California Mortgage News

MGM Mortgage 1% Down Program.This program can make you a homeowner today!

 

Program Requirements

·         2%  Lender Paid Contribution

·         Primary Purchase Only

·         700 Min FICO

·         43% DTI Cap

·         Borrowers 1% can be a gift

·         Must meet Home Possible Advantage requirements (LP)

·         Area Medium Limits must be meet

 

Posted by George Coronado on April 26th, 2017 12:19 PM

The Unique benefits of VA Loans for veterans and active military   

Purchasing with $0 Down

Veterans, active military and surviving spouses have access to the VA Loan; a home financing option with unique money-saving benefits not found in the vast majority of other home-financing options. The flagship benefit of this program is the ability to purchase a home without the need for a down payment; however, the program also includes benefits such as:

  • No monthly mortgage insurance premiums, saving you anywhere from 0.3 percent to 1.15 percent of the entire loan amount each year.
  • No minimum credit requirements set by the VA; however, most lenders require a score of at least 620.
  • Competitively low interest rates, made available from the Department of Veterans Affairs guaranteeing a portion of each loan.
  • No penalties for paying the mortgage off early, allowing homebuyers to pay off their mortgage at a faster pace if able.


Posted in:VA loan and tagged: VA loan
Posted by George Coronado on July 20th, 2016 8:56 AM
Q: "What if I have "bad credit"?
A:"Bad credit" is a very misleading term. We've worked with many people who have described themselves as having "bad credit" but who are now homeowners. The truth is, most people do not even know their middle credit score. If you'd like to find out yours, click here. To find out your middle score, write down all three of your credit scores from lowest to highest, the one in the middle (not the lowest and not the highest) is your "middle score".
Posted in:bad credit and tagged: bad credit
Posted by George Coronado on June 15th, 2016 9:35 AM

What are the guidelines for borrowers with a previous foreclosure or deed-in-lieu of foreclosure?

For case numbers assigned on or after September 14, 2015.

A Borrower is generally not eligible for a new FHA-insured mortgage if the Borrower had a foreclosure or a deed-in-lieu of foreclosure in the three-year period prior to the date of case number assignment.

This three-year period begins on the date in which title transferred from the Borrower.

If the credit report does not indicate the date of the foreclosure or deed-in-lieu of foreclosure, the lender must obtain the Settlement Statement, deed or other legal documents evidencing the date of property transfer.

If the foreclosure or deed-in-lieu of foreclosure was the result of a circumstance beyond the Borrower’s control, the lender must obtain an explanation of the circumstance and document that the circumstance was beyond the Borrower’s control.

The Lender may grant an exception to the three-year requirement if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the Borrower, such as a serious illness or death of a wage earner, and the Borrower has re-established good credit since the foreclosure.

Divorce is not considered an extenuating circumstance, however, an exception may be granted where a Borrower’s mortgage was current at the time of the Borrower’s divorce, the ex-spouse received the property, and the mortgage was later foreclosed.

The inability to sell the property due to a job transfer or relocation to another area does not qualify as an extenuating circumstance.
Posted by George Coronado on June 8th, 2016 11:35 AM

Does FHA require collections to be paid off for a borrower to be eligible for FHA financing?


A Collection Account refers to a Borrower’s loan or debt that has been submitted to a collection agency by a creditor.  
If the credit reports used in the analysis show cumulative outstanding collection account balances of $2,000 or greater, the lender must: 
•     verify that the debt is paid in full at the time of or prior to settlement using an acceptable source of funds; 
•     verify that the Borrower has made payment arrangements with the creditor and include the monthly payment in the Borrower’s Debt-to-Income ratio (DTI); or 
•      if a payment arrangement is not available, calculate the monthly payment using 5 percent of the outstanding balance of each collection and include the monthly payment in the Borrower’s DTI.  

Collection accounts of a non-borrowing spouse in a community property state must be included in the $2,000 cumulative balance and analyzed as part of the Borrower’s ability to pay all collection accounts, unless excluded by state law.   Unless the lender uses 5 percent of the outstanding balance, the lender must provide the following documentation: 
•     evidence of payment in full, if paid prior to settlement; 
•     the payoff statement, if paid at settlement; or 
•     the payment arrangement with creditor, if not paid prior to or at settlement.  

For manually underwritten loans, the lender must determine if collection accounts were a result of: 
•     the Borrower’s disregard for financial obligations; 
•     the Borrower’s inability to manage debt; or 
•     extenuating circumstances.  

The lender must document reasons for approving a mortgage when the Borrower has any collection accounts. The Borrower must provide a letter of explanation, which is supported by documentation, for each outstanding collection account. The explanation and supporting documentation must be consistent with other credit information in the file. 
Posted by George Coronado on May 25th, 2016 11:24 AM

Why should I buy, instead of rent?

  • Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.

Posted by George Coronado on May 18th, 2016 9:57 AM
Q:  I have been looking for downpayment assistance, are there any Downpayment assistance programs available?

A: Yes, MGM Mortgage offers a DPA program which consists of a 5% Grant up to $20,850.00 to be applied to down payment and closing costs. 
Posted by George Coronado on May 11th, 2016 9:08 AM

Q. I have a low fico score, a 508 Fico score can I get approved for a mortgage loan?

A. Yes, the Fico score only tells part of the mortgage credit profile but MGM Mortgage has been successful in funding borrowers with low fico scores down to 500.

Posted in:Mortgage Loans and tagged: Low fico
Posted by George Coronado on May 4th, 2016 8:27 AM
Receive up  to  1% Percent Rebates (paid at closing through Escrow) offered to our clients that buy or sell with us. Call George Coronado for details at      800-555-6144   
Posted in:Client Incentives and tagged: rebates
Posted by George Coronado on October 14th, 2015 4:20 PM
Refinancing: Is it time?
What is it?
Refinancing is getting a new mortgage to replace the original. This is typically done to reduce monthly payments or receive a lower interest rate.

Why do it?
The most obvious reason to refinance is to obtain lower mortgage rate. With interest rates at historic lows, refinancing your home could be an advantage for many reasons. These could include wanting to change your ARM to a fixed rate, thereby stabilizing your monthly payment. Or, vice versa: you may want to switch from a costly fixed-rate or get a new ARM if interest rates start falling. Depending on your current interest rate, you might be able to lower your monthly payment. When you finance you will also be able to choose a home refinance loan for the value of your property.

There is also the cash out refinance option. This allows you to liquidate your equity by taking out a new loan on the original property larger than your initial loan.

When you want to refinance, you want to make sure there isn't any prepayment penalty with your existing mortgage first. If there is, determine if the fee is greater or less than your overall savings with your new interest rate. 

Generally the best time to refinance is if you aren't planning on moving anytime soon. Keep in mind that if you're behind on your mortgage payments, refinancing is not the way out. It will only restructure debt, not eliminate it.
Make the perfect "back to school" home office
The kids are back in school, and the relaxing days of summer are now over. With everyone's busy schedules about to pick up, it's time to reorganize your home office to stay on top of your busy life.

First step, make a plan of attack. Start by de-cluttering papers and files. Throw away things you don't need, and organize important documents and paperwork into file cabinets. The next step is to make some space. Clean out your drawers and shelves and start putting things into organized piles. Throw away things you don't use anymore, and make space for those you want to keep.

The next step is to start organizing. Make use of wall space to hang and store items you use daily. Invest in a label maker and attack your file cabinet. Your new labels will help you stay organized in the future.

Last but not least, clean up your finished product. Wipe down the counter and shelves, clean your computer screen and keyboard and vacuum are sweep the floor. Throw in a couple fresh plants to bring a little life into your space.

With your new and improved new office, you'll want to make a plan to keep it clean. Try starting with straightening up each evening and weekly de-cluttering to insure your office stays looking brand new!
 
George Coronado  •  MGM Mortgage Inc.    (800) 555-6144 FREE  •  george@mgmloans.com

Posted in:Mortgage Rate Report and tagged: Refinance
Posted by George Coronado on September 2nd, 2015 4:06 PM