Happy Thanksgiving!

 

 

Happy Thanksgiving! So thankful for all of our clients! Hope you have a blessed holiday.

Work and Associates Home Loans 

(916) 847-3090

margeate@workhomeloans.com

DRE ID # 01769353

NMLS ID # 394275

What Are Some Mortgage Requirements?

Lenders set minimum mortgage requirements you’ll need to meet to get pre-approved for a home loan;

The higher your credit score, the lower your interest rate will be

A lower interest rate means a lower monthly payment, which makes homeownership more affordable.

The higher your down payment, the lower your monthly payment

A down payment of 20% will help you avoid mortgage insurance if you’re taking out a conventional loan. Mortgage insurance covers the lender’s foreclosure costs if you default on your loan.

The longer the term, the lower your monthly payment

First-time homebuyers typically choose 30-year terms to get the lowest monthly payment.

The less monthly debt you have, the more you can borrow

Clear out those car loans, student loans and credit card balances if you want the most mortgage borrowing power. Source

DRE ID # 01769353

NMLS ID # 394275

What Is Debt-To-Income Ratio (DTI) And How Does It Affect Your Mortgage?

If you're a first-time homebuyer, the mortgage process may, at times, seem overwhelming. Even if you earn a steady income and pay your bills on time, there are other considerations that could affect your chances of getting a mortgage. Debt-to-income ratio (DTI) is just one such metric that lenders will look at to assess your financial situation.

What is debt-to-income ratio (DTI)?

Your debt-to-income ratio (DTI) measures the amount of debt you have against your overall income. It’s just one way that lenders assess your financial health and creditworthiness. If a large chunk of your income goes toward paying down your debt, that means your DTI is high. In contrast, if a small percentage of your income is spent on your debt, your DTI is low. Lenders typically want to see that your DTI is low, as it tells them you'll be able to manage your monthly payments with minimal issues.

Lenders also look at the history and trajectory of your debt-to-income ratio. Say, for example, you increased your income from $100,000 to $250,000 in a year. A home lender may not automatically underwrite a much larger loan — they’ll want to understand the why behind the jump. Was it a big salary increase? A one-time sale of a house or stocks? Will that $250,000 income continue?

How to calculate debt-to-income ratio;

The easiest way to calculate your debt-to-income ratio is to add up all your monthly debt payments and divide that amount by your gross monthly income.

The formula for calculating your DTI is as follows:

• DTI = (Total of your monthly debt payments / your gross monthly income) x 100
• The result is expressed as a percentage.

Debt-to-income ratio example

If you pay $1,500 a month for your mortgage, another $200 a month for an auto loan and $300 a month for remaining debts, your monthly debt payments add up to $2,000. If your gross monthly income is $6,000, then your debt-to-income ratio is 33 percent ($2,000 is 33 percent of $6,000).

On the other hand, if your gross monthly income is $6,000, and you are paying $3,000 in monthly debt, your debt-to-income ratio is 50 percent. In this case, you would be considered "house poor", a term used to describe homeowners living beyond their means by spending most of their income on housing costs (including mortgage, taxes and insurance).

Why is debt-to-income ratio important?

In addition to your income, lenders will review related housing expenses such as condominium dues and homeowner association assessments, insurance premiums, mortgage insurance and other recurring obligations.

While a high credit score is considered good, a low debt-to-income ratio is a more important factor. This is because it helps lenders see the bigger picture where your finances are concerned, providing reassurance that you’ll be able to make your monthly payments. Put simply, the information helps lenders minimize the risks associated with approving your loan.

How to lower your debt-to-income ratio (DTI)

If you’re concerned about your debt-to-income ratio, there are a few ways to approach the situation. You can reduce your DTI by increasing your income or paying off loans and credit card accounts. If your lender will not calculate earnings from side jobs as income, you can use the extra money to pay down debt. You can also allocate funds from bonus pay or a cash windfall to reduce debt.

Lenders also look at student loan debt when calculating debt-to-income ratio. Whether it will count against you depends on the type of loan and whether the payments are current or have been deferred.

Debt management to-do list

• If you’ve decided that you’re going to buy a home and want to reduce your debt-to-income ratio, here’s a to-do list that might help.
• Make sure your credit is in order. Check your free annual credit report to make sure there aren’t any discrepancies and to keep track of your credit score.
• Figure out your debt-to-income ratio. Determine how much more debt you can handle without drastically tipping the scales.
• Understand how much you can afford as a down payment. Are those funds ready to use, or will you get help from your family?
• Have a cash cushion. Home lenders will look at how many months of cash reserves you have, so you should have enough saved to keep making mortgage payments for a few months if your income dips unexpectedly. 
• Double-check your comfort level. Ask yourself again: Are you truly comfortable borrowing an amount into the six figures and making that monthly mortgage payment?

Source

DRE ID # 01769353

NMLS ID # 394275

All About Appraisals

An Appraisal is an estimate of a property's fair market value. It's a document generally required (depending on the loan program) by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The Appraisal is performed by an "Appraiser" typically a state-licensed professional who is trained to render expert opinions concerning property values, its location, amenities, and physical conditions.

Why Get An Appraisal? Obtaining a loan is the most common reason for ordering an Appraisal, however there are other reasons to get one:

• Contesting high property taxes
• Establishing the replacement cost for insurance purposes
• Divorce settlement
• Estate settlement
• Negotiating tool in real estate transactions
• Determining a reasonable price when selling real estate
• Protecting your rights in an eminent domain case
• A government agency requirement
• A lawsuit

There are 3 common approaches, or Appraisal Methods, used by Appraisers to establish property value. After thorough exercise of all 3, a final value estimate is correlated. When evaluating single-family, owner-occupied properties, the Sales Comparison Approach is heavily weighted by an Appraiser.

• Cost Approach – A formula is used to obtain the property value: Land value (vacant) added to the cost to reconstruct the appraised building as new on the date of value, less accrued depreciation the building suffers in comparison with a new building.

• Sales Comparison Approach – The Appraiser identifies 3 to 4 comparable comps, recently sold properties in the neighborhood, ideally, sold in the previous 6 months and within ½ mile of the subject property. A comparison is done between the recently sold properties and the subject property including square footage, number of bedrooms and bathrooms, property age, lot size, view, and property condition.

• Income Approach – The potential net income of the property is capitalized to arrive at a property value. Capitalization is the process of converting a future income stream into a present value. This approach is suited to income-providing properties and is used in conjunction with other valuation methods.

Who Owns The Appraisal? The mortgage company owns the appraisal even though the borrower paid for it. This is because the mortgage company orders the appraisal on the borrower's behalf, and the Appraiser lists that mortgage company on the report. The borrower does have the right to receive a copy; however it's the mortgage company's discretion to give the borrower the original appraisal report.

Who Determines The Market Value Of Your Property ?

The property seller sets the price, especially for residential property, not the Appraiser. Sellers usually don't order an appraisal because they want to obtain the highest price for their home and therefore don't want to be bound by the Appraiser's assessment.

The real estate agent receives a percentage of the price as compensation and often represents the seller in the transaction and assists them in setting the sale price. They perform a Comparative Market Analysis (CMA), which real estate agents in most states are allowed to perform without an Appraiser's License or Certification. The CMA is vital to the agent’s preparation for a listing examining recent property sales in the neighborhood to arrive at a listing price. Typically the agent will suggest a price to the seller based on the CMA however the seller may choose to list their property for a higher price. Source

DRE ID # 01769353

NMLS ID # 394275

Locking vs. Floating Your Mortgage Rate

To mortgage folk across the country, it’s an age-old question: “Lock or float?” It’s a question loan officers and mortgage brokers get asked on a daily basis, often over and over again by panicked borrowers and first-time home buyers.

And it might just be the most important answer you come up with during the loan process, as it will determine the mortgage rate you ultimately receive.

How Locking vs. Floating a Mortgage Rate Works

• You get the option to lock or float your interest rate when you apply for a mortgage
• If you lock, the interest rate won’t change as long as you fund your loan before its expiration
• If you float, rates may go up or down until you finally lock it in
• Your loan officer or broker may be able to advise you on which move to make

When you submit a home loan application, you will be asked if you want to lock in your mortgage rate or float the rate. If you choose to lock the rate, you are guaranteeing yourself a certain interest rate on your mortgage.

So if the lender says you can lock in an interest rate of 6.25% on your 30-year fixed-rate mortgage today, and you’re happy with that, they can lock it in for you. This ensures your rate will not change, even if mortgage rates spike higher over the days and weeks after you lock.

At the same time, this means you won’t be able to take advantage of a lower mortgage rate, assuming they drop even more as your loan closing date approaches. Note that locks come with an expiration date, such as 15 days, 30 days, and so on. So you must fund before that date.

Conversely, if you choose to float your rate, you’re essentially telling the lender that you don’t like where rates are at, and want to hold out for better.

Lock or Float? Lock your Rate or Float your Rate...

• Floating a mortgage rate is inherently risky because no one knows what tomorrow holds
• It can be a dangerous game to play if you can’t afford a higher interest rate
• But you can potentially wind up with a lower mortgage rate if you do choose to wait
• One tip is the more time you have until closing, the greater your chances of securing a lower rate

When deciding between locking and floating, you need to assess your situation. Every borrower has a unique story, and every day is different, so there is no hard and fast rule here. Some borrowers may not be comfortable with “letting it ride.” While others may be market experts and have a good handle on the direction of mortgage rates. Generally, what’s bad for the economy is good for mortgage rates, which explains why they are so darn high at the moment.

If you prefer to sleep at night and “like” where mortgage rates are right now, locking might suit you better than floating. And if you think mortgage rates aren’t going to get any better, again, locking is probably the move. Additionally, if you can’t risk taking on a higher mortgage rate (think a DTI ratio on the brink), locking your rate would be very smart to avoid any future hang-ups or a denied loan application. Source

DRE ID # 01769353

NMLS ID # 394275

How Mortgages Work

Individuals and businesses use mortgages to buy real estate without paying the entire purchase price upfront. The borrower repays the loan plus interest over a specified number of years until they own the property free and clear. Most traditional mortgages are fully amortized. This means that the regular payment amount will stay the same, but different proportions of principal vs. interest will be paid over the life of the loan with each payment. Typical mortgage terms are for 15 or 30 years, but some mortgages can run for longer terms.

Mortgages are also known as liens against property or claims on property. If the borrower stops paying the mortgage, the lender can foreclose on the property.

For example, a residential homebuyer pledges their house to their lender, which then has a claim on the property. This ensures the lender’s interest in the property should the buyer default on their financial obligation. In the case of foreclosure, the lender may evict the residents, sell the property, and use the money from the sale to pay off the mortgage debt.

The Mortgage Process

Would-be borrowers begin the process by applying to one or more mortgage lenders. The lender will ask for evidence that the borrower is capable of repaying the loan. This may include bank and investment statements, recent tax returns, and proof of current employment. The lender will generally run a credit check as well.

If the application is approved, the lender will offer the borrower a loan of up to a certain amount and at a particular interest rate. Homebuyers can apply for a mortgage after they have chosen a property to buy or even while they are still shopping for one, thanks to a process known as pre-approval. Being pre-approved for a mortgage can give buyers an edge in a tight housing market because sellers will know that they have the money to back up their offer.

Once a buyer and seller agree on the terms of their deal, they or their representatives will meet at what’s called a closing. This is when the borrower makes their down payment to the lender. The seller will transfer ownership of the property to the buyer and receive the agreed-upon sum of money, and the buyer will sign any remaining mortgage documents. The lender may charge fees for originating the loan (sometimes in the form of points) at the closing.

There are hundreds of options on where you can get a mortgage. You can get a mortgage through a credit union, bank, mortgage-specific lender, online-only lender, or mortgage broker. No matter which option you choose, compare rates across types to make sure that you’re getting the best deal. Source

Why Credit Cards Help & Hurt Your Chances of Getting a Mortgage

Credit cards are a double-edged sword. Depending on the scope of your credit, obtaining and using credit cards may actually improve your credit score. On the other hand, they have the potential detriment of your ability to qualify for a mortgage. Lenders will look for credit lines when you apply for a mortgage.

Here are the reasons why:

• A credit card payment eventually becomes an obligation or rather a liability.

• When a mortgage lender qualifies you for a loan, they take 45 percent of your gross monthly income less any current and present liabilities.

• These present liabilities include credit cards as well as any other payment obligations. The net result is your new total mortgage payment that you could qualify for.

• Credit cards help your credit score because if you used your credit card well it can be used to show a satisfactory payment history, which supports having a healthy high credit score. An example of a healthy and high credit score is a score over 700.

• If you look at it from a different perspective, paying credit card balances on time improves your credit score. At the same time, paying your credit card balance reduces your ability to borrow, if there are any balances which carry payments.

How to time it right:

The idea is you want to use credit cards to essentially finance a higher credit score.

How does it cost you? Paying interest on a credit obligation over time essentially finances your good credit score, which you will need when it comes time to apply for a mortgage.

The key is to pay off the credit cards down to 30 percent of the total allowable credit line. The best thing you can do is to pay them off in full.

When each credit card is paid off in full or paid down to the appropriate balance (remember 30 percent is a good goal), find out from each creditor when they specifically report to each of the three credit reporting bureaus — Transunion, Equifax and Experian.

The key here is to find out specifically from each creditor when they report to the bureaus. The goal is to have each creditor report the most recent balance to the bureau.

It is ideal to do this when the mortgage lender pulls your credit report. At this time it shows the highest possible credit score and you will get the best deal on rates and mortgage loan terms.

The bottom line is credit cards are great for building a credit score and maintaining solid history of obligation repayment. Lenders will also be looking for at least two to three credit lines when you go to apply for a mortgage, so be sure to have open credit cards. These other open credit cards can have no balances or balances of 30 percent of the total allowable credit line or under.

Source

DRE ID # 01769353

NMLS ID # 394275

How a HELOC Works

A “HELOC” or “home equity line of credit,” is a type of home loan that allows a borrower to open a line of credit using their home equity as collateral.

They can then draw upon it to pay for anything they wish, such as home improvements, or to pay off credit card debt or student loans. The money can even be used for a down payment on a subsequent home purchase. HELOCs are typically taken out as second mortgages that are subordinate to an existing loan.

This means you wind up with two monthly payments, but can access cash without disturbing the interest rate or loan term on the first mortgage. As such, you can continue to enjoy your low fixed-rate if you secured a very cheap 30-year fixed mortgage at some point in the past.

What Is a HELOC?

• A home loan with a twist because it’s actually a line of credit (as opposed to a set loan amount)
• Your property acts as collateral for the loan similar to a traditional mortgage
• Can draw upon it when needed like a credit card, which could be many times over the loan term
• Or never touch it (some homeowners simply open one as an emergency fund)

A HELOC, while also backed by real property, differs from a traditional home loan for several different reasons. The main difference is that a HELOC is simply a line of credit a homeowner can draw from, up to a pre-determined amount set by the mortgage lender, based on the value of your home. Conversely, with a typical mortgage, the amount borrowed is the total amount financed. In other words, a HELOC is a lot like a credit card because of its revolving balance nature. When you open a credit card, the bank sets a certain credit limit, say $10,000.

You don’t need to pay interest on the total amount, or even withdraw or spend any of the $10,000, but it is available if and when you need it. That’s also how a HELOC works. Your bank or lender will give you a line of credit for a certain amount, say $100,000, depending on the available equity in your home. And you can draw upon it as much or as little as you’d like, up to that $100,000 limit, if and when you want.

Most people use the HELOC funds to pay for things like paying for college tuition, home improvements, and higher-interest rate debt like credit cards (debt consolidation). Or to cover a down payment on another home purchase (instead of raiding their 401k or Roth IRA).

Accessing Your Funds with a HELOC

• You may be given an access card (like an ATM/credit card)
• An option to transfer funds online to your bank account
• A physical checkbook where you can write checks
• Or a bill pay option to make specific payments

Once your HELOC is open, you’ll have a variety of options to access the funds up to your pre-determined credit limit. Most banks and mortgage lenders will provide you with an access card that works kind of like an ATM debit/credit card. You can make purchases with it and/or withdraw cash at a branch location.

You may also be given the option to transfer funds to a linked bank account, or be given checks that can be written to anyone for any purpose, which are deducted from your credit line. There may be a bill pay option if you want to use the funds to pay bills, or an option to transfer funds over the phone/via mobile banking. In any case, it should be pretty easy and convenient (and usually free) to access your money.

Learn more on this topic here...

DRE ID # 01769353

NMLS ID # 394275

Getting A Mortgage While You Have Student Loans

On average, those who borrow money to pursue a higher education take out about $38,000 in student loans, depending on their situation. Given this, it’s not surprising that many people carry student loan debt well into their post-graduation life. But what if you still owe money on student loans when you decide to buy your first home? Thankfully, student loans and a mortgage can go together – even if student loans can make getting a mortgage a bit harder.

Can You Buy A Home If You Have Student Loans?

Home buyers with student loans can qualify for a mortgage. That’s because you don’t need to be 100% debt-free to buy a house. However, when a lender evaluates your application, they’ll look at your current debt. This includes your student loans.

How Do Student Loans Affect Mortgage Eligibility?

Before approving a mortgage, lenders must confirm you earn enough income to cover your monthly debt payments. The more debt you have, the more challenging it may be to prove you can afford your student loans and a mortgage.

A lender will determine early in the application process whether you can cover both expenses. They’ll do this by calculating your debt-to-income ratio (DTI), which measures your gross monthly income against your recurring monthly debt payments. Your total debt will include your new mortgage payment with taxes and homeowners insurance, any monthly minimum credit card payments, and any other ongoing loan payments – whether they be for student loans, auto loans, another mortgage or all of the above.

In most cases, lenders care less about the total dollar amount of your student loans than how your monthly debt payments compare to your gross monthly income. As long as you earn a reliable income and can meet DTI requirements when factoring in your current monthly debt payments and your new mortgage payment, you can likely buy a home with outstanding student loans.

How To Get A Mortgage With Student Loans: 5 Steps

Intent on buying a home even though you have student loans? You can take a few steps to improve your chances of qualifying for a mortgage.

1. Consider All Loan Types

While you may be tempted to take the first mortgage your lender offers, it’s a good idea to compare financing options.

Conventional Mortgages

Conventional conforming mortgages follow guidelines set by Fannie Mae and Freddie Mac, which standardize mortgage lending in the U.S. This type of mortgage requires a minimum credit score of 620 and a down payment worth 3% of the purchase price. You may have multiple repayment terms to choose from. You’ll likely not qualify for a conventional loan if your DTI is over 50%.

Government Loans

If you can’t qualify for a conventional loan, you may be able to buy a home with a government-backed loan. Because the federal government insures these loans, lenders are more willing to approve borrowers who wouldn’t qualify for a conventional loan because they have a lower credit score, smaller savings or higher DTI.

One government-backed loan you may consider applying for is an FHA loan, which you can qualify for with a down payment as low as 3.5% if your credit score is 580 or higher. The Federal Housing Administration insures this popular loan program and may accept a DTI of up to 57%.

If you’re an active-duty service member or veteran, or you’ve served in the National Guard or Reserves, you may qualify for a Department of Veterans Affairs (VA) loan. You may likewise qualify for a VA loan if you’re the surviving spouse of someone who’s served in the military. With a VA loan, you typically don’t need to put any money down and you can buy a home with a DTI of up to 60% in some cases.

2. Pay Down Your Debt

If your DTI is too high for a mortgage, the fastest way to lower it is by paying off debt. Doing this eliminates ongoing expenses and frees up more cash flow. Consider paying off another debt if you can’t afford to make extra payments on your student loans. For example, you’ll see an almost immediate drop in your DTI if you manage to pay off your credit card debt.

3. Increase Your Income

You can also lower your DTI by increasing your income. That might mean picking up ore hours at your job or securing a second job or side hustle. Keep in mind that the extra income will only count toward your DTI if you can prove it’s a steady source of cash. Most lenders will require at least 2 years’ worth of proof of income.

4. Apply With A Co-Borrower

Another way to drop your DTI and increase your income is by adding a co-borrower to your mortgage. When a lender assesses your finances, they’ll include your co-borrower’s income and debts. So, if someone else is on your mortgage application, make sure their DTI is better than yours and can boost your chances of approval. A co-borrower is not necessarily on the title, so be sure you know exactly what you’re signing up for.

5. Buy A Starter Home

In some cases, lenders can be flexible with eligibility requirements. If you purchase a smaller, more affordable starter home, you can make a larger down payment to keep your monthly mortgage payment within an acceptable range.

Source

DRE ID # 01769353

NMLS ID # 394275

How Much Income Do I Need To Buy A House?

Which Factors Determine Your Housing Budget?

There is not necessarily a minimum income you need to afford a house, and lenders will consider much more than just your paycheck when you buy a home. While your paycheck does impact home affordability, most lenders will allow you to qualify with a debt-to-income ratio of up to 50%. Your debt-to-income ratio (DTI) and your ability to make mortgage payments are considered along with other factors like your credit score and how much you have saved for a down payment.

A great place to start is to get a preapproval, especially if you aren’t sure whether you can get a mortgage on your current income. A preapproval is a letter from a mortgage lender that tells you how much money you can borrow. When you get a preapproval, lenders look at your income, credit report and assets. This allows the lender to give you an estimate of how much home you can afford. So, what do lenders look for when you want to borrow? For starters, they’ll take a look at your monthly income and your DTI.

Monthly Income

If you’re on payroll, you’ll likely just need to provide recent pay stubs and W-2s. If you’re self-employed, you’ll need to submit your tax returns as well as any other documents the lender requests.

Ideally, you’ll be able to show your lender that you have a stable work history with very few periods of unemployment. This shows your lender that you’re reliable and will be more likely to make your mortgage payments on time each month.

Lenders don’t just look at your salary when they calculate income. Different lenders may choose to include different income sources. Some other sources of income they might consider include:

• Commissions
• Overtime
• Military benefits and allowances
• Alimony payments
• Investment income
• Social Security income
• Child support payments

Your lender will examine the history of your received income and consider how likely it is to continue. For example, if your alimony agreement says you’ll only receive payments for 1 year, your lender probably won’t consider it.

Debt-To-Income Ratio

Lenders use debt-to-income ratio (DTI) when deciding how much they’ll be willing to lend you. Your DTI is your total monthly recurring debt payments divided by your total monthly income. Your lender expresses your DTI as a percentage.

For example, let’s say you have three bills you pay every month:

• $800: Rent
• $150: Credit card payment
• $200: Student loan payment

Let’s also say that your total monthly pretax income is $3,000. Your DTI is equal to your debts divided by income. In this case, it’s $1,150 / $3,000. That makes your ratio about .3833, or 38.33%. This gives you your current DTI so you can see where you stand before applying for a mortgage. Keep in mind that lenders won’t look at your current rent payment when calculating your DTI unless you plan on staying in your rental after you buy your new home. Instead, they’ll look at your recurring debt payments and your new mortgage payment to determine your actual debt-to-income ratio.

Your DTI tells lenders whether you can afford to take on another debt. Lenders generally like to see a DTI of 50% or less. If your DTI is higher than 50%, you may have trouble getting a loan. If your DTI is lower, you can borrow more money. If your ratio is too high, start looking for places where you can cut back on your monthly budget or increase your income.

How Other Financial Considerations Influence How Much Income You Need To Buy A House

Your monthly income and DTI are just two factors that lenders look at when you apply for a mortgage. Your credit score and the size of your down payment are also two really important factors.

How Credit Score Impacts How Much Income You Need

Your credit score is a numerical rating that ranges from 300 – 850 and tells lenders how responsible you are when you borrow money. If you have a high credit score, it’s probably because you pay back your bills on time and avoid debt as much as possible. If you have a low credit score, it may be because you miss payments or carry high balances on your credit cards each month.

A high score will give you access to lower interest rates and more lender choices. If you have a low score, you may have trouble getting a loan. Lenders look for a credit score of about 620 and up when you apply for a conventional loan. If your score is below 620, you may want to consider applying for government-backed mortgages like FHA loans and VA loans. If your credit score isn’t where you’d like it to be, you can take steps to raise your score over time.

How Down Payment Amount Affects How Much Income You Need

Your down payment is the amount of money you put down on your mortgage. Your down payment is due during closing and is usually the most expensive closing cost you need to plan for. Lenders express down payments as a percentage of the total loan. For example, if you buy a home worth $100,000, a 20% down payment is $20,000.

You might have heard you need 20% down to buy a home. This number is often quoted because 20% down is the minimum you’ll need to avoid buying private mortgage insurance (PMI) – but it’s not the minimum you need to get a loan.

A mortgage calculator can help you figure out how your down payment amount affects your monthly payment amount. You may qualify for a mortgage with just 3% down on a conventional loan. If you choose an FHA loan, you’ll need to put at least 3.5% down. You can buy a home with 0% down if you qualify for a VA loan or a USDA loan. Source

DRE ID # 01769353

NMLS ID # 394275