Are you ready to buy your dream home over $454,000? Well, the time to do that is now. If you are looking to buy your mansion in South Carolina, North Carolina, Georgia or Tennessee, Mortgage Options, Inc. is excited to offer a new mortgage product tailored to those looking to purchase homes between the values of $453,101 and $679,650.

Introducing the Conventional High Balance Mortgage from Mortgage Options, Inc. This new mortgage product allows homebuyers to borrow up to $679,650 with the same guidelines as a conforming conventional loan instead of having to opt for a jumbo loan. Let’s take a look at both of these high balance loan options.

Jumbo Loans

Previously, homebuyers looking to buy a one-family house over $424,000 were unable to do so with a conforming conventional loan from Fannie Mae or Freddie Mac. Jumbo loans were your only option, and their guidelines are much stricter than a conforming conventional loan.

What makes jumbo loans different?

In order to qualify for a jumbo loan, it usually takes a lower debt-to-income ratio, higher credit scores than other kinds of loans and a larger down payment. Also, emergency funds (reserves) must be higher than for standard kinds of loans.

New High Balance Conforming Conventional Loan

Our new conforming conventional loan allows homebuyers to borrow between $453,101 and $679,650 without the strict guidelines of a jumbo loan. Benefits of this new loan product include:

• 10% down payment with no mortgage insurance
• Better rates, easier guidelines and faster turnaround times than jumbo loans
• Primary and secondary homes are eligible
• Minimum 680 FICO score required

Other details include a 90% LTV (loan to value) ratio with refinances up to 80% LTV, a maximum 43% DTI (debt-to-income) ratio, and there is no manual underwriting to slow the process down.

Call Mortgage Options, Inc. Today

If you’re in the market for your palace, now is the time to speak to a loan officer at Mortgage Options, Inc. We’ll be sure to find the right mortgage for you, and with new products coming online, you can take advantage of mortgages with better terms to make your dream a reality. Mortgage Options, Inc. has offices in South Carolina, North Carolina, Tennessee and Georgia. Call our office at 803-732-5787 to schedule an appointment today!

Closing a mortgage is an exciting time. It brings you one step closer to moving into your new home! Unfortunately, wire fraud and mortgage closing scams are on the rise. Always be sure of where and how you are sending your money. Mortgage Options, Inc. helps by setting you up with companies we have trusted and worked with for years. Our experts are always prepared to answer questions. Let us help you get your mortgage the safe way.

What are wire fraud and mortgage closing scams?

You receive an email that appears to be from your real estate agent or settlement agent (title company, escrow officer, or attorney). It tells you that there has been a last minute change in the closing process, for example, that a check is no longer acceptable or that the wiring instructions have changed. It instructs you to wire or otherwise electronically transmit the closing funds to an account that the scammers control. This is called email phishing. They are playing on your desire to be done with the closing process in a quick and easy way. They will steal your closing funds like your down payment and closing costs, leaving you out of pocket and without your loan closed. Wire fraud refers to a person attempting to get you to send them money by assuming a false identity. You may recall the emails we all used to get from the Prince of Nigeria wanting you to send him $10,000? These are those guys, and they’ve graduated to better, more believable schemes.

What is Mortgage Options, Inc. doing to prevent this?

Mortgage Options, Inc. keeps up-to-speed on the latest phishing scams, educating our team and warning our customers to help keep everyone safe. Our experts help match clients with reliable loaning institutions. These are companies we have worked with before and know you can trust. This personal relationship between companies and with our customers makes a fake message easy to spot. We will always communicate with you through official channels, with experts available for you to call should you ever receive something out of the ordinary or suspicious. Be smart about your investment, protect your money, wire payments only to known, trusted, verified sources.

What can I do to not get scammed?

Using common sense and caution can often help you avoid these nasty situations. Here are some tips to help you escape the scammers.

• Talk to your Mortgage Options, Inc. Loan Officer about the process. There is a standard closing process for mortgages that must be followed and wire transfers will always look a certain way and be sent to a certain place. Any offer you receive that is a shortcut to this process or gives you different instructions is probably fraud. Call your broker to verify. Do not reply to the email or call any of the numbers listed in it.
• Know what a phishing email looks like. Some red flags of scam emails are: unfamiliar or misspelled email addresses (ex:yahao.com, gmaol.com), they are overly enthusiastic with big graphics and offering “deals”, they do not contain correct company logos, signatures or disclaimer information, they want you to click into another site or download a strange attachment, wire information is slightly different from what you were originally instructed. Any of these warning signs warrant a call to your lender.
• Ask Questions. When in doubt, just ask. Call a trusted number and ask about the email. Call Mortgage Options, Inc. and ask if the wire information seems legitimate.
• Don’t email financial information. Call, transfer or even mail funds. A lender will never email you to ask for your account information. They should already have it on file and they know this is not a professional way to gather information.
• Confirm that payment has been received. If you or another entity involved in the closing suspect a problem, report it to law enforcement and your bank as soon as possible to increase your likelihood of recovering the money.

Choose Mortgage Options, Inc. as your mortgage lender. We work with companies who have been vetted by our professional staff. Your loan officer will help you find the best loan for your situation and keep you informed of any changes or issues, meaning less chance of fraud and more chance of you getting your mortgage without issues. Give us a call today at 803.732.5787.

The prevailing topic in mortgage news these days is increasing rates – they’re as high as they’ve been in four years and experts believe they will continue to rise. Mortgage Options, Inc. is dedicated to helping you find the best rates and mortgages for your budget and lifestyle, helping you come closer to the home you want. Call us about your mortgage loan options today.

Current Rates

Interest rates are constantly changing by increments as small as an eighth of a percent. Prices peaked around 18% in the 1980s, after which they slowly declined, reaching 10% in 1990. We are currently at an unprecedented low with rates fluctuating between 3.5% and 5% since 2010. (All numbers from ValuePenguin.com based on Fannie Mae data.) While we're not forecasting the rates to go up to the teens, they will and are going up in the near future. As inflation and the stock market rises, so do interest rates. Low rates are not a constant and can be expected to rise.

If you're considering buying a home, now is the time to find that home and lock in a mortgage with a low interest rate.

What are your options?

From popular fixed-rate mortgages, to options for first-time buyers, Mortgage Options, Inc. has a range of mortgage loan options to meet your requirements. We will work with you to make sure your home financing experience is a success. Here are some of the more popular mortgage loan options available with Mortgage Options, Inc.:

Call Mortgage Options, Inc

With a new tax bill going into effect in 2018, many of us are wondering how this will affect us. At Mortgage Options, Inc. we not only help you find the best mortgage for you, we like to be able to advise our clients on the tax implications of their new mortgage. This is what we know so far in regards to the new tax bill, and how it will affect your mortgage interest and property tax deductions. We also suggest discussing you tax situation with a tax professional or CPA.

What We Know

Two aspects of the tax bill that will affect homeowners and home buyers directly are related to itemized deductions for mortgage interest and property taxes.

Mortgage Interest Deductions

• New home buyers will only be allowed to deduct interest on the first $750,000 of mortgage debt on a newly-purchased home. This is down from $1 million in 2017 and preceding years.
• This lower cap does not affect current homeowners. Taxpayers with existing mortgages can continue to deduct interest on a total of $1 million of mortgage debt for a first and second home.
• Deductions for interest on home-equity loans are suspended through 2025.

The good news here is that this does not affect you if you have already purchased a home. If you are planning to purchase a home in 2018 or beyond, it’s good to keep these new rules in mind.

That said, this is unlikely to affect the majority of our customers in South Carolina, North Carolina, Georgia and Tennessee. Here are the median listing prices for homes in each state, as of January 2018:

South Carolina: $239,900

North Carolina: $250,900

Georgia: $239,790

Tennessee: $225,000

As you can see, we do not live in an area of the country that sees house prices over $750,000 that often. The change in the mortgage interest deduction is more likely to affect people in metro areas with higher house prices like New York City or San Francisco.

Property Tax Deductions

The new tax bill has put a cap of $10,000 for deductions on property taxes for both individuals and married couples. Previously, there was no cap on deductions for property taxes. This is most likely to affect people who live in states with higher property taxes. For those of us living in Tennessee, North Carolina, Georgia and South Carolina, our property taxes are low compared to other areas of the country. Here’s a breakdown of the averages:

South Carolina median home value: $147,000
Average effective property tax rate: 0.57%
Average property tax per year: $838

North Carolina median home value: $164,900
Average effective property tax rate: 0.88%
Average property tax per year: $1,451

Georgia median home value: $160,100
Average effective property tax rate: 0.94%
Average property tax per year: $1,505

Tennessee median home value: $145,500
Average effective property tax rate: 0.75%
Average property tax per year: $1,091

As you can see, our lower property taxes mean that most of us won’t be affected by this $10,000 cap, but residents in higher-tax states like New Jersey, New York and California are likely going to feel the pinch.

Tax Break for Home Sellers

The tax break for homeowners who sell their house for a gain stays. Taxpayers will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains when they sell their primary home, as long as they've lived there for two of the past five years.

Still Have Questions?

At Mortgage Options, Inc. we’re more than happy to discuss your questions regarding mortgages. Contact us for a free consultation at 803-732-5787. Our loan officers are regularly updated on changes in the housing and mortgage market, making us a valuable tool to offer advice and guidance. We have offices in South Carolina, North Carolina, Tennessee and Georgia to help you get the best mortgage for your Southern home.

Sources:

• https://www.wsj.com/livecoverage/tax-bill-2017/card/1513387809
• http://money.cnn.com/2017/12/17/real_estate/tax-bill-mortgage-property-tax-deductions/index.html
• https://www.zillow.com/sc/home-values/
• https://www.zillow.com/ga/home-values/
• https://www.zillow.com/tn/home-values/
• https://www.zillow.com/nc/home-values/
• https://smartasset.com/taxes/georgia-property-tax-calculator
• https://smartasset.com/taxes/south-carolina-property-tax-calculator
• https://www.investopedia.com/walkthrough/guide-buying-house-us/property-tax-assessment-state/southern-region-property-taxes/tennessee-property-tax-guide/
• https://www.bizjournals.com/triangle/blog/real-estate/2015/03/north-carolina-property-tax-comparisons-us.html

Christmas is almost here, and many of us are watching our expenses increase with Black Friday sales, Cyber Monday, and the usual gift buying this time of year. If you’re concerned about growing expenses and debt, Mortgage Options, Inc. offers a fantastic solution – home equity loans for debt consolidation. Let’s break it down for you.

Debt Consolidation Using a Home Equity Loan

Many of us have personal debt that we are paying off at a moderate or high interest rate. Common personal debt includes:

• Credit Cards
• Personal Loans
• Auto Loans
• Medical Bills
• Other Equity Loans

Not only is it a hassle to keep up with multiple payments on a monthly basis, changes in circumstances can make these payments a burden on your finances. Instead of defaulting, debt consolidation is an option. At Mortgage Options, Inc. we offer Home Equity Loans in the form of mortgage refinancing that can be used to consolidate your debt and turn those many monthly payments into one, lower monthly payment.

Why You Should Look at Your Home Equity Now

Debt consolidation can be done a number of ways, either with a secured loan or unsecured loan. At Mortgage Options, Inc., we offer a secured, home equity loan for debt consolidation. The benefits of choosing a secured, home equity loan over unsecured methods include:

• Lower interest rates
• A higher loan amount
• Easier to get approval
• You may be able to deduct the interest on your taxes

The loan amount is determined by how much equity you have in your home. This is a great time to look at your equity standing. House values are at their highest since 2012 so you may have more equity in your home than you’d expect. This will give you the option for a greater loan amount to pay off those debts.

Extra Benefits of Refinancing Your Home to Pay Off Debt

Home equity loans for debt consolidation have other benefits, especially this time of year. With Mortgage Options, Inc. there are no out of pocket costs for our customers. Investigating a home refinance and processing that loan is at no cost to you, so why not look into it?

Another favorite feature of our refinancing home loan is that you can skip 1 to 2 months of mortgage payments during the process. This is especially helpful during the holidays as you treat yourself and family to gifts for the holiday season.

Finally, a home refinancing loan may give you lower monthly payments than your current mortgage. So, if the bills are piling up and your need a bit of breathing room, debt consolidation and a mortgage refinance can help you this holiday season.

Contact Mortgage Options, Inc. today for a free consultation – 803-732-5787. We have offices in South Carolina, North Carolina, Georgia and Tennessee. Let’s discuss your mortgage options today!

What is an FHA Streamline Refinance Program?

If your mortgage was issued by federally qualified lenders and insured by the Federal Housing Administration (FHA), the FHA streamline refinance program can be a great deal for you. Streamline refinancing was created to help low-moderate income families pay off their mortgages sooner at a lower rate. Sounds great, right? Well it certainly can be, but there are some things to consider first. Mortgage lenders like to put restrictions and interest fees on loans that are not in the streamline program. It is always a good idea to shop around and compare before choosing a lender to go through. Mortgage Options, Inc. provides loans through various lenders so we can do the shopping for you, and answer any questions you may have.

The FHA streamline refinance program does have a lot of benefits. Unlike other mortgage refinance options, this program offers borrowers with an existing FHA mortgage a new FHA-insured home loan without requiring an appraisal or any documentation of income or assets. Furthermore, depending on when the current loan was taken out, lower mortgage insurance fees may be available to the borrower. If you took out your mortgage prior to June 1, 2009, you pay a 0.01% fee, a massive difference for those after that date, pay 1.75% interest. Therefore, with the higher rate, refinancing will still have a higher rate for you and may not be the best deal. Be sure and talk to an expert about your options.

Is the FHA Streamline Refinance Program right for you?

All that being said, the FHA streamline refinance can potentially help you save money. So here are some things to consider.

Do I qualify?

The FHA has some guidelines for using their refinance program. Your current mortgage must be FHA-insured. You must have made on-time, in-full mortgage payments for the past 12 months. Your FICO credit score has to be at least 620 or higher. You cannot have refinanced within the past 210 days. If you meet all these requirements, then you can start looking into lenders and rates. Different lenders have different loan requirements, so even if one lender turns you down, another may be willing to work with you. Homeowners with an FHA loan taken out before June 1, 2009 may benefit the most from the FHA streamline refinance program because of the lower interest rate, but even those with more recent loans should compare their current monthly payments with their payments under a refinance.

What are the advantages?

It’s easy to get approved. Other refinancing options can have credit score qualifications and house appraisals. The FHA refinancing options are designed to help lower income families and have fewer restrictions. No appraisal is required, even if you owe more on your mortgage than your home is worth. However, some lenders to require appraisals, even though the FHA says it isn’t necessary. And, of course, refinancing can lower your payments and help your loan be paid off faster.

What’s the downside?

Mortgage Insurance can get costly. When you refinance your FHA loan, you pay upfront mortgage insurance and sometimes annual premiums. This increases your loan balance and your monthly payments. If you took out your loan after June 1, 2009, your premiums will be higher on your new loan.

Closing costs cannot be included in your loan balance. Even though this total is different for everyone, average closing costs are approximately 3% of the loan amount. Some lenders will allow you to use a “zero cost refinance” option where you can wrap closing costs into your loan balance or pay them with cash. While “zero cost” sounds like a great option, what this actually means is that you must pay a slightly higher interest rate over the life of your loan to reimburse the lender-paid closing costs.

Let Mortgage Options, Inc. Help You

If you have an FHA-insured mortgage approved before June 1, 2009, refinancing to a lower interest rate with an FHA streamline refinance will probably save you money. But even if your mortgage was approved after that date, it’s worth talking to a loan officer at Mortgage Options, Inc. to see what your options are. Even though it’s relatively easy to qualify, you may still need to shop around for a loan approval if your home equity is low or you have credit challenges. Mortgage Options, Inc. can do the shopping for you as we have loan products from various sources. Either way, the effort is worth it and could lead to thousands in annual savings.

Talk to Mortgage Options, Inc. today and schedule your free consultation to discuss your options and what would work best for you. We will take the time to answer your questions and look at your unique situation. There are always options, and even if the FHA Streamline Refinance Program isn’t right for you, we’ll help you sort through your choices, bringing you a step closer to being debt-free.

For a free mortgage consultation, call 803-732-5787

Are you in the market for a new home? There are mortgages out there that require zero (0!) money down, and mortgage rates are low, so what’s stopping you from purchasing your dream home? At Mortgage Options, Inc., we help homebuyers in South Carolina, North Carolina, Georgia, and Tennessee get the home loan that works for them. Here are two of our favorite no-money-down loans.

VA Loans

South Carolina is home to some of the largest military bases in the country. We love the folks at Fort Jackson, Shaw AFB, McEntire, Parris Island and Charleston. North Carolina is equally a military state with Fort Bragg, Camp Lejeune, Seymour Johnson AFB, and more. If you are active military, reservist or a veteran, a VA loan is the perfect no-money-down mortgage for you. Other benefits include negotiable interest rates with fixed and adjustable options, no mortgage insurance required, and you can pay the loan off early without any penalties. You can secure a VA loan with a credit score of 580 or above, and it is possible to have two VA loans at the same time, as long as you remain eligible.

Another options for VA-eligible individuals is a cash out refinancing loan, which allows military and veterans to refinance up to 100% of the home value. This is a great option for VA-eligible individuals to access cash for debt consolidation, home improvements, or other cash needs.

If you are active or former military, speak to a loan officer at Mortgage Options, Inc. today. We’ll help you secure that zero down payment mortgage, or a refinance, and answer any questions.

USDA Rural Housing Loans

Did you know that 90% of Georgia, Tennessee, South Carolina and North Carolina is eligible for USDA rural housing loans? A USDA Rural Housing Loan is a no money down loan for homes located in qualified rural areas (most of NC, SC, TN and GA). You can qualify for a USDA loan with a credit score of 620 or above, and highlights of the USDA Loan Program include:

• Loans can be for up to 102% of the cost of the house
• Loans are 30-year-fixed and the interest rate is the going market rate
• Loans can include closing costs if appraisal is higher than the selling price
• The seller may be allowed to help pay for the borrower’s closing costs

For homebuyers in Tennessee, South Carolina, Georgia and North Carolina, it’s well worth it to look into a USDA rural housing loan mortgage. To see if you qualify, speak to a loan officer at Mortgage Options, Inc. We can answer any questions and get you one step closer to purchasing your next home.

For all of your mortgage loan options, contact Mortgage Options, Inc.

No matter what sort of mortgage you need, the loan officers at Mortgage Options, Inc. are here to help. Contact us today at 803-732-5787 for your free mortgage consultation. We have offices in South Carolina, North Carolina, Georgia and Tennessee.

Mortgage Options, Inc. is excited to announce its new mortgage program now available to prospective home buyers – the 1% down conventional loan! We’re one of the first independent mortgage companies in the country to offer this loan, which provides eligible homebuyers with a 2% lender-paid down payment in addition to the 1% down, giving you a 3% equity boost at closing.

Who is eligible for the Conventional 1% Down Program?

This 1% down program is perfect for home buyers who want to save money on their down payment, keeping more money in their pockets. Homebuyers must have a strong credit score – a minimum FICO score of 700 – and a maximum debt-to-income ratio of 43%.

The 1% down program is a new alternative to the 3% down programs that Mortgage Options, Inc. already offers. We are one of the first independent mortgage companies in the U.S. to offer a 1% payment option in the form of a conventional loan, as opposed to a government-backed mortgage.

Benefits of the 1% Down Loan

• 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 

*2% lender contribution may only be applied to down payment

Are you interested in our new Conventional 1% Down Mortgage? Speak to one of our loan officers today at Mortgage Options, Inc. We offer a free, no-commitment consultation and can help find the perfect mortgage for you. Call 803-732-5787.

Mortgage Options, Inc. is Helping Home Buyers Navigate the Home Buying Process!

Have you ever driven around an unfamiliar neighborhood and gotten lost? It’s pretty easy to do. If you know someone who lives in the neighborhood, it’s likely they can give you directions to keep you from getting turned around. Navigating the home buying process is similar to getting lost in a new neighborhood. With the right tools and directions, the process is much smoother. Mortgage Options, Inc. knows how tough it can be to navigate the streets in the neighborhood of the home buying process. We know how many lenders there are and the variety of home loans that are available. We understand the frustration of learning about a specific type of loan only to later learn that you don’t qualify for that home loan. We’re here to help. To make the home buying process simpler, we’ve developed the tips below to help home buyers navigate the confusing streets of the home buying process.

How to Make Your Loan Process Move Smoothly

• Make sure your credit is in good shape.
• If you pay rent, use a check to pay for it.
• Obtain proof of employment for the past 2 years.
• Avoid large deposits or withdrawals from your bank account.
• Figure out what you can put forth for a down payment.
• Secure a pre-approval letter from an independent mortgage professional (like Mortgage Options, Inc.).
• Research choices for local real estate agents.

Once you have followed these tips, it is time to start applying for a home loan. Even while you are applying for a home loan, you must take some factors into account.

6 things NOT to Do When Applying for A Mortgage Loan

1. Do not purchase major items such as cars, furniture, electronics, or jewelry.
2. Don’t switch jobs or quit your current one.
3. Consult with your mortgage professional if you need to withdraw, or move money between checking accounts and savings accounts.
4. Don’t pay off debts or collections unless you are instructed by your mortgage professional to do so.
5. Avoid using cash when making your good faith deposit.
6. Don’t have your credit report pulled numerous times.

Now that you are aware of things not to do during the home buying process, you can start to think about loan options. Mortgage Options, Inc. has hundreds of options to choose from, and we can help you make the best choice for your situation. Many banks have only 2 or 3 mortgage loan options. Before sitting down to discuss your options, you will want to have some numbers already in mind.

How Much House Can You Afford?

• What is your monthly income?
• What are your available funds for down payment?
• What are your monthly expenses?
• What is your credit score?

After you have determined your budget, you can narrow down your loan options considerably to determine the choice that is the best for you. You may even qualify for our 1% down conventional loan with equity boost program. This is where the buyer puts down 1% for a down payment, the lender contributes 2% of the down payment, and the homeowner starts with 3% equity at closing.

The most important aspect to securing your home loan is having a professional and knowledgeable mortgage broker guiding you through the tricky neighborhood streets of home buying. Mortgage Options, Inc. is your GPS to the home buying process.

Contact a mortgage broker at Mortgage Options, Inc. to start the home buying process today!

Homeowner’s association fees, property taxes, and the cost of unforeseen repairs are all worries new homeowners have when it comes to their finances. Good news, though! There are tax benefits to home-ownership that many homeowners do not think of.

Mortgage Interest Deduction

Homeowners can deduct the interest paid on their mortgage. This has the potential to be a huge tax saving. Initially, much of your monthly mortgage payment goes towards interest. Your mortgage company can help you figure out how much of your monthly payment goes towards interest and how much goes towards the principal on the loan. Once you know the monthly interest, you can then claim this as a deduction when you file your taxes.

Property Tax Deduction

If you pay taxes on your property, whether it is your primary residence or even a vacation home, the property taxes can count as a deduction towards your taxes. This could be a considerable amount depending on how much your property taxes add up to.

Possible Closing Cost Deductions

If you’ve closed on a home in 2016 and you are a first-time home buyer, you can claim the closing costs on your taxes at the end of the year. You do have to meet all of those previously listed qualifications so, if you are not a first-time home buyer, you will not be able to claim those closing costs. The good news is that if you are a first-time home buyer, regardless of whether the closing costs are paid by you or the seller, you can still claim them. This could mean a sizeable amount as the usual down payment on a home is 1% or more of the house sale price.

Home Equity Lines Deduction

Many homeowners are aware that they can claim the interest they have paid on their home during the previous year. Homeowners are unaware that they can also claim the interest they paid on a home equity loan during the previous year. If you took out a home equity loan to help consolidate debt or for any other reason, don’t forget to claim the interest paid on that home equity loan.

Exclusion for Capital Gains

If you have lived in your home for over 2 years, you can qualify for this exclusion. Have you sold your home and earned money off the sale? Then the profits are tax exempt as long as they are less than $250,000 if you are single, and less than $500,000 if you are married.

Use Your Tax Refund For A Down Payment On A New Home

In addition to these tax benefits, now may be the perfect time to use your tax refund for a down payment on a home! According to finance.com the average tax refund from 2016 was $2,800. This is a considerable amount to help towards a down payment. The market this time of year is usually great for either buying or selling, which means you should have many homes to choose from. Why not take advantage of the tax refund you receive and put it towards a down payment on a new home?

If you have questions about tax advantages of home-ownership or about using your tax refund to purchase a home, contact Mortgage Options, Inc. today!

What does it mean to have little to no credit as a borrower?

Having no credit history means a borrower doesn’t have enough of a credit history for credit bureaus to determine the likelihood that they will pay back borrowed money. If a borrower has no credit, it does not automatically mean they cannot apply for a mortgage. There are programs out there for borrowers in this exact situation.

Mortgage Options, Inc. offers a Flexible Financing with Low Down Payment Program. This program is for applicants with little to no credit. Here’s how the program works! If they have no credit, a borrower just needs to have 3.5% down payment and have at least 3 non-traditional credit lines for at least 3 months.

To establish 3 non-traditional credit lines, the borrower must have 3 references and at least one of the following:

• Rental housing payments (subject to independent verification if the borrower is a renter)
• Telephone service
• Utility company reference (if not included in the rental housing payment)
  • Gas
  • Electric
  • Water
  • Television Service
  • Internet Service

If the mortgagee cannot establish credit using the references above, they may also consider using:

• Insurance premiums that are not deducted through payroll (medical, auto, life, renter’s insurance)
• Payment to childcare providers such as daycare
• School tuition
• Retail store credit cards
• Rent-to-Own payments (like furniture or appliances)
• Payment of medical bills not covered by insurance
• A 12-month history of a savings account with regular deposits resulting in an increased balance in the account.
  • Made, at minimum, quarterly
  • Not payroll deducted
  • Caused no nonsufficient funds (NSF) checks

• An automobile lease
• A personal loan from an individual with repayment terms in writing and canceled checks to support documentation of payments on the loan.
• A 12-month history of borrower payment on the account for which the borrower is an authorized user.

Using these references to establish credit worthiness, Mortgage Options, Inc. can help a borrower secure the mortgage they need to get started on the path to homeownership. If you have little to no credit and are thinking there’s no way you can become a homeowner, contact us today!

Giving you more options with Mortgage Options, Inc.

Are you planning on purchasing a home in 2017?

The FHA limits will increase the loan limit "floor" from $271,050 to $275,665 in 2017. If you are debating whether to take out an FHA loan, 2017 may be the perfect year to do so. If you are thinking about starting the mortgage loan process, there are some tips that you will need to keep in mind. Changes in your credit, debt, income assets, or job during the process might jeopardize your ability to buy that house.

Tip #1 Do Not Apply For Credit.

After you receive the initial contract to buy a house, do not apply for credit of any type. Applying for credit can change your credit score. If your credit score changes during the home buying process, your rate lock could change or the fees associated with closing the house could change. It’s best to hold off on applying for any credit at all until after the home buying process is complete.

Tip #2 Refrain From Altering Your Credit

While it is not a good idea to apply for credit, it is also not a good idea to dispute credit or close accounts. If you do this, the mortgage lender will not be able to run automated underwriting and the loan process may be paused until those accounts are taken out of dispute. Closing any credit accounts could change your credit score, which again could jeopardize the home buying process.

Tip #3 Avoid Moving Money Around

Many times mortgage lenders want to see banks statements, etc. If you are moving money around from one account to another, most mortgage lenders will know something doesn’t add up. Moving money can cause some major headaches for you and the mortgage broker.

Tip #4 Wait To Change Jobs

Changing jobs before you start the mortgage process is certainly okay, but once the process starts don’t change jobs. Most banks and lenders typically want you to have been employed at least 30 days. Some lenders ask for a paystub, a job offer letter, and employment verification before you close on the home. The best choice is to keep your current job until you close on your home.

Tip #5 Postpone Shopping For Your Move Until You Actually Close

Call it superstition if you will. It just isn’t good luck to be shopping for your moving company and planning your move before you close on your home. It’s just a recipe for something to go wrong with the loan process. Wait until you sign your final documents to hire the moving company. The same thing goes for shopping for furniture for the new house. Spending money with credit or from your checking account can jeopardize the mortgage process. Buying something small and special to keep you motivated through the process is certainly acceptable, but buying a couch or bed without room to put it in is just not practical.

Follow the tips above for a smooth home buying experience in 2017. Don’t jeopardize your mortgage by making one of the mistakes listed above. Either way, please contact us at Mortgage Options, Inc. for a broker that can help guide you through the entire process.

Are you already worried what your bills will look like after the holidays? Think about refinancing or a reverse mortgage now! 

The tree is trimmed, the food is cooked, and presents are wrapped. Everything is in order for the holidays. What about your budget? Trying to figure out bills after the holidays is just as stressful as the holidays. Don’t let those after holiday bills get you down. The month of December may be the perfect time for you to think about refinancing or a reverse mortgage to pay off those credit card bills or plan ahead for the New Year. Aside from paying off debt there are many reasons to refinance or take a reverse mortgage.

What is refinancing?

Refinancing is taking out a new mortgage to replace your existing mortgage to obtain lower rates and reduce your monthly payments. You may have a few options when refinancing. Rate and term refinancing can help to change your loan’s terms. Interest rates might be lower than when you originally took out your loan or maybe you started with a 30 year loan and now want to change over to a 15 year loan. Another option is cash out refinancing. In this case you might take out a higher mortgage for more than what you currently owe in order to receive some cash at closing. Here are a few reasons why someone may choose to refinance.

Refinancing to lower your monthly mortgage payments

It may be possible that the current mortgage rates are lower today than when you originally took out your mortgage. If this is the case you can lower your monthly mortgage payments by taking advantage of the lower interest rates and refinance.

Change the terms of your mortgage through refinancing

A person may decide to refinance to help change the terms of the mortgage. Some of the terms that may be possibly changed through this process are changing from an adjustable rate mortgage to a fixed rate mortgage. One could also change the length of the mortgage. If you started with a 30 year mortgage you could change to a lower term such as a 15 year mortgage. You may initially be paying a slightly higher monthly mortgage, but your mortgage would be paid off sooner and it’s possible you would have a lower interest rate.

Tap into your home equity through refinance

Another reason someone may refinance their home is to tap into their home equity. For example, you could refinance a home that you owe $150,000 on and take out a mortgage for $180,000, which would have you walking away with a check for $30,000. Talk to us at Mortgage Options, Inc. to see if you qualify for this option or something similar.

After age 62, apply for a reverse mortgage

If you are 62 years old or older, another option after the holidays is a reverse mortgage. A reverse mortgage uses the equity built up in your home as a supplemental source of income. Seniors can opt for a monthly payment, line of credit or lump sum payout to receive help with expenses.

With all of the options a homeowner has in order to refinance or use a reverse mortgage, December may just be the best month to utilize one of these options. Many times homeowners are busy getting ready for the holidays and making sure everything is in order for visiting family and friends. Think about your refinance options today! There is no better time. Contact the professionals at Mortgage Options, Inc to learn more about all of your options.

Why The Holidays Are The Perfect Time To Buy!

When one thinks of the holidays they think of all the famous holiday movies. One of my favorites comes to mind… “Miracle on 34th Street”. In this movie a young girl doubts Santa Claus and tells him her Christmas wish is for a specific home. Christmas morning she is riding in the car with her mother and she immediately tells her mother to stop. It’s the house she specifically asked Santa Claus for. Well, getting a home for the holidays is not just for the movies.

Many potential homeowners wait to buy until the spring. They don’t know that one of the best times to purchase a new home is during the holidays. There are many reasons why buying a home during the holiday months is a good idea for potential homeowners. Mortgage Options, Inc. will be glad to discuss these reasons in further detail and answer any of your questions regarding making a home purchase during the holidays. Here are a few of the reasons why the holidays are a perfect time to purchase a home.

1.    The median home prices are lower during the holiday month

-    According to Zillow.com “Median home prices are historically lower during December than any other month”. This might be due to the fact that most homebuyers are not thinking of buying a home during the holidays. Since this is the case, your purchase power is greater during the month of December.

2.    Mortgage rates may be lower during the holidays

-    Mortgage rates are always changing. If you wait to purchase a home, the rates might be higher and your purchase power a little bit lower. To learn more about purchase power check out our previous blog which details how purchasing a home now is much better than waiting to purchase.

 

3.    Sellers are more motivated to sell

-    If homeowners are listing their properties this time of year, it’s most likely that they are more serious about selling their homes. With the New Year in the horizon after the holidays, many sellers want to get their house off the market by the New Year. This could be a great advantage for a home buyer since sellers may be more likely to lower their price or include more amenities when selling their home.

4.    Taxes on the home might be lower

-    If you close on your home before December 31st you could qualify for some tax breaks. It is possible to deduct home purchase costs, property taxes and mortgage interest.  Contact the professionals at Mortgage Options, Inc. to find out if it’s advantageous for you to close before December 31st.

5.    The closing may take less time

-    Usually everyone involved in a home purchase is motivated to finalize everything. Lenders are thinking of closing their books for the year. Real estate agents want to receive their commissions before the end of the year. The person selling their house wants to move into their new property as do you the home purchaser. Since everyone is more motivated to finalize everything before year end, the closing may be quicker and smoother.

With all of the advantages, the holidays are a great time for purchasing a home. If you would like to apply for a mortgage contact us at Mortgage Options, Inc. today!

When thinking of moving one of the first few questions that comes to one’s mind is whether to build a brand new construction or buy an existing home. There are some major advantages to buying an existing home and those advantages can certainly outweigh the advantages of buying a new construction.

1.    The first major advantage of buying an existing home is the amount of time overall from start to finish that it takes to find and move into your new property. If you are building a new construction, the time frame of getting approved for the mortgage, picking out the home, the build process, and then move in is far greater than if you go with an existing home.

2.    The next major advantage of buying an existing home is the overall cost of the home. The overall home cost potentially could be 20% higher if you are building a new construction versus buying an existing home. This is due to the fact that developer costs usually need to be added into the cost of a new construction, homeowners’ fees for the first year must be paid, and any major upgrades also add to the increased expenses for building a new construction.

3.    Another great advantage is the possibility of finding a home in the exact area you are looking for. Many times new constructions are in outlying more rural areas and not near downtown cities or established neighborhoods. Also take into account the school district that is most desirable for you. That may mean buying an existing home in a particular neighborhood.

4.    You might just stumble upon the gem you have been looking for with an established home. Newer constructions are built with only a few floor plans and most homes are pretty similar. With an existing home you can find a home that might be perfect in terms of what you are looking for in regards to floor plan and character. For example, you might need a four bedroom home with four bathrooms instead of the standard three bathrooms that many newer constructions have.  

5.    In addition to the advantages above, an existing home may have been built with superior materials. Brick homes as opposed to stucco, ceramic tile as opposed to linoleum, and sturdier roofing materials are all examples of how existing homes might be built sturdier.

6.    Then there is always the possibility of renovating the existing home to suit your needs. Many times renovation costs can be included in the mortgage application. This will give you the opportunity to upgrade appliances, knock out a few walls, or even just simply change the color scheme of the paint. All of which can be worked into the mortgage loan.

7.    Last, but certainly not least, is the fact that many existing homes already come with some pretty nice upgrades. Some of these upgrades can include a pool, other possible buildings on property such as a storage shed or mother-in-law suite, a finished room over a garage, or even a garage that could have been converted to a sun room or patio.

With all of these great advantages to buying an existing home, now is the time to apply for that mortgage. If you would like to apply for a mortgage for an existing home, contact us at Mortgage Options Inc. today!

Mario del Pino

NMLS# 938420



 

When you hear about a mortgage broker or home ownership do you chuckle to yourself thinking that will never happen for you? Have you thought there would be no possible way to come up with the 5% or 10% down that most lenders are looking for? There are many loan programs that are available for all types of borrowers. The USDA has loan programs to help draw home buyers to more rural areas and increase growth. These loans offer little to no money down and can get you into a home of your dreams. In October 2016 the UDSA has made these loans even more enticing. According to the USDA, “The upfront guarantee fee will change from 2.75% to 1.0% of the loan amount.  The annual fee will change from 0.50% to 0.35% of the average scheduled unpaid principal balance for the life of the loan”. This means that the overall cost of this loan will be less beginning October 1st, 2016 than in previous years. Even better, the area you currently reside in may already be one of the qualified areas since many of the areas outside of Columbia are considered rural areas.

Here are a few of the requirements for the program.

According to the USDA applicants must:
•    Have income eligibility (click this link for income-eligibility).
•    Be a citizen of the U.S., a U.S. non-citizen national, or Qualified Alien.
•    Personally occupy the dwelling. It must be the primary residence.
•    Be legally capable to incur the loan obligation.
•    Show willingness to meet credit obligations in a timely manner.
•    Not been suspended or debarred from participation in federal loan programs.
•    The property must meet all program criteria.

The funds from this program can be used several different ways:
•    Towards new or existing residential property and closing costs.
•    For repairs and rehab associated with purchase of an existing dwelling.
•    For possible refinancing of eligible loans.
•    Towards special design features or permanently installed equipment to help accommodate a family member with a disability.
•    For reasonable and customary connection fees and assessments for certain utilities.
•    Towards purchasing and installing measures to promote energy efficiency.
•    To cover site preparation costs.
•    For essential household equipment such as flooring, ovens, refrigerators, washers, dryers, and heating and cooling.

At Mortgage Options, Inc. we can go over the criteria and see if you qualify for this type of home loan with little to no money down. We can also explain the newest changes to this loan which begin on October 1st, 2016. If you are thinking of applying for this type of loan, contact Mortgage Options Inc. and we can explain all of these intricate details to you.
 

Waiting to Purchase a Home Can Negatively Affect Your Purchasing Power

For decades, homebuyers have asked themselves the same question – “Should I purchase a home now or wait until the interest rates look better?”

According to thestate.com  there has been a 5% increase in home values over the past year in Columbia, SC. What does that mean for the potential homebuyer? If a home was valued at $125,000 last year, this year it will be valued around $131,000. Next year it is likely to increase to $138,000. Sure, it does not seem like much, but when a potential homeowner adds in the interest rate increases, it can mean a substantial difference in just a short 12 month period.

If home prices are going up along with interest rates increasing, then your purchasing power is decreasing. Imagine you are going home shopping. Unlike regular retail shopping, the home you see today will most likely cost more next year.  If trends continue, the type of home you are thinking about purchasing today may cost 5% more a year from now.

Recently, interest rates have been very low, but how long will interest rates stay low like this? No one can really tell. Armed with this information potential homeowners find themselves asking, “Would I rather take the risk and see what happens with the interest rates or buy a home now?”

Every superhero has a super power and superheroes of homeownership know how to unlock their purchasing power. What exactly is purchasing power? Higher interest rates are going to have you paying more each month for your mortgage. Lower interest rates mean you will be paying less for your mortgage each month. Your purchasing power is basically how much of a payment you can afford each month compared to current home values. If the interest rates are higher, the cost of the home you can afford to buy will be less. The concurrent is also true. If interest rates are lower, you may be able to afford a slightly higher priced home.

PRESENT MARKET CONDITIONS
$175,000 home purchased using FHA financing at 3.50% equates to a monthly payment of $891
 
EXAMPLE OF 5% HOME PRICE INCREASE AND 1.00% INTEREST RATE INCREASE
$183,750 home assuming a 4.50% FHA rate equates to a monthly payment of $1039

*Home price assumes a 5% annual price increase, monthly payment includes FHA funding Fee and PMI insurance and doesn’t represent any guarantee to available interest rates and/or costs associated with any available interest rate.

Now we come back to our original question – should you buy now or later? Given the tools we at Mortgage Options, Inc. have provided in this blog post, potential homeowners can see that waiting to purchase a home can be a risk. Potential homeowners could wait and see if interest rates get lower, but chances are interest rates will increase, which will in turn decrease your purchasing power as a home buyer. 

The choice is ultimately up to you as to whether you will wait to purchase a home or purchase one now. Here at Mortgage Options, Inc. we want you to be a super-hero of homeownership and unlock your purchasing power. If you are undecided as to whether to purchase a home now, contact us at Mortgage Options, Inc. and a knowledgeable mortgage broker can help you be better informed as to how the current interest rates and home values are performing. 
 

Why Does My Mortgage Broker Have a Different Credit Score than Me?

Why is the credit score the mortgage company receives different than the FICO score you get?

You think you’ve gotten yourself all set as “Credit Karma” says you are good to go. You made sure your credit report is in order. When you sit down in the mortgage loan office you are surprised by the number they have versus the number you have researched. So what is this main disparity?

The credit report that mortgage companies use, which is called a tri-merged report, is actually a merge of three different credit reports. Each credit bureau uses different scoring models to generate the actual score. This then results in three distinct scores that are generated.

Why Do Mortgage Companies Combine Three Scores?

The three major credit reporting companies are Experian, Trans Union, and Equifax. While all three companies are doing the same thing, there are differences in the way each functions and each may use slightly different scoring models. Thus each credit bureau might get a slightly different score than the other. In some cases these scores might be different by 50 - 75 points.

What is The Logic Behind Using The Middle Score?

Most consumers feel it is unfair or unjust to look at just one score. Like the judges at the Olympics, the lowest and highest scores get thrown out. Using the middle score makes the process more just for the borrower. Lenders must have verifiable statistics that predict the potential of timely payment. Previous research supports the use of credit scores. The AARP Public Policy institute did a study and found an unmistakable and direct correlation between mortgage delinquency and credit scores. An example they found was that those borrowers with credit scores between 550 and 599 had delinquency rates over 50%. Conversely, homeowners with a credit score between 700 and 749 recorded delinquencies of only 5%. So using a middle score offers lenders the comfort and benefit of using verified statistics that will predict the probability of timely payment.

The Other Factors to Take Into Account

While lenders usually take the middle score of all three credit bureaus, the result you get when ordering your credit report might still be different than the score a lender will use. What is the discrepancy? If you apply for a joint mortgage, lenders could be evaluating as many as 6 different credit scores (three for each person). While the person with the highest credit score is usually considered the primary borrower, lending agencies often take the lowest middle credit score of both borrowers as their benchmark. Also the time it takes for you, the consumer, to receive a credit report might differ in relation to how long it takes a lender to receive one. During this time difference, your credit score might change.

Yes, all of the credit score and middle score statistics can be confusing for the borrower. This is why we recommend working with a reputable mortgage broker to discuss your credit-worthiness and next steps. Mortgage Options, Inc. is experienced and knowledgeable about getting a favorable outcome to your loan application.

If you would like to apply for a mortgage contact us at Mortgage Options, Inc. today!

How to Obtain a Mortgage After a Foreclosure

In the Mortgage Lending World… You May be Down, But Not Out

Are you one of the 9.2 million people who have had a foreclosure, lost your home due to short sale, or a deed in lieu? If so, you may be eligible to become a homeowner again. Mortgage Options, Inc. wants you to be prepared before applying for another mortgage. Mortgage Options, Inc. has recently gained access to non-conforming conventional loan programs allowing buyers with a past housing event (foreclosure or short sale) to buy a home without having to wait for the 3-7 years required by Fannie Mae or FHA. 

If you have had a foreclosure or short sale, you may be feeling down, but you are not out of options. There are some steps that can be taken to get another mortgage. After the initial waiting period, the first thing to think about is how the foreclosure or event occurred and how you can correct it or stop it from occurring again. This is the first thing lenders are going to ask. Then work on rebuilding your credit. Mortgage Options, Inc. wants to see you get back on your feet and with the right steps we can help you start doing a mortgage dance. Here are five things you need to know to get you back on your feet again and dancing.

Differentiate between the credit report you will see and the one that Lenders see. Lenders will see a different credit report than you see. Many times the credit report you see is a more condensed version of your actual credit report and can be a few points higher than what your lender will see. Your credit score certainly is important, but it is not the only factor on your credit report that will determine whether you are approved or not.

Acknowledge the fact that lenders will be looking for on-time payment history. Most lenders will be looking for proof that you have paid your bills on-time. A landlord that can say you have paid rent on time every month is a valuable resource for you, the home buyer.

Note that you will need to demonstrate job stability. Try not to make any major job changes or career changes during the time you are applying for loan. You want to be able to demonstrate job stability to the lender.

Continuously keep all necessary documentation. Keeping records of all of your banking transactions can help alleviate a headache when a lender asks for these type of things. Keep a file drawer with any and all documentation a lender might ask for. 

Expect to have many different viewpoints from lenders about your situation. Each lender may look at your particular situation in a different way. This is because of the human aspect in applying for a mortgage. Ultimately someone at a lender’s office will be reviewing all of your documentation. This means that each lending institution may have their own viewpoint about your situation. 

As in any type of dance one must learn, applying for a mortgage after a foreclosure can be simplified by following those 5 basic steps. By following the correct steps Mortgage Options, Inc. can get you back on your feet and dancing about owning a home again. If you have any questions or would like Mortgage Options, Inc. to help secure a mortgage after a foreclosure, please call us at 803-732-5787.

Mortgage Options, Inc wants to assist all homebuyers in being knowledgeable about the entire home buying process. Every home buyer should be educated on the process in order to make the home buying process easier and less stressful. Here are some great tips from Mortgage Options, Inc to keep in mind during the home purchasing process.

Tip #1: Research and Prepare

One of the first steps to home ownership is to research. Check to see lenders’ requirements. Make sure your credit scores are in order. Check requirements of the FHA and the banks. Research mortgage programs with companies in your area. Mortgage Options, Inc. is happy to help you through the research and preparation stage. If your credit scores are not optimal, work on repairing your credit. We can help advise on strategies to improve your credit. Make sure you have the opening and closing costs in your bank account and that it has been there for at least 2 months. Use our handy mortgage calculators to get a feel for the financial commitments required in a mortgage.

Tip #2: Select a Lender

Selecting a lender before starting your home search is a good idea. Banks may have fewer options for mortgages than mortgage brokers.  At Mortgage Options, Inc. we have mortgage loan programs to suit just about every buyer. Once we have found the best mortgage option for your needs, we highly recommend finding a reputable real estate agent to help with your home search. You should also consider getting a pre-qualification or pre-approval letter from your lender. This makes you the “ideal” buyer and puts you in a strong position when house hunting.

Tip #3: Get an Agent

House hunting can be a very daunting task on your own. This is why we recommend using a real estate agent. A fact most homebuyers are not aware of is that the agents’ costs are absorbed by the seller and not the buyer. What does this mean for the house hunter? You will not be liable for the real estate agent’s commission on a sale. Why do you need an agent? Many times agents know about properties that are not listed, newly listed, or going to be listed soon. They know the inside scoop on all the properties in the area. An agent will compare properties in the area that are similar to the one you are interested in and can help you determine what type of offer to make. It is also preferable to have a seasoned negotiator who’s on your side and can look out for your best interests.

Tip #4 Steer Clear of Making any Major Life Changes

Once you and your agent have decided on an offer and the offer has been accepted, do not make any major life changes. Major life changes can include changing your job, getting a divorce, buying anything on credit and changing bank accounts or changing bank institutions. If you make any life changes, it could prolong the process of home buying. It would change your debt-to-income ratio and thus may affect the mortgage.

Tip #5 Make Sure Everything is in Order

After the home buyer receives a financial commitment letter the waiting continues. This is the perfect time to make sure everything is in order. Usually the time frame is about a week. This gives you time to do a final walk through, order the cashier’s checks for closing costs, and make sure the deed is prepared. After all of that it’s just a huge stack of papers to sign and an exchange of keys before you can call yourself a home owner.

Mortgage Options Inc. has many loan programs that can work for a variety of home buyers. We encourage you to contact us to discuss your options – it doesn’t cost you a thing to talk to us about mortgage programs. If you are buying a home in North Carolina or South Carolina, call Mortgage Options, Inc. today at 803-732-5787.

At Mortgage Options Inc., we love working with first time home buyers! As part of our job, we keep up with industry trends so that we can better inform our home buyers and provide the best mortgage products for the current climate. 

Trends for the past five years are just coming out and we’re seeing big differences in how people purchase homes compared to previous decades. This year’s first time home buyers are millennials who face their own unique set of challenges. First, millennials are waiting longer to start families. While this is all well and good, the combined buying power of a married couple far exceeds that of a single person, which means many young people are staying in the rental market for longer. Millennials are also carrying the added burden of historically high student debt. This debt ratio hampers their ability to afford a mortgage payment and makes getting into their first home even more difficult.

For those who are not struggling with student debt and are ready to buy their first home, we have a new problem of low housing inventory. Many think this is due to a slower rate of new home construction, but it turns out that’s not the case. Housing inventory becomes available when people move up from their current home to a larger home to accommodate growing families and increased wealth. What we’re seeing is that the gap between mid-priced homes and premium homes is growing year-on-year, preventing people from trading up and freeing up the mid-priced homes for those in “starter units”. For example, the median list price of a premium home across the USA is $542,805, compared to $267,845 for a mid-priced home. That gap is 17.3% higher than it was in 2012 and there is no sign of this changing – unfortunately, there is the increasing wealth gap that has seen the incomes of the top third of U.S. households climb more dramatically than those in the middle third and this has pushed up premium homes prices.

What about starter homes in the sub-$200k range? 2011 saw investors snatch up these units and use them as rental properties as rental prices soar. Nearly a third of starter homes were owned by investors in 2014, the latest data available, up from 27% in 2005. For other starter units, about a quarter of these homeowners are underwater, meaning they owe more on their mortgages than their homes are worth. That share has fallen in the housing recovery but is above the 13% average for all homeowners. That effectively prevents those owners from selling until prices recover.[1]

What Can I Do as a First Time Home Buyer? 

Although the outlook is bleak, it is by no means impossible to buy your first home. With the help of real estate professionals and Mortgage Options Inc., we know we can get you into your first home in South Carolina or North Carolina.

Why would you want to buy a home over renting? As rental prices soar, many times a mortgage payment would be the same, if not less, than your monthly rent. Fortune Magazine predicts that rents could rise by 8% in 2016 and many people are already forking out over half of their income for rent. [2] For many, this makes renting unaffordable, but even if you can afford the rent increase, your monthly payments are contributing only to your landlord’s net worth. When you make a monthly mortgage payment, you’re contributing to your own net worth. Predictions show that in 2016, a homeowner’s net worth will be 45 times greater than that of a renter. [3] Wouldn’t you rather contribute to your own financial security rather than your landlord’s?

At Mortgage Options, Inc. we have many loan programs that work well for first time home buyers. These include:

• VA Loans – perfect for serving military personnel, reservists and National Guard – low interest rates and no down payment required in most cases
• USDA Rural Housing Loans – works very well in North Carolina and South Carolina where many properties are considered rural – no down payment required
• FHA Loans – low down payment options, take advantage of today’s low interest rates
• HomeReady Loans – new loan program from Fannie Mae that was created to help meet the diverse needs of today’s home buyers

Mortgage Options Inc. has many loan programs that can work for a variety of first time home buyers. We encourage you to contact us to discuss your mortgage options – it doesn’t cost you a thing to talk to us about mortgage programs. If you are buying your first home in North Carolina or South Carolina, call Mortgage Options, Inc. today at 803-732-5787.

Mortgage Options, Inc. is proud to offer Fannie Mae’s newest mortgage loan, the HomeReady loan. This program expands our portfolio of mortgages and allows even more people to purchase a home. We’re excited to help home buyers and real estate agents understand and take advantage of the HomeReady loan program. 

HomeReady for Homebuyers 

At Mortgage Options Inc., we’re excited to offer the HomeReady loan program to new homebuyers across the states of North Carolina and South Carolina. Fannie Mae’s HomeReady mortgage loan was created to help meet the diverse needs of today’s home buyers. Individuals who may not have been eligible for a mortgage previously due to low or moderate income now have expanded eligibility and can include other sources of income when applying for a loan. Below are a few example scenarios of when a HomeReady loan could work for you.

Scenario 1: Accessory Unit Income

A couple is purchasing a 1-unit property that has a separate apartment built over the garage, which includes a functioning kitchen and bathroom. They have a tenant who has already executed a lease agreement to rent the property after purchase. This rental income from the accessory unit can be included as part of the borrower’s income and help secure the loan amount.

Scenario 2: Boarder Income

A single man plans to purchase a new home. He has had a roommate sharing living quarters with him for the past 12 months, and the roommate plans to live in the newly purchased home. This boarder income can be taken into account when applying for the loan to help secure the loan amount.

Scenario 3: Extended Income Household

A single woman with children is looking to buy a larger home, so her father can move in with her. Her father has monthly income and, although he will not pay rent to his daughter, he may contribute to household expenses periodically. The father’s income is not considered as qualifying income, but existence of the father’s income is considered the compensating factor that allows the borrower to secure a higher loan amount.

Scenario 4: Non-Occupant Borrower Income Flexibility

A young couple is buying their first home, and his mother would like to help. She is willing and able to be a borrower on the mortgage loan, but she will not live in the home. Because the borrower’s mother will be an actual borrower on the mortgage loan, her income and liabilities are considered from a qualifying perspective and will be included in the combined debt-to-income (DTI) ratio.

As you can see, HomeReady mortgages offer extended loan options for the way we live today. If you are looking to buy a home in 2016, contact Mortgage Options Inc. We’re happy to guide you through the process of finding a mortgage that works for you and getting you one step closer to the dream of homeownership. Whether HomeReady is the program for you or one of our many other mortgage loan options, we’re here to help! 

HomeReady – What Realtors Need to Know 

For real estate agents, the HomeReady mortgage by Fannie Mae is a fantastic option for low- to moderate-income families that previously would not have been approved for a mortgage due to a high DTI ratio. The HomeReady option allows borrowers to include renters, other family members or non-resident borrowers on the loan to increase the allowable DTI. This opens up homeownership to a whole new set of people whose income may have prevented homeownership in the past. DTIs are increased by taking into account “extended-income households” or EIHs, households with accessory unit income or boarder income, or non-occupant borrower income. Loans are available for up to 97% financing and there is no minimum borrower contribution. Homeownership education through a simple online course is required for HomeReady loans.

Would you like to learn more about HomeReady? Mortgage Options Inc. is holding a FREE seminar followed by cocktails on March 23^rd, 2016 at Lexington's Old Mill, 711 E Main St, Lexington, SC from 4:30-6pm. Register here to attend. We look forward to seeing you there!

Whether you are a real estate agent or a home buyer, if you’re looking for the best mortgage options in South Carolina and North Carolina, Mortgage Options, Inc. is here to help! Call us today at 803-732-5787!

Are you looking to buy a new home in South Carolina or North Carolina? Concerned about the costs involved? Buying a new home is a big decision for anyone and the cost implications can be great, but at Mortgage Options Inc., we have 3 great mortgage programs that are low money down or even no money down to help you purchase your dream home. 

No Money Down - VA Loans

Are you an active duty military servicemember, veteran or reservist? If so, a VA loan could be the no-money-down mortgage option for you. VA loans are backed by the Department of Veteran Affairs and offer some of the best mortgage features out there. What could be better than 100% financing and no down payment? Interest rates are also negotiable with fixed rate and adjustable rate options. No mortgage insurance is required and you can pay the loan off early without any penalties. North Carolina and South Carolina has a large military population and we love helping our service men and women get the best mortgages available. If you are interested in a VA loan, contact Mortgage Options, Inc. today.

No Money Down - USDA Rural Housing Loans

A USDA Rural Housing Loan is a fantastic, no money down option for homebuyers in North and South Carolina. These rural housing mortgages are backed by the US Department of Agriculture (USDA) for homes located in qualified rural areas. The definition of a rural area is fairly broad, so you might qualify even if you don’t think you’re in a rural area. Entire counties of North and South Carolina are USDA loan eligible and that could mean buying the home of your dreams without a down payment. Features of the USDA Loan Program include: loans can be for up to 102% of the cost of the house, loans are 30-year-fixed and the interest rate is the going market rate, loans can include closing costs if appraisal is higher than the selling price and the seller may be allowed to help pay for the borrower’s closing costs. At Mortgage Options, Inc. we’d love to work with you on a USDA Rural Housing mortgage. Call us today at 866-456-5511. 

Low Money Down - FHA Loans

FHA mortgages are backed by the Federal Housing Association and are very popular option for first time homebuyers. It’s one of the easiest mortgages to qualify for and requires less money up front that other loan programs. FHA mortgages are available in a range of fixed rate loan plans with down payments as small as 3.5% of the loan. Other advantages include that it’s available to all income brackets, a new buyer can take over the loan if you sell the home, a co-applicant can help you qualify for the loan even if they don’t live with you, and you might be able to use a gift for the down payment and closing costs. The major drawback with FHA loans is that you usually have to pay monthly mortgage insurance premiums and upfront payment. Also, the house must meet certain conditions and has to be appraised by an FHA-approved appraiser. That being said, FHA loans are a great option for many homebuyers and we’re happy to talk through all the advantages and disadvantages with you. 

Receive $1000 credit towards closing costs by mentioning the title of this blog “Low to No Money Down Home Loans” to your loan officer. To find out more about low cost or no money down mortgages, call Mortgage Options today: (803) 732-5787 or Toll Free at (866) 456-5511.

IMPORTANT NOTICE REGARDING DISASTER AREA MAPPING REVISIONS

Below you will find the most recent Federal Disaster Map by Counties for the State of South Carolina.  PLEASE BE ADVISED THAT THERE HAS BEEN NOTICE THAT BERKLEY, CLARENDON AND SUMTER COUNTIES  WERE MOVED INTO DISASTER STATUS AS OF THIS MORNING DUE TO INCREASING FLOOD WATERS ALONG NUMEROUS RIVERS.   That change in status should move these three counties into a RED coding and the map should be updated by later this afternoon.

We are getting many calls from clients about what properties are in and what are out.  TO BE VERY CLEAR - ANY PROPERTY LOCATED IN A COUNTY SHOWN IN RED, OR BERKLEY, CLARENDON & SUMTER COUNTY, MUST HAVE THE FOLLOWING:

o   An executed Appraiser Certification of Property Condition signed by a certified or licensed appraiser must be submitted to FirstBank Mortgage Partners. The original appraiser or another certified or licensed appraiser may inspect the property and execute the form.

OR

o   In lieu of the Appraiser Certification of Property Condition form, upon property inspection, a completed Freddie Mac or Fannie Mae appraisal report form appropriate for the property type and inspection type may be submitted. Examples are Freddie Mac/Fannie Mae Form 2055, Freddie Mac Form 442 or Fannie Mae Form 1004D.

We are going to be reducing our requirements to that of a Lender Certification for the following counties until further notice:   Kershaw, Lee, Darlington, Marion, Dillon and Florence Counties.  

All other counties within the state are now in the clear unless you obtain information to the contrary.   If you are aware of a specific area that received damage and is not within a county listed above you still MUST follow the Lender Certification process listed above.  

** Please note that this situation is fluid and changing as there are still dam breeches occurring in the Midlands and flood waters from the Upstate are now making their way into the rivers and tributaries downstream.   We will keep you updated to the best of our ability as the situation changes.  All other counties other than those noted are now in the clear.  **

Follow Us

Hi everyone! We are participating in the Clean-Up Drive for Central Carolina Realtors Association, and we would love your help!

We will be collecting cleaning supplies for those members who have been affected by the catastrophe. We encourage those that are able to give, to look at the list below and donate to the collection center established within our office. If you are in need of cleaning supplies to begin the restoration process of your home, please call the Central Carolina Realtors @ (803) 771-8852 after donations have been dropped off, and they will begin to distribute as the items come in.

Our office is available to donors in the Irmo-Harbison area for a secondary drop off location so people who work or live in that area do not have to drive downtown to donate. See post below for a detailed list...

Mortgage Options
6140 St. Andrews Road
Columbia, SC 29212
803.732.5787

• 5-Gallon Buckets
• Bleach
• Sponges
• Scrub Brushes
• Towels
• Liquid laundry detergent
• Household Cleaners – multi surface
• Disinfectant Dish Soap
• Face Masks
• Latex Gloves
• Work Gloves
• Heavy-Duty Trash Bags
• Air freshener
• Mops / Mop Buckets
• Brooms
• Rakes / Shovels
• Safety Goggles
• Tarps
• Paint Scrapers
• Sanitary Wipes
• Paper Towels
• Other items as deemed necessary

Please call us with any questions and thank you for helping your fellow REALTOR® during this time of need.

Mortgage Options, Inc. is a licensed mortgage broker NMLS 803458 SC DCA and NMLS 1183586 NC Commissioner of Banks

October 5, 2015

SOUTH CAROLINA PROPERTIES LOCATED IN

DISASTER AREAS ***REVISED 10/6/15***

The President has declared a disaster for the state of South Carolina due to recent severe storms, and flooding. Please see tables below of the affected counties.   Effective immediately, pursuant to the FEMA announcement dated October 5, 2015, where a major disaster was declared for the state of South Carolina, any loan where the appraisal was completed on or prior to the event dates of October 1, 2015 and continuing, a re‐inspection of the property by the original appraiser will be required. The appraiser must state that the property is free of any flooding and/or damage in direct relation to the recent severe storms and flooding.

 Must be done prior to the CTC being issued.

 **** Non-standard Appraisals such as Property Valuation Updates and PIWs are not allowed for 90 days after the disaster incident period end date. Regardless of DU findings a full 1004 appraisal must be completed during this period.

 SOUTH CAROLINA HQ-15-070 – DECLARED OCTOBER 1, 2015 and CONTINUING, COUNTIES OF:

Charleston          Dorchester         Georgetown      Horry     Lexington            Orangeburg

Richland Williamsburg