Elite Mortgage

USDA Mortgages vs FHA: Which is Better For First Time Home Buyers ?

Is your rent sky high? Have you been thinking about purchasing a home but have no money for down payment? Ask about our 100% financing for home purchase. Let us do the loan shopping for you! We work with over 50+ wholesale lenders and will shop for the right loan with the lowest closing cost guaranteed ! ** Stay Tuned** We're going nationwide and will be lending in 48 states in a couple of months !!

Is your rent sky high? Can't put down 10% or 20% down payment on a home? Ask about our 100% financing & zero down payment program. 5 minutes of your time will find out if you qualify. ... You're only one decision away from homeownership. Contact [email protected] for more info.

You're invited to our Home Buyer Seminar. Find out if you qualify for Down Payment Assistance program and learn the secrets of getting the best home and best loans ! We have a lender that can pre-approve with scores as low as 550 ! Email chi.tran@elitemortgage-ca-com to RSVP.

Why Do I Need Mortgage Insurance? Mortgage Insurance, sometimes referred to as Private Mortgage Insurance, is required by lenders on conventional home loans if the borrower is financing more than 80% Loan-To-Value. According to Wikipedia:... Private Mortgage Insurance (PMI) is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. PMI isn’t necessarily a bad thing since it allows borrowers to purchase a property by qualifying for conventional financing with a lower down payment. Private Mortgage Insurance (PMI) simply protects your lender against non-payment should you default on your loan. It’s important to understand that the primary and only real purpose for mortgage insurance is to protect your lendernot you. As the buyer of this coverage, you’re paying the premiums so that your lender is protected. PMI is often required by lenders due to the higher level of default risk that’s associated with low down payment loans. Consequently, its sole and only benefit to you is a lower down payment mortgage Private Mortgage Insurance and Mortgage Protection Insurance Private mortgage insurance and mortgage protection insurance are often confused. Though they sound similar, they’re two totally different types of insurance products that should never be construed as substitutes for each other. Mortgage protection insurance is essentially a life insurance policy designed to pay off your mortgage in the event of your death. Private mortgage insurance protects your lender, allowing you to finance a home with a smaller down-payment. Automatic Termination Thanks to The Homeowner’s Protection Act (HPA) of 1998, borrowers have the right to request private mortgage insurance cancellation when they reach a 20 percent equity in their mortgage. What’s more, lenders are required to automatically cancel PMI coverage when a 78 percent Loan-to-Value is reached. Some exceptions to these provisions, such as liens on property or not keeping up with payments, may require further PMI coverage. Also, in many instances your PMI premium is often tax deductible in a similar fashion as the interest paid each year on your mortgage is tax deductible. Please, check with a tax expert to learn your tax options.

Jumbo Mortgage Financing A Jumbo, or non-conforming loan, is required for financing on a mortgage that is higher than the conforming loan limits set by Fannie Mae and Freddie Mac. According to Wikipedia:...Continue reading

Conventional Home Loans Most lenders would consider a conventional mortgage as a loan that conforms to the guidelines set forth by Freddie Macand Fannie Mae, the two government sponsored enterprises (GSEs) that provide liquidity in the mortgage market. Technically speaking, a conventional loan is any mortgage that is not guaranteed or insured by the US government, such as VA, FHA and USDA....Continue reading

FHA Mortgage Loans The FHA’s mission driven organization encourages home ownership and provides affordable housing opportunities with low down payment and flexible credit requirements. Since 1934, the FHA has insured millions of home mortgages with a market share of 30% in 2010 vs 3% in 2007. In 2009, FHA programs insured nearly 2 million loans, which included 750,000 first-time home buyers....Continue reading

FHA 203K Rehab Mortgage Loans Have you found that almost perfect home in the right location that is selling at a reduced price because it needs a little rehab work? Unfortunately, most mortgage loan programs require homes in need of work to be complete before the financing can be secured for the purchase transaction. Whether the property needs a little or a lot of work, most First-Time Home Buyers simply don’t have the up-front cash to invest in a property prior to actual...Continue reading

Top Five Market Factors That Influence Mortgage Rates Timing the market for the best possible opportunity to lock a mortgage rate on a new loan is certainly a challenge, even for the professionals. While there are several generic interest rate trend indicators online, the difference between what’s advertised and actually attainable can be influenced at any given moment by at least 50 different variables in the market, and with each individual loan approval scenario. Outside o...Continue reading

How Do Mortgage Rates Move When The Fed Lowers Rates? Lower mortgage rates is a common misconception that is perpetuated by the mainstream media when the Fed makes an announcement of lowering rates. However, when the Fed cuts interest rates, mortgage rates can actually increase. Fed 101:...Continue reading

Good news with Brexit... Mortgage rates will stay low.

Understanding Mortgage Closing Costs In addition to the basic mortgage underwriting, processing and origination fees that are charged by a lender, there are several other costs associated with purchasing a new property. Since every player on your real estate home buying team has a stake in your transaction, it’s a good idea to know how to budget for their services....Continue reading

Reverse Mortgage Senior Loans According To Wikipedia: A reverse mortgage is a loan available to seniors, and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner’s obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care).... In a conventional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases within his or her property, and typically after the end of the term (e.g.,30 years) the mortgage has been paid in full and the property is released from the lender. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debt on the property increases each month. Reverse Mortgage Highlights: Must be at least 62 years old House must be primary residence Mortgage must be either fully paid or have a small balance No income or credit score requirements Payment can be a lump-sum, monthly cash payout, line of credit held in reserve, or combination of all three In many states can use proceeds for purchase of a new home Reverse mortgages can be a good alternative for seniors struggling with monthly bills, yet sitting on a significant amount of equity in their homes. Frequently Asked Questions: Q: Can the lender take my home away if I out live the loan? No. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. Another safeguard is that the borrower will never owe more than the value of the property at the time it is sold. Q: How much money can I get from my home? The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. Q: Will I still have an estate that I can leave to my heirs? When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

Understanding VA Mortgage Loans A VA (Veterans Administration) guaranteed home loan is the preferred loan program for active, non-active, Reserve, National Guard, and retired military of the armed forces because there is no down payment needed and no private monthly mortgage insurance required. A VA home loan can be used to purchase a home or refinance an existing mortgage....Continue reading

Understanding Credit Credit is one of the most important components in the mortgage approval process. Lenders look at a borrower’s credit score, number of open accounts, payment history, type of credit borrowed and a series of other factors when determining what level of risk to assess to each lending scenario....Continue reading

Ask us about our Special Financing Programs for: 1. First Time Home Buyers 2. Self-employed Business Owners ( no tax returns needed) 3. 100% Financing for Veterans ( VA) 4. Programs for less than perfect credit borrowers ( Foreclosures, Bankruptcy & Short Sale on credit report ? >>> No Probelm !) ... **We work with over 55+ Wholesale Lenders & can shop for the best loan programs for you with the LOWEST CLOSING COST GUARANTEED ! Contact Chi at 408-425-3901 / [email protected] for additional info.