FHA Rating Requirements for Homes and Condos The FHA housing requirements state that FHA approved condominiums and apartments must be safe, sound, and secure in order to qualify for an FHA loan. The assessors decide whether the minimum FHA ownership requirements are met. In order to take advantage of an FHA loan, the borrower and the property must meet certain criteria. You must meet the financial requirements of your lender and the property must meet the FHA housing requirements set by the Department of Housing and Urban Development (HUD). All homes are subject to HUD’s “minimum ownership standards”, and new construction must also meet the agency’s “minimum ownership standards”. The FHA property rules ensure that the home is structurally sound, livable, and worth at least as much as you wish to borrow. Basic requirements for the FHA enclosure HUD’s minimum real estate requirements are as follows: Homes purchased with FHA loans must be safe. In this case, “safe” means something other than “safe from thieves”. Rather, the home should be a safe investment, which means that it will hold value for the life of the loan. FHA Assessment Checklist For a complete list of FHA assessment guidelines, see the HUD Single Family Policy Manual. But, fair warning, this is a fairly dense read. Here are some important points: The foundation must be structurally sound. The water must come from the base. Utilities, including water, sewerage, heating, and electricity, should be activated during the assessment. All devices must function properly. The water pressure must be sufficient and hot and cold water must be available. The paint cannot be chipped, peeled off, peeled off, or broken. Sockets and switches must work properly. Windows must be opened, closed, and locked. The roof cannot leak and must have a useful life of at least two years. Attics and crawl spaces must be ventilated and free from damage. There is no active termite infestation. The property must be reasonably free from environmental hazards, odors, and excessive noise.

The FHA housing requirements state that FHA approved condominiums and apartments must be safe, sound, and secure in order to qualify for an FHA loan. The assessors decide whether the minimum FHA ownership requirements are met.

In order to take advantage of an FHA loan, the borrower and the property must meet certain criteria.

You must meet the financial requirements of your lender and the property must meet the FHA housing requirements set by the Department of Housing and Urban Development (HUD).

All homes are subject to HUD’s “minimum ownership standards”, and new construction must also meet the agency’s “minimum ownership standards”.

The FHA property rules ensure that the home is structurally sound, livable, and worth at least as much as you wish to borrow.

Basic requirements for the FHA enclosure

HUD’s minimum real estate requirements are as follows: Homes purchased with FHA loans must be safe.

In this case, “safe” means something other than “safe from thieves”. Rather, the home should be a safe investment, which means that it will hold value for the life of the loan.

FHA Assessment Checklist

For a complete list of FHA assessment guidelines, see the HUD Single Family Policy Manual. But, fair warning, this is a fairly dense read. Here are some important points:

The foundation must be structurally sound.

The water must come from the base.

Utilities, including water, sewerage, heating, and electricity, should be activated during the assessment.

  • All devices must function properly.
  • The water pressure must be sufficient and hot and cold water must be available.
  • The paint cannot be chipped, peeled off, peeled off, or broken.
  • Sockets and switches must work properly.
  • Windows must be opened, closed, and locked.

The roof cannot leak and must have a useful life of at least two years.

Attics and crawl spaces must be ventilated and free from damage.

There is no active termite infestation.

The property must be reasonably free from environmental hazards, odors, and excessive noise.

 

Requirements for a mortgage and HELOC

If your home is worth more than your mortgage balance, you have equity. If you’re lucky or smart to find yourself in this situation, here’s how you can convert that equity into purchasing power.

Ways to unlock your home

The two most common ways to gain access to the equity in your home are through a home equity loan or home equity line of credit. The loans offer a lump sum at a fixed rate of interest which is repaid over a period of time. A HELOC is a revolving line of credit that you can draw, repay, and withdraw for a specified period, typically a decade. It often starts with an adjustable-rate, followed by a fixed rate.

A third option is paid refinancing, where you refinance your existing mortgage into a loan for more than what you owe and keep the difference in cash.

Home equity loan terms vary depending on the lender. However, these standards are typical:

  • The equity in your home of at least 15% to 20% of its value, which is determined by an appraisal
  • Debt-to-income ratio of 43% or possibly up to 50%
  • Credit score of 620 or higher
  • Strong history of paying bills on time
  • Your debt to income ratio

To assess your mortgage loan application, lenders calculate your debt-to-equity ratio to determine if you can afford to borrow more than your existing obligations.

To find this number, add up all of your monthly debt and other financial obligations, including mortgages, loans and leases, and child support, divide it by your monthly income, and then convert this number to a percentage. For example, if you earn $3,000 per month and make payments totaling $ 1,200, your DTI is 40%.

What Debt-to-Income Ratio Do Lenders Need? For a fixed-rate term home loan, federal regulations set the limit at 43% DTI.

With HELOC, lenders have more discretion, which means you can look around if your DTI is higher. Comerica offers home equity lines of credit with DTIs of up to 50%, says Winston McEwen, deputy director of Comerica Bank’s banking center in Cupertino, Calif. According to its website, Chase has set a debt income limit of 43% for HELOC.

This set of standards requires consumers to exercise their best judgment. Even if you qualify, carefully consider the amount of debt you owe. When you take out a home loan, you risk your home as collateral, which means the bank could keep the home if you fail to repay your loan on time.

Role of credit scores

Lending strategies vary. “What one lender considers a ‘good score’ may not be viewed as a great score by another,” said Ethan Dornhelm, FICO vice president of valuation and analysis. In Comerica, for example, the minimum FICO for home equity loans is 680, McEwen says.

Refinancing of ashes

A less popular option for accessing home equity is to refinance yourself with a new mortgage and then extract some of the equity in cash. Your refinance rate depends on the current mortgage rate. Zimmerman said the borrowers he works with avoid this type of refinancing because they will end up paying a higher interest rate than they are currently paying.

 

How the Federal Reserve Affects Mortgage Rates

The Federal Reserve is one of the many influences on mortgage rates, along with inflation, economic growth, and other factors.

The Federal Reserve does not set mortgage rates but indirectly affects mortgage rates.

Many factors determine mortgage rates, including the rate of inflation, the rate of job creation, and whether the economy grows or slows down. The Federal Reserve’s monetary policy also plays a role and is determined by the Federal Open Market Committee.

What the Federal Reserve does

The Federal Reserve is the country’s central bank. It manages the economy with the dual objective of promoting employment growth while controlling inflation.

The FOMC pursues these monetary policy objectives: to manage the money supply and the cost of credit. The most important monetary policy instrument is the federal funds rate, the interest rate that banks charge each other for short-term loans. While there is no “federal mortgage rate,” the federal rate affects interest rates on long-term loans, including mortgages.

The FOMC meets eight times a year about every six weeks to change monetary policy. Most meetings do not result in changes to the federal rate. At the end of each meeting, the committee makes a statement explaining its reasons. The meeting minutes will be released three weeks later, giving Fed nerds even more details.

Are Mortgage Rates Following Fed Rates?

The Fed and the mortgage market act like dancing partners: sometimes the Fed leads, sometimes the mortgage market leads, and sometimes they dance alone.

The prime rate and mortgage rates generally move in the same direction. However, it is difficult to say whether mortgage rates will follow Fed action or vice versa.

The federal funds rate affects interest rates on longer-term loans, including mortgages.

The FOMC prefers to inform investors whether it intends to raise or lower short-term interest rates. Committee members make their intentions known by adding notices in their public speeches. When the committee meets, there is general consensus among investors on whether the Fed will cut rates, raise rates, or leave them unchanged.

As that consensus consolidates ahead of an FOMC meeting, mortgage rates generally diverge in the direction the Fed is likely to take. By the time of the meeting, mortgage rates often already reflect the trend. expected rate change.

At the same time, mortgage rates rise and fall daily in response to the ups and downs in the US and global economies to which the Fed is responding. Sometimes the Fed and mortgage rates move in opposite directions.

What is the current federal rate?

The targeted federal funding ratio has been between 0% and 0.25% since an emergency shutdown on March 15, 2020. The emergency was the COVID-19 pandemic and the resulting disruption to economic activity.

“The effects of the coronavirus will have a short-term impact on economic activity and threaten the economic outlook,” the interest rate committee said.

At its regular meeting on July 28-29, 2020, the FOMC said the trajectory of the economy “will largely depend on how the virus evolves.” He said he plans to keep the federal government rate near zero until employment and inflation return to normal.

The Fed has started buying government bonds and mortgage-backed securities valued at hundreds of billions of dollars in order to keep liquidity in the financial system and keep long-term interest rates low.

Federal funds rate and HELOC

While the Fed doesn’t set mortgage rates, it has a direct impact on mortgage interest rates, which typically have adjustable rates.

HELOC rates are tied to the Wall Street Journal Prime rate, the prime rate for business loans from the largest banks. The key rate in turn moves with the federal key rate.

When the FOMC cuts the policy rate, HELOC rates also decrease. The 1 percentage point reduction on March 15 will save $100 per year or $8.33 per month in interest payments on a HELOC with a balance of $10,000. He cut the key rate from 4.25% to 3.25%.

 

Quicken Loans Mortgage Review 2020

Perfect choice for convenience and fast customer service. Quicken Loans offers almost all of the services offered by your local online lender.

Quicken Loans becomes Rocket Mortgage

Innovation surpasses the innovator. Rocket Mortgage is quickly achieving a status in the industry that may soon eclipse its parents’ notoriety if it hasn’t already.

Any conversation NerdWallet has had with the executives of Quicken Loans is dominated by references to Rocket. But many borrowers – Quicken Loans officials say “the majority” – still access the lender’s services the traditional way: with an old-fashioned phone call.

Regardless of the nameplate, the integration between the two channels seems practically perfect. This gives users the advantage of being able to choose how to interact with the lender.

Quicken Loans mortgage products

Quicken Loans offers a comprehensive selection of fixed and adjustable rate home loans, mortgage refinances, FHA, USDA and VA loans, and jumbo loans for higher priced homes.

What is the “non-banking” difference? Like almost all non-depository lenders, Quicken Loans does not offer home equity loans or home equity lines of credit. Since they do not have the capital of bank deposits to finance mortgage loans, non-bank lenders sell loans to investors. The industry’s biggest investors, government-sponsored Fannie Mae and Freddie Mac, don’t buy mortgage products.

Although Quicken Loans does not offer reverse mortgages, an affiliate, One Reverse Mortgage does. Reverse mortgages are often used by older homeowners to use their home equity to plan for retirement.

Speed ​​up loan refinancing

Like many lenders, especially in recent years, Quicken Loans has made vigorous efforts to win the refinance. The ubiquitous online ads urging homeowners to “switch to a 15-year fixed mortgage” were part of an ongoing marketing campaign.

The mortgage business of Quicken Loans has been recognized for its efforts with the highest volume of mortgage refinancing loans of any lender in the country as outlined in the Mortgage Disclosure Act of 2018.

Tap the Refinance button on the Quicken Loans home page to access the Rocket Mortgage user interface, where you will be asked to specify your refinancing goal: withdraw money, reduce payments, or shorten the term. of the loan.

You will need to create an account to continue.

Quicken Loans Customer Service

Despite all the attention paid to home loan technology, Quicken Loans says most clients start and end the mortgage process over the phone with a banker. More than 3,000 mortgage lenders are ready to help, says Joel Gurman, executive vice president of mortgage banking.

“From the borrower’s perspective, they have a single point of contact. This licensed banker will be the same person they talk to throughout the process, ”says Gurman.

Quicken Loans mortgage process

My Quicken Loans, or MySQL, the original application for Quicken Loans borrowers, has been dropped. Rocket Mortgage now serves as an online link for the paperwork section of the process.

“If the client has time to review their pre-approval letter or loan application documents, they will be referred to Rocket Mortgage for registration, review, and electronic signature,” says Regis Hadiaris. , the product manager of Rocket Mortgage.

Rocket can verify employment, income, and financial assets by accessing direct deposit information provided by 98% of financial institutions in the United States, that is when you use direct deposit for your salary. Alternatively, income and employment information for about 60% of U.S. workers can be imported through employer databases.

Gurman says mortgage bankers use the same technology to provide faster processing and a shorter time to close the loan.

Fast loan rate

Quicken Loans mortgage fees are on average about 0.50% of the loan amount. State mortgages that are backed by the FHA, VA, or USDA may be a little higher, but according to Quicken Loans, your lender fees will not exceed 1% of the amount.

 

First-class buyer: why take it?

A first-time buyer class can be the grant ticket, down payment assistance, and a lower monthly payment. Find the right mortgage, mortgages

First-class of buyers

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You have been offered a first-class buyer, possibly through a lender, friend, or real estate agent. And you think, “What’s the point?”

But what if you had a little change for the classroom? Indeed, it is possible.

A homeownership course and certificate you receive after graduation can be your ticket for a grant or filing assistance. At the very least, it can show you how you can save hundreds if not thousands of dollars on a mortgage.

All of these can result in a lower monthly mortgage payment.

What is a first-class buyer?

This is a content course taught by the US Department of Housing and Urban Development. While HUD does not offer grants or help with down payments, many states, local governments, and nonprofits will need it.

These training workshops are designed to help borrowers qualify for a mortgage and guide the home buying process.

What is covered in a first-time buyer class?

Melinda Opperman is Executive Vice President of Credit.org, a nonprofit provider of personal finance education. The company offers home buying courses in Southern California and online through ehomeamerica.org.

Opperman says both newbies and so-called boomerang buyers who are recovering from past financial difficulties find the lessons worth it.

Many buyers who take the course, especially those who are returning home after losing their home, say, “I didn’t know about this. I would have done things very differently, ”says Opperman.

A typical class covers topics such as:

How many houses can you afford?

What do you need in your home (“You have animals, so you can

I really need a back yard. However, you might not need a three-car garage, ”Opperman suggests as an example.)

  • What home loan products to consider.
  • How to compare brokers and lenders.
  • How to improve your credit score.

When should you take a buyer training course for the first time?

While many borrowers view the class as a requirement of the lender in order to qualify for a specific loan or assistance, Opperman says many participants wish they had taken the course much earlier in the home buying process. Potential buyers should take the course before doing anything.

MELINDA OPPERMAN, PRESIDENT OF CREDIT.ORG

In fact, he says, potential buyers should take the course “before they do”.

“If you decide to buy a house, take a class,” says Opperman. “We’ll show them how to compare prices with different lenders. How to interview and find a real estate agent, then compare three different real estate agents. “

The course helps buyers “avoid going into homes that are out of reach,” Opperman adds.

Participants who complete the course will receive a HUD-approved certificate that will help qualify borrowers based on their financial eligibility for grant and down payment assistance programs.

How much does a class of buyers cost?

Some training courses for home buyers are free. If there is a fee, classroom lessons can cost anywhere from $15 to $30, according to Opperman, more than offsets the cost of materials.

Online courses, which can last anywhere from six to eight hours, can range from $75 to $125, but offer the flexibility to take the course at your leisure and at your own pace.

How to find a training course for home buyers

It is a good idea to check with the housing agency in your state that offers first-time homebuyers assistance programs. 

 

Down payment help: how to get help buying a home

First-time buyers can request down payment assistance through national and local programs. Grants and unsuccessful loans are available.

If you want to own a home but don’t have enough money to pay a down payment, a national or local down payment assistance program can help.

Most states and many counties and cities offer interest-free loans and grants to help first-time homebuyers with down payment and closing costs.

How do down payment utilities work?

Help comes from government housing finance agencies and city and county government programs to meet affordable housing needs. The programs are often offered in conjunction with first-time mortgages.

The types of support for graduation fees and down payment vary by program. Common forms of support include:

Subsidies. Some programs offer a direct cash donation.

Interest-free loans. Loans are given for a certain period, eg. B. five years. It is not necessary to repay the money as long as the borrower still owns and lives in the apartment after the deadline.

Interest-free loans and deferred payments. Terms and conditions vary, but loan payments for the down payment and closing costs are generally not due until the home is sold, the mortgage is refinanced, or the mortgage has matured. .

Low interest loans. Loans must have a certain period eg. B. 10 years, to be repaid. They make homeownership more affordable by spreading the down payment and closing costs over several years.

Who can benefit from early payment aid?

Most down payment assistance programs are for first-time buyers, but they don’t exclude if you’ve previously owned a home. The programs generally define a first-time home buyer as a buyer who has not owned a home in the past three years.

Some local programs cater to specific groups such as teachers, police, rescue workers, or city workers, while others are open to regular qualified buyers.

The requirements for each program vary, but in addition to being a first-time buyer, you will typically need to:

Take a training course for home buyers.

Respect the income limits. Many programs cater to low and middle income residents, so a borrower’s household income must be below a certain threshold.

Shop at an approved location.

Stay below the maximum home purchase price, which is typically a percentage of the median home purchase price in an area.

Donate some of your own money towards the purchase.

How to apply for mortgage down payment assistance

How to start:

Find out about the assistance programs offered by your state’s real estate finance agency. For more information on the programs you live in, see Programs for new buyers by state.

Check with your city and county to see if they have any local grant programs for first-time buyers. For example, three dozen scholarship programs for new buyers are offered in the cities and counties of Lone Star State.

Visit the website of the local government agency or organization that administers the program for down payment assistance requirements and a list of approved mortgage lenders.

Apply for a mortgage from a lender licensed to work with the scholarship program. Local agencies can recommend experienced loan officers to help people apply for the grants they manage

 

5 benefits of a down payment for a VA loan

A deposit for a VA mortgage is not required. However, if you save 5% or 10%, you can pay less overall, get a lower monthly payment, and compete better with other buyers.

We know that mortgage loans from the Department of Veterans Affairs do not require a down payment. Why the hell would you make one Here are five great reasons to put money into a VA loan.

1. You pay lower VA finance fees

VA fees are initially required for VA mortgages, whether or not you make a deposit. But.

“The finance rate has stopping points where it falls above 5% or over 10%,” said Mark Connors, VA Lender Liaison.

For example, a qualified regular military borrower would first see the VA finance rate increase from 2.15% to 1.50% with a deposit of 5% or more. A deposit of at least 10% would reduce the fee to 1.25%.

Casey Fleming, author of “The Loan Guide: How To Get The Best Possible Mortgage,” and mortgage broker in San Jose, breaks down the bill for buying a $250,000 home. The zero initial finance rate is $5,375, he says. Although a 5% deposit requires $ 12,500, your finance charge is reduced by $1,812.50, he explains.

2 and 3. You have a lower monthly payment and less interest

With a deposit, your monthly payment and lifetime costs are lower. Fleming creaked the numbers again.

Assuming an interest rate of 3.50% on a 30-year mortgage of $250,000, the monthly payments and the lifetime cost of each loan are factored in, not including closing costs, which can vary.

With a 10% deposit, not only are your monthly payments over $100 lower, but you also save over $15,000 in interest charges and pay almost half the initial finance charge compared to making a down payment. .

“So if you pay an advance, you can save thousands of dollars over the life of the loan,” Fleming says.

4. You can navigate a competitive market better

Living in a competitive real estate market can present challenges for the non-down payment payer. Places like San Francisco, Dallas, San Diego, Denver, and even Columbus, Ohio, have too many buyers who don’t have enough sellers.

If you have an “in-game skin” by putting money first, show the sellers that you are a serious buyer.

If you have an “in-game skin” by putting money first, show the sellers that you are a serious buyer. Some of your deposit can also be used for cash: cash that you deposit into an escrow account to do business with a seller.

“Make the biggest deposit possible with the offer,” said Joe Parsons, a loan officer at PFS Funds in Dublin, California. “Even though you are not required to make a deposit and the closing cost could be as low as $ 5,000, a deposit of $10,000 would not be inappropriate and the veteran will get a refund of any excess funds to the fence. Believe in credibility. “

5. You immediately have equity in your home

Without a down payment, you probably don’t have equity in your home right off the bat. If property values ​​fall, it is “upside-down”. It is when the market value of a house is lower than it should be. In this case, you could have real problems if you have to move and cannot earn enough if you sell your existing home to buy another.

If you have an embedded value in your home, you also have financing options, such as B. a home equity line of credit or a home loan. Being able to capitalize on your home can be a real budget saver when major repairs or upgrades are needed.

You may not have a choice

In some situations, you will have no choice but to pay a deposit: If the price of the house is less than the purchase price, you must leave enough to make up the difference.

If the home you want to buy costs more than the VA approved VA credit limit, you must leave enough to make up some of the difference. “VA guarantees the loan as long as the borrower pays 25% of the amount over the credit limit in cash,” Parsons says.

 

For Rocket and its competitors, mortgage counseling is the next

Online lenders have made the application process easy for many. Now they are developing new tools to help borrowers make decisions throughout the mortgage process.

Quicken Loans launched Rocket Mortgage in an ad that ran during the 2016 Super Bowl, promising to “turn a daunting process into an easy one.” It simplified the documentation of income and wealth – and competitors were quick to do the same.

However, collecting documents is just one of the many intimidating steps in getting a mortgage. One of the most difficult decisions is choosing a loan offer. A 30-year loan, a 15-year mortgage, or something in between? A higher rate with lower fees or a lower rate with higher fees? A personal loan or a home equity line of credit?

Rocket and its competitors are currently developing tools borrowers can use to make those decisions – and they are encouraging borrowers to make informed decisions online, over the phone, and in person.

Reduce paperwork, add flexibility

Lenders leading the way in the digital age of mortgages include Quicken Loans with its brand Rocket Mortgage and LoanDepot, whose “digital lending platform” is called Mello. There are also service providers like Roostify that create online application software for lender websites.

These companies automate the tedious task of applying for a mortgage loan. Rajesh Bhat, CEO of Roostify, says his business is “based on our traumatic consumer experience.” He wants the mortgage application to be as easy as buying a plane ticket or booking a hotel online.

Keep human contact

These innovations can be helpful, but many people still want to talk to people when they are ready to borrow hundreds of thousands of dollars. This applies in particular to first-time buyers.

In a survey conducted in late 2016 on behalf of Ellie Mae, a mortgage technology provider, mortgage borrowers were asked, “What could have improved your recent experience?” The # 1 answer for millennials was “more personal communication”. (The # 1 answer for Gen Xer and Boomer was “a faster process”.)

Get questions about your loan answered by phone, chat, text or even in person.

The results of this survey come as no surprise to Marchetti of LoanDepot. “Although Millennials are digital natives, they don’t understand the APR, the cost of the transaction, and the complexity of a mortgage, so they’re not typically done online,” he says. “They want to talk to someone, they want to be informed of the process. They don’t feel comfortable going through the whole digital process. “

According to Marchetti, the Mello credit platform does not prefer one form of communication over another. It doesn’t matter if the customer wants to “go to their local Starbucks and meet their salesperson,” make phone calls at night, or access all the information online.

Quicken follows a similar philosophy. According to Hadiaris, customers can call, chat, or communicate by text at any time.

Small lenders also appreciate the personal touch. 360 Mortgage Group, an Austin mortgage bank that prides itself on its internal online application technology, encourages borrowers to call loan officers to ask questions, says President Mark Greco. It is part of the lender’s philosophy to allow clients to “go through and consider different options without pressure,” he says.

Next limit: mortgage advice

The next limit with online mortgages are credit recommendations based on each client’s goals.

LoanDepot and Quicken are among the leading providers of machine learning for mortgages. Machine learning makes predictions with large amounts of data. If you buy an item from Amazon and get a list of other items that you might want, that’s the result of machine learning.

The goal is for artificial intelligence to tailor credit options to the needs of the borrower.

The Amazon shopping experience is a benchmark and a source of inspiration for mortgage loan managers. When a website offers multiple borrowing options for a borrower, the choices are in part based on what other customers have chosen in the past.

 

How does Rocket Mortgage work?

The Rocket Mortgage experience involves taking it to step by step, carefully, from one step to the next. It’s relaxed. As informal as taking out a six-figure loan.

Additionally, however, the lender tries to anticipate user questions and have answers available.

“A lot of people use Rocket Mortgage to explore options, whether it’s refinancing or buying a home,” said Regis Hadiaris, product manager at Rocket Mortgage. “There is a certain amount of information that people want to know the answers to before they tell us. You need some really good tools to answer these questions if you are going to try and do it yourself.”

Rocket Mortgage Products

Rocket Mortgage has the typical line of credit for non-banks. Traditional loans and state-guaranteed mortgages such as the FHA, VA, and USDA can be purchased or refinanced and at fixed or adjustable interest rates. Basically, it offers everything except home loans and home loan lines.

Most non-depository lenders don’t offer home loans or lines of credit because they don’t have bank deposit capital to fund them. Non-bank lenders sell loans to investors like crown corporations Fannie Mae and Freddie Mac who do not buy home loans.

While Rocket does not offer reverse mortgages, an affiliate, One Reverse Mortgage, does.

Rocket Mortgage Refinancing

The Quicken Loans Rocket Mortgage is the nation’s largest lender by volume, under the Mortgage Disclosure Act of 2018. With these low mortgage rates, home loan refinancing has remained popular in recent years, and Rocket Mortgage certainly has its fair share.

 

Rocket Mortgage’s intuitive refinancing process may be one reason. Choosing Home Refinance on the Home screen will take you to a three-tab decision tree that lists your options: withdraw money, reduce payment, and shorten your loan term.

Once you’ve decided on your goal and made a selection, the application process is tailored to your refinancing needs. At this point, you need to create an account to get started.

The Rocket Mortgage Process

It all starts by clicking or pressing one of the big “Refinance” or “Buy Home” buttons. Provides the usual credentials.

In the fundraising channel, you select a target, for example, B. “Reduce your monthly payment” and start with the essential details.

When you enter your home address, Rocket provides publicly available information for entering property information.

You can adjust your credit options using a drop-down menu. You can change the term, the amounts due at closing, or your interest rate. “

Asset information such as investments and bank accounts can be downloaded directly from 98% of US financial institutions. Income and employment information can also be imported for about 60% of American workers.

Rocket Mortgage Customer Service

In the rest of the application process, Rocket Mortgage customer service comes into play in both the real person and the virtual variant. First of all, the Rocket app offers helpful tips and information throughout the app. If you click on the question mark symbols during the entire application process, the relevant answers from the FAQ will be displayed. In the videos, the elements are explained further. If you are blocked, you can connect directly to a mortgage banker by pressing the “Talk to us” button.

Missile mortgage pre-approval

A few more steps and in a few minutes you will be in the “Show solutions” phase. Here, Rocket Mortgage receives your credit information, starts a “T-less” countdown, and displays your credit options.

You can adjust your credit options using a drop-down menu. You can change the term, the amount owed at closing, your interest rate, or compare mortgages with a fixed and variable interest rate. When you are happy with your loan option, press “Check if I am approved”. Rocket Mortgage checks your qualifications and sends the request to an automated subscription system.

If you get pre-approved from Rocket Mortgage, you can freeze the interest rate on your loan. When you buy a home, Rocket walks you through a similar process and hires you

 

Reverse Mortgage: What It Is How Seniors Use It

After retirement without a regular income, financial problems can sometimes arise. If you are a homeowner, a reverse mortgage is an option that can help you overcome your financial challenges.

What is a reverse mortgage?

A reverse mortgage is a mortgage loan that allows homeowners aged 62 and over to withdraw some of the value of their home and convert it to cash. You don’t have to pay income tax or make monthly mortgage payments.

How people use reverse mortgages

You can use the reverse mortgage product at your leisure. They are often used for expenses such as:

 

  • Debt consolidation
  • Living expenses
  • handyman
  • Help the kids in college.
  • Buy another home that better meets your needs as you age

How do reverse mortgages work?

A reverse mortgage is the opposite of a traditional home loan. Instead of paying the lender a monthly payment every month, the lender pays you. You will still have to pay property taxes, home insurance, and other related costs, otherwise, there is a risk of foreclosure.

The amount you get for a reverse mortgage is based on a sliding life expectancy scale. The older you are, the more real estate you can raise.

 

Two types of reverse mortgages

The Federal Housing Administration insures two types of reverse mortgages: variable rate and fixed rate.

Fixed-rate reverse mortgages consist of a fixed rate.

2. Adjustable have five payment options:

Term of office: define the monthly payments as long as you or your spouse stay at home

Duration: set monthly payments for a fixed period

Line of credit: unspecified payments if you need them until you run out of money

Modified term: a line of credit and monthly payments that are set while you or your authorized spouse lives at home

Modified term: a line of credit and monthly payments for a fixed period of your choice

Am I eligible for a reverse mortgage?

To apply for a reverse mortgage, you must meet the following FHA requirements:

  • Are 62 years of age or older
  • You and/or an authorized spouse, who must be named as such in the loan, even if he is not a co-borrower, live in your home as their main residence
  • Has no federal criminal debt
  • You own your home directly or have a significant amount of equity

You will attend the mandatory consultation session with a Housing Conversion Mortgage Advisor (HECM) approved by the Department of Housing and Urban Development.

Your home meets all FHA property standards and flooding requirements

You will continue to pay all property taxes, home insurance, and other home maintenance costs while living at home.

What else do you need to know?

Before issuing a reverse mortgage, a lender checks your creditworthiness, your monthly income against your monthly financial commitments, and orders an appraisal of your home.

The Financial Consumer Protection Agency recommends that you wait until you are older to get a reverse mortgage so you don’t run out of money for retirement too soon.

Almost all reverse mortgages are issued in the form of capital conversion mortgages (HECM), which are insured by the Federal Housing Administration. HECMs have strict credit guidelines and a credit limit.

If you think a reverse mortgage is right for you, contact a HECM advisor or call toll-free 800-569-4287 for more information on this financing option. If you choose a reverse mortgage, you can contact an FHA approved lender.