Loan Programs

Mortgage Insurance : A Breakdown

What is Mortgage Insurance?

Mortgage insurance is a specialized protection for the lender -not the buyer- if you are unable to make your mortgage payments, for any reason. If you fall behind, your credit score may suffer, and you could stand to foreclose on your home.

How does it work?

Mortgage insurance lowers the risk to the lender making the loan to you, that way you are eligible for a loan you might not otherwise get. This does increase the cost of the overall loan but if you are required to get it, it will either be included in your monthly payment, your costs at closing, or both.

Who needs Mortgage Insurance?

Typically, borrowers making a down payment of less than 20 % of the purchase price of the home also will need to pay for mortgage insurance. This insurance is also usually required on FHA and USDA loans.

Are there different ways to pay for Mortgage Insurance?

There are several different kinds of loans available to borrowers who have low down payments, and the resulting mortgage insurance can be paid for in a number of ways:

  • Conventional Loans – your lender may arrange for a private company to insure you. Private mortgage insurance (PMI) rates vary by the amount of the down payment amount and credit score, but are tend to be cheaper than FHA rates for good credit. Under certain circumstances, you may be able to cancel your PMI. (see last question)
  • FHA Loans – premiums from your insurance are paid to the Federal Housing Administration (FHA). This insurance is required on all FHA loans. FHA insurance is paid by both monthly payments and upfront costs included in closing. Loan amounts can increase if there is not enough cash on hand to pay upfront and the fee is rolled over to the mortgage.
  •  USDA Loans –  Similar to the FHA but typically cheaper. You will pay for insurance both upfront and monthly. You may choose to roll the upfront portion to the mortgage but again, this will increase overall loan cost.
  • VA Backed Loans – replaces mortgage insurance and functions similarly to it. There is no monthly premium with this loan but there is an upfront “funding fee”, which varies depending on the type of military service, the down payment amount, disability status, type of loan (buying or refinancing), and whether or not it is a first VA loan. You have the choice to roll the upfront fee with this as well.

Can you get rid of mortgage insurance?

In order to remove private mortgage insurance (PMI), you must have at least 20% equity in your home. You may ask the lender to cancel PMI when you have paid down the mortgage balance to 80% of the home’s original appraised value. When the balance drops below 78%, the mortgage servicer is required to eliminate the PMI.

Read more...

Buying a Home: Great No to Low Down Payment Options

 

 

Owning a home is a major element of the American Dream, and many people find that purchasing a home is the wisest financial decision they ever make. However, the belief they need a sizable down payment keeps many potential homeowners out of the market. They end up spending thousands of dollars each year on rent instead of building financial independence with home ownership.

You May Qualify for No to Very Low Down Payments

Recognizing the importance of home ownership, the federal and state governments have enacted several loan programs that require no or exceptionally low down payments. It is well worth your time to explore these programs, even if you have the cash to make a larger down payment. Using any of the programs will often allow you to purchase a home, and perhaps one larger than you might otherwise consider.

We carefully monitor the best programs to get you into the home of your dreams with the least upfront expenses and lowest down payment. I discuss several of our favorites below, and we can help you determine which ones meet your needs and qualifications.

Conventional 1% Down Program

Our current favorite actually allows us to assist you in buying your home. The program we use actually requires 3% down, but we gift you 2%. That means with just 1% down you can get into a home that starts you off with 3% equity. Additionally, your monthly payments average as much as $200 a month lower than other options, such as the FHA Grant and Utah Housing Programs that we discuss below. With these advantages you can see why we are currently completing a number of these loans each month.

FHA Loan with Down Payment Assistance.

The state of Utah and its counties put great emphasis on the concept of home ownership. As a result, there are multiple grants available to help you purchase a home. There are often income restrictions and other qualifying factors, but the help is significant for those who qualify. For example, our favorite, the CDC Grant (https://cdcutah.org/im-a-home-buyer/down-payment-assistance) provides many residents of Salt Lake County an outright grant of as much as $5,000. We can help you explore this option and other grant programs if you live outside Salt Lake County.

FHA Loan with Utah Housing Second

Another popular and useful program has been established by Utah Housing to work with FHA loans (https://utahhousingcorp.org/). The state agency enhances a regular FHA Loan with 3.5 percent down loan with a 6% second note. This amount covers the required FHA down and part of the closing costs on the loan. We find this is an excellent option for homes with a purchase price below $200,000 and borrowers with some credit rating challenges. While the rate on the mortgage may be a bit higher, this program usually generates multiple offers and is a great solution for certain situations.

USDA Loan

If you live in or are looking to live in qualifying rural areas, the USDA loan is a 100% financing option that many buyers fail to consider. Fortunately, we are able to help many clients who live in such qualifying areas as Tooele County, Saratoga Springs, Eagle Mountain, and the Southern part of Utah County. On top of 100% financing, USDA Mortgage Insurance is significantly lower than the required FHA Mortgage Insurance. Our team will help you evaluate this as a preferred source of home financing.

VA Loans

Of course, active duty and veteran military personnel are rewarded for their service to our country with a great 100% financing, program. Additionally, VA loans are generally more flexible on minimal credit scores and you avoid the cost of mortgage insurance. If you have served in the U.S. Armed Forces, let us explain this important benefit in more detail. You may find this an ideal route to home ownership.

FHA Loans

As we mentioned above, a traditional FHA loan requires only 3.5% down. While there are certain restrictions and qualifications, this is a great way to get that starter home and begin the process of building equity in your own home, with the option to later use that equity for refinancing or purchasing a larger house.

Conventional Loan Programs

Contrary to what many people believe, 20% is not a requirement for many great conventional loan options. We constantly monitor the markets for the best options, and we can show you a variety of ways to purchase your house with as little as 3 to 5% down.

Are you sitting on the sidelines because you think you can’t come up with a large enough down payment? Call today and we will show you how you can get into the home ownership game with a zero or very low down payment!

~Anthony

Read more...

The Magic of the 1% Down Program

How our Unique Program Is Changing Lives

One of the major financial decisions most individuals ever make is buying a house. Owning a home provides you with a sense of security and stability that simply can’t be achieved by renting from someone else. Additionally, the many long-term advantages of home ownership provide a life-changing opportunity to grow your personal net wealth.One of the great joys we have in our firm is helping many of our clients purchase a home and join the family of contented home owners. Our secret?

It’s not really so much a secret as the way we have designed what we call our One-Two-Three program. As one of Utah’s leading mortgage brokers, we have created an innovative approach that allows buyers to move in to their new home with a net 1% down payment. That’s right, just 1%. We pair our clients with a 3% percent down mortgage and then we gift them 2% of the home value. Again, that’s right – we gift the 2% and you move into your house with an instant 3% equity.

Here are comments from just a few of those new homeowners:

         “Putting 1% down in a hot market like this was a great investment. We were able to use the money we had saved as a down payment to improve the value of the home and truly make it ours: new floors, paint, kitchen cabinets, window treatments, and even furniture. The improvements gave us instant equity and made it feel like home from the day we moved in.” ~Kenneth

Ken really used this program to his advantage. He had the money for the down payment but chose to use the 1% down payment program anyway. This allowed him to use the money he saved for a down payment on renovating and updating his home.

         “I originally got pre-approved with another lender for an FHA loan but the condo I fell in love with wasn’t FHA Approved. If it wasn’t for my mother recommending a 2nd opinion with ALV Mortgage and the 1% down conventional loan I wouldn’t be in my condo today.” ~Tonia

Tonia was pre-approved with another lender for an FHA Loan and was shopping for condo’s. Unfortunately not all condo’s are FHA approved. Not only was our 1% loan program able to get her into her condo, but it did so at a cheaper monthly payment then the other lender’s FHA loan program.

         “My rent kept increasing year after year so I decided to buy a condo, but I didn’t have a down payment. I decided to quit my Gym membership, quit going to Starbucks, and save every penny I could. It took me 3 months, but I was able to save for a 1% down payment. My rent will never go up again.” ~Angela

I am so proud of Angela. It wasn’t easy but she set a goal and made it happen.

         “When a house came up for sale across the street from my aging parents I just had to buy it, but I didn’t have a down payment. Scrimping up 1% to purchase this house wasn’t easy, but we did it. We wouldn’t have been able to buy this house any other way. Now we love our house and being so close to family.” ~Sofia

This loan wasn’t easy but I am so glad we were able to get it closed. Buying this house made Sofia so happy she could hardly contain herself. She couldn’t wait to get the keys.

Call me today and I can explain how I can get you into a home with just 1% down. We work hard to make the mortgage loan process the easiest part of your biggest financial decision.

~ALV Mortgage

Read more...

Cash Out Refinance

Let’s discuss when it’s right to turn your home equity into Cash.

Is it Right for You?

Owning your own home is not just a fundamental aspect of the American Dream. For many American households, the equity in their homes represents as much as 67 percent of their total net worth. For generations the power of home ownership has created a solid financial base for millions of families, and a little knowledge offers the potential for even more financial independence.

Building Long-term Value

Most people understand that the total equity in their home represents the current market value minus the balance of the underlying mortgage. The initial equity balance usually starts with the down payment, and equity value generally grows over time due to a combination of factors. These include:

  • Improvements made in the home

  • Paydown of principal from monthly mortgage payments

  • Overall increase in market value

While this growth in equity provides an overall sense of comfort, it may also provide some significant financial opportunities. One of the fundamental principles of financial management is to keep your money at work earning the best possible returns. While the equity in your home is working for you, it can also be leveraged to provide even more financial benefits.

Putting Risk versus Reward to Work

Loans on primary residences are considered relatively safe bets by financial institutions. That is why mortgage rates are significantly lower than most other consumer loans. Likewise, it generally means you can access your equity with a cash-out refinance.

If you have equity in your home, you can usually take advantage of an equity line of credit or loan. However, the rates on such loans are higher than regular mortgages because they represent more risk to the lender. That risk comes from being second in line behind the primary mortgage holder.

On the other hand, the cash-out refi replaces the original mortgage and assumes the first position on your home. Depending on your specific situation, you may end up with lower or very similar payments due to changes in interest rates and other factors. Our experienced loan advisors can quickly help you evaluate your options in this area.

Taking the time to consider a cash-out refinance may open a variety of financial doors for you and your family. We have assisted clients put their equity to work in many ways, including:

  • Eliminating debt with much higher rates

  • Simplifying their financial picture by consolidating multiple payments into one

  • Starting a business without seeking outside lenders and investors

  • Diversifying their investments into such things as stocks, rental properties, etc.

  • Helping with unexpected or other major needs such as medical and education

In light of the new tax changes, your advisor may show you just how much additional financial leverage a cash-out refi may provide you. For example, consider the savings of replacing just $16,000, which is the 2017 average for U.S. Households with credit card debt, carried at 18% for ten years. (https://www.nerdwallet.com/blog/average-credit-card-debt-household/))

A refinance mortgage that gives you that $16,000 to pay off the credit cards with a 4.5% mortgage would save nearly $15,000 over those ten years. That is called a savvy financial strategy, even before adding in the potential returns from investing that “extra” $15,000.

As the song says, “You work hard for your money.” Let us help you put that money to work for you by exploring the advantages of a cash out refinance on your home.

~ALV Mortgage

Read more...

The Road Map for Home Ownership

Let’s discuss when it’s right to turn your home equity into Cash.

Is it Right for You?

Owning your own home is not just a fundamental aspect of the American Dream. For many American households, the equity in their homes represents as much as 67 percent of their total net worth. For generations the power of home ownership has created a solid financial base for millions of families, and a little knowledge offers the potential for even more financial independence.

Building Long-term Value

Most people understand that the total equity in their home represents the current market value minus the balance of the underlying mortgage. The initial equity balance usually starts with the down payment, and equity value generally grows over time due to a combination of factors. These include:

  • Improvements made in the home

  • Paydown of principal from monthly mortgage payments

  • Overall increase in market value

While this growth in equity provides an overall sense of comfort, it may also provide some significant financial opportunities. One of the fundamental principles of financial management is to keep your money at work earning the best possible returns. While the equity in your home is working for you, it can also be leveraged to provide even more financial benefits.

Putting Risk versus Reward to Work

Loans on primary residences are considered relatively safe bets by financial institutions. That is why mortgage rates are significantly lower than most other consumer loans. Likewise, it generally means you can access your equity with a cash-out refinance.

If you have equity in your home, you can usually take advantage of an equity line of credit or loan. However, the rates on such loans are higher than regular mortgages because they represent more risk to the lender. That risk comes from being second in line behind the primary mortgage holder.

On the other hand, the cash-out refi replaces the original mortgage and assumes the first position on your home. Depending on your specific situation, you may end up with lower or very similar payments due to changes in interest rates and other factors. Our experienced loan advisors can quickly help you evaluate your options in this area.

Taking the time to consider a cash-out refinance may open a variety of financial doors for you and your family. We have assisted clients put their equity to work in many ways, including:

  • Eliminating debt with much higher rates

  • Simplifying their financial picture by consolidating multiple payments into one

  • Starting a business without seeking outside lenders and investors

  • Diversifying their investments into such things as stocks, rental properties, etc.

  • Helping with unexpected or other major needs such as medical and education

In light of the new tax changes, your advisor may show you just how much additional financial leverage a cash-out refi may provide you. For example, consider the savings of replacing just $16,000, which is the 2017 average for U.S. Households with credit card debt, carried at 18% for ten years. (https://www.nerdwallet.com/blog/average-credit-card-debt-household/))

A refinance mortgage that gives you that $16,000 to pay off the credit cards with a 4.5% mortgage would save nearly $15,000 over those ten years. That is called a savvy financial strategy, even before adding in the potential returns from investing that “extra” $15,000.

As the song says, “You work hard for your money.” Let us help you put that money to work for you by exploring the advantages of a cash out refinance on your home.

~ALV Mortgage

Read more...

Purchase your home with just 1% down

One Month's Rent Could get you into your dream home

 

 

 

 

ALV Mortgage IS EXCITED TO OFFER THE CONVENTIONAL 1% DOWN WITH EQUITY BOOST LOAN PROGRAM

  • You put down 1%, your lender contributes 2%*, giving you 3% equity at closing
  • Great low rates
  • Close in 30 days or less
  • Conventional 30-year fixed program
  • Available with no monthly Mortgage Insurance

 

There’s no reason to wait. Call today and get the home you’ve always wanted.

ALV Mortgage Announces Exciting 1% Down Payment Equity Boost Program for Utah

If you’ve been putting off the search for your dream home trying to build up the required down payment, you will definitely be interested in a new program offered by ALV Mortgage.

Just 1% Cash Down Payment

Our new innovative Equity Boost Program requires a buyer put down 1 percent of a home’s purchase price as a down payment.  We as the lender contribute an additional 2 percent down payment, and the 3 percent total equity at closing allows qualified buyers to obtain a conventional mortgage at a great rate.

We can actually close this loan in 30 days or less, and it is available without monthly Mortgage Insurance.

Innovative and Exciting

Although we have already helped thousands of Utah homebuyers find the financing that they required for their dream homes, this new program makes buying an easy decision for many others. When qualified Utah buyers find they can get into a new home with a down payment often less than one month’s rent. We are proud to introduce our Equity Boost Program as one of the most creative mortgages in the industry.

Secure Your Future

Home ownership has long been viewed as one of the primary ways to achieve a secure future by building an equity stake in real property. The ability to gain a 3% equity share with only one third of that amount invested in cash is almost unheard of.

For details of this new program, or to discuss other available options, Call Anthony VanDyke. As one of the top 2% of mortgage loan originators in the country, Anthony will find the right mortgage product to suit your needs. Whether you’re buying a first home or a retirement villa. Why not contact us now and let us go to work for you? We’ll help you save money and set you on the path to home ownership and equity building.

 

Read more...

FHA Streamline Refinance

FHA Streamline Loan Rates as Low as [shortcode_magic id=”2561″]

We have helped over 1,800 people with their FHA loan

  • Lowest FHA mortgage rates – Guaranteed
  • No closing costs – skip 2 mortgage payments
  • Bad credit OK – we go down to 500 score
  • 12 month seasoning on BK’s, foreclosures, short sales

headshot


“Everything went smooth. We are definitely happy with our rate of 2.875%. We will be recommending you to anyone looking to buy a home”

John Mitchell, Salt Lake City Utah


headshot


“Anthony VanDyke made the process smooth, easy and fast. We actually closed on the house two weeks early”

Pierre Askmo, Park City Utah

Trust Icons

Get Today’s Rates
FHA Loan Rates Updated Daily

[shortcode_magic id=”3067″]

[shortcode_magic id=”3068″]

Mortgage Bond Market Expert

We know how to read the bond market to lock your loan in on the best day for the lowest rate.

FHA Expert

We know FHA Guidelines better than anyone, and can package tricky loans for quick approval.

Top 5% Mortgage Originator

Consistently ranked in the top 5% of Mortgage Originators by Mortgage Originator Magazine.

No “Bait & Switch”

Once we find the best rate, we lock it in. No “bait and switch” or similar tactics.

10 Years in Business

With 10 years experience we move quickly, and will get your loan processed asap.

No Cost FHA Loans

No Cost – No Fee FHA Loans. Purchase or Refinance with no out of pocket expenses.

[shortcode_magic id=”2633″]


headshot

“I worked with Anthony VanDyke, in my book he’s the greatest. He was kind, professional, and prompt. I would highly recommend him to my friends & family.”

Sheilah Tandy, Antioch California

headshot“Thank you. Out of all the mortgage people that I spoke with you were the most personable. Thanks for helping with my refinance.”

Joee Lancaster, West Jordan Utah


headshot

“Anthony is so Concerned, Helpful, and Smart as Hell!”

Wayne Courand, Tooele Utah

FHA Loan Rates Are At Their Lowest Point In Years – Call 801-206-4343 Before It is Too Late

Anthony VanDyke
Utah FHA Loan Expert
801-206-4343

[shortcode_magic id=”3474″]

Trust Icons

[shortcode_magic id=”2641″]

Read more...

Fannie Mae Launches New HomeReady™ Mortgage Program

Fannie Mae just announced an exciting new, affordable lending product called the HomeReady™ Mortgage. What separates it from other programs is for the first time ever Fannie Mae is considering income from family members living in the house, but not signing on the loan.  Also the HomeReady™ Mortgage only requires a 3% down payment.  Standard conventional loans require 5%, FHA requires 3.5%. Grants are available to help with down payment. Picture1

My favorite new feature with the HomeReady™ Mortgage is that it considers rental income from mother-in-law units in qualifying borrowers. This means that if your property has an accessory unit that can be rented out we can count that rental income which helps you qualify for a nicer larger house. For example, a young family with one small child who would like to have three more.  They find a beautiful house with a basement apartment.  They don’t need the room in the basement now, but they’ll need it in the future.  They can qualify for a HomeReady™ Mortgage because they can rent the basement apartment now and include the rental income in their application.  As their regular income grows, they won’t need to rent the basement apartment and can convert it into space for their growing family.

Who else will benefit most from this program?  First, we have multi-generational families.  There are more multi-generational families in 2015 than ever before.  Baby Boomers are moving in with their children.  College graduates are moving in with their parents to save money or because they can’t find jobs. With the HomeReady™ Mortgage, income from all the household members may be considered.  For example, retired parents may move in with their children.  Their monthly social security income may be used toward qualifying their children for a loan, without them signing or obligating themselves on the loan.

Couples where one person has good credit and the other has poor credit also benefit from this program.  For example, a married couple each make $2,500 per month.  The wife has great credit, but the husband’s credit is terrible.  Their combined $5,000 monthly income allows them to easily afford a $1,400 house payment.  Unfortunately, the husband cannot be on the loan because of his bad credit, and the wife’s income isn’t enough to qualify for a mortgage.  Now with the HomeReady™ Mortgage, the husband’s $2,500 income can be considered even though he won’t be a signer on the loan.

What does the HomeReady™ Mortgage really mean for home buyers ?  Buyers who couldn’t afford or qualify for a mortgage loan yesterday may be able to today.  This increases the pool of available buyers and will increase demand and home prices.

If you know anyone who hasn’t been able to qualify for a mortgage but fits into one of the above scenarios please call us with their name and phone number. We love referrals.

 

Read more...

Investment Property: Making the Right Purchase

For Rent Real Estate Sign in Front of HouseThe first step in choosing the right Salt Lake City investment property is knowing why you want it, what you plan to get from it, and how to spot a good investment. Second, you must understand the process and how it works. Here are a few tips:

  • Decide what type of property would work best

There are a number of investment property options, but condos, town-homes, single family homes and two to four plex’s are popular and quickly find tenants.

  • Do your research

Finding the right property takes research. It’s important to use the right realtor who understands your needs. Contact me for a recommendation based on the type of property you are looking for.

  • Determine your funding

Know what option will work to your advantage. Bank loans have rates that are reasonable and can be spread out over 15 to 30 years. It’s a great time to purchase investment property due to super low rates within the market, lenders becoming less stringent, and most loan institutions requiring only 15% down.

  • Rethink your strategy

Purchasing a newer and bigger house for yourself while converting your existing home into an investment property can work to your advantage. You’ll have cheaper down payment options and can upgrade your living space. Your new house will cost more… but you will be making money from your rental property.

  • Management

Once you get the property, it needs to be managed and maintained. Now is the time to decide if you want to use a property management company or manage the property yourself. You must factor in the time and demands of your current schedule to determine what’s best.

During the process, should I purchase property in my name or should I pursue an LLC?

This is a valid question. For some, it makes good business sense. Here are a few reasons why:

  • Protection

Creating an LLC will protect your assets, especially if you have a situation with a tenant and they want to sue. This will keep your personal assets from being at risk.

  • Taxes

Having an LLC can help you reduce your taxes in a number of ways. Speaking to an accounting or financial advisor can give you more information to make the right decision.

Although setting up an LLC may be advantageous, there are also some disadvantages:

  • Based on where you live, there are costs associated with having an LLC. Those costs include the yearly fees, and separate tax return fees.
  • There are instance where your assets may not be protected from lawsuits.
  • If you already finance a property, buy another under your personal name and quit claim it to an LLC, you may inadvertently trigger the “due-on-sale” clause of your original loan.

These tips will help you during the process, and can give you guidance on making those decisions that will make a difference in the way you approach your investment strategy. Speaking to someone who is knowledgeable in the field can assist you in the process to acquiring the best investments for you. Call me today to discuss ways to set up your retirement portfolio with a investment property.

 

Source: http://www.biggerpockets.com/renewsblog/2013/08/17/rental-properties-llc/, http://www.biggerpockets.com/renewsblog/2013/03/15/investment-property/

Read more...

It’s Finally Here! Now You Can Buy a Home With Only 3% Down!

Fannie Mae loosens mortgage guidelines, Lowers down payment requirements. If you have been struggling to save a down payment to buy your first home then your struggles are finally over!

 

In early December of 2014, Fannie Mae finally announced the exciting news that many people, including ourselves, have been eagerly waiting for. They unveiled a new program that is aimed at putting even more people into their first homes while saving them lots of money. Thanks to this exciting and unheard-of program, first-time homeowners will need to come up with significantly less of a down payment which means you will be able to enjoy homeownership much more quickly.

New Option for Those Who Need it Most

Low and middle income families often find themselves unable to save up the necessary funds for a down payment for a traditional loan.

Many lending institutions required at least 5% for a down payment.   With Fannie Mae’s new program, though, you will be able to take advantage of the 97% loan-to-value ratio. This requires only 3% of the purchase price to be used as a down payment.

Real-Life Comparison

Other programs, such as FHA loans, do offer homeowners favorable terms. This newest and long awaited Fannie Mae program keeps even more money in your pocket, right where you need it. While the interest rate charged by Fannie Mae’s new 3% down payment program is slightly higher than what an FHA loan is, you will still be able to save money on two fronts. You will have less of a down payment to come up with and your monthly payments will be lower as well. The handy chart illustrates exactly how this program works.

 

FHA

97% Conv LPMI 95% Conv LPMI
Purchase Price $200,000 $200,000 $200,000
Down Payment Required $7,000 $6,000 $10,000
Interest Rate 3.25% 4.25% 4.00%
Principle & Interest Payment $854 $971 $922
Mortgage Insurance Payment $136 $0 $0
Total Payment $990 $971

$922

Saves Money While Putting People in a Home More Easily

For example, for a home that costs $200,000, Fannie Mae requires only 3% of that amount as a down payment which is $6,000. A FHA loan, on the other hand, requires 3.5% as a down payment which is $7,000. That one-half of a percentage point might seem insignificant, but in the case of purchasing a home in this scenario, it is equal to $1,000. This is a significant amount for low and middle income families and can mean that you can finally get into a home.

Where to Find Help

Buying a home is an exciting time in your life. It also involves many questions and considerations to determine what is the best loan option for your needs. If you have been thinking about purchasing a home in 2015, contact Anthony VanDyke today to start the process and discuss the options available to you.

 

Read more...