Many lenders will try to sell you no money down payment loans, or down payment assistance loans, but it is likely that these loans will have higher interest rates and more costs. If you can come up with a down payment, in some instances as little as 1% of the sales price, you may be able to get the lower rates and costs. Here are some ideas of allowable down payment sources: 1. Cash from your own accounts 2. Borrow from your 401k plan 3. Gift from a relative 4. Co-signer on the loan 5. Gift of equity if purchasing...
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BANKS ARE EXPECTING A STRONG YEAR (2019) FOR CRE LENDING
Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC. The Mortgage Bankers Association (MBA) recently reported another stellar year for commercial/multifamily mortgage originations in 2018. Although the MBA will release final data next month, results from its fourth quarter mortgage originations survey point to volume that could be 3% higher than the record $530 million reached in 2017. Banks are facing more competition. Growth of non-bank lenders has added a whole new dimension to the competitive landscape, particularly in bridge and construction financing, notes Kathleen Farrell, executive vice president, line of business...
March 6, 2019March 6, 2019
RESPONSIBILITY IN LENDING
There is a great responsibility in lending; recently, there appears to be a movement in the marketplace to commoditize lending by making products available on-line. The emphasis is on closing the loan quickly and making the process automated; this approach implies that counseling to find the right mortgage is not necessary, and leaves the choice of finding the right mortgage to the customer. This approach, however, may not work for the following sample of customers who may need advice to find the right mortgage: 1. First time homebuyers 2. Seniors who may benefit from a reverse mortgage 3. Step up...
March 5, 2019March 5, 2019
NEW CONFORMING LOAN LIMIT: WHAT DOES IT MEAN FOR YOU?
The Federal Housing Finance Agency increased the 2018 conforming loan limit to $453,100 and is projected to rise to $484,350 during 2019. What does this mean for you? Conventional loans in the amount of $484,350 and less are typically underwritten in accordance with Fannie Mae or Freddie Mac guidelines. Loans in excess of this amount are considered jumbo loans and are underwritten in accordance with the specific investor’s requirements. Jumbo loan requirements can be more stringent than conforming loans. Conforming loans often have lower interest rates than jumbo loans. There are conforming loan programs for as little as 3% down...
March 3, 2019March 3, 2019
CLIENT REVIEW: WHY WORK WITH A COUNSEL MORTGAGE BROKER
I will rarely leave on an online review yet my recent experience with Counsel Mortgage highly warrants some feedback. As a real estate professional with AZ Prime Property Management I can state without a doubt that John Rapasky is one of the most knowledgable and result driven loan officers in the valley with solid results to prove it. Recently assisting myself with a jumbo loan that other lenders were not able to perform, Counsel Mortgage with excellent communication, knowledge and expertise help guided the loan to a successful and even early close which even a lower interest rate than others....
February 28, 2019February 28, 2019
MORTGAGE APPROVAL: PROPERTY CONDITION
In order to get a mortgage, the property condition must be move-in ready; it must be habitable and safe. I often get asked if there is a list of items the house must have in order to meet the habitability standard, but there is not, as it is on a case-by-case basis. Here is a list of some of the items that may be required before the lender will approve the loan: ● Leaking roof must be fixed ● Pool must be filled ● Upper level decking with no railing, railing must be installed ● Exterior peeling pre-1978 paint where...
February 15, 2019February 15, 2019
MONEY CENTER BANKS CUTTING BACK IN 2019
The nation’s largest banks are being more cautious with their commercial real estate lending, based on what they are saying on their earnings conference calls. The same headwinds that slowed bank lending last year are extending into 2019, as economists debate how much longer the current economic expansion, on pace to reach a record stretch in July unless the effects of the government shutdown stop it sooner, can continue. Interest rates are projected to keep going up and institutions face stiff competition for deals from non-bank lenders. Additionally, borrowers are prepaying loans sooner as properties trade hands, slowing...
February 1, 2019February 1, 2019
HOW TO QUALIFY WITHOUT A JOB
The Dodd-Frank Act includes a provision that a borrower must show an ability-to-repay a mortgage to qualify. It seems silly that a law had to be passed with this provision in it as you would think someone would not make a loan unless they knew it was going to be paid back. Nevertheless, this law arose due to the absurdity of the types of loans that were being made during the mortgage crisis. Lenders initially interpreted this rule that the borrower needed to be employed, or have a steady income to qualify; this is one of the reasons why it...
January 27, 2019January 27, 2019
NEW YEAR’S RESOLUTIONS
Now is the time that we reflect on 2018 and make resolutions for 2019. Many people will review their financial picture to see where they can improve on their finances for the upcoming year. The mortgage is as much a part of your financial picture as your investments. How best to finance the mortgage and control this expense can help your overall financial picture. To refinance to a 15-year fixed for a lower interest rate, or double up on your 30-year fixed payments, or consider a lower adjustable rate mortgage if you will be selling your home soon, or a...
January 5, 2019January 5, 2019
2019 LOAN LIMITS
The loan limits for conforming, VA, and FHA loans have increased for 2019. The conforming and VA conforming loan limit in Maricopa County, AZ is now $484,350. Loan amounts in excess of this limit are considered jumbo, which we can finance. The FHA loan limit for Maricopa County is now $314,827. Loan limits can vary by state and county. If you are looking to finance a property elsewhere, let us know and we can check the limits for you. We offer a variety of products and services, and can finance residential and commercial properties. Contact us and we can help...
January 3, 2019January 3, 2019