I see time and again advertisements on the internet for no down payment first time homebuyer loans. The down payment is typically in the form of a grant that does not need to be paid back. Many people push these loans enticing first time homebuyers to buy a home without any money out of their pocket. While these loans increase sales for the loan officer and real estate agent, are they really in the best interests of the first-time homebuyer? The simple answer is no. The type of loan a first-time homebuyer can obtain is much better if they can...
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WHY WOULD ANYONE WANT ONE?
Hard Money loans are usually obtained by borrowers who cannot qualify or the property does not qualify for conventional financing; many people doing fix and flips obtain these loans. The interest rate and costs for these loans is higher than what you can get conventionally. The reason is that there is more risk to the lender. We often see higher down payment requirements on these loans, e.g. 25% to 30% down, this is to protect the lender in the event of default; the loans may have pre-payment penalties, too. Given all of the bad features of these loans, why would...
March 25, 2020March 25, 2020
I HAVE STUDENT LOAN DEBT, CAN I QUALIFY FOR A HOME LOAN?
College education is more expensive than ever. Many students leave school with substantial student loan debt. They may feel that they cannot purchase a home. Let’s take a look at how lenders consider student loan debt when underwriting a mortgage application. If the monthly payment for the student loan appears on the credit report, it will be used in calculating the debt-to-income ratio. If the credit report does not reflect the correct monthly payment, the undewriter may use the monthly payment that is on the student loan documentation. If the credit report does not provide a monthly payment, or shows...
March 24, 2020March 24, 2020
WHAT MATTERS TODAY IS LOAN SALEABILITY
When our parents and grandparents went to the local bank years ago to get a loan, they would meet with a banker who may have known them and they would apply for a loan. The banker would consider many factors, including their personal relationship, to approve the loan; this is not the case today. Today, it is about the saleability of the loan. Loans are sold in the secondary market. When the loan is underwritten, it is reviewed with an eye towards meeting the investor’s specific requirements to sell the loan. For example: If the investor needs 3 pay stubs,...
March 23, 2020March 23, 2020
FEDS MOVE TO HELP ECONOMY
Take a look at this article published in the Arizona Republic. Our own, John Rapasky, president of Counsel Mortgage Group spoke with Catherine Reagor regarding the newly announced rate cuts. Contact us, we’d be happy to discuss how these changes may assist you. Full article here https://bit.ly/2WHsVh9 We offer a variety of products and services, ask us how we can assist you today: Counsel Mortgage Group®, LLC www.counselmortgage.com 480-502-1000 NMLS #178927 AZ MB #0909580 CA DBO #60DBO43873 Copyright © 2020 Counsel Mortgage Group®, LLC.
March 19, 2020March 19, 2020
HOW OLD IS TOO OLD?
Lenders cannot discriminate based on age. So, even if you are 100 years old, and can qualify for the payment, you can get a 30-year mortgage. This applies regardless of whether it is a forward mortgage or a reverse mortgage. A forward mortgage is the mortgage you are familiar with, I.e. you make monthly payments. However, if you are 100 years old, you may want to consider a reverse mortgage so you don’t have to make payments on the mortgage out-of-pocket, instead the equity in the home makes the payments. So, regardless of your age, you can buy that new...
March 17, 2020March 17, 2020
RESIDENTIAL FINANCING
If you are purchasing multi-unit investment properties, the type of loan will depend on the properties. If you are buying 1-4 unit properties, conventional residential financing applies. If you are looking at 5+ units, then commercial financing applies. Often times, residential financing will give you better terms than commercial financing. For example, you can get a 30-year fixed mortgage with residential financing. A commercial loan may offer a fixed period, but it may vary after the fixed period and could contain a pre-payment penalty. The costs are usually higher on a commercial loan, too. We had a client who wanted...
March 16, 2020March 16, 2020
FRIDAY THE 13TH, DON’T BE AFRAID
Here we are on Friday the 13th and you are thinking about buying a home. You have heard horror stories by others regarding the home buying process. You are starting to reconsider and feel that renting will be easier. Well, don’t be afraid, you can buy that home and the process can be smooth. What you need is professional guidance to help you through the process. Are you considering buying a condo? We can help guide you and advise of the particular issues involved in buying a condo. Looking for a fixer upper single family residence? We can let you...
March 13, 2020March 13, 2020
TAX AND INSURANCE IMPOUND, WHAT SHOULD YOU DO?
An impound account is an escrow account funded monthly by the borrower which includes a pro-rata amount of insurance and real estate taxes. When the insurance and tax bills become due, the lender pays them out of the escrow account. In many instances, you have the option of whether to Impound your insurance and taxes or pay them separately. So, what should you do? Lenders prefer they be included with your mortgage-payment and will often provide a better interest rate. The lender will collect these payments on a monthly basis (and invest the funds for their benefit) and pay the...
March 12, 2020March 12, 2020
CONTACT US, WE OFFER MORTGAGE COUNSELING
Years ago, in the depths of the mortgage crisis, I created a company to provide a solution to the problems created by the mortgage crisis. There were way too many loan officers putting people in loans they should not have qualified for, or simply not caring about their specific circumstances. Counsel Mortgage Group, LLC was formed to provide counsel to borrowers to help them choose the right loan product for their circumstances. This was 12 years ago. I am proud to say our concept has grown as we have hired people who have this same philosophy. In this world of high...
March 10, 2020March 10, 2020