Purchase Questions

Do you need 20% down to purchase a home?

The answer is a resounding NO! You can purchase primary residences with as little as 3% for conventional financing, 3.5% with FHA financing, 0% down with USDA Rural Development, and 0% down with Federal VA financing- even with less than perfect credit.

Can you have a co-signor on a loan if the income is not sufficient?

Yes, you can have a co-signor under the FHA product line known as a non-occupant co-borrower. The minimum down payment is 3.5%. Income is all combined from the primary borrower and co-signor/s and all debts are pooled together as well to determine the final debt to income ratios.

Is monthly Private Mortgage Insurance always required when you have less than 20% down on conventional financing?

The answer is no. We have found that in today's low interest rate environment, it makes more sense to use a single, up front premium and eliminate the monthly PMI altogether. It can be paid for by the seller, buyer or lender. You will never have to refinance to get rid of the nuisance of monthly mortgage insurance.

Do you need perfect credit to purchase a home?

You can purchase a home with a credit score as low as 600. We also have a tried and trusted credit repair service who will help you get your score where it needs to be to qualify. We credit you back the cost of the repair once you return to us for your home financing.

Can you get financing after being denied by another lender?

Many of the loans we are currently doing have been turned down elsewhere. Mortgage guidelines can differ greatly with credit scores, employment requirements, and debt to income ratios.

Refinancing Questions

Cash Out Refinance

A transaction where you consolidate your first mortgage with a home equity line, or simply pull out money to pay other bills. This option is called a rate & term refinance or "limited cash out". This option reduces the existing interest rate and/or term of the loan.

Refinancing your home in the last few years has been made more difficult, as property values would often dictate which refinance option was available. If the property did not appraise at or near the desired value, the loan amount and “cash out” amount was reduced to acceptable guideline levels. The rate and term option can be an easier solution because appraisal requirements can be minimized or eliminated altogether.

Your Loan Expert will evaluate your current loan terms and what you want to achieve by refinancing, such as consolidating debt or simply cutting the rate. This evaluation, along with your income and credit review, will determine if the loan program would be better suited to go the conventional or traditional route or FHA (Federal Housing Administration) loan route.

Conventional Financing allows borrowers to pull cash out or consolidate mortgages up to 80% of the value of the property. This type of loan does charge a premium for pulling cash out, and will be priced based on current credit scoring profiles. FHA Financing allows borrowers to pull cash out or consolidate mortgages up to 85% of the value of the property. The other advantage to this program over conventional financing is the allowance of higher debt to income ratio levels.