ADU’s Fannie Mae and Freddie Mac support ADU (Accessory Dwelling Unit) financing by offering unique mortgage products. Freddie Mac even offers their existing CHOICERenovation mortgage that allows an option to use a no cash-out refinance mortgage to pay off short term financing used to add on an ADU. This can help borrowers who are looking to refinance their cost of construction of an ADU paid upfront. What City Planners And Developers Can Do To Learn More About ADUs ADUs can provide many benefits to cities, including increased revenues, multigenerational living options, vacation and rental opportunities, and increased security. While there may be some misconceptions about ADUs, the reality is that they can be a valuable addition to communities and should be considered as a viable housing option. If you are a city planner or developer interested in learning about unique financing for ADU’s that can benefit your city, contact Pam and her team at 727-534-3445 or visit their website at https://www.closewithpamandtara.com/ for more information.
By Pam Marron 27 Jan, 2023
Mortgage Loan Originators, Realtors and HUD Housing Counselors Who Need to Find and Promote Down Payment Assistance (DPA) to Clients Need this Tool! Downpaymentresource.com is a free public-facing website that offers prospective home buyers the ability to find down payment assistance programs they may qualify for. But did you know that there is a back-end tool called Down Payment Connect that mortgage loan originators (MLO), Realtors and HUD housing counseling agencies (HCA) can use to find nearly all down payment assistance (DPA) programs in the United States? There is a monthly fee for this tool, but having this comprehensive, up-to-date information about each DPA program in the same place with filters now available to drill down precisely for client and property criteria has just made getting DPA easier for prospective buyers! MLOs often share a reluctance to dive into DPA products citing bad experiences they’ve had in the past. Others feel matching the 1st mortgage criteria with the DPA criteria is too cumbersome. But the growing need for down payment assistance has moved to the top of the list of what clients need to purchase a home. Let’s get right into how this invaluable tool can help! MLO Promoted as DPA Originator Mortgage loan originators (and Realtors) that sign up as a subscriber receive a landing page through Down Payment Connect that can be linked to your personal website. On this landing page, a subscriber MLO can select the DPA programs they can originate and only those programs show up to potential clients. Marketing resources including social media, live and recorded webinars, articles about DPA to post, videos and even reporting that shows how many visitors have visited your landing page are all provided. Highlights In DPA Directory The most important tool in Down Payment Connect (to me) is within the DPA Directory located on one of the eight buttons subscribers see once logged in. This button opens to your selected DPR (state) Program Directory (shown below) that houses hundreds of DPA programs and provides a consistent overview of each program page in the same order.
By By Pamela Marron, Mortgage Loan Originator, NMLS #246438 09 Dec, 2022
Focusing on Specific Client Needs, What Tools Can Be Used to Assist, and How to Bundle Targeted Services to Reduce Costs A Pilot program called Home Prep that connects mortgage loan originators (MLO) to HUD housing and credit counselors who can get clients past final hurdles to become “mortgage ready” has been finetuning details on the areas where prospective mortgagors need the most help. Presently, the area of most need is for short and long-term credit help, though down payment assistance is a very close second place. It has been found that MLO’s and HUD counselors often work with the same resources but utilize these resources differently. Discussion and awareness of WHY, WHAT, and WHEN to use specific resources has become a learning curve for both sides and has also provided surprises like bundled, targeted services that can save MLO’s and HUD counselors money as they get clients “mortgage ready”. Series articles will focus on known issues, available tools that mortgage professionals and HUD housing and credit counselors can use with clients, along with guidelines and visuals to implement. 1st Series Article: Getting a Client “Mortgage Ready” by Working on the Best Possible CREDIT Before Starting Anything Else Is the 1st Step. Everything BETTER for a mortgage starts with the BEST, MOST ACCURATE CREDIT possible. The BEST CREDIT leads to better interest rates, the lowest down payment required, access to best and most down payment programs that client may be eligible for, and automated underwriting approval when required. Credit Issue: Deleting Disputes Dealing with disputes is a common issue that can show up in Fannie Mae and Freddie Mac automated underwriting system (AUS) findings. Credit repair companies often dispute accounts to improve credit scores. Sometimes those same disputes must be removed from the credit report to receive a Fannie Mae and Freddie Mac automated underwriting system (AUS) approval. Why? Because disputes hide credit. When the dispute is removed, negative credit may return. 1. What Dispute notification in Fannie Mae Desktop Originator/Underwriter Findings looks like
By By Pamela Marron, Mortgage Loan Originator, NMLS #246438 23 Nov, 2022
Credit repair companies often dispute accounts to improve credit scores. Sometimes those same disputes must be removed from the credit report to receive a Fannie Mae and Freddie Mac automated underwriting system (AUS) approval. Why? Because disputes hide credit. When the dispute is removed, negative credit may return. Check with CreditXpert and use their What-If Simulator tool to see if the removal of a Dispute will affect credit scores . First, what Dispute notification in Fannie Mae Desktop Findings looks like.
By By Pamela Marron, Mortgage Loan Originator, NMLS #246438 16 Nov, 2022
When inaccurate credit exists on a credit report for mortgage delinquency, bankruptcy, foreclosure, short sale and extenuating circumstances, there are five entries that can be used in the Fannie Mae Desktop automated underwriting system (AUS). 
By By Pamela Marron, Mortgage Loan Originator, NMLS #246438 19 Oct, 2022
Loan Originators Should Consider Targeting Specific Mortgage Products That Are Still Being Sought By Prospective Homebuyers. The NEED is There. Mortgage headlines are now projecting two more years of a downturn in the housing market, but this is the time loan originators need to laser focus on a client NEED market and learn about recent mortgage products that are gaining traction. 
By By Pamela Marron, Mortgage Loan Originator, NMLS #246438 01 Sep, 2022
Home Prep is Being Developed to Help Both Types of Loan Originators. Loan originators deal with issues that prevent a client from proceeding with a mortgage in different ways. Some attempt to resolve the problems themselves, but the vast majority prefer to refer these clients to an outside resource. Some even refer to other loan originators who are known to handle client challenges. 
By By Pamela Marron, Mortgage Loan Originator, NMLS #246438 18 Aug, 2022
Below are 5 common issues that often prevent clients from getting a mortgage. 
By By Pamela Marron, Mortgage Loan Originator, NMLS #246438 06 Jul, 2022
For the last four months, efforts have been underway to form a pilot program that can assist mortgage clients who aren’t quite ready to purchase a home to get “mortgage ready”. The model is uniquely laid out to address six issues (other than an expensive housing market!) that mortgage loan originators (MLO) commonly run into that prevent their clients from purchasing a home. 
By By Pamela Marron, Mortgage Loan Originator, NMLS #246438 08 Jun, 2022
Do These Safeguards PRIOR to Giving a Mortgage Pre-Approval! A growing number of clients have past credit issues that visibly don’t show up… but can still cause a new mortgage denial. What can mortgage loan originators (MLO) do? Be PRO-ACTIVE UPFRONT. Run Loans Through the Fannie Mae Automated System (AUS) UPFRONT During the past housing crisis, it was learned that past short sale credit was being erroneously coded as a foreclosure on credit reports [1].
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