Veterans, do you know about the benefits of buying a home with a VA loan? For example, you can purchase a home without any money down while mortgage insurance isn’t required. Your interest rate will also be lower as well compare to other loan programs. While this loan gives you the jump start on home financing, when you make an offer on your dream home it will be a bit trickier and more difficult than you expect since they work a bit differently than conventional loans. However, here are some ways to make the process smoother give you the leg up you deserve.

1. Take a closer, detailed look on older homes – When you are buying with a VA loan, the home has to be approved by an appraiser no matter what. Unfortunately, the VA’s standers are a bit stricter than the standards for other home buyers on the market. The VA standards want to find you a good home that is in good contention. Because of this, many veterans tend to step away from historic homes. However, as long if the older house is in good, safe condition, an older house could pass for a VA loans. Avoid HUD and short sale properties because they may have been damaged or fallen into disrepair. However, if your heart is set on an older home, look for one that’s already been remodeled.
2. Work our repair requests with the seller – You should look out for potential problems on the home, even if it’s a newer home. If the home needs minor repair, the seller does not have to make the repair. The seller could walk away and find someone else who would buy the house as is. And with a VA loan, the lender will not loan you the money to buy the house unless the repairs are made. For this reason, this is why when you choose a realtor to buy a home, make sure they understand the VA loan process. The buyer’s realtor can then explain to the listing agent what’s going on, and 9 out of 10 times the seller will get the repairs done. If that doesn’t work, then the buyer can also look to pay for the repairs themselves.
3. Analysis of the market before you make an offer – Making an offer at a fair price is the key to getting the home of your dreams. However, what is fair? If you find a home you love, do you lowball your price and hope the seller approves instead of walk away or do you offer more than the VA is willing to approve and you need to come up with the cash to cover the home? So before you get into that scenario, do some homework of the area. Sometimes, older homes asking price are based on new homes that are being built a couple of miles away, which means the home that was built in the 1980’s are at the same price as a home that was built this year, and the appraiser might not agree with that price. The key to finding the “fair” price? Have your Realtor run a market analysis on homes that were recently sold in your area. If the asking price looks good to both the seller and appraiser’s evaluation, you will have an easier time to getting accepted and approved for the VA loan.
4. Take a step back and think about the demands you are making to the seller – Sellers might believe in the myths about VA loans. They might hear that it takes a long time to close or that the seller will not make a profit. Although they are not true, VA buyers are still getting a bad image in general for the sellers. You should try to make your offer shine, especially if the market is competitive and the seller is having multiple offers. So for that reason, you might want to take a chill pill on your demands. For example, closing costs. It’s not uncommon for the buyer not to have enough cash to cover the closing costs and for the buyer to ask the seller to cover some of the costs. However, being in a competitive market, it will make you look bad especially with those myths floating around out there. If you are in that situation with a VA loan, try to put yourself in their shoes. Ask your realtor on how to word it to make it more appealing to the seller like they are getting something for free. However, if you do roll your closing costs in your loan, keep in mind the home will also need to appraise for the higher amount as well.
5. Be creative and make you stand out above everyone else – Again, if you are in a competitive market, you should find ways to make yourself stand out above anyone else. For example, you can write a “love letter” to the seller telling them what you like about the house, why you are moving, etc. Sometimes the sellers are sentimental and they want to see their home go to someone else who will love the home as much as they did. Even if that doesn’t work, you know yourself you did everything you could to buy the house that will not only be accepted by the seller but also the VA loan as well too.

Veterans, do you have any other tips of the trade to buy the home of your dream? Let us know!

Everyone tells you one of the most major purchases you can make in your life time is your own home. However you hear what everyone says about the process and that makes you anxious! The “what if” or “Is it right” questions pop up in your head and it can make you spooked out about the process. So don’t worry! Put away the Xanax or Klonopin and let’s debunk some of the most common fears you might have on your home purchase.

“I’m afraid I can’t afford a home!” – Some buyers are afraid they are stuck in a black hole of major debt and their savings account will be drained where they couldn’t afford vacations and nice things and their food diet will be your typical ramen noodles you ate during college. Here is the reality: depending on what and where you are buying a home, most likely you will not be draining your savings account. With today loan programs that are offered to us, they could help first time home buyers with down payment assistance or some programs don’t require your arm, leg, and your first born in order to obtain a mortgage. The best way to see if you are financially ready to buy a home yet is by talking to your loan officer. They are trained to help you and see how much you can afford. Or you can also use our mortgage calculator to get a general idea of how much you will be paying or be able to afford.

“I change my mind more than I change my socks! I don’t want to buy a home I don’t like!” – Some buyers believe that their first home might be a living version of an average house in The Walking Dead – windowless, dreary, exposed piping, and hoping they won’t find severed limbs or random body parts lying around or the undead trying to eat you. However, interest rates are so low that homeowners can snag a great deal on a gorgeous home like The Simpsons’ house and pay less over the course of the loan. Keep in mind that with the economy being in a downturn, there are wonderful properties that are being sold for less than their value.

“I’m afraid the house I want to buy will cost me more money down the line!” – The good news is that most houses on the market are not money pits even if they are issues lurking in the shadows. If there are any issues like a leaking pipe in your home, you can do plenty to protect yourself over time. In order to avoid buying a money pit, hire a good home inspector. They will be able to see any signs of water damage, electrical, and plumbing red flags that could cost you down the road. They will also be able to advise you on potential repair costs, which you can use to leverage for the sellers and lower your purchase price.

“What if I overspend on my house?” – You find a house that you have fallen in love with! You already can picture yourself cooking dinner in the kitchen, spending time with your family in the family room and waking up to your amazing master bedroom suite! But wait… the asking price is a bit over your budget! Keep in mind, the asking price is what the seller is asking for. What you could buy it for could be a different picture. Your Realtor is trained to guide you to a realistic offer you can make to the seller. A trained agent will know the price points in the areas you are targeting in and can back them up with historical data and comps. You can also search prices of homes that were recently sold in the area so you can gain a better insight before you place an offer to the seller.

“Is it safer to rent?” –  When you are renting, it means you are not trapped in one place as you are with homeownership. The truth is, when you are renting, you are not building equity over time. Now think how scary that is! Not only you are losing on building equity, but over time you could be paying around $100 more a month and miss tax deductions for homeowners. If you can picture yourself in an area over time, then it is worth buying.

Have any more doubts or fears? Call us at 973-577-7008 and let our team help put your fears to rest.

We’ve been saying a lot that mortgage rates. You might think it’s a gimmick and we are pulling your arm. However, if you look at the past 100 years, you can see it’s actually true!

Around 1930’s, mortgages were starting to take off in America. When they first started, most mortgages required buyers to make a down payment of 50% or more! That’s a bit more than what we are used to now! Not only that, but instead of a 15 or 30 year loan, your loan term could be from 5 to 7 years!

Once the Great Depression hit us, the Federal Housing Administration (FHA) created a new program to significantly decrease the down payments and lengthen the loan terms. They also provided a guarantee to banks just in case of default. With the help of the Federal Housing Administration, more people were able to purchase homes and it gave lenders and incentive to offer more loans.

Your interest rate during the Great Depression was close to 6%, however, they decrease when we entered the 1940’s. World War II decreased the production of consumer’s goods and housing. With most able-bodied men being away fighting the war, there was a low demand for new homes. Not only that, the supplies to build the homes not available for homes as well. If you were able to buy a home during World War II, your interest rate was less than 5%. Once the war ended, soldiers came home and started purchasing homes to raise their new families in. Thanks to the Veterans Administration, soldiers were able to obtain a mortgage at a low rate with no down payment. Because of that, mortgages were becoming more popular and slowly the interest rate started to steadily increase over the next several decades.

In 1973, the Arab oil embargo began which demised the oil supply and started to strain the economy. Because of political issues, the Organization of Arab Petroleum Exporting Countries prohibited the US and other nations from purchasing their oil. As a result, it dragged America into a recession where the price of goods increased and the amount people can afford decreased. In order to help the high inflation, the Federal Reserve raised interest rates. This helped keep prices stable, but it also made purchasing a home more expensive. Since then, the rates have been increasing in the 70’s. By the 1980’s, interest rates were close to 17%! Eventually, the economy bounced back and America started to experience sustained economic growth. Because of that, interest rates started to decrease.

Because of the lower interest rates, there was an increased demand for homes. As a demand, lenders created a program that allowed buyers with riskier credit and lower income to purchase homes.  Because of that, some people could not handle the increases in taxes or insurance payments which would leave their homes into foreclosure, which resulted in the Housing Marketing Crash of 2007. Because of that, interest rates were decreased further.

Nine years later, United Kingdom decided to leave the European Union. Because of Brexit, stock market started to take a major hit. Investors began moving their money from the stock market to safer investments, most notably mortgage-backed securities. They are considered less risky than the stock market, but they do not offer as much interest to the investors. More money were starting to be invested into these securities, which means they have a larger supply of money they can lend to you, which also caused the interest rates to go down.

Looking back, you can see the ups and downs of mortgage interest rates. Now you can see that this is not talk; mortgage rates are at a historic low percentage now! As you can see, interest rates, like the economy, goes up and down. However, there is no crystal ball on the rates and we can never see or be certain when it will change and how much it will change. However, if we learned from the past, we have learned that mortgage interest rates will not be this low forever. They’re bound to increase in the future again.

To find out how much rates are today, feel free to call us at (973) 577-7008.

Mortgages Loans For Teachers

An activist for education by the name of Malala Yousafzai once said “One book, one pen, one child, and one teacher can change the world.” A teacher’s basic job definition is to instruct other individuals in any subject matter that’s given. However, we’ve noticed a lot of teachers that constantly go above and beyond the basic definition and make their students inspired. We should be honoring our teachers every day, but today, May 9^th, we would like to applaud all of the teachers out there who are making a difference to our youth and others on Teacher’s Appreciation Day.

One of the ways we would like to tip our hats to our educators is by offering a special loan program we would like to call Mortgages for Champions. With Mortgages for Champions, current and retired teachers with verification of past employment can take advantage of saving some money on their closing costs when they apply for a mortgage with us. This program doesn’t require teachers to pay certain closing fees like the loan application fee and mortgage underwriting fee when they want to purchase or refinance their homes*. That’s a lot of money that can be saved in the closing process.

We offer special programs for anyone who’s a first time home buyer, even the second timer buyer! We offer financing for those who are looking to purchase a single family home, a two to four family union, a condominium, a manufactured home, or mixed usage commercial properties like the stores with apartments above them. We also offer a 203K streamline loan to help growing families expand their home with more bedrooms or update their bathrooms. However, if the individual is satisfied with their location and home, but are looking on ways to save more money on their mortgage, they can take a look at refinancing their current home for up to a 97.75% loan to value of the appraised value of the home. Or, if cash money is needed, the borrower can take up to an 85% loan to value with our cash-out refinance program.

There are many reasons why anyone should thank a teacher daily. Not only our teachers should get the recognition, but our school guidance counselors, librarians, tutors, nurses, and athletic directors should be recognized as well.  Residential Home Funding wants to extend their thanks and gratitude to all those individuals who go out there every day to make a difference. Thank you!

*Minimum credit scores and maximum loan limits apply. Not all applicants qualify. RHF is an Equal Housing Lender. Certain products are not available in all states. Credit and collateral are subject to approval. This is not a commitment to lend. Program, rates, terms and conditions apply. Lender application, commitment, processing and underwriting fees waived. Borrower pays 3rd party fees including, but not limited to, title, appraisal and any points.  Licensed Mortgage Banker: NMLS# 34973

To become a firefighter, paid or volunteer, it takes a special kind of person to undergo countless number of hours training and education for one common goal: to help and protect your local cities and neighborhoods. Once one becomes a certified firefighter, they are always on alert 24/7 to respond to a local call and to save the neighborhood.

Residential Home Funding understands that it can be difficult and tough responding to calls all the time and try to save others while being safe yourself. Because of the selfless acts you perform on a daily basis, we’ve created the Mortgages for Champions program for brave firefighters just like you. With the Mortgages for Champions program, firefighters and their immediate families who are looking to purchase or refinance their home can save money on their closing costs. Some of the closing costs fees will be waved like underwriting and processing fees. You yourself will only be responsible for any type of 3^rd party closing costs like the title and the appraisal.

We have special programs for anyone who is a first time, even second time, buyers that require little to no down payments. If you want to expand your current residency to fit your growing family needs, we have a special 203k loan to help you extend your residency. Plus we are here to help guide you if you are looking to purchase a single family house, multiple family unit property (up to four families), condominiums, manufactured homes, or properties that have mixed usages like stores with apartments attached to them. However, if you are happy where you are currently, but you to take advantage of the low interest rates that are being offered today on mortgages, you can refinance up to 97.375% loan to value or consider a cash-out refinance for up to 85% of the loan.

So firefighters, wouldn’t you like to know you are in good hands when it comes to your housing situation for you and your family? You guys might be the experts when it comes to us, but when it comes time to take care of your housing needs, why not trust the housing experts like us to take care of you the same way you take care of us?

For more information, or if you have any questions, pick up the phone and give us a call at (888) 886-5829.

Minimum credit scores and maximum loan limits apply. Not all applicants qualify. RHF is an Equal Housing Lender. Certain products are not available in all states. Credit and collateral are subject to approval. This is not a commitment to lend. Program, rates, terms and conditions apply. Lender application, commitment, processing and underwriting fees waived. Borrower pays 3rd party fees including, but not limited to, title, appraisal and any points.  Licensed Mortgage Banker: NMLS# 34973

Mortgage rates are at an all-time low and with the availability of low- and no-down payment loans, it’s no wonder why it’s easy to be a homeowner! Due to this, it is a seller’s market. However, a prepared buyer will most likely get the house, especially of the seller requests a “quick closing”. If you are able to close on a home in 45 days or less, you can improve your chances of getting your new home. And if you are able to close in 30 days or less, you will REALLY increase your chances of owning your new home. Closing on a home in 30 days or less is possible, but you MUST be prepared.  If you want to close quickly, follow these simple tips.

1. Paperwork: When you are buying a home, the longest part of the transaction that can affect your closing date is the documentation requests your mortgage lender asks for and how fast you respond to them. If you want, ask your mortgage loan originator ahead of time what paperwork they will need and have them ready.  Most of the paperwork mortgage lenders will ask for can take as little as 30 minutes. However, there are times where it can take up to two weeks or more. It depends on the paperwork that is being requested. Most common paperwork includes W-2 statements and federal tax returns from the last 2 years, your last 2 recent pay stubs, and your last two bank statements. Also have a copy of your driver’s license and know the social security number for yourself and anyone else who will be on the loan with you. Also, if you have a unique credit situation like foreclosure, child support, alimony payments, or gift funds from a friend or relative, have that relative documentation ready. Gathering the right paperwork will be the most time-consuming step in a mortgage approval process. Also, most documentation can be scanned and sent to them. Consider scanning them and having them ready for you to send out in advance.
2. DON’T keep secrets from your mortgage loan originator: You need to be honest with your mortgage loan originator; even if you are worried it will harm your approval. Why? One, if you are withholding information from your mortgage application, your application could be constituted as loan fraud, which is worse than not getting your home loan approved. Two, your mortgage loan originator will typically uncover what you are trying to “hide” anyways. Part of the mortgage approval process is:
   1. A credit check is performed. This check will list your creditors, debts, and judgments.
   2. An occupancy test is performed by the underwriter to determine if you live where you really say you do.
   3. An employment check is done to verify your job status and income.

Public records are also scoured too if the above checks fail to include information the lender would need as a part of your approval. With the above information, if the underwriter uncovers inconsistencies between your application and the data gathered, they will ask you to explain the discrepancy in details or else your loan will be denied.

Your lender will uncover whatever information you elect to withhold – so make sure you share everything!

3. Use Pre-Approvals to speed closing time: Mortgage pre-approvals are the most under-used tools to speed a purchase closing. If you have a pre-approval already in hand as of the date of the offer, it can reduce your loan closing time by one week or more! Pre-approvals are “dry runs”; approvals based on an expected set of loan criteria which will eventually go to closing. During the pre-approval process, your mortgage loan originator will take a complete loan application that includes income and asset verification, and they will account find the perfect loan for your credit score and if you need a co-signer or not. The only thing missing from a pre-approval is the physical property address of the home that is being purchased. To replace the lack of the address, your originator will use dummy information based on probable loan data that includes purchase prices, sample real estate tax bills common for the area, and a sample of homeowners insurance policies and/or homeowners association assessments, where applicable.

When the loan is pre-approved, you can move immediately from “writing the contract” to “underwriting the loan”.

If you are ready to take the first step of owning your home, check our web site or contact us at 973-577-7008.

Why Do Millennials Love VA Loans?

As discussed beforehand, millennials are currently dominating the home buyer’s market, and here’s how! When many millennials finish their service in the military, they start to enter the workforce. Since many millennials are getting a head start on their career, it’s no wonder why most would want to start settling down and buy their first home. Anyone, from millennial to a different generation, who’s still active or are retired in the military are qualified for a special loan program called the VA loan, a home loan that is guaranteed by the U.S. Veterans Administration.  And with these benefits, it’s no wonder why today’s millennials choose the VA program, especially the one offered by Mortgages for Champions:

• No down payment required – Most loans that are on the market require a minimum of 3.5% down payment or more, depending on the borrower’s situation of credit and income. VA loans are one of the few programs that are being offered that requires no down payment to start with. In 2016, the average VA loan amount was for $253,000. If the veteran applied for an FHA loan instead of a VA loan, they would be required to put down a minimum of $8,855, the 3.5% required, as a down payment if they want an FHA loan.
• No mortgage insurance – If a borrower puts down less than 20% of the purchase price, the borrower will be responsible for another monthly fee called mortgage insurance. Depending on the loan and the amount, mortgage insurance can add an additional $100 and up to your monthly payment. However, any active or retired military personnel and their immediate family members are not required to pay mortgage insurance if their down payment is less than 20% or they didn’t put one down to start with.
• Credit guidelines that are more flexible – The U.S. Veterans Administration has one goal in general: to help any military personnel achieve home ownership. Because of this, their underwriting guidelines are more far more flexible and forgiving to those with a not-so-perfect credit score. The average credit score of a VA borrower was 50 points lower than the average credit score of someone who applied for a conventional loan. And despite the flexibility in credit scores, VA loans have the lowest foreclosure rate on the market for most of the past couple of years. The VA’s committed to help veterans obtain and keep their homes.
• No bank closing costs – There are multiple types of closing costs that are involved when someone obtains and closes on a mortgage. With Mortgages for Champions, we will drop the application fees, loan processing fees, mortgage underwriting fees, mortgage commitment fees, and associated commitment points. Any closing fees one are responsible for, mainly 3^rd party fees, can be rolled into their loan to help.

While the workforce continues to grow and targeting the age range of 25 to 34 years old, it’s no wonder why millennials in general want to settle down sooner.  With the help of VA loans, millennials who go from active duty to the workforce can start settling down and create a stable living situation for them and their families with little to no money to start the process. Active and retired personnel can now worry less about down payments and closing costs that are needed up front and worry more about more important issues like where do they want to live? For more information on the VA loan benefits and how it can help out millennials, give us a call at 1-888-763-3500.

Check out our video on VA loans here:

What is a VA Loan?

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Minimum credit scores and maximum loan limits apply. Not all applicants qualify. RHF is an Equal Housing Lender. Certain products are not available in all states. Credit and collateral are subject to approval. This is not a commitment to lend. Program, rates, terms and conditions apply. Lender application, commitment, processing and underwriting fees waived. Borrower pays 3rd party fees including, but not limited to, title, appraisal and any points.  Licensed Mortgage Banker: NMLS# 34973