Tuesday, April 16, 2013

Latest Down Payment Requirements


Here are the latest down payment requirements for various types of loans in Colorado.  Don't miss out because you think you need 20% down!

For conventional (non-government) loans:
  • 5% down for a primary residence (3% is allowed, but the rates are higher and the mortgage insurance is higher)
  • 10% down for second homes 
  • 20% down for investment properties
For FHA loans (primary residences only):
  • 3.5% down - can be a gift from a relative of the borrower
For CHFA loans (primary residences only):
  • $1,000 minimum investment by the borrower - can be a gift from a relative of the borrower
VA loans (primary residences only):
  • 0% down

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

How to Raise Your Credit Score


How to Raise Your Credit Score

Things to do:
  • Pay your bills on time.  Every time you pay a bill 30 days late, it lowers your score.  The more recent the late payment is, the more that late payment lowers your score.
  • If you missed a payment, get current on that account.  If you are past due on an account, just making the late payment – and not making the current month’s payment – will continue to lower your score.
  • Keep balances low on credit cards and other revolving credit accounts. 
    • If your balance is more than 70% of your credit limit, it lowers your score the most.
    • If your balance is 50% - 70% of your credit limit, it lowers your score a bit less.
    • If your balance is 30% - 50% of your credit limit, it lowers your score even less.
    • If your balance is below 30% of your credit limit, it will improve your score.
  • When you review your credit report, you will see a list of things that are lowering your credit score.  Work on those things to raise your score. 
    • The reasons your score is not perfect are listed in order, according to the impact they have on your score.  Fixing the first two will raise your score the fastest.
    • Credit analysis software is available to some lenders.  It will tell you exactly what to do to raise your scores – it also tells you how many points your scores will go up.
Things NOT to do:
  • Do not close accounts.  The longer your accounts are open, the higher your score will be.
  • Do not pay off old collection accounts or old charge off accounts.  Paying off an account that no one is actively trying to collect will change the “date of last activity” from the old date to the current date, and lower your score, even though it is now paid off.
  • NEVER pay anyone to “repair” your credit.  They are only ripping you off!  You can fix errors on your report by yourself – for free.  Use a lender who will show you how, and who will help you – for free

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Last Chance to Spend Money


Every week, I receive dozens of emails telling me it is my "last chance" to do something.  The one thing that all of these "last chance" emails have in common is the urgency with which I must spend my money. 

In the mortgage industry, "last chance" marketing is very common.  This is your last chance to lock in a low interest rate, your last chance to refinance, your last chance to have a low down payment, and your last chance to buy a house before they're all gone and you end up living under a bridge.

Guess what?  It's never your last chance.  Things certainly change all the time - sometimes for the better and sometimes for the worse, but it's never your last chance to get a mortgage. 

When you get a mortgage, the best way to think about it is that you will be stuck with it for the next 30 years.  If you're happy with that, then get it.  If you're not happy with that, then don't get it.  Either way, it's never your last chance.

Want to see what your options are for a mortgage?  Give us a call and we'll explain how it all works.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Why Are My Credit Scores Different Than The Lender's?


Why are the credit scores you get from the credit bureaus yourself often quite different than the scores used by mortgage lenders?  

The answer is simple.  The scores you get yourself are generally VantageScores, which are based on a scoring range of 501-990.  The scores that mortgage lenders use are FICO scores, which are based on a scoring range of 350-850.

The three credit bureaus (Experian, TransUnion, and Equifax) got together about five years ago and invented the VantageScore, hoping to get a bigger piece of the multi-billion dollar credit scoring market than they already had.  Lenders said, "Forget it - we're happy with the FICO scores." 

The bottom line is that you are always going to have a higher score if you are looking at a VantageScore credit report rather than a FICO score credit report.  It can be very misleading to consumers, but that's the way it works.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Is All Income the Same?


Did you know that different types of income are calculated differently for mortgage qualification purposes?  Here are the various types of income, according to the Fannie Mae underwriting guidelines:
  • Salary Income
  • Commission Income
  • Bonuses
  • Overtime
  • Part-Time Income
  • Second-Job Income
  • Multiple-Job Income
  • Seasonal Income
  • Military Income
  • Rental Income
  • Alimony or Child Support
  • Automobile Allowance
  • Boarder Income
  • Capital Gains Income
  • Disability Income
  • Employment-Related Assets as Qualifying Income
  • Foreign Income Earned by U.S. Citizens
  • Foster-Care Income
  • Interest and Dividends Income
  • Mortgage Credit Certificates (MCC)
  • Mortgage Differential Payments Income
  • Non-Occupying Co-Borrower Income
  • Notes Receivable Income
  • Public Assistance Income
  • Retirement, Government Annuity, and Pension Income
  • Royalty Payment Income
  • Social Security Income
  • Tip Income
  • Trust Income
  • Unemployment Benefits Income
  • VA Benefits Income
  • Self-Employment Income
Each of these types of income is calculated differently.  We know the rules for each type of income.  That's one of the reasons our loans close.  Give us a call and see how a really good lender operates.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Rates Changed, How Much Does the Payment Change?


Mortgage interest rates change in 1/8th point increments.  For example, the different rates between 3% and 4% would be 3%, 3.125%, 3.25%, 3.375%, 3.5%, 3.625%, 3.75%, 3.875%, and 4.0%. 

When rates change, the payment obviously changes, but by how much?

Here is a good guide for various loan amounts.

For a $100,000 loan, the payment will change by about $7.50 for every 1/8th point change in interest rate.

For a $200,000 loan, the payment will change by about $15 for every 1/8th point change in interest rate.

For a $300,000 loan, the payment will change by about $23 for every 1/8th point change in interest rate.

For a $400,000 loan, the payment will change by about $30 for every 1/8th point change in interest rate.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Real Estate Agents - Here's How to Kill a Deal


FHA mortgage insurance premiums have increased for all loans that have FHA case numbers dated April 1 or later.  The increase is very slight: just 0.1% annually, or a bit less than $17 a month for a $200,000 loan.

A bigger change occurs on June 3.  For all loans with FHA case numbers after that date, mortgage insurance lasts for the life of the loan, regardless of the amount of equity that a borrower has in the property.  Although this change is dramatic, keep in mind that FHA mortgage insurance is based on the current loan balance, and adjusts down every year.  Even though the mortgage insurance will last for the entire loan term, it will decrease each year.

These changes will have very little effect on the housing industry.  The small monthly increase in housing payment is negligible.  However, the changes could have an effect on your individual production if you tell your buyers that FHA loans are terrible.  FHA loans are easier to qualify for than conventional loans (that is the whole purpose of the FHA loan program - to get more people into houses).  If your buyers can only qualify for an FHA loan, and you have told them to stay away from FHA loans, they are probably going to use another real estate agent.  We see this happen all the time.

When we pre-approve a buyer, we always price the loan as a conventional loan and as an FHA loan.  We recommend that the buyer get whichever loan is cheaper for them.  For buyers who only have the minimum amount down (3.5% of the purchase price) and whose credit scores are lower than about 700, FHA will continue to be the cheapest option.

Don't fall for the hype about how bad FHA loans are going to be.  It's just marketing by lenders who aren't approved to sell FHA loans.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.