How Different Loan Terms Affect Your Mortgage Payment

Most future borrowers simply want to know what their payment will be. Typically the question comes in the form of “what is your rate today” but ultimately it boils down into how much will go toward the mortgage. Of course the main factor is indeed the interest rate, and loan terms.  A person’s gross monthly […]

What Is a Flood Certificate and Do You Need One?

If you’re going to buy a home and get a mortgage, you’ll need a flood certificate, often referred to in the mortgage biz as a flood cert. You won’t be able to get financing without one. A flood cert isn’t very expensive at all, probably the least expensive items borrowers are expected to pay. Even […]

Underwriting Exceptions: What They Are And Why They’re Needed

You’ve heard me talk before about the importance of the secondary market as it relates to the mortgage industry. Understanding how underwriting works and why there are exceptions is just as important when it comes to your mortgage. Mortgage Industry Overview There is both a primary and a secondary market in real estate finance. The […]

How to Explain an Income Gap

Most mortgage program guidelines follow the “rule of twos.” So what do you do when you have income gaps? Loan approvals require a lender to verify at least two years of employment. For self-employed borrowers, two years of self-employment is required and verified with at least the last two year of federal income tax returns. […]

What Are Loan Conditions and Will it Affect My Rate?

Loan applications go through several stages before loan documents are actually printed. There’s the initial submission and documentation stage. It’s here where the loan officer reviews the application before submitting the loan through the automated underwriting system, or AUS. The AUS digitizes the application and runs it through an online app where a list of […]

Eliminating the VA Loan Limit

It didn’t get a whole lot of publicity last week, but there was a major change for VA Home Loans. More specifically, the VA loan limit, or loan cap. Over the years, the VA loan limit has changed and the changes have always been favorable to the veteran. The most recent adjustment eliminates the VA […]

You’ll Be Surprised Where the USDA Loan Program Can Be Used

The United States Department of Agriculture was created in order to improve the qualify of life in rural areas as well as provide a way for urban and suburban citizens to more easily finance homes in underpopulated areas. The USDA loan program allowed people to buy and finance a home with no down payment, creating […]

Four Characteristics of a Jumbo Borrower

Mortgages are typically divided into two categories- conforming and jumbo. A conforming loan is one where the maximum loan amount is $484,350 for most parts of the country. In higher cost areas where the median home value is higher than the norm, the conforming limit rises as high as $726,525. Conforming loans are by far […]

Student Loans and Home Loans

More and more students as well as parents are resorting to loans to pay for college. Public universities have had the ability to set their own tuition rates for years now and for many, attending college means going into debt just for the privilege. And that’s just the tuition, never mind the multitude of fees […]

What Are the Differences: Jumbo Loan vs. Conforming

Okay, the main difference between a conforming home loan and a jumbo loan is simply the loan amount. Conforming loans are labeled conforming because they conform to guidelines set by Fannie Mae or Freddie Mac. For most parts of the country the maximum loan amount to still be considered a conforming loan is $484,350. Anything […]