The Least Talked About Mortgage Loan That Saves Your Clients The Most Money

Talk to most mortgage lenders, whether brokers or bankers, on the retail or wholesale side, and they will give you some very basic loan options once they pull your credit score and find out how much you have to put down on a home mortgage when you are in the process of getting pre-qualified.

It is either Conventional or FHA right? If your scores are above a 700, the loan officer will go right to the conventional product. Conversely, if your scores are in the low 600s, they are going right to the FHA Loan. Or maybe you might get the loan with no Mortgage Insurance to 95% with a higher rate. Sound familiar?

In today’s ever changing lending environment, it is imperative to offer your clients all mortgage products, no matter how work intensive you think they may be. With just a few additional steps, you can really be helping your clients where they value the quality of your product the most; Their pocket!

Enter The MyCOMMUNITY Mortgage

Released in 2006, and backed by Fannie Mae, the MyCommunity mortgage was targeted at low income communities and borrowers, with reduced mortgage insurance premiums and a down payment of just 3%. With the mortgage meltdown, and the credit crisis, leading to tighter underwriting guidelines, the program lost alot of steam, and FHA was the go to loan for credit challenged and low down payment borrowers.

In 2014, all of this has changed. FHA is a great loan product in that you can get many credit challenged borrowers into a home, with very relaxed mortgage guidelines. The down side is the high mortgage insurance premiums your borrower has to pay for the life of the loan.

Here are some of the key components of the MyCommunity Mortgage in 2014.

  • 95% LOAN requires 5% down payment, and SOON to be reduced to 3%
  • No borrower minimum contribution – 100% can come from family member for the down payment
  • Use 100% of area median income (AMI) or 115% in non-metro areas. Click here for your area income.
  • Reduced Mortgage Insurance Premiums —-will drop off at 80% LTV
  • Perfect for your borrowers with a 620 -699 credit score
  • Cannot own any other real estate
  • Primary residence purchase only or refinance only
  • Max Loan Amount $417,000
  • Can be up to 4 unit multi-family home
  • Great for First Time Home Buyers

MyCommunity-PMI-Compare

As you can see from the above graph, the MyCommunity mortgage is the the best loan option for your borrowers, and soon it will be even better with just 3% down required.

If you or anyone you know has any questions on this product, or would like to speak to me direct, I be reached at 720-524-3215.

loans@brianquigley.com – Email.

NMLS#244003

 

Fannie Mae Delayed Financing Puts Your Investment Back In Your Pocket Day After Closing

Since 2011, Fannie Mae has implemented a little used mortgage program, entitled “Delayed Financing” which allows home buyers, both owner occupied and investor, to refinance the purchase the day after they buy the property. With 33% of all home purchases in 2014 being made in cash, many investors need access to that cash, to put back into other income producing properties they can buy, or if it is a retiree who is trading down property due to an empty nest, they can put that money back into retirement or an interest bearing investment.

scroll-Delayed-Financing

Here are some key benefits to Delayed Financing that you can analyze to see if it is a fit for your investment strategies.

  • You will regain your investment within 30 days, as that is typical time to close a refinance loan
  • These refinance loans are available 1 day after you buy the home.
  • Full Appraisal Values Accepted
  • As an owner occupied property, you can get 85% LTV cash out of Appraised Value 1 day after, not purchase price, which means more cash out!
  • As an investment property, you can get 75% LTV cash out, of Appraised Value 1 day after, not purchase price, which means more cash out!
  • Eliminate the Cash-Buyer Remorse you might have, in thinking you have to keep money in the home. This program allows you to cash out immedietely.

This is very attractive to investors who pay cash for properties and also want to increase their real estate portfolio quickly, in an effort to buy more properties. Fannie Mae did require you wait six months, before you can take cash out for Delayed Financing, now they waived the seasoning requirement, which is hugely beneficial for the following typed of buyer.

  • Buyer who needs to put up a huge deposit when buying a foreclosure, and needs access to certified funds right now.
  • A baby boomer, with years of accumulated equity, wants to trade down, and buy his home cash, moving from a Single Family residence to a smaller home.
  • Anyone looking to place their money in an  investment vehicle making a return on investment, after they buy the home cash.

What is Required For Delayed Financing?

  • You need to buy the home cash with no existing mortgage
  • Will need to qualify on a cash out conventional mortgage, when refinancing
  • Must document sale with HUD-1 Settlement Statement
  • Funds you used to purchase home were yours.

While this might not be a huge mortgage product with borrowers racing to sign up, it serves its purposes for borrowers looking for instant equity out of their home to replenish it elsewhere in interest bearing accounts, or to invest it back into more properties.

If you or anyone you know is a fit for this program, and has any questions about it, simply call me at 720-524-3215 or email Brian Quigley at loans@brianquigley.com

NMLS#244003

 

Relocation Loans And What It Takes To Qualify When Moving To Colorado

It is no question that Colorado is one of the hottest markets in the nation to live right now. I have been getting many phone calls of people wanting to know what it would take to get qualified for a home loan. For most, it is quite simple, especially if you are remaining employed with that same company. A simple letter, on company letterhead, specifying the employee is being relocated to Colorado, or can do what they do professionally, anywhere remotely in the United States. A very simple, straight forward process.

 

For others the process can seem quite daunting. Especially if you throw in a multitude of variables into the equation.  I will go over each of these in detail.

  • Moving with no job in place
  • Moving with a job in place, but in a different industry
  • Moving with a sales job in place with 100% commission
  • Moving with a contract in place
  • Moving with an offer in place

Moving with no job in Place

Moving with no job in place to Colorado, it is safe to say you will need to be renting for awhile.  If you are in between jobs, and have an employment gap, you will need at least six months in the new position, for underwriting to take a serious look at your loan. If you had an employment gap, and are entering the workforce again, in the same industry, and have at least a 2 year history in the industry, I would say you might get approved with 30 days of pay stubs on the new job.

Moving with a job in place, but in a different industry

Moving with a job in place, but in a different industry is quite easy. The following are some documents that will clear that condition with an underwriter.

  • An offer letter from the future employer
  • A contract from the future employer, if you are a contract employee
  • 30 days of pay stubs in the new position

In some instances, we will be able to use future income to get you qualified, however you will need to at least of started the new position before we actually close your loan and fund it.

Moving with a sales job in place with 100% commission

Moving with a sales job in place with 100% commission will need a history in that position receiving commission income for at least 2 years. If you are moving into a new position in sales, that will be commission base 100%, then you will need to rent for at least 2 years, since commission positions are looked at just like being self employed. In instances, where there is a base salary involved, we can qualify you based upon the base income, but we will not be able to count the comissions in the new position.

Moving with a Contract or Offer in Place in  New Industry

Moving with a contract or offer in place in a new industry is actually not as hard as you might expect to get qualified. Below are some documents that an underwriter will take into consideration when looking at your loan.

  • Offer Letter
  • Contract, if contract employee good for at least one year.

Feel free to email me at loans@brianquigley.com if you have any further questions. You can reach me anytime at 720-524-3215.

For fastest online approval you can visit me on the web at www.brianquigley.com. When there, simply click APPLY NOW.

 

Perfect Timing for Refinancing Off Your Mortgage Insurance In Today’s RED HOT Colorado Market!

For those of you who have refinanced in 2010 to 2012 and who have Mortgage Insurance on your home loan, either through FHA or conventional, might want to seriously consider refinancing now, while the market here in Colorado is Red Hot!!

A $400,000 loan with FHA Mortgage insurance is $450 per month, and that is for the life of the loan. FHA has made some recent changes which make that absolutely beneficial to refinance out of that loan, into a conventional loan at 80% LTV, which means your home has to have 20% equity in it, and the mortgage insurance will fall out. It is important to run an AVM, or Automated Valuation Module, to make sure the likelihood of your home’s appreciation will be enough to drop the mortgage insurance, and we here at The Mortgage Network, will give you a complimentary AVM to see if you qualify today!

PERFECT TIMING

Some homeowners, who have put as little as 5% down 2 years ago, can reap the huge benefits of this market with strong home sales, and refinance out of their mortgage insurance during this perfect cycle. Another benefit is that you can refinance under flex terms, in that we can refinance you into a 28 year mortgage, if you purchased 2 years ago, to keep track with your 30 year amortization.

Regarding the huge savings, of the above example, let’s look at this example.

$400,000 Loan

Rate – 4.5%, PMI $450 a month

$2026.74 Principal and Interest

Taxes and Insurance $300

TOTAL PAYMENT ON $400,000  is $2776.74

FLASH FORWARD TO TODAY, and now that home has an AVM of $500,000, and that is very typical in many neighborhoods in Denver and surrounding counties.

So now the home is at 80% LTV and we are able to get a rate of 4.125% with no mortgage insurance.

Take this one step further because the borrower wants a 20 year fix now. Dump the MI, and shorten the mortgage by 10 years.

Whats the payment?

$2450.35 plus $300 taxes and insurance

$2750.35 NEW PAYMENT —

As you can see, there is huge benefit with the way rates are right now, coupled with home appreciation, that is makes perfect sense to refinance out of your mortgage insurance today!

If you are any of your family or friends would like a complimentary AVM on your property, and consultation to see if this will work for your financial situation in a positive way, call Brian Quigley at 720-524-3215 or email him at loans@brianquigley.com

 

Construction Lending Available In Colorado with as little ZERO DOWN

It is no question that the real estate market in Colorado is hot! hot! hot! This can frustrate many buyers who show up to an open house with 10 other buyers, and a seller who is only interested in highest and best offer. It is definetely a seller’s market out there, and that can really discourage someone who is an FHA buyer with only the alloted 3.5% down, who cannot afford to pay above contract.

It is saddening how many FHA buyers I have that cannot put in an offer, simply because the seller does not want them as buyers. They want conventional or cash, who can absorb a low appraisal, and have no problems paying above market value. Before I ramble on about this, the true spirit and nature of this article is to discuss a brand NEW product that we offer right NOW, that will get more smart buyers into homes, hopefully at a better value, then getting into a bidding war with other buyers, driving up prices, which become inflated.

Enter The Construction LOAN

This is an FHA and VA product that has been offered for years, however many, if not all lenders refuse to touch it. Until TODAY. The loan works like any other VA or FHA Loan. Zero down for VA and 3.5% down payment for FHA.

Here is an example of how exactly this would work.

Step #1 ——-FIND a lot you would like to build on. Seller makes a contract with you for land at $150,000.

Step #2 ——Have your General Contractor put together plans and specs to put together price of construction loan, which in this case is $240,000

Step #3—–Your base loan amount is $390,000, as this includes the $240,000 Construction Cost plus $150,000 lot cost

Step #4 —-Close your LOAN!  You will be required to put dont 3.5% for FHA, or ZERO DOWN FOR VA.

Here are some of the program highlights and guidelines for you to review initially

  • Down to 580 Credit Score
  • 10-30 year terms available
  • Modular, Condo, Townhomes, Manufactured, and Single Family Residences okay
  • Owner Occupied Only
  • Loan Amount limits by County for FHA and VA

For any questions on how to get approved for this loan, and how to take the proper steps, call Brian Quigley at 720-524-3215 or email him at loans@brianquigley.com

 

No Money Down USDA Purchase Loans In Colorado Are Amazing Tool For HomeOwnership

USDA Rural Development’s Single Family Housing Direct Loan Program provides loans to assist low and very low income families in rural area’s achieve their dream of home ownership in Colorado. This is a 102% max LTV loan with absolutely no money down. The properties under USDA have to be located in a rural area, and meet the address requirements through USDA’s website by clicking here.

If you meet the following requirements, then you might just find yourself in a new home, with a fraction of the closing costs versus FHA and conventional loans. If you live in a rural area in Colorado, or are potentially moving to a rural area, please check out USDA first! This is an amazing loan for low income families and will save you thousands of dollars in the long run. Here are some of the main requirements:

  • Purchase or Refinance down to a 580 Credit Score. 
  • Minimum loan amount $75,000 maximum loan amount $417,000
  • 2 years seasoning on any Bankruptcy under extenuating circumenstances, 3 years seasoning otherwise
  • 3 years seasoning on any foreclosures
  • Debt to Income Ratios not to exceed 32/44%
  • Collections over 12 months old with approval, ok
  • Tax Liens, Judgments, must be paid

Here is an example of a $250,000 home with using the USDA program with no money down at all.

$250,000 Purchase Price

$255,000 Loan Amount, as you have to have a 2% UPMIP for mortgage insurance rolled into purchase price

4.125% Interest Rate at $255,000 is a payment of $1235.86

$150 Taxes estimated, $100 Homeowners Insurance estimate, and .40% Mortgage insurance of $85.00

TOTAL PITI Payment with MI is $1,570.86

If you have any questions about how to get qualified for this amazing loans, you can call Brian Quigley directly at 720-524-3215, or email me at loans@brianquigley.com

 

When Debt Attacks! Debt Consolidation Home Refinancing Makes Complete Sense

Debt. When it rears it’s ugly head you realize that you have amassed a snowball of bills, and do not have any idea of how to pay them off. The minimum payments on credit cards are pure interest, and interest is charged on top of interest, and the fees. If you have a credit card, there are over the limit fees, late fees, and sometimes, even inactivity fees.

The worst thing about credit card debt is that it is not tax deductible. Couple that in with some student loan debt, and auto loan, and you have a monthly liability spreadsheet that is an absolute nightmare.

Luckily, with the recent surge in home prices in Colorado, many of these once unlucky homeowners who might have been in a flat or upside down equity position, now actually have equity in there home. I am not saying to rush out and refinance your home in any means. What I want to take a look at however is a scenario, where it might make sense to refinance, and consolidate all of your non-tax deductible debt, and erase your debt, by consolidating it within the mortgage. This will definetly do 3 things right away.

  • The Debt Consolidation Loan will lower your monthly overall payment, as now all of your debts are wiped clean, and you are just paying off the mortgage
  • Your credit score will greatly improve because you will now have more revolving credit with zero balances
  • You are now making one payment on a tax deductible debt

 

Here is an example scenario. Homeowner has a $250,000 mortgage, and has recently seen home sales in his area skyrocket, and now his home is worth $410,000.  Here is his overall monthly expenses

Mortgage – 3.75% – $1157.69 – Principal and Interest

Taxes and Insurance  - $300

Total Mortgage Payment – $1457.69

Student Loan Debt – $30,000 – Monthly payment – $300

Auto Loan – $20,000 –Monthly Payment – $350

Credit Card Debt – $28,000 – Monthly Payment – $500

Overall Monthly Payment with all DEBTS- $2707.69

——————————————————————

Now look at this situation with a Debt Consolidation Cash Out Refinance

Mortgage – $250,000

All other Debt – Auto, Credit Cards, and Student Loans – $78,000

Total New Loan Amount  at 80% Loan To Value – $328,000

New Mortgage Rate – 4.5%

New Payment -$1661.93  plus $300 in taxes and insurance

TOTAL NEW MONTHLY PAYMENT CONSOLIDATION ALL DEBT – $1961.93

You will be saving $745.76 a month. Yes you moved around the debt, however now it is all at 4.5%, and it is tax deductible!

What can you do with an extra $745.76 a month?

  • Save for Retirement
  • Create an Emergency Cash Reserve so you don’t rack up more credit card debt
  • Live within your means
  • Invest it!

If you would like me to review your current mortgage situation to see if you are in need of a debt consolidation refinance, you can reach me at 720-524-3215 or at loans@brianquigley.com

 

 

 

Down Payment Assistance Program For Colorado First Time Home Buyers

It is no question that Colorado is on the map as the top places to live in 2014. Rental prices have absolutely skyrocketed the last five years, with home prices continuing to rise as well. For the homeowner, they are feeling the recovery and getting back the equity they lost in the Housing Crisis. They also realize that they can rent out their homes for quite a cash flow profit, and this is NOT good news for the RENTER.

This article is not about the benefits of Renting Verusing Buying, but more about the programs and resources available to that buyer who might not have the immediate access to a down payment. A resource that will avoid you having to save up for a down payment, ask a family member, or worse, start borrowing against your 401K!

The Colorado Housing Assistance Corporation (CHAC), is focused on HomeOwnership and helping these types of borrowers. The make homeownership affordable to those with low to moderate income. They provide education, counseling, financial assistance for down payment of up to 6% of the purchase price or $10,000 which ever is less.

The down payment will show up as a second mortgage, and you will be required to make monthly payments, however it

gives you the immediete benefit of being able to buy a home now, take advantage of the tax incentives, and rest your head somewhere where you can finally call HOME!.

If you have any questions about CHAC, and the qualifications, please call me at 720-524-3215, or email me at loans@brianquigley.com

Colorado Family Opportunity Mortgage Program For Elderly Parents And Children

A great mortgage program here in Colorado that has always been around for quite some time, is the Family Opportunity Mortgage program. Not many people inquire about it, however it can literally save you tens of thousands of dollars upon the purchase of a home, and even more in interest over the life of the loan.

Why?

  • There are no distance requirements between the elderly parent and the individuals (their child).
  • Adult child may already own their own home (primary residence)
  • Adult child will need to provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited.

Assisting a Disabled Adult Child

  • Disabled adult child must have insufficient income to qualify for a mortgage or be unable to work.
  • The parents qualify for the loan.   The parents can be on the mortgage although it is not required.
  • There are no distance requirements between the elderly parent and the individuals (their child)
  • Disabled adult child occupies the property as their primary residence.
  • Parents may all ready own their own primary residence.

Freddie Mac and Fannie Mae products are eligible for these long overdue programs. If you are interested in this program for a home located anywhere in Washington, please contact me.

Because you get to buy another home, and not have to classify it as a Second Home or Investment Property. You can actually classify the property as Owner Occupied, so in essence you have 2 properties that can be owner occupied. So instead of 20% down, you only need to put down 5%. A program way better then FHA, because with a 640 score, you can obtain a 95% loan with no mortgage insurance. There are some caveats, and they apply ONLY in 3 situations.

Assisting your College Bound Son or Daughter

  • Son or Daughter must be enrolled in college.
  • Property must be located close to the college student is enrolled in.
  • Property must be a reasonable distance from the parent’s home
  • Property cannot be rented and the child must occupy the property for a period of one year
  • Parents cannot own another second/vacation home in the same location as the student’s home
  • Parent’s qualify for the loan, the child does not. If the child is old enough, they can be on the mortgage with the parents, however it’s not qualified.

Assisting an Elderly Parent

  • Elderly parent must have insufficient income to qualify for a mortgage or be unable to work.
  • A simple 4506-t will be ran by us to verify through the IRS that elderly parent cannot qualify on their own.
  • The individuals (children) qualify for the loan. The parents can be on the mortgage although it is not required.
    • There are no distance requirements between the elderly parent and the individuals (their child).
    • Adult child may already own their own home (primary residence)
    • Adult child will need to provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited.

    Assisting a Disabled Adult Child

    • Disabled adult child must have insufficient income to qualify for a mortgage or be unable to work.
    • The parents qualify for the loan.   The parents can be on the mortgage although it is not required.
    • There are no distance requirements between the elderly parent and the individuals (their child)
    • Disabled adult child occupies the property as their primary residence.
    • Parents may all ready own their own primary residence.

    Freddie Mac and Fannie Mae products are eligible for these long overdue programs. If you are interested in this program for a home located anywhere in Colorado, please contact Brian Quigley at 720-524-3215 or email me at loans@brianquigley.com

FHA GOLD Program Loosens Credit Guidelines for Subprime Borrowers

FHA has recently introduced a new program for borrowers with less then good credit. This will greatly open up the floodgates to people who could not qualify for a new home mortgage in the past. Some of the highlights of this program are the following.

  • FICO scores down to a 500. 1 score is acceptable for Purchase, Rate and Term, and Cash out Refinance.

Any score under a 580 and you will need to put at least 10% down on your new home purchase. A score of a 580 or higher, you will only need the standard 3.5% down. If you are concerned about your down payment, and do not have 10% with a score lower then 580, we can point you in the right direction in regards to getting your credit reestablished.

Other highlights of this amazing program are

  • Non-occupying co-borrowers allowed
  • No tradeline requirements
  • Non traditional credit accepted
  • Back to Work Program Okay

 

If you have further questions and would like to inquire more, you can reach Brian Quigley at 720-524-3215.  This is an amazing product, and FHA understands that your credit history is not a true reflection of your ability to repay a mortgage.

 

 

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