Recently, we answered the Top Five Questions About Conventional Loans. This week, we will discuss Jumbo loans. If you are planning to purchase a home soon, read on to learn more about whether a Jumbo loan might be right for you.

Jumbo Loans

While a Conventional loan is one which conforms to the guidelines set by Fannie Mae and Freddie Mac, a Jumbo loan is one which exceeds the loan limits set by these entities. These set loan limits vary by location. The majority of U.S. cities have a loan limit of $417,000 on one-unit properties, while higher cost areas tend to have a higher loan limit of $625,500. Some areas have a loan limit that is in between these two numbers, or even higher.

• Why would I apply for a Jumbo loan?

If the home you are interested in cost more than the loan limit for your area, a Jumbo loan may be right for you. Your lender will be able to help you determine how much house you can afford, and see if a Jumbo loan fits your needs.

• How much can I borrow with a Jumbo loan?

The amount you can borrow with a Jumbo loan will depend on your lender. NFM Lending lends up to $3 million on Jumbo loans.

• What are the requirements to qualify for a Jumbo loan?

Because the amount of a Jumbo loan is higher than a Conventional loan, the requirements may be stricter. A Jumbo loan may require a higher down payment, a higher credit score, higher reserves, and a lower debt-to-income ratio than a Conventional loan. Additionally, a Jumbo loan may require two appraisals, instead of one.

• Do I need private mortgage insurance (PMI) on a Jumbo loan?

Often, you will not have to pay PMI on Jumbo loans, as they usually require a higher down payment. PMI is designed for home buyers who make low down payments. However, since the down payment requirement will vary by lender, it is possible that your lender will require PMI in exchange for a lower down payment.

• What are the benefits of a Jumbo loan?

In addition to no PMI requirement, one of the main benefits that a Jumbo loan is that you will be able to afford more home than with a Conventional loan or other loan type. Additionally, a Jumbo loan will allow you some flexibility with your loan terms. You can choose a 15 or 30-year mortgage, and a fixed-rate or adjustable-rate mortgage, depending on your needs. Your lender will work with you to determine what kind of loan program is right for you.

If you are looking at homes that exceed the conforming loan limits for your area, a Jumbo loan may be the right financing option for you. If you have more questions about Jumbo loans, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the home buying process, click here to get started!

If you are currently a homeowner, you may be considering purchasing a second home to rent out or to use as a vacation home. While much of the process will be the same as when you bought your first home, there are many other factors to consider that you may not have had to examine the first time. It’s important to know what to expect when making this decision. Here are a few tips to help you purchase a second home or investment property:

Your Budget
A successful second home purchase process requires careful planning. Know what your budget is, and make sure you are accounting for all additional expenses that may be included. If you are looking to purchase a fixer-upper, for example, make sure you have an idea of what your budget is for repairs and renovations, and include that when determining your price range.

Your lender’s financial requirements for a second home purchase will be more stringent than when you purchased your first home. They will want to make sure you can afford to pay two mortgages. Your second home purchase may require a higher down payment, larger reserve requirements, and more financial assets. Additionally, second homes and investment properties are financed primarily by conventional loans, since you can only use a FHA loan on a home you intend to live in. Your Loan Originator can help you figure out what you can afford, and make sure you are accounting for all miscellaneous costs.

Your Goals
If you are looking for a second home to purchase as a vacation home, your needs will be different from those of someone looking to purchase an investment property to rent out. This is why it’s important to work with knowledgeable professionals who can help you make the right decision.

If you are looking for a vacation home, you may be looking in areas you aren’t familiar with. A Realtor who knows the area and the market can help you find homes that meet your criteria, and get the most value for your money. Likewise, if you are looking for an investment property to flip or rent out, your Loan Originator can help you set a realistic budget and understand your financing options.

Taxes
Buying a second home can introduce different tax rules and tax deductions. Taxes in the area you’re looking to buy may be higher than you are used to, and the amount you are taxed may depend on factors such as your income level, how many days a year you occupy the property, etc. You may wish to consult a tax advisor when determining where to purchase your second home.

A second home can be a great investment. If you have any questions about purchasing a second home or investment property, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the process, click here to get started!

LINTHICUM, MD, May 26, 2016 — NFM Lending is pleased to announce the opening of a new branch location in Tempe, Arizona. This branch will focus its lending platform throughout Tempe and the surrounding area. NFM Lending offers Conventional, FHA, VA, USDA, FNMA, Jumbo, and many other loan options.

Ryan Sandell, Branch Manager, was born and raised in Tempe where he attended the W.P. Carey School of Business at Arizona State University and received his degree in Business Management. He began his career in the mortgage industry in 2003 and quickly cultivated an extensive book of business of realtors, homebuilders, and first-time and repeat homebuyers. His team now closes over $100 million in residential home loans each year. He was ranked as a 2016 Top Producer by National Mortgage News, and a 2015 Top Loan Originator by the Scotsman Guide. He attributes his growing success to hard work and his competitive spirit, and to his extraordinary team who help him get each deal to the finish line. When Ryan isn’t closing loans, he enjoys cheering on the Sun Devils with his wife, Stephanie, and their children, Max and Lily.

“NFM is excited to have Ryan Sandell, and his team, join the NFM Family,” said Jan Ozga, President of NFM Lending. “Ryan has always been a top-producing Branch Manager in Arizona, and we look forward to having him grow out NFM’s West Coast presence. What I love most about Ryan is his energy and dedication to delivering superior service. He has built a quality team that allows him to consistently generate new business. There is no doubt in my mind that Ryan will quickly work his way up to elite sales ranks at NFM.”

Sandell says that he looks forward to growing his team with NFM Lending.

“I am excited to call NFM my new home!” said Sandell. “I’m equally honored that NFM has chosen me to lead their first branch in Arizona. After meeting with the corporate management team, I knew this was the place for me. I was really looking for a company that would embrace my team’s plans for growth and permanence in this industry, and I truly believe that NFM will provide us the leadership and resources we need to make that happen. I look forward to growing the NFM brand in my home state of Arizona.”

The branch is currently hiring qualified Loan Originators for full and part-time positions. The branch’s goal is to provide top-notch service, commitment, and dedication to borrowers, ranging from first-time home buyers, to seasoned buyers looking for their next home, a second home, or investment properties. Visit the branch page to learn more: https://nfmlending.com/AZ327.

For more information, please contact:

Ryan Sandell
NMLS #221731
Phone: 480-269-1510
rsandell@nfmlending.com
www.nfmlending.com/rsandell

About NFM Lending

NFM Lending is a mortgage lending company currently licensed in 28 states across the U.S. The company was founded in Baltimore, Maryland in 1998. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. NFM Lending has firmly planted itself in the home loan marketplace as “America’s Common Sense Residential Mortgage Lender™.”

For more information about NFM Lending, please contact:

NFM Lending
Toll Free: 1-888-233-0092
pr@nfmlending.com
Twitter: @nfm_lending

For the online press release, click here.

LINTHICUM, MD, March 21, 2016— NFM Lending is proud to announce the beginning of its latest charity initiative, the NFM Salute. This program, launched March 15, 2016, will honor veterans and active duty military members, giving them the recognition they deserve for their service to our country.

The NFM Salute will choose one military member or veteran each month to honor as their “Salute of the Month.” Salutes will be chosen from nominations on the NFM Salutes website, www.nfmsalute.com. The “Salute of the Month” will be featured on the website with a brief biography and information about his or her service, and NFM Lending will make a $2,500 donation to a military or veteran non-profit in the Salute’s name (select charities listed below).

“The NFM Salute program is a continuation of our efforts to honor those who have served or are currently serving in the U.S. Armed Forces around the world,” said David Silverman, CEO. “From our vantage point, we can never do enough. We will continue to look for new ways to pay it forward to those brave and courageous men and women who inspires us all.”

Military and veteran causes are important to NFM Lending. For the past eight years, NFM Lending has held a Support Our Troops Drive, collecting items for care packages to send to U.S. troops overseas. In addition to employees and employee family members who are active military or veterans, several members of NFM’s executive team are veterans, including Fred Sujat, Chief Compliance Officer.

“Having served in the U.S. Air Force as a Judge Advocate for over thirty years, I salute NFM for its recognition of all those veterans who, over the years, took time from their families and the comforts of their homes to serve our Nation,” said Sujat.

Selected NFM Salutes may choose from one of several non-profits that support active military members and veterans, including Platoon 22, AnySoldier, Soldier’s Wish, and the Gary Sinise Foundation. NFM looks forward to the opportunity to continue to honor our military and veterans through the NFM Salute initiative.

For more information please contact:

NFM Lending
Toll Free: 1-888-233-0092
pr@nfmlending.com
www.nfmlending.com
Twitter: @nfm_lending

About NFM Lending

NFM Lending is a mortgage lending company currently licensed in 27 states in the U.S. The company was founded in Baltimore, Maryland in 1998. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. NFM Lending has firmly planted itself in the home loan marketplace as “America’s Common Sense Residential Mortgage Lender™.”

For the online press release, click here.

Time's up

LINTHICUM, MD, January 21, 2016—NFM Lending is proud to announce that Shaun Hires, formerly Director of Operations, has been named the company’s Chief Risk Officer.

Hires has been with NFM Lending since February 2008, and has been the Director of Operations since July 2008. He has over twenty years of experience in the banking industry, and has had HUD Direct Endorsement authority since 1993.

“The addition of this new role is critical to our success as NFM continues to grow,” said Hires. “I welcome this opportunity, and look forward to helping to lead NFM into the future.”

As Chief Risk Officer, Hires will analyze risk factors involved in NFM’s loan production and operations, and ensure compliance with industry regulations.

“Shaun’s new role is crucial as NFM continues its journey to the top, and as we as a residential mortgage company begin to transform into a larger, more self-sufficient mortgage organization,” said Ozga. “Shaun has been an incredibly loyal and dependable member of the Executive Team, and his insight and expertise have been invaluable.  I look forward to watching Shaun take on this new role and assist in moving NFM to the next level.”

NFM Lending is grateful for Hire’s contributions to NFM Lending over the last eight years, and looks forward to supporting him in this new role.

About NFM Lending

NFM Lending is a mortgage lending company currently licensed in 27 states across the U.S. The company was founded in Baltimore, Maryland in 1998. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. NFM Lending has firmly planted itself in the home loan marketplace as “America’s Common Sense Residential Mortgage Lender™.”

For more information about NFM Lending, please contact:

NFM Lending
Toll Free: 1-888-233-0092
pr@nfmlending.com
www.nfmlending.com
Twitter handle: @NFM_Lending

For the online press release, click here.

If you are in the market for a new home, one of the first things you should consider financially is how much of a down payment you can make. Most home buyers know that the most common mortgage loan (a Conventional loan) requires 20% down payment. This means that if you purchase a home worth $200,000, you must have $40,000 cash available, on top of the closing costs needed to purchase the home. This may deter many potential home buyers from purchasing because they only have a small amount of money saved. However, Conventional loans are only one of the many loan options available. Here are five of the most widely used mortgage loans and their down payment requirements.

FHA Loan – 3.5% Down Payment*

A Federal Housing Administration (FHA) loan is a mortgage loan that is insured by the government’s Housing and Urban Development (HUD) agency. FHA loans require a 3.5% down payment for purchases and it typically offers very competitive rates compared to rates from a conventional loan. Due to the low down payment, FHA Mortgage Insurance Premiums (MIP) are required in order to protect lenders against losses as a result from defaulted mortgages. There is an up-front premium paid at closing, and a monthly premium that is paid along with the monthly mortgage payment. FHA has several guidelines that all loans must meet, such as loan limits, allowable closing costs, and debt ratios.

VA Loan – 100% Financing**

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA). VA loans help service members, veterans, and eligible surviving spouses purchase a home with a competitive interest rate, limited closing costs, no Private Mortgage Insurance (PMI) requirement, and often without a down payment (as long as the sales price doesn’t exceed the appraised value). This is because VA guarantees a portion of the loan, which allows the lender to provide favorable terms. VA loans have several guidelines that all loans must meet, such as eligibility and loan limits.

USDA Loan – No Money Down^†

A USDA loan is a mortgage loan guaranteed by the United States Department of Agriculture (USDA). With a USDA loan, home buyers can purchase a home in eligible rural locations with no down payment, and can finance up to 100% of a home’s appraised value, plus closing costs. For eligible borrowers, USDA loans often come with the lowest interest rates and program insurance premiums of all government-backed loans. USDA loans have several guidelines that all loans must meet, including property eligibility and income eligibility.

80-10-10 Loan – 10% Down Payment

Also known as a Piggyback loan, an 80-10-10 loan is a great option for home buyers who have great credit but lack capital, and wish to avoid paying PMI. The mortgage loan works by having 80% of the property value covered by a first loan, 10% of the property value covered by a second mortgage which carries higher interest rates than the first conventional mortgage, and 10% will be covered by the home buyer’s down payment. Loans that are 80% or less of the home value do not require PMI.

State Bond Programs – Specific Assistance

Several U.S. states offer state bond loan assistance programs. These bond programs aim to help first-time home buyers or buyers with low capital by providing below-market interest rates, down payment assistance, long term affordability, and/or other benefits specific to the programs. These loans have program-specific income and occupancy requirements, and limitations.

There are many more mortgage loan options available not mentioned but these are the most commonly used. If you are looking to purchase a home soon, make sure you speak with a licensed mortgage loan originator. Choosing a down payment option is a big decision and a licensed mortgage loan originator can help you find options that best fit your needs. They can also walk you through the loan process and explain to you all of the eligibility requirements for the loan you choose.

*LTV’s of up to 96.5% for FHA loans. **Veterans Affairs loans require a funding fee, which is based on various loan characteristics. †100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. Loan is limited to the appraised value without the pool, if applicable.

LINTHICUM, MD, November 25, 2015— NFM Lending sponsored the Mortgage Bankers Association of Georgia (MBAG) Foundation Auction on Wednesday, November 18, 2015. The MBAG Foundation is a nonprofit, which participates in community charitable initiatives each year.

The Auction took place at a local restaurant, and was sponsored by various businesses. Gladys Marcelin, a Branch Manager in Stockbridge, Georgia, attended the event on behalf of NFM Lending.

“I was very proud to represent NFM Lending at the MBAG Foundation Annual Charity Dinner, as we were one of the sponsors of the event,” said Marcelin. “Most of the known Mortgage Companies attended and it was a great way to add some leverage to our name in Georgia. NFM was established in Georgia last fall and we are already known in the metro Atlanta. The organizers were very grateful of our donations.”

MBAG is a trade association of Mortgage Lenders, Brokers, and other Industry Professionals. According to their website, the Association is “dedicated to the preservation and improvement of the mortgage banking correspondent system.” The MBAG Foundation is a nonprofit 501(c)(3) organization founded by MBAG to support the local community. Each year, the foundation takes on a project for charity, providing financial support, materials, and labor, depending on the project.

NFM Lending is proud to support the MBAG Foundation. NFM has been involved in charitable efforts with AnySoldier, the Ronald McDonald House of Baltimore, the Maryland SPCA, and the American Diabetes Association, as well as many others. For more information about NFM Lending’s charitable work, click here.

For more information please contact:

NFM Lending
Toll Free: 1-888-233-0092
pr@nfmlending.com
www.nfmlending.com
Twitter: @nfm_lending

About NFM Lending

NFM Lending is a mortgage lending company currently licensed in 29 states in the U.S. The company was founded in Baltimore, Maryland in 1998. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. NFM Lending has firmly planted itself in the home loan marketplace as “America’s Common Sense Residential Mortgage Lender™.”

For the online press release, click here.

LINTHICUM, MD, November 2, 2015 — NFM Lending is pleased to announce the opening of a new branch in Glen Allen, Virginia. The branch will focus its lending platform throughout the state of Virginia. NFM Lending offers Conventional, FHA, VA, USDA, FNMA, Jumbo, and many other loan options.

“NFM Lending offers us marketing resources, the operations staff to close loans quickly and smoothly, independence in our branch to shape the best customer experience as we see fit, competitive products, and a great culture and atmosphere in which to work in this challenging industry,” said Greg Cowart, Branch Manager. “The quality of departmental and company leadership here is second to none. We now have the best chance to take the best care of our clients, agents, and builders by joining NFM Lending.”

The Glen Allen branch is currently hiring qualified Loan Originators for full and part-time positions. The branch’s goal is to provide top-notch service, commitment, and dedication to borrowers, ranging from first time homebuyers, to seasoned buyers looking for their next home, a second home, or investment properties. Visit the branch page to learn more: https://nfmlending.com/VA318.

For more information please contact:

About NFM Lending

NFM Lending is a mortgage lending company currently licensed in 29 states across the U.S. The company was founded in Baltimore, Maryland in 1998. They attribute their success in the mortgage industry to their steadfast commitment to customers and the community. NFM Lending has firmly planted itself in the home loan marketplace as “America’s Common Sense Residential Mortgage Lender.”™

For more information about NFM Lending, please contact:

NFM Lending
Toll Free: 1-888-233-0092
pr@nfmlending.com
Twitter: @nfm_lending

For the online press release, click here.