All Borrowers Aren't Made From the Same Mold.
And Neither Are All Home Loans.

New Home Purchases for new home Buyers/Borrowers, should not be a mystery or a frightening experience for you..... the soon to be homeowner.  More importantly, it should not be a pain in the you know what.

Below are several brief statements about your possible solutions and options available to those of you shopping for a new home.  Hundreds of home financing programs exist and these are the main loan programs that offer you the best and easiest incentives for taking your next step into a new home, such as:

• Avoiding Mortgage Insurance
• BUYERS WITH LITTLE CASH
• Quick Up-front Approval
• Do you have a late payment here and there?, Lots of bills?, Difficulty documenting income?, Self-employed?
• Many loans with REDUCED documentation/paperwork

Avoid Mortgage Insurance 
Even when you have less than 20% down payment!!!!!
You shouldn't have to pay mortgage insurance.

A 2nd mortgage behind a first mortgage not only eliminates the need for mortgage insurance (which is not tax deductible) but frequently results in a lower payment.  No Mortgage Insurance + Lower Payment + more deductible interest = Happy Homeowners!

There are many possibilities. 
We offer many loan options for our clients who have little or no cash for a down payment and closing costs, including:

• Combined loan amounts to $500,000.
• The 103% program, where up to 3% of closing costs can be financed.
• Seller contributions ok.

BUYERS WITH LITTLE CASH?
NO PROBLEM!
MTG Brokers has found lenders that can remove yet another barrier to home ownership, .......The down payment.

Little cash no longer prevents wishers from being buyers.
We have products that can turn home lookers.....into home buyers!

0% down
Check out our Zero Down Payment program:

• No down payment
• Buyers can even finance closing costs up to 3%
• Loan amounts up to $410,000
• $422,300 when up to 3% closing costs are financed.
• No maximum income restrictions!
• Any Amount You Choose 5%, 3%, ????? Your Choice

You can even get a Quick Up-front Approval today!

Situation:.....Eager Buyer(s)
We found you the perfect home and You want a fixed rate and a low payment.
Answer: The Interest Only Loan!

• Easier qualifying
• Lower payment
• Comfort of a fixed rate
• Happy home buyer
  

Do you have a late payment here and there?, Lots of bills?, Difficulty documenting income?, Self-employed?
None of these circumstances need to keep you from getting into the home of your dreams.
We offer an outstanding selection of competitively-priced mortgage programs tailored to overcome the obstacles others may put in the way – and get your sale closed fast!

“A” PAPER RATES FOR B/C BORROWERS
Would you be interested in a fixed rate loan that could reduce in rate by .375% each year for four years? (Up to 1.50% total rate reduction!)

• 15- or 30-year fixed-rate loan
• Four one-year eligibility periods
• Rate is reduced by 0.375% each period when borrower makes 12 consecutive on-time payments
• All risk grades and income documentation types
  

AND for those who have less than perfect credit.....
Expanded Approval is NOW Better (if homeowner makes the required number of consecutive on-time payments).

Traditionally that has meant you would need a B/C loan.
But maybe not!

The Expanded Approval line of products could be just what you need.

• Lower rates than B/C
• No down payment available
• No pre-payment penalties
• Option available to reduce rate even further

Expanded Approval is so popular it could be called the "deal maker" you need!

REDUCED paperwork, CLOSE the deal faster than ever before!
With your good credit, you can take advantage of a variety of low-doc loan programs, including:

• No Income/No Asset – up to 95% LTV.
• Stated Income/Stated Asset – loan amounts up to $650,000.
• Reduced Doc – Salaried borrowers ok.
• No Ratio – 620 credit score gets you in Perfect for commissioned, self-employed, or retired home buyers, the no-and low-doc programs can help you seal your deal! 
• Excellent Credit = A Fast & Easy Home Loan Process!
• How do you make a good loan great?
• Make it a Fast and Easy Streamline Loan.
• Streamlined processing for the most highly qualified home buyers equals our best rates.
• As little as 5% down
• Fixed and ARM programs available
• 15 and 30 year terms

Many loans with lower documentation cost more.....These don’t. Call us.

Important home financing facts
You should know about New Realestate Purchases
Lending rules dictate the loan structure.  Whether buying your first home, upgrading your primary residence to a larger house, purchasing a second home, a vacation home, or even purchasing  investment property. 

There are, exceptions to all requirements based on individual situations and circumstances.  Below are the key factors involved with your home financing approval process and typical lender guidelines used by loan officers (in-bank loan officers or by mortgage brokers and their loan officers) in qualifying home borrowers.

Lenders vary in allowable debt to income ratio limits (typically 41% give or take). To calculate your debt ratio: Debt divided Income.

Lenders will also consider "Mortgage Payment Shock" (term varies among industry professions).  This is when the borrower's monthly housing expense increases significantly (payment difference from Renting to Owning).  Lenders vary from 50 - 90%.  To calculate: multiply current rental payment by 1.7 (typically 70% is the maximum allowable housing expense increase).

i.e.. Multiply your current rent (lets say $800 a month) by 1.7
$800 x 1.7 = $1,360  Therefore your budget won't be in a state of shock when your new mortgage payment is $560 higher than you are accustomed to. 

Borrowers with cash reserves combined with exceptional high credit scores, are often allowed housing payment increases at 70 - 90%.  If you are living from paycheck to paycheck as with most of us......be safe....and also use 1.5 and evaluate your overall financial position as if you already had a mortgage commitment of $1,360. 

Lenders are primarily concerned with the following
(in determining your allowable loan amount and interest rate)

• Property (type, location, value etc...)
• Borrower (credit, assets, income, etc...)
• Loan Type (FHA, VA, Conventional (95% Investor Loans,100% Financing, Balloons, ARM's, Combo's etc...), Non Conventional (B/C Borrowers, Jumbo Loans, No Income verification loans....)
• Downpayment (amount you can or will pay if any, or amounts seller or broker may contribute, and amounts financed by lender if applicable)

Property concerns of the lender include: type, location, value, title, appraisal (fair market value), etc...  Type of property is important because it not only determines loan amount, it influences loan program options available to the borrowers.

Property Types include, Single Family Residence, Multifamily Residence (duplex and fourplex), Condo (attached or unattached), Townhouse, commercial, investment property, secondary or vacation home, etc...

Specific Borrower concerns of the lender include: (1)credit, (2)assets, and (3)income.  The lender reviews these items to determine which loan programs the borrower qualifies for.  Mortgage brokers have multiple lenders with hundreds of mortgage loan programs to meet diverse borrower situations for approval with poor and bad credit borrowers as noted earlier.

(1) The borrowers past 2 years of credit history will have the greatest impact on loan acceptance.  The following items are subject to individual evaluation, no matter how high the credit score:

• Lenders prefer no reported mortgage late payments over 30 days on rent or mortgages within the last 2 years (some 1 year, pending initial loan type), and no late payments in past 6 months on credit cards. 
• Bankruptcy, Foreclosure, Deed-in-Lieu, Short Sale, Judgments, Collections, and Charge-Offs.  Any bankruptcy within the last 3 years must be discharged, and credit counseling is regarded as a chapter 13). 
• Federal indebtedness (child support, student loans, etc...).  Student loans must be current (can be paid off within a refinance loan or 2nd mortgage).  Child support will not be reported to the credit repositories/bureaus unless payments are delinquent.  Child support must be paid in full prior to home loan origination and  "Family Support Registry" verifying that the borrowers child support account is paid in full.

Credit issues over 3 years old are generally acceptable if recent history shows credit worthiness (meaning the borrower has shown noticeable EFFORT to resolve issues and make timely payments to creditors). 

Nontraditional credit reports may be an acceptable reference source when evaluating risk.  Nontraditional credit reports are often used for first time home buyers with no previous mortgage credit score.  These include utility credit reports (phone, electric/gas, water).   Subscriber services reports (Satellite, cable tv, internet service providers, magazine subscriptions etc...).  Other lender credit inquiries may be required, such as rental history verifications.
 

Please see our Credit section for a better understanding of Credit (simplified),
found on our Information page.
 

(2) Lenders will generally look for a 2 year work history in your current job field for employable stability.  The better the borrowers overall appearance....the easier it is to qualify; increasing number of loan programs available; and higher loan values. 

There are exceptions to all rules, including having an education in the field you are employed in, service on active duty military or changing job fields for an increase in pay. 

Income is the most obviously factor in determining borrower ability to make payments.  Additional verifiable income will assist in qualifying for larger loan amounts.  Use spouses income, part time employment, overtime, bonus income, commissions, rental property income, and self employment as long as a 2 year average can be established.  

(3) Assets can make or break a loan in many instances.  The more assets the borrower has, the easier to qualify.  Typically, borrows have $20,000 in home furnishings that are considered an asset (be sure to add it to your application).  Retirement plans, 401K's, stocks and bonds, specialty tools, collectibles, antiques, automobiles, other land (cemetery plots, cabin, land, rental and investment property etc...), leave nothing out.