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How much can I afford? 

There are many factors considered during the pre-qualification process, which our mortgage consultants will help guide you through. Things to consider: what are you comfortable paying monthly? Debt-income ratio, down payment, credit score, etc.; these are all factors that will be considered when applying for a mortgage.

What’s the process for applying?

Applying for a mortgage loan is simple! Fill out a loan application online below or stop by our office to fill out a paper copy, schedule a pre-qualification meeting with one of our loan offices to discuss your options, your loan officer will review your pay-stubs, tax returns, W-2’s etc. to determine the best course of action.

What are the different types of loans?

Check out the many different types of mortgage loans below. Still not sure which option is best for you? No problem. One of our mortgage consultants will help guide you through this process.

  • Conventional Home Loans

    Conventional financing is the most common type of financing Home Team Lending does. With Conventional financing we have Conforming loans (up to $424,100) and Jumbo loans (> $424,100).

    Fannie Mae (FNMA) or Freddie Mac (FLHMC) set the standards for conventional loans. Conventional financing requires a minimum of 3% down. The 3% down program will have to be a special funded program. Usually these programs are going to have income limits.

    We can currently do the 3% down program through the Colorado Housing and Finance Authority (CHFA). With this program, they even allow the buyer to borrow the 3% as a second mortgage against the home, allowing you to get in with as little as $1,000 down.

    The standard FNMA/FLHMC loans require a minimum of 5% down. All the money for the down payment can come from a gift from a relative. Fannie & Freddie have recently rolled out their 3% down program. This will be a hot loan going into 2015. Especially when you compare the Conventional payment to the FHA payment.

    If you put less than 20% down with a Conventional loan, you will be required to pay Private Mortgage Insurance (PMI.) The amount of PMI will depend on the amount down and the credit score of the applicants. Having good credit pays when it comes to your mortgage options. When you get a mortgage and have to pay PMI, your premium will be better if your credit score is higher.

    Don’t Have 20% and Not Willing to Pay PMI?

    There are some conventional loans with less than 20% down that do not have monthly mortgage insurance. These loans are usually offered at a higher market rate than the loans with monthly mortgage insurance. In this case the loan is referred to as Lender Paid Mortgage Insurance (LPMI). Many times the LPMI loan will offer a lower payment than a loan that has monthly mortgage insurance.

    The Credit score requirements for conventional loans are stricter than FHA loans for higher loan-to-value (LTV) loans. For example, to obtain a 3% down Conventional loan, our investor and mortgage insurance company requires a 680 credit score.

    You can obtain an FHA loan that requires 3.5% down with a credit score as low as 620.

    TIP: Spend time comparing the different options and make sure to ask questions if you don’t understand or if you want to look at different options. There is sure to be a loan that will work for you!

    If you have further questions, we invite you to call us at 970-336-1185.

  • VA Loans

    In 1944, the U.S. government created a military loan guaranty program to help returning service members purchase homes. The result, the VA Loan, is a mortgage loan issued by approved lenders such as Veterans United Home Loans and guaranteed by the federal government. Since its inception, the VA Loan program has helped place more than 20 million veterans and their families into an affordable home financing situation through its distinct advantages over traditional mortgages.

    Today, the VA Home Loan program is more important than ever to service members. In recent years, lenders nationwide have tightened their lending requirements in the wake of the housing market collapse, making the VA Loan a lifeline for military homebuyers, many of whom find difficulty when faced with tough credit standards and down payment requirements.

    Like all home loans, VA Mortgages have considerable details and information to review. We at Home Team Lending encourage you to use our website’s resources to educate yourself on the specifics of this exclusive home loan benefit. If you have further questions, we invite you to call a Home Loan specialist at 970-336-1185.

  • FHA Loans

    FHA financing is a government loan backed by the Federal Housing Administration (FHA). FHA is part of the Department of Housing and Urban Development, HUD. FHA only requires 3.5% down. The down payment can come from a gift or other down payment assistance programs.

    Drawbacks to FHA Loans

    FHA loans require Mortgage Insurance Premium (MIP). For FHA loans the MIP is much more expensive than Conventional Private Mortgage Insurance, PMI. All FHA 30 year loans pay 1.75% upfront and .85% annually. This amount just dropped by .50% per year.

    For a $200,000 mortgage the upfront fee is $3,500, which is financed over the life of the loan (generally 30 years). In addition to that, the loan is charged $142 per month as the monthly premium. Effective after June 2013, all FHA loans originated will not be able to have the MIP removed from the payment once you have more equity in the home.

    Best Situations to Use an FHA Loan

    Even with the fees, we still do quite a bit of FHA financing at Home Team Lending. We generally consider going with an FHA loan if the credit score is in the 620-650 and/or if there is a previous Bankruptcy, Short Sale or Foreclosure. Often times, FHA financing may be easier to obtain if your qualifying is in this range. Some lenders are even able to help you with a score as low as 580. Check around, as the credit score floor seems to be a moving target.
    With FHA you can get an FHA loan after a bankruptcy is just 2 years discharged (for conventional financing this time limit is 4 years, generally) and a foreclosure/short sale after 3 years of recording or government claim date (for conventional financing this time limit is 7 years, generally).

    As with most mortgage programs, there is a good time to use the FHA financing. Also if you are limited on money for closing, the FHA program can be coupled with the CHFA down payment assistance program. If you can ask the seller to pay some closing costs, you can really get into a home with as little as $1,000.

    Do your Research

    When you are looking to buy or finance your next home, it’s important to invest time comparing the different options and what might be the best program for you. Make sure to understand what your options are, what does your mortgage consultant recommend and why do they recommend that loan program. This is a big investment; make sure you understand the answers to these important questions and more. Invest time in educating yourself about what’s available.

  • First Time Home Buyers

    Home Team Lending loves to help people purchase their first home and offers a variety of programs to help buyers with limited credit history or income realize their dream of homeownership. Your Home Team Lending mortgage professional will help you determine which loan is best for you, how the process works and how you can make this happen. Loans may include the following features:

    • Low down payment options
    • Alternative credit histories accepted
    • Down payment funding in the form of gifts or grants
    • Non-occupying co-borrower allowed

    Learn more by reading our Tips for First Time Home Buyers article. 

    Plus, be sure to visit UNC’s Off-Campus Website to check upcoming dates of our First Time Homebuyers Class hosted by our very own, Tonya Jenkins. Learn More.

  • USDA Loans

    A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you purchase a home with NO Money Down.

    The US Department of Agriculture (RD for Rural Development) has a program that allows up to 100% financing based on where the property in question is located.

    In Weld County for example, all of the county is eligible for a USDA (RD) loans except inside the city limits of Greeley and Evans. There are certain criteria for the size of a city that would keep it in-eligible for USDA and each county and city areas are different so you will need to make sure you check with us to see if a particular home (area) would be eligible.

    Requirements:

    • The borrower(s) must not presently own another home at the time of closing .
    • Borrower(s) must meet the income limits based on the size of the family.
      • In Weld County a 1-4 person family can make up to $78,650.00 annually
      • Family of 5+ persons – $103,800 annually
    • Even if someone in the family will not be on the loan, anyone living in the home has to furnish income for the preceding year to meet the requirements.
    • This program is designed for single family homes that will be owner occupied for purchase or refinancing.

    The wonderful thing about this loan option is that there is no minimum down payment requirement. If you thought you had to save 5%, 10% or even 20% down to purchase a home, give us a call and let us see if this might be a great choice for you. 970-336-1185

  • Reverse Mortgage

    A reverse mortgage is loan available to homeowners who are 62 years or older that enables them to convert part of the equity in their home into cash.

    The product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care. However, there is no restriction for how reverse mortgage proceeds can be used.

    The loan is called a reverse mortgage because the traditional mortgage payback stream is reversed.  Instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.

    You are not required to pay back the loan until the home is sold or otherwise vacated.  As long as you live in the home, you are not required to make any monthly payments towards the loan balance, but you must remain current on your property taxes, homeowners insurance and condominium fees (if you live in a condo). .  To find out more about the types of Reverse Mortgages, give us a call at: 970-336-1185

  • Home Refinance

    When you refinance your mortgage, you are applying for a new loan. By refinancing, you are actually paying off the old loan by obtaining a new one.

    Because you will be obtaining a new loan with new terms, a lender will have to obtain key information and documentation in order to verify you qualify for a refinance.

    Typically the following information will be checked when you apply for refinance:

    • Your credit score and payment history.
    • Your income and employment history.
    • Your assets (stock, retirements and savings accounts).
    • An appraisal to determine the current value of your home.

    Reasons Why Most People Refinance

    Typically people refinance their mortgage rate in order to take advantage of lower mortgage rates. Average national mortgage rates have been at historic lows.

    Even if you have little equity or are underwater on your mortgage, you still may be able to take advantage of special refinance programs being offered and lower your mortgage rate significantly.

    Other Reasons Why People Refinance Their Mortgage

    • To have a more stable monthly payment. Some people chose to refinance from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage in order to have a more stable and predictable monthly payment.
    • Your ARM is about to adjust. If you originally obtained a 7/1 ARM and it’s been 6 years, you may consider refinancing into another ARM in order to reset your loan.
    • To withdraw some equity from your house in the form of a cash-back refinance. People typically do this if they have built up significant equity in their home or paid it off completely. Some people use the cash they can get with a cash-back refinance to purchase big-ticket items such as a down payment on a car or another house. Other people may use the cash to pay down credit card debt or other high interest debt they are carrying. Divorce or other family issues may influence a person’s decision to need a cash-out refinance.
    • To consolidate two mortgages. Some people have two mortgages or a mortgage and a home equity line. They may want to refinance both mortgages into one mortgage for simplicity sake.
    • To put more money down in order to do a cash-in refinance. Cash-in refinances allow you to refinance to a lower rate, shorter loan term, or eliminate mortgage insurance by putting additional money down when you refinance. Putting more money down when you refinance allows you to pay down your overall loan balance and improve your overall loan-to-value ratio and equity in your home.

    In general, if you can lower your monthly mortgage payment and offset the costs of refinancing in a reasonable time frame, you should consider refinancing.

    To see if refinancing makes sense for your individual situation give us a call at: 970-336-1185

  • Investment Rentals

    Investment properties provide a vehicle that allow you to enjoy the potential for market appreciation while building equity each month. In addition, the monthly cash flow from a real estate investment can provide extra income to your wallet, help you pay down debt faster, or allow you to quit your job and begin living life on your own terms.

    However, unless you have all the cash needed for your investment property, a loan is going to be required. Loans can be used for either purchasing an investment property or refinancing an existing investment. Whether you are purchasing or refinancing a single or multi-family home, condo, or shopping mall – getting the best loan is essential to your bottom line. Investment property loans can also be used for real estate development, such as new construction, spec building, or raw land development.

    The rate and term that you achieve is going to directly affect your monthly payment, which will affect your monthly cash flow – the life-blood of any real estate investor. We’ll look deeper at both “rate” and “term” in a little while, but first let’s look at the major differences between an investment property loan and a regular home mortgage.

    There are typically two types of investment property loans:

    • Residential
    • Commercial

    Because lending institutions will typically have two completely different departments to deal with these different kind of investment property loans, as well as significantly different qualifying standards, it’s important to know the difference before you go searching for a loan. Let’s look at both those types of investment property loans in greater detail.

  • Renovation Loans

    More information on renovation loans coming soon. Questions? Give us a call at 970-336-1185.

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  • Buy A New Home

    • Which loan is best for you? →
    • What can you afford? →
    • What's the process for applying? →
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  • Refinance Your Home

    • Lower your monthly payment →
    • Convert to a fixed-rate loan →
    • Consolidate your debt →
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  • Apply Now

    • Talk to a mortgage consultant →
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