LINTHICUM, MD, August 10, 2023 – NFM Lending is proud to congratulate its loan originators who have been named to Scotsman Guide’s 2023 Top Emerging Stars rankings.
The Top Emerging Stars rankings celebrate top mortgage loan originators under the age of 40 who produced at least $40 million in sales in 2022. According to the publication, the Top Emerging Stars rankings seek to showcase how younger loan originators are key in attracting and relating to Millennial and Gen Z homebuyers. Every Top Emerging Star also belongs to the Scotsman Guide’s Top Originators list for the year.
The four NFM originators who made the list are: Oleg Tkach of Lynwood, Washington, Andy Beigel of Columbus, Ohio, Mario Cua of Columbus, Ohio, and Shane Staples of Tempe, Arizona.
Out of 372 originators, Tkach ranked #9 with $199,147,063 in volume, Beigel followed at #147 with $60,877,094, Staples was #180 with $55,541,005, and Cua was #186 with $54,778,101.
“Congratulations to our Top Emerging Stars,” said NFM’s President and COO Bob Tyson. “These four originators are representative of our really talented roster of young originators, many of whom came to NFM with little or no experience in the mortgage business. They have been embraced and mentored by our more seasoned salespeople and are now, in turn, guiding others to become superstars. These are the future leaders of this company and why the sky’s the limit for NFM Lending.”
NFM Is proud of each of these loan originators and wishes them continued success.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
LINTHICUM, MD, July 6, 2023— NFM Lending is pleased to announce the promotion of Laura Clapper to Chief Marketing Officer. Clapper has been with the company since 2020, serving as the Vice President of Digital Strategy.
As the VP of Digital Marketing, Clapper has led initiatives to raise the public profile of NFM Lending through targeted ads using social media and search engine marketing, as well as creating drip campaigns for borrowers at each stage of the lending process. Notably, Clapper has been instrumental in the growth of NFM’s Influencer Division. Leveraging new features from CRM systems, she devised and scaled unique video messaging campaigns for 18 loan originator influencers. The strategy resonated with their social media followers and resulted in an average of 2,500 warm leads per month with zero direct advertising costs.
“It is an incredible honor to assume the role of Chief Marketing Officer at NFM Lending,” said Clapper “Having held the role of Vice President, Digital Strategy for the past three years, I have closely collaborated with our executives and sales leaders to shape marketing processes and support key initiatives. In this new capacity, I am committed to driving our marketing efforts and maintaining a strong focus on sales growth. NFM’s innovative spirit, progressive culture and unwavering dedication to pioneering new ways of helping homeowners is what makes me love being a part of this organization.”
Clapper is a digital marketing veteran with 22 years of experience working in leadership roles within and outside of the mortgage industry.
“Laura is the most dynamic mortgage marketing person I have ever been around,” noted NFM Managing Director Greg Sher. “Her versatility and understanding of all things digital make her the perfect person to lead NFM’s charge into the future. It’s truly an honor to work with her every day.”
Clapper lives with her family in Sykesville, MD. NFM congratulates her on the promotion and wishes her continued success.
For more information on the Influencer Division, contact influencerdiv@nfmlending.com.
About NFM Lending
NFM Lending is a mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit nfmlending.com, like our Facebook page, or follow us on Instagram.
Are you waiting for rates to drop so you can refinance your home? You’re not the only one! Refinancing allows you to replace your existing mortgage with another one with a different rate or conditions, and there are different types of refinances to choose from depending on your financial goals.
Rate and Term Refinance
When you think about refinancing, you likely have the rate and term kind in mind. Rate and term refinances are very popular, especially when mortgage rates drop. It can be a smart choice if you want to do any of the following: reduce your interest rate, lower your monthly payment, change the loan type (like adjustable-rate to fixed-rate), or get rid of private mortgage insurance (PMI). Note that if you want to lower your monthly payment, your loan term will be extended, while opting to refinance to a shorter term will often result in a higher monthly payment. Though each lender has different requirements, it’s best to have at least 20% in home equity with a debt-to-income (DTI) ratio of no more than 50%. The interest rates for rate and term refinances tend to be lower than that of other refinances since it’s less risky.
Cash-Out Refinance
Building equity is one of the many benefits of homeownership, but you don’t have to wait until you sell to benefit from the equity you’ve gained! A cash-out refinance allows you to transform your home equity into funds that you can use for pretty much anything. Your first mortgage is replaced with one that’s more than the remaining balance, and you receive the difference in cash. The money isn’t taxable and can be used for a number of purposes, including financing home repairs, a vacation, college tuition, or debt consolidation.
Most lenders will let you borrow up to 80-85% of your home’s appraised value, as long as you retain at least 20% equity. Since your new mortgage will be more than your initial one, expect the interest rate and your monthly payment to be higher. The rates for cash-out refis tend to be slightly higher than for rate and term refinances since they carry more risk. Cash-out refinances are available for conventional mortgages, VA, and FHA loans, with varying seasoning or waiting periods. For conventional loans, you’ll need to have owned your home for at least 6 months and have your current mortgage be seasoned for 12 months. VA loans have a 210-day seasoning period, and FHA loans have a 12-month requirement for primary ownership and occupancy before applying for a cash-out. FHA refinances also have mortgage insurance premiums (MIP). If home values in your area have risen greatly, a cash-out refinance can be an excellent way to get in on the appreciation boom!
Do you still love your home but feel it could use some upgrades? The FannieMae Homestyle Renovation Loan, FHA 203(k), and the Freddie Mac Choice Renovation loans all blend the perks of a rate and term refinance with the capital needed to repair or update your home. Renovation loans are especially convenient because the refinance of your current loan and repair costs are combined into one loan; it only has one closing and interest rate, and it provides flexibility when it comes to what can be updated. Unlike a home equity line of credit (HELOC), second mortgage, or cash-out refinance, which all use the home’s current value to determine the amount that can be borrowed, the renovation loan is based on the home’s after improved value. To determine the after-improved value, your contractor must submit a detailed plan of what’s to be fixed and how much it will cost. The appraisal is then completed using the contractor’s bid to determine what your home will be worth after the renovations are completed. Renovation loans are ideal for projects like building an addition, improving kitchens and bathrooms, and updating your home’s utility systems.
Streamline Refinance
Who says refinancing has to be a hassle? If you have an existing FHA, VA, or USDA loan, you may have the option of going with a streamline refinance. Streamline refinances are just what their name implies—they’re a simplified refinance that speeds up the process. With this kind of refi, it’s common for income documentation, home appraisal, credit requirements to be absent or very relaxed. Each of the three varieties of streamlined refinances has unique traits:
FHA
The FHA streamline refinance doesn’t require a credit check, appraisal, or income verification and has flexible loan-to-value (LTV) and debt-to-income (DTI) requirements, making it an attractive option. If 210 days have passed since closing on your first mortgage and you’ve made at least six mortgage payments, you’ll be ready to look into an FHA streamline refi. Like the normal FHA loan, the streamline refi involves paying a MIP for the life of the loan and a one-time upfront mortgage insurance premium (UFMIP).
VA
Also called an interest rate reduction refinance loan (IRRRL), the VA streamline refinance has no appraisal requirements or employment verification. Be sure to budget for the 0.5% funding fee and closing costs. You can apply for an IRRRL if you’ve made 6 monthly payments to your first mortgage and 210 days have passed since the initial closing. The borrowing limits are very generous and allow you to refinance up to 120% of your loan’s value. The IRRRL is only available to use for a rate-and term refinance, cash-outs are not allowed.
USDA
A USDA streamline refinance loan lets you refinance without going through a credit check, DTI verification, home inspection, or appraisal. To be eligible, you’ll need to have made at least 12 on-time payments towards your first loan. Like the IRRRL, the USDA streamline can only be used to obtain a rate and term refinance.
People refinance for a number of reasons, so it makes sense to have a variety of refinance options available to help you achieve your financial goals. Working with an experienced loan originator and choosing the right refinance for your needs will help ensure you’re getting value out of your home purchase for years to come.
If you have any questions about refinancing, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the home buying process, click here to get started!
For informational purposes only. Refinancing an existing loan may result in the total finance charges being higher over the life of the loan. Veterans Affairs loans require a funding fee, which is based on various loan characteristics. LTVs can be as high as 96.5% for FHA loans. FHA minimum FICO score required. Fixed rate loans only. W2 transcript option not permitted. Minimum required credit score of 620 for conventional loans.
It’s normal to feel confused and a bit overwhelmed when buying your first home—it’s a complex process with many moving pieces. To make your inaugural homebuying experience smooth and successful, here are some common mistakes to avoid when buying your first home.
Not Getting Pre-Approved First
If you’re seriously in the market to buy a home, getting pre-approved with a lender first is a must! A pre-approval involves submitting various financial documents and proof of identity to your lender, as well as allowing them to run a hard credit check on you. A pre-approval differs from pre-qualification in that the former takes a more comprehensive look into your finances and is a hard credit inquiry (your score will drop slightly temporarily); a pre-qualification just gives you a rough estimate on whether you can afford a home based on self-reported information. A pre-approval also has much more weight when you’re house hunting and gives you an idea of how much home you can afford. If you’ve found a home you love, having a pre-approval letter makes you seem like a more serious buyer and can help move the mortgage process along more quickly. Be aware that pre-approval letters are good for 60-90 days, and you’ll need to go through your lender to get an updated one after the first one expires. Once you’re pre-approved, you can find a great real estate agent and shop with confidence!
Buying More House Than You Can Afford
Being able to buy a house is one thing, being able to keep it is another. When your lender comes back with the pre-approval, you’ll be given a figure for the maximum amount you can borrow. Depending on whether you use less than the max or the full amount, that will be reflected in your monthly payment. However, even if you’re approved for a larger sum of money, it’s not always a good idea to go to the limit. A good rule of thumb is to not spend more than 28% of your gross income on mortgage payments. When a significant amount of your paycheck goes to your mortgage, you become house poor. The amount you’re comfortable borrowing is a personal decision, so make sure you have the cash flow to support regular mortgage payments, as well as other homeownership costs.
Overlooking Other Costs
Becoming a homeowner is a huge life change, both personally and financially. If you’ve only ever rented, you might be surprised at just how much owning a home costs. Aside from your regular mortgage payments, you’ll need to account for escrow payments (property taxes and home insurance), regular maintenance costs, and emergency repairs, and sometimes private mortgage insurance (PMI). If your home is part of a homeowner’s association (HOA), expect to pay yearly or monthly dues. Seeing as most of these costs are variable and unpredictable, it’s wise to create separate savings just for home expenses. Try putting aside money as you prepare to begin the homebuying process or after you’ve closed on your home.
Jeopardizing Your Closing
When your lender tells you closing is around the corner, you’re basically home free, right? Not exactly. Your mortgage and home purchase haven’t officially been finalized, so it’s crucial to maintain your credit score, cash supply, and debt-to-income (DTI) ratio until then. Activities to avoid before closing include: quitting your job, applying for or cosigning a loan, applying for a credit card, closing lines of credit, and making large, unnecessary purchases (like buying or leasing vehicles, furniture, or expensive trips). Doing these things can delay or even make you ineligible for mortgage approval. If you’re in what you feel is an emergency situation, contact your loan originator right away and tell them what’s happening. They’ll let you know how best to proceed in a way that won’t threaten your closing.
Using the Wrong Real Estate Agent
Choosing the right real estate agent for your needs is important any time you’re buying or selling a home, but especially if you’re a first-time buyer! Don’t pick just any real estate agent to help you buy your first time—be sure to thoroughly interview and research several local agents. When interviewing agents, ask about their communication style, familiarity with the area, industry experience, local market trends, and reviews from past buyers. Additionally, if you’re using a specialized mortgage to purchase your home (such as a VA loan), seek out agents who are well versed in working with buyers like you. Besides their technical know-how, the strong agent should also be a good listener and friendly.
Buying a home comes with many challenges, and even more so if you’ve never done it before. Fortunately, there are many factors you can control that will mean the difference between having an exceptional home buying experience instead of an exasperating one.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
SARASOTA, FL, June 12, 2023 – Team Stettler, an NFM Lending branch located in Sarasota, FL, is pleased to welcome Alec Stettler to the team as its newest mortgage loan originator. He will be joining one of Southwest Florida’s most respected and experienced mortgage groups, led by his father, Branch Manager Robert Stettler.
Stettler graduated from Colorado State University in May of 2022 and became fully licensed to originate mortgages soon after. “The values of hard work and dedication were instilled in me at an early age, and I carry these same values with me today,” said Stettler. “I am passionate about providing a homebuying or refinancing experience that exceeds my clients’ expectations, and getting to work with my dad at NFM Lending gives me the opportunity to do that!”
“I am extremely excited to have my son working for me in the mortgage industry,” said Robert Stettler. “The industry is becoming a rapidly aging field, and it is good to have young professionals entering the field to bring fresh thoughts and ideas to an ever-changing industry.”
The NFM branch will continue to provide the same commitment and dedication to borrowers, ranging from first-time homebuyers to seasoned buyers looking for their next home, a second home, or investment properties.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies include Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
LINTHICUM, MD, June 5, 2023— NFM Lending and its Family of Lenders are honored to announce they have made the Scotsman Guide’s annual Top Mortgage Lender list for 2023, ranking #18 for Top Retail Lenders and #24 among Top Overall Lenders. This is the fifth time the company has been included in this prestigious list.
Based on sales data from the previous year, NFM had a total volume of $6,997,853,234 with 19,548 closed loans. They moved up from being ranked #31 nationally in 2022. Additionally, NFM led both lists as the #1 Maryland-based mortgage lender. Since 2019, NFM has been the leading lender in its home state.
“What an amazing accomplishment by the NFM Family of Lenders despite all the headwinds the mortgage industry has faced over the last few years,” said President and COO Bob Tyson. “We continue to move up the ranks of top lenders in the country due to our commitment to our clients, business partners and of course our employees. We are well-positioned moving forward to continue to ascend and I’m excited to see what the future holds.”
Each year since 2013, Scotsman Guide compiles a list of the nation’s top-producing mortgage companies and publicly traded banks by their total yearly mortgage volume. According to their website, “Top Mortgage Lenders is the mortgage industry’s most comprehensive, most intensely verified list of its kind.”
NFM is proud of this achievement and thanks its NFM Family and real estate partners for their support.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
LINTHICUM, MD, June 1, 2023 – NFM Lending and its Family of Lenders are pleased to announce they have been named a Top 50 Mortgage Company for 2022 by Mortgage Executive Magazine, ranking at #20. This is the highest ranking that NFM has received since the magazine started the program.
The Top 50 Mortgage Company rankings are determined by the total sales volume of the previous calendar year from 100 leading mortgage companies and banks throughout the United States. In 2022, NFM Lending had a total volume of $6,997,853,234 and 19,548 closed loans.
In addition to this award, NFM Lending was included in the Mortgage Executive Magazine’s Top 100 Mortgage Companies in America list seven times since 2013 and has been included on their 50 Best Companies to Work For list for seven consecutive years.
“What an amazing accomplishment by our employees,” said CEO/Founder David Silverman. “From admin to ops to sales, we all had a hand in this. Everyone in the industry knows what a difficult year 2022 was, but to have the NFM Family of Lenders once again come out shining is no surprise just knowing the quality of our people. When I started the company 25 years ago, I didn’t dream of becoming a top 20 residential lender in the country. I just wanted us to be the best at the size we were. We’ve done that consistently, and the result is we have moved up the ranks to be among the nation’s best mortgage companies.”
NFM is proud of this achievement and hopes to reach even greater heights in 2023.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states and the District of Columbia. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its Family of Lenders includes Main Street Home Loans, Bluprint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
LINTHICUM, MD, May 30, 2023 — NFM Lending and its Family of Lenders are honored to announce 62 of its loan originators have been ranked as the “Top 1% Mortgage Originators in America 2022” by Mortgage Executive Magazine.
Each year, Mortgage Executive Magazine compiles a list of the nation’s Top Mortgage Originators. This list recognizes and celebrates leading mortgage professionals on their service, hard work, and overall dedication to servicing their clients. A minimum of $30 million in personal production is required to be eligible for the honor.
“The NFM Family of Lenders proudly congratulates our list of Top 1% Mortgage Originators as recognized by Mortgage Executive Magazine,” said President/COO Bob Tyson. “These premier salespeople are the lifeblood of our company and set the standard not only in our company, but in the industry, as well.”
NFM Lending
Rodney Anderson, David Arocho, Tyler Barnett, Andrew Beigel, Trevor Bennett, Ryan Bundy, Benjamin Burkett, Brian Burnham, Michael Colagrossi, Gregory Cowart, Mario Cua, Mack Dadyan, Rich Dillman, Jane Floyd, Ronald Gosewisch, Dana Gounaris, Craig Kam, Tina Konidaris, Mary Levinson, Jason McLaughlin, Jeff Miltenberger, Jesse Perrone, Craig Pollard, Bryan Raiford, Suzie Reed, Danell Riggs, Gregory Riordan, Kevin Rudrud, Daniel Sa, Shanon Schinkel, Matthew Shiner, Shane Staples, Rob Stettler, Blane Stewart, Oleg Tkach, Raquel Wilson, Tammy Wittren
Main Street Home Loans
Darran Anthony, Neil Bourdelaise, Clay Carroll, Karen Dulmage, Carolyn Flitcroft, Derek Evans, Nathan Hartseil, Rita Hairston, Christopher Jordan, David Licciardi, Jolene Moore, Peter O’Donnell, Michelle Powstanski, John Savastano, Salvatore Savastano, David Travers, Patricia Vargas
BluPrint Home Loans
Meinoh Kim, Matthew Lancaster, Hans Stone
Elevate Home Loans
Mike Bowen, Chris Magnotta
Element Home Loans
Kevin Blair, Charles Favoroso, DeAnn Ellis
NFM is proud of each of its loan originators, thanks them for their contributions, and wishes them continued success.
About NFM Lending
NFM Lending is a national mortgage lending company currently licensed in 49 states and the District of Columbia. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its Family of Lenders includes Main Street Home Loans, Bluprint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit www.nfmlending.com, like our Facebook page, or follow us on Instagram.
LINTHICUM, MD, May 24, 2023—NFM Lending is pleased to announce the promotion of Scott Betley to Executive Vice President of their Influencer Division.
Betley is a leading mortgage influencer on social media and is one of the co-founders of the Influencer Division, along with NFM’s Managing Director Greg Sher. Betley joined the company in 2021 and has served as Vice President of the Influencer Division when it was formed in 2022. His TikTok videos alone have earned over 12 million likes with 860,000 followers.
“I am honored to accept my role as Executive Vice President of the first Influencer Division ever in the mortgage industry,” said Betley. “The last few years have been a complete whirlwind of growth thanks to social media and NFM Lending. I sit here today still in awe of the journey. It’s truly a testament to the opportunity we all have at our fingertips. I’m excited to continue to charter this territory and pave the way for years to come.”
“Scott continues to prove himself as a selfless leader who is always willing to open his playbook to help his fellow influencers,” noted Influencer Division President Bryan Harrison. “Since coming on board two years ago as the sole content creator, Scott has been instrumental in growing this division to 14 influencers across the country. I congratulate him on his well-deserved promotion and wish him success as he continues our mission to promote homeownership through education to our younger generations.”
Through partnerships with mortgage and real estate content creators, the Influencer Division leverages the power of social media and short-form video to share entertaining and engaging content about mortgages and real estate. Its loan originator influencers have not only generated strong leads from their numerous followers, but also valuable discussion about various homebuying topics among the public.
NFM congratulates Betley on his promotion and wishes him continued success.
For more information on the division, contact influencerdivision@nfmlending.com.
About NFM Lending
NFM Lending is a mortgage lending company currently licensed in 49 states in the U.S. and Washington, D.C. The company was founded in Baltimore, Maryland in 1998. NFM Lending and its family of companies includes Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans, and Element Home Loans. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. For more information about NFM Lending, visit nfmlending.com, like our Facebook page, or follow us on Instagram.
For many aspiring homeowners, coming up with a down payment is a significant obstacle standing in the way of homeownership. While having a 20% down payment isn’t required to buy a home, it can be challenging to gather enough funds to start the home buying process. Read on to learn about different ways to come up with a down payment.
Increase Savings
Saving money is perhaps the obvious first choice when it comes to collecting a down payment. The process of putting away extra money usually happens gradually, so it’s best to start a dedicated savings account as soon as possible. Increase your savings potential by creating and maintaining a household budget. You might also consider starting a side hustle or asking your employer for a raise to increase your cash flow. Growing your savings will be beneficial when you’re ready to begin your home buying journey, even if you find you won’t need much for your down payment.
Down Payment Assistance
Down payment assistance (DPA) programs are an underrated way to partially or fully subsidize your down payment. There are many DPA programs offered to homebuyers at the federal and state level, from both public and private institutions. DPA programs are often tailored to first-time or low-income buyers, but repeat homebuyers may be eligible for certain programs. The DPA funds can come in the form of a grant or a low interest second mortgage that may be repayable or forgiven after a set amount of time. If you’re part of a particular profession, such as teaching or law enforcement, there are DPA programs designed to help you become a homeowner. Taking advantage of DPA allows you to secure your dream home and save for other expenses. Make sure to ask your loan originator if you qualify for any down payment assistance programs.
Gift Funds
Your down payment doesn’t have to come entirely from you; all or part of it can come from family and friends in the form of gift funds. In order to use gift funds in your down payment, have your benefactor send your lender a gift letter detailing the amount given, their relationship to you, withdrawal dates, and a statement that repayment is not expected. Your lender may also need to see accompanying withdrawal and deposit slips to source the money. It’s important to know that if your contributor expects you to repay the gifted money, it will be considered a loan and will be factored into your debt-to-income (DTI) ratio.
Leverage Your 401(k)
401(k)s are meant to be accessed upon reaching age 59 ½ , but tapping into it earlier can boost your down payment amount if needed. You can either use a 401(k) loan (if offered by your employer), or withdraw funds. Both methods allow you to access cash on hand without going through a lender or credit check. A 401(k) loan lets you borrow against your retirement savings and must be restored within five years with interest. Your employer may pause 401(k) contributions until the loan is paid back. Withdrawing money from your account will lead to a 10% penalty fee, and any amount you remove will be subject to an income tax. You will also forfeit any tax-free retirement earnings that you have accrued. For these reasons, this option is best used only as a last resort. It’s essential to consult with a financial advisor so you fully understand what’s involved.
Getting a down payment ready doesn’t have to be the thing that stops you from achieving homeownership! If owning a home is something you want to accomplish, it’s ever too early to start saving and preparing for one of the most important purchases of your life.
If you have any questions about buying a home, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the home buying process, click here to get started!
NFM Lending is not a financial or tax advisor. You should consult a financial advisor to assist with your financial goals.