Helping U Find The Right Mortgage

Selecting The Best Mortgage - What's Most Important:

• Less Cash For A Down Payment
  And/Or Credit Scores Below 640

  FHA Mortgage Loans

  Designed for homebuyers with a low-to-moderate income, FHA loans are a great option for many people. Qualified homebuyers benefit from a lower down payment requirement (as low as 3.5%), lower monthly premiums, and lower closing costs. It’s an attractive loan for first-time homebuyers or repeat homebuyers with low income or credit.

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  Understanding FHA Mortgages

  Low Down Payment

  A down payment on an FHA loan can be as low as 3.5% with a qualifying credit score of 580 or higher. Otherwise, a 10% down payment is required which is still much lower than a conventional loan.

  Lower Credit Requirements

  FHA loans offer some of the lowest credit requirements of any loan. Mitch's preferred lender allows borrowers to have a credit score as low as 580.

  Flexible Debt-to-Income Ratio

  A higher debt-to-income (DTI) ratio is allowed with an FHA loan. Borrowers can have monthly debt payments costing up to 50% of their income.

  Low Cost Mortgage Insurance

  An FHA loan requires mortgage insurance of any borrower who puts a 10% down payment or lower. This insurance cannot be canceled, but it is often lower than traditional private mortgage insurance.

• Less Paperwork And Lower Fees
  And Closing In Fewer Days
  

  Conventional Mortgage Loans

  Conventional loans are the most popular loan type. These are loans that are not offered by the federal government (like FHA or USDA loans). Instead, conventional loans are available only through private lenders such as banks or mortgage companies like Mitch's preferred Lender. The ideal borrower has good credit and has plenty of money for a down payment.

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  Understanding Conventional Mortgages

  Low Down Payment Vs Instant Equity

  A conventional loan can be achieved with as little as a 3% down payment. However, if you put 20% down, as is common with a conventional loan, you will have instant equity in you home as soon as you sign at the closing table. This will benefit you in the long run if you refinance or sell your home.

  Faster Closing

  A conventional loan is much more straight-forward than a government-backed loan. There are less requirements during the underwriting process which allows for a quick closing. At Mitch's preferred lender, it is about 17-21 days!

  Fixed Rate or Flexible ARM Rates

  A conventional loan is attractive to sellers because it means you have good financial health. Sellers will often choose borrowers with a conventional loan over a government loan since the process is much simpler.

  Avoid Mortgage Insurance

  If you put a 20% down payment on your home, you will not have mortgage insurance. If you put less than 20% down then you will have to pay mortgage insurance until you have your loan paid down to 78% loan to value

• Lower Payments In The First Years
  That Can/Will Increase Over Time
  

  ARM Mortgage Loans

  An adjustable-rate mortgage (ARM) allows for an initial interest rate that is lower than traditional mortgage rates. This rate is periodically adjusted based on the market after an initial adjustment period. ARMs are great for homebuyers looking to have lower monthly payments at the start of their loan. Additionally, this loan is great for homebuyers who are looking for a short-term home loan.

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  Understanding ARM Mortgages

  Lower Monthly Payment

  An ARM loan will typically allow you to have a lower monthly payment at the start. If your income is low now, but you expect an increase in the future, an ARM may be good for you.

  Adjustment Period

  ARM loans begin with an adjustment period where your rate does not change. This period is usually 5 years, but it can be as low as 1 year or as high as 10 years. If you plan on living in your home for less time than the adjustment period, you will benefit from a very low interest rate.

  Fluctuating Interest Rates

  By borrowing a loan with an adjustable rate, your monthly payment will change every year after your adjustment period. If the market rate goes down, so does your payment. The reverse is also true, but often, you will save money over the life of the loan.

  More Buying Power

  An ARM loan allows you to purchase a larger home. Because interest rates are lower, you will be able to afford the monthly mortgage payments on a more expensive house.

• Leverage Military Benefits
  For A VA Loan & No Down payment
  

  VA Mortgage Loans

  VA loans are guaranteed by the U.S. Department of Veteran Affairs and lenders like Mitch's preferred lender who make the loans available to eligible veterans and their families including eligible surviving spouses. A VA loan often has lower closing costs and more liberal terms and requirements. Qualified homebuyers must receive a certificate of eligibility from the U.S. Department of Veteran Affairs for this loan type.

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  Understanding VA Mortgages

  Low Or No Down Payment

  In many cases, your VA loan will fully finance your new home. With no down payment required and low closing costs, you can move into your home without a large payment upfront.

  No Mortgage Insurance

  A VA loan does not require monthly private mortgage insurance like most traditional mortgages. Whether you put down a large down payment or not, you will not have to pay PMI each month.

  Maximum Purchase Price

  A VA loan allows you to purchase a home worth over $500,000 without an issue. Mitch recently helped a buyer purchase a $950,000 home with a VA Mortgage. Check with your lender to confirm your county’s limit.

  Government Guarantee

  A VA loan comes backed with a guarantee from the federal government. If you are unable to make monthly payments, you may qualify for assistance from the VA

• No Private Mortgage Insurance With Less Than 20% Down Payment
  Using An 80/10/10 Piggyback Loan
  

  Piggyback 80/10/10 Mortgage Loans

  A “piggyback loan” — also known as an 80/10/10 loan lets you buy a house using two mortgages at the same time. The first mortgage typically covers 80% of the home price, and the second mortgage covers 10% with your down payment covering the remaining 10%.

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  Understanding Piggyback Loans

  Piggyback Loans Can eliminate PMI And Help Avoid JUMBO Loan Fees

  Jumbo loans require bigger down payments, higher credit scores and more cash reserves than conforming mortgages do. One strategy to get around the tighter requirements for jumbo loans reduces the loan amount below the conforming limit by obtaining a 2ng mortgage at the same time as the primary mortgage. This lets the borrower meet the criteria of the easier to obtain Conventional vs JUMBO mortgage. Plus, because Lenders often charge higher interest rates for JUMBO loans, using a Piggyback loan can provide access to a lower interest rate while also eliminating PMI.

  Piggyback Loans Can Take Longer To Obtain

  Getting an 80-10-10 mortgage requires applying for two separate loans: the primary mortgage and the second mortgage. In some cases, you'll need to get the loans from different lenders. Applying for two loans may mean gathering two sets of financial documents, filing two applications and even sometimes going through two closings.

  Piggyback Loans May Be A Less Costly Alternative To Bridge Loans

  If you have funds available, even before selling your current home, to pay a 10% or 15% down payment then including a Piggyback 2nd Mortgage for the other 5% to 10% of down payment can eliminate the extra PMI fees. Then once you sell your current home you can use the equity from the sale to pay off the 2nd mortgage.

  The can be Negatives effects that come With Piggyback Loans

  Second mortgage loan interest rates are also likely to carry a higher interest rate than the first. If the rate is substantially different, you may end up paying more for a piggyback loan than you would if you went with a traditional mortgage. Unlike PMI, which can be canceled once your loan value dips below 80% of the home’s value, the second mortgage doesn’t go away until you pay it off

• No Private Mortgage Insurance With Less Than 20% Down Payment
  As A New Resident or Doctor
  

  Physician Mortgage Loans

  Doctors Only loans were created with doctors or residents in mind. Recent doctoral graduates will find this loan particularly appealing due to the 100% financing options. Qualifying doctors include medical doctors, dentists, and even veterinarians. To find out if you qualify, speak with Mitch's preferred lender.

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  Understanding Physician Mortgages

  Low Or No Down Payment

  You may qualify for 100% financing with a Doctors Only Loan, but if not, there are many options available to you based on your financial health and situation.

  No Mortgage Insurance

  With a Doctors Only Loan, you are not required to pay private mortgage insurance (PMI). This means that your mortgage monthly payments will be lower.

  No Down Payment

  Many borrowers are qualified for 100% financing through a Doctors Only Loan. Save your money to pay down your student loans instead of putting it towards a down payment.

  Fixed Rate or ARM Rate

  Like a conventional loan, a Doctors Only Loan is available with a fixed rate or an adjustable rate. Choose the kind of loan rate that is best for your unique situation.

• A JUMBO Home Mortgage Loan
  That's Greater Than $548,250
  

  JUMBO Mortgage Loans

  A jumbo loan may be the best choice for you if the home you wish to buy is over a certain purchase price or doesn’t conform to loan limits placed on government-backed or conventional loans. The purchase price minimum for a jumbo loan differs in many counties, so it’s important to speak with Mitch's preferred lender to learn more.

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  Understanding JUMBO Mortgages

  Higher Credit Requirements

  The minimum credit score allowed for a jumbo loan is 700. Unlike most other loans, a jumbo loan is a higher risk for lenders. That means, the borrower requirements are stricter.

  Better Financial Health

  If you borrow a jumbo loan, you cannot have a recent bankruptcy or foreclosure on your record. It is also important to keep your debt-to-income ratio below 43%.

  Low Down Payment

  Jumbo loans can be borrowed with as little as 10% down. These loans will be required to pay private mortgage insurance until they’ve paid 20% of their purchase price.

  Emergency Funds

  Many lenders will require that you have between 3 and 24 months’ worth of mortgage payments in your savings accounts. This is to ensure that the jumbo loan will not fall into delinquency.

• A Bridge Loan... Buying A New Place
  Before Selling Your Current Home
  

  Bridge Mortgage Loans

  Most homeowners, who are selling a current home, rely on money they’ll get from the sale of their current home to fund the purchase of a new place.

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  Understanding Bridge Loans

  Low Or No Down Payment Before You Sell Your Current Home

  Equity in your home is the difference between the current market value of your home and what you owe. This gain on the sale of your current home is typically used as the down payment on a new place. A Bridge loan is a short term loan that's typically based on the equity in your current home that can be used to cover your down payment and closing costs on a new home before you have sold your current home.

  Submit An Offer That's Not Contingent On The Sale Of Your Current Home

  Bridge Loans, particularly in real estate markets where demand exceeds supply (A Seller's Market) will make a Buyer's offer more favorbale to sellers.

  Bridge Loans Have Greater Upfront Fees and Higher Interest Rates

  Since lenders have less time to make money on a bridge loan because of their shorter terms, they tend to charge higher interest rates and fees for this type of short-term financing than for conventional loans

  No Or Lower Interest Only Payments

  Bridge loans may not have monthly payments for the first few months or the payments initially be lower interest only payments. This makes the whole moving process easier because you don't have to worry about two monthly payments on top of moving expenses. More important, it also gives you time to sell your home and pay off the loan without having any monthly payments. Note: Interest fees do accumulate even if you don’t have any monthly payments

  Greater Risk Of Owning Two Homes

  The biggest risk with a bridge loan is when your home doesn’t sell by the time you need to begin repaying your bridge loan. Until your old home sells, you’ll will be paying three loans: the mortgages on both the old and new houses and also the bridge loan