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Team MOVE Blog

Your mortgage loan experts

By Russell Smith | Mortgage Broker
or Lender in Whiteville, NC
  • We are experts at so many types of mortgage loans that we are the swiss army knife of mortgage lending

    Posted Under: Home Buying, Financing  |  September 18, 2014 8:22 AM  |  8 views  |  No comments

    Just in our office we see so many different mortgage scenarios and we have always taken pride in knowing a large array of mortgage products.  We don't just take the cookie cutter loans.  We tackle the difficult situations for the good of our client and we make sure that the product our borrowers choose is a good fit for them.  Below are examples of different mortgage loan types just from the months of August and September 2014 to show you what we mean, including: equitable distribution, construction perm loans with one closing, loans with no scores or just one score, tax credits, 100% loans, investment property, 2nd homes to 90%, extended rate locks, different types of PMI, low credit scores, higher debt ratios, etc.

    Here is a rundown of the loan types provided through our team (several of these types, we closed multiple ones):

    2 - FHA purchases

    2 - 2nd home conventional purchases < 80% LTV

    VA purchase with one score

    Rate/term 15 year refinance without escrows for taxes and insurance

    FHA purchase where both borrower had only 1 credit score

    80% LTV investment property purchase

    $40,000 conventional loan (most lenders won't lend less than $50,000)

    95.01% My Community Mortgage with reduced PMI

    FHA purchase with a 56% debt ratio

    VA purchase with husband overseas - Military POA closing

    FHA purchase with 581 credit score

    VA purchase where one borrower had no scores

    5 - Construction to Perm using appraised value 95% LTV

    Freddie Mac conventional loan with 6 month Extended lock

    95% Conventional purchase with split premium PMI (helped keep the debt ratio lower but keep cash to close down)

    2 - NC Home Advantage 97% conventional purchase with reduced PMI

    5 - USDA purchase

    USDA purchase with MCC tax credit (borrower only had one tradeline on credit and no rent with a 680 score)

    80% cash out refinance without escrows for taxes and insurance

    Construction to Perm one-time closing using appraised value 90% LTV

    4 - VA Purchases

    85% Rate/Term Refi with single premium PMI to satisfy an equitable distribution

    3 - 95% Conventional purchase with monthly PMI

    2 - 90% 2nd home conventional purchase with monthly PMI

    USDA purchase with 1 credit score

    VA Purchase purchase from family

    90% conventional purchase using gift of equity from parents (sellers) for down payment

    As you can see, we really work hard for our clients to know our products, know our clients, and provide great service on top of that.  So give us your scenario and we will do our best to help you.

    - See more at: http://www.teammovemortgage.com/blog/we-are-experts-at-so-many-types-of-mortgage-loans-that-we-are-the-swiss-army-knife-of-mortgage-lendi#sthash.p6f836Gt.dpuf
  • USDA Does Not Allow Properties to Have Any Farming Characteristics

    Posted Under: Home Buying, Financing  |  September 16, 2014 9:02 AM  |  10 views  |  No comments

    Interesting Contract on a USDA Loan:

    Believe it or not! USDA (US Department of Agriculture)does not allow the collateral to have any farming characteristics such as barns, fields with crops, farm animals, hay stored under barns, etc. Here is an actual contract that we received on a purchase after mentioning that the property could not have "farm characteristics":Under the personal property to be included section of the purchase contract, it actually said "horse"! That is definitely a giveaway that we are dealing with some farming characteristics. As soon as we saw this, we notified the buyer and realtor. The purchase did close but as an FHA loan. So when considering a USDA loan, look at the entire property and look at Google Earth as USDA will use Google Earth, the appraisal, and purchase contract to determine the property eligibility.
  • PMI options that can save money over FHA loans

    Posted Under: Financing in Wilmington  |  September 14, 2014 7:49 AM  |  18 views  |  No comments

    Most of the time when you hear someone say PMI or mortgage insurance, everyone cringes.  But there are not only benefits of PMI but there are also money saving PMI options. 

    First of all, PMI insures the mortgage lender in case the lender has a loss because of foreclosure and that is usually where most people's definition stops.  But PMI has a lot of benefits with the biggest being that borrowers do not have to put down 20% of the value or price of the home.  You can choose the type of PMI that fits your scenario best, PMI can be potentially removed or lowered as the mortgage balance decreases, and the PMI company may offer homeownership or hardship counseling when the borrower needs it.

    Learn when PMI stops on FHA, USDA, and Conventional Mortgage Loans

    PMI Strategies for Fannie Mae or Freddie Mac Conventional Loans

    Most think that PMI is just a monthly amount added to the mortgage payment but there are other versions such as single premium up-front and split premium PMI.  One of the jobs that we do for our clients is to explain the PMI options available and to help determine which option fits their scenario and goals best.

    Split Premium PMI:  The most popular form of a split premium PMI loan is FHA.  This means that there is an up-front (and financed on top of the loan in FHA) PMI fee and a monthly amount added in the payment.  FHA loans (as of 9/6/14) has an up-front financed PMI in the amount of 1.75% of the loan amount and a 1.35% (assuming over 95% financing on a 30 year loan) monthly PMI amount. 

    Conventional Split Premium Alternative to FHA PMI:  If the borrower has a higher credit score, the buyer could qualify for a lower up-front amount from .50 on up (saves money compared to FHA's 1.75%) and the monthly amount can be lower than the 1.35% with FHA.  This strategy can be used on conventional loans from 97% and lower.  Where FHA could benefit would be if the borrower's credit scores are lower, debt ratio is too high, or the borrower needs FHA for other reasons.

    Single Premium PMI:  Single premium PMI is where a borrower is charged one amount up-front and because of this, does not have to pay monthly PMI which makes the mortgage payment lower but up-front costs higher.  There are several ways a borrower can pay the single premium PMI and they are:

    Borrower Paid Single Premium Paid:  The borrower pays the PMI at closing in cash or on a refinance, it could be included in the loan amount.  Lender Paid Single Premium:  We can show how the interest rate could be slightly increased so that we are able to give a credit to the borrower to pay all or part of the single premium PMI.  Financed Single Premium PMI:  This option is where the borrower can finance part or all of the single premium PMI on top of the loan like FHA except there is a limit of 90% on a primary residence.  For instance, if the borrower is putting down 10% of the sales price and if the single premium PMI is 2%, then we may be able to add the 2% on top of the base loan.  This lowers the amount that the borrower has to pay out of pocket when using this version of PMI.

    So there are several PMI options often available to buyers but when you are considering a Fannie Mae or Freddie Mac loan, it does help a lot to have higher credit scores and lower debt to income ratios.  We have several PMI companies at our disposal to give our borrowers the best options for financing loans with little to no down payment. 

    - See more at: http://www.teammovemortgage.com
  • HARP Fannie Mae & Freddie Mac Date Changes

    Posted Under: Financing in Myrtle Beach  |  October 27, 2013 8:51 AM  |  424 views  |  No comments

    Fannie Mae & Freddie Mac just recently announced that they have revised the eligibility date for mortgages eligible for a HARP refinance.  The change is that the eligibility date is now the note date of the Fannie Mae or Freddie Mac mortgage needs to be dated on or before May 31, 2009.  The prior rule was that Fannie Mae or Freddie Mac had to have acquired the loan prior to May 31 2009.  This will allow some borrowers that barely missed out before on the HARP refinance through Fannie Mae or Freddie Mac.  This will also make it easier for borrowers to know if their date of the mortgage is eligible as the borrowers can just look at their promissory note rather than finding out when Fannie Mae or Freddie Mac acquired the mortgage.  Fannie Mae's automated system will be updated the weekend of November 16, 2013 to recognize these new eligible loans.  Freddie Mac's system will be able to recognize the new eligible loans by October 27, 2013.

    HARP is a great program to help borrowers refinance their mortgage even though there may be very little or no equity in the property as long as the borrowers qualify on their credit, income, and other guidelines.

    Contact us with questions on a HARP refinance.

  • USDA Extends “Future Eligible Areas” map to take place January 15, 2014

    Posted Under: Market Conditions in Wilmington, Home Buying in Wilmington, Financing in Wilmington  |  October 26, 2013 2:01 PM  |  618 views  |  No comments
    Changes to the eligible areas map based on 2010 Census data scheduled to take effect Oct. 1, have been changed by passage of the Continuing Appropriations Act, 2014. The new implementation date, barring Congressional action, will be Jan, 15 2014.
    Click above then select "Future Eligible Areas" on the left menu to see the changes scheduled for Jan, 15, 2014. NOTE: Complete applications received before Jan, 15 2014, will continue to use rural area definitions based on 2000 Census data.

    This is good news for buyers and sellers in areas that could change so hopefully more people can take advantage of this delay and get great USDA financing.  Keep in mind that there will be a wait because USDA is quite behind in reviewing files.

    If you have any questions on USDA financing, please let me know.
  • Lumberon, NC Poorest City in America? No Way!

    Posted Under: General Area in Lumberton, Quality of Life in Lumberton, Moving in Lumberton  |  October 11, 2013 3:09 PM  |  459 views  |  No comments

    Lumberton, NC has been falsely shown as the poorest city in America by several publications running with an article prepared by Credit.com’s Christine DiGangi before checking her figures.  For instance, WBTW News 13 is quoted as saying “Numbers gathered by Credit.com show that Lumberton is the  poorest city in the nation.  The website shows that the city has a population of 135,517 and an average household income of $28,293; this is much lower than the national average of $51,371.”  The error in the original article as well as subsequent re-prints is that the numbers are skewed because the city population of Lumberton is 21,542 (based on the 2010 census) rather than 135,517 and the estimated median household income is reported as $32,969 per www.city-data.com rather than the $28,293 mentioned in the article.  If you read some of the comments about the other cities mentioned in the article, there seem to be other population discrepancies as well.

     

    Something one needs to think about is that $28,293 per year in a larger city of 135,517 is a very low median income because the cost of living is much higher generally in a city of that size.  But in a smaller town such as Lumberton, the cost of living is much lower and a median income of $32,969 will go further. 

     

    Now that we are past the negatives and the corrections, let’s talk about the positives of living in Lumberton, NC and Robeson County.  For a rural town, Lumberton offers so much more than most similar sized towns including top college education at the University of NC at Pembroke, new job creation with business and healthcare expansion mentioned below, entertainment centers like the Givens Performing Arts Center and Carolina Civic Center, lots of dining options, and much more.  A few interesting articles about expansion and job creation are below for you to read:

     

    New Job Creation Coming to the Area:

     

    Healthcare New Era Expansion:

     

    I hope you find this article helpful. Remember not everything on the internet is not true.
  • Here is how a Veteran can have two VA mortgages at once

    Posted Under: Home Buying in Fayetteville, Financing in Fayetteville, Military Movers in Fayetteville  |  October 8, 2013 5:25 AM  |  468 views  |  No comments

    Veterans Can Have Two VA Mortgages At Once!

    Most think that a buyer can only have one VA loan at a time, but in certain circumstances a buyer can have two VA mortgages at once!! It is called the "2nd Tier Entitlement"

    ï‚· 100% financing available through the new VA loan

    ï‚· Can rent out other home and relocate to another home using a VA loan

     Need a good explanation letter from the Veteran detailing an acceptable reason to 
    VA of why they need to purchase another home

    ï‚· Not intended for purchasing another home in the same neighborhood or city generally

    Example how to calculate the 2nd tier entitlement for a new purchase:

    Eligible Veterans have a primary entitlement of $36,000 and an additional, secondary entitlement of $68,250.

    Example: Assuming a $417,000 county loan limit & $36,000 entitlement already used because of current outstanding VA loan, the example below shows how the Veteran can purchase using a mortgage between $144,000 and $273,000.

    Calculations:

    $417,000 x 25% = $104,250 Maximum Guaranty

    $104,250 - $36,000 = $68,250 Entitlement Available

    $68,250 x 4 = $273,000 Maximum Loan Amount With No Down Payment

    So this Veteran may borrow up to $273,000 to purchase a new home but the new loan must be at least $144,000 to access the 2nd tier also

    RUSSELL SMITH

    128 JEFFERSON STREET

    WHITEVILLE, NORTH CAROLINA

    910-914-0655 / FAX 910-914-0255

    RSMITH@MORTGAGES.RCBNA.COM

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