If you are considering purchasing a home, you may wonder what your financing options are. While there are many mortgage options available, some of the most common loan types are conventional, FHA, VA, USDA, and Jumbo loans. Over the next several weeks, we will answer the top 5 questions about the top 5 types of home loans. This week, we will discuss FHA Loans.
FHA Loans
An FHA Loan is a type of government-insured loan offered by the Federal Housing Administration (FHA). Rather than lending money directly to home buyers, the FHA insures lenders against losses that may occur in the event that the borrower defaults on the loan. This allows lenders to offer these loans with less strict requirements than conventional or other home loans.
If you are considering an FHA loan for your home purchase, read on to learn the answers to some of the most common questions home buyers have about FHA Loans.
Anyone who does not already have an FHA loan is eligible to use this program. FHA loans are popular with low-income and first-time home buyers, due to the less stringent requirements. They have lower down payment requirements and tend toave lower credit score requirements.
The minimum down payment amount for an FHA loan is 3.5%. This is much lower than the down payment amount for a conventional loan, which is normally 20%. Additionally, FHA loans allow for down payment assistance provided as a gift by a family member, employer, or charitable organization, which other loan programs do not allow.
The credit score requirements for an FHA loan will depend on your lender. However, if you have no credit history or have just begun your credit history, an FHA loan will allow you to add a family member as a co-signer on your loan.
If you opt for an FHA loan, you will be required to pay a Mortgage Insurance Premium (MIP) in addition to your monthly mortgage payments. Mortgage insurance protects your lender from losses in the event that you default on your mortgage.
If you had a foreclosure or deed-in-lieu of a foreclosure, you may not be eligible for an FHA loan for three years after the date the title was transferred from you. However, if the circumstances of the foreclosure were out of your control, your lender may be able to grant an exception. For more information about how a foreclosure may affect your eligibility for an FHA loan, click here.
If you are still paying on a Chapter 13 bankruptcy, and your payments have been satisfactorily made and verified for at least one year, you may qualify for an FHA loan. You will need to provide written explanation of the circumstances of the bankruptcy, have re-established good credit, have stable employment, and qualify financially for the loan. If you or your spouse filed for Chapter 7 bankruptcy, at least two years must have passed since the bankruptcy discharge date. As with Chapter 13 bankruptcy, you will need to provide written explanation of the circumstances of the bankruptcy, have re-established good credit, have stable employment, and qualify financially for the loan.
An FHA loan can be a great financing option for many home buyers. If you have more questions about FHA loans, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the home buying process, click here to get started!
LINTHICUM, MD, August 15, 2016—NFM Lending is pleased to announce the successful completion of its Second Annual School Supply Drive. From July 25th to August 12th, 2016, NFM Lending collected school supplies to put together backpacks with needed materials for underprivileged children in Anne Arundel County. This year, NFM Lending provided the Anne Arundel County Public School District with 50 filled backpacks for children attending kindergarten through fifth grade.
“NFM Lending changes lives every time a family invests in a home,” said Madison Grey, HR Manager and team lead for the drive. “This time, we invested in those families that struggle by providing school supplies for their children. The bags we dropped off were packed with supplies, hope, and love from the NFM Lending team.”
NFM Lending is proud to support many charities and non-profits through donations and volunteer work. NFM has also been involved in charitable efforts with The Ronald McDonald House Charities of Baltimore, Little Smiles, AnySoldier, and St. Jude’s Children’s Research Hospital, to name a few. 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 28 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™.”
LINTHICUM, MD, August 1, 2016— NFM Lending is pleased to honor Sergeant Major (Retired) Gregory W. Heffner as the NFM Salute for August 2016.
SGM (Ret) Gregory W. Heffner served honorably in the Maryland Army National Guard for over 35 years, entering service on January 20, 1974. Heffner worked in numerous key assignments culminating at the National Guard Bureau Policy Division, Arlington, Virginia until his retirement in February 2009. He has received many accolades for his service, including the Legion of Merit, the Meritorious Service Medal, and the Army Commendation Medal.
Heffner remains at the National Guard Bureau as a Department of the Army Civilian, GS 13. He is a lifelong resident of Frederick, MD, and has been married to his wife, Terry Lynn Heffner, for over 41 years. He has two daughters, Hilery Leatherman and Katherine Speilman, and seven grandchildren.
“I nominated my Dad, SGM Greg Heffner, because he is the most patriotic person I know,” said Leatherman. “He loves our country, served 35 years active duty, and now that he’s retired, he is still working as a civilian for the MDARNG as a policy writer. He has always been someone that others call on for advice, assistance or anything regarding other soldiers.”
NFM Salutes is an initiative in which one military member or Veteran is chosen each month to be honored as the “Salute of the Month.” Salutes are chosen from nominations on the NFM Salute 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. Heffner chose Platoon 22 to receive this month’s donation.
Selected NFM Salutes may choose from one of the following four non-profits: Platoon 22, AnySoldier, Soldier’s Wish, and the Gary Sinise Foundation. NFM looks forward to the opportunity to continue to honor 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 28 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™.”
Are you considering buying a short sale property? A short sale is the sale of a property where the net proceeds from the sale are short of the debts secured by the liens on the property. This can be a complex process with many moving pieces. But there are many reasons this may be a good choice for you. You will be competing with fewer buyers, and you may be able to purchase your home for well under market value. However, since the short sale process is different from a traditional home sale, here are 4 things you should know in order to have a successful short sale purchase.
Purchasing a short sale property can be complex, but often the reward can outweigh the challenge. If you have any questions about purchasing a short sale, 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, July 1, 2016— NFM Lending is pleased to honor Barry Wyllie as the NFM Salute for July 2016.
Barry Wyllie grew up in Dunedin, Florida where he graduated from Dunedin High School in 1995. Following in both his father and grandfather’s footsteps, he enlisted the United States Army as a combat medic, where after graduating from airborne school, was assigned to the 2-505th Parachute Infantry Regiment of the 82nd Airborne Division at Fort Bragg, North Carolina. Throughout his 4½ -year enlistment, Wyllie rose through the ranks to a Sergeant/E-5, serving as a senior line medic with training deployments to Kazakhstan, Uzbekistan and later to Haiti for 9 months in 1999, in support of Operation Uphold Democracy. After 54 successful airborne parachute operations, Wyllie ended his initial enlistment term with an honorable discharge in 2000.
Wyllie now resides in the Boston, Massachusetts area with his wife, Nancy, and three kids, Ashton, Brayden, and Alexis. He is a Branch Manager for NFM Lending in Raynham, Massachusetts, where he takes great pride in helping fellow Veterans understand and utilize their earned benefits for home ownership. Wyllie was nominated by his fellow Branch Manager, Bill Driscoll.
“Barry takes great pride in everything he does, and is constantly trying to help others be the best they can be,” said Driscoll. “One of Barry’s favorite quotes from Lt. Col. Hal Moore is ‘American soldiers in battle don’t fight for what some president says on TV, they don’t fight for mom, apple pie, or the American flag…they fight for one another.’ Barry’s military background has helped him become a determined and focused businessman, while also being a great father, husband, and friend willing to go the extra mile for anyone.”
NFM Salutes is an initiative in which one military member or Veteran is chosen each month to be honored as the “Salute of the Month.” Salutes are chosen from nominations on the NFM Salute 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. Wyllie chose AnySoldier to receive this month’s donation.
“Barry’s drive and commitment for success is a prime example of the NFM attitude,” said Bob Tyson, COO/CAO. “His prior military experience brings a unique perspective to the team. It is an honor to have Barry at NFM, striving for progress in and out of the workplace.”
Selected NFM Salutes may choose from one of the following four non-profits: Platoon 22, AnySoldier, Soldier’s Wish, and the Gary Sinise Foundation. NFM looks forward to the opportunity to continue to honor 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 28 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™.”
LINTHICUM, MD, June 20, 2016—NFM Lending is excited to announce that Madison Grey has joined NFM Lending as the Human Resources (HR) Manager.
“Seeing NFM Lending recognized as a 2016 Top Workplace increased my excitement to join this premier mortgage group, because the company values its employees, customers and the community,” said Grey. “I believe that devoted and engaged employees are the cornerstone of a progressive organization; this HR team will ensure that NFM Lending continues to reach even more milestones!”
Grey comes to NFM with 17 years of HR experience, and a Bachelor of Science in Organizational Management. She has a passion for volunteering with Veteran and homelessness organizations, and has won awards for her service.
“I am pleased to have Maddy Grey join our team at NFM Lending,” said Bob Tyson, COO/CAO. “Not only will her expertise in human resources guide our growth in a groundbreaking direction, but her altruistic ambitions will undoubtedly open extraordinary opportunities for this company. I look forward to working with her as she leads NFM to new heights.”
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 28 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™.”
LINTHICUM, MD, June 20, 2016 — NFM Lending is pleased to announce that it has been ranked a 2016 Top Workplace in the Washington, D.C. area by the Washington Post.
NFM Lending received the award at a ceremony held on Thursday, June 16, 2016. Since its founding in 1998, NFM Lending has grown from a small mortgage brokerage to a lender with locations throughout the United States, including 6 locations in the D.C. area.
“We are honored to have made the list of Top Workplaces because it provides positive feedback that our employees enjoy where they work and, more importantly, that they feel safe, challenged, and respected,” said David Silverman, CEO.
Each year, the Washington Post distributes a survey to the employees of Washington, D.C. area companies, asking them to evaluate their workplaces. The survey asks participants to rank their companies on quality of leadership, work-life balance, pay and benefits, and more. This year, NFM Lending was among 150 small, midsized, and large companies that made the final cut for inclusion on the Top Workplace list.
“Our goal at NFM is to provide each individual an environment in which they can thrive and succeed,” said Bob Tyson, COO/CAO. “Receiving this award is proof that a happy employee makes a successful company. We pride ourselves on working with the best, so for the team to feel that we are the best is truly the greatest honor.”
NFM Lending was also named a 2016 Top Mortgage Employer by National Mortgage Professional Magazine earlier this year; one of the 50 Best Companies to Work For by Mortgage Executive Magazine; and was named the #1 Midsize Company in the Baltimore Area in 2015 by the Baltimore Sun. NFM Lending is proud of these accomplishments, and the work its team does to make it a Top Workplace.
About NFM Lending
NFM Lending is a mortgage lending company currently licensed in 28 states across the United States. The company was founded in Baltimore, Maryland in 1998. They attribute their success in the mortgage industry to their steadfast commitment to their customers and their 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
Recently, we discussed the fifth step in the home buying process: Processing and Underwriting. Once the clear-to-close (CTC) is issued, your loan moves into the sixth step: Closing. This is the final step in the process before you move into your new home.
What Happens at Closing
At closing, all the necessary paperwork is presented and signed by both the sellers and the buyers. At least three business days prior to closing, you will receive a Closing Disclosure (CD). The CD will detail all of your closing costs and factor in any down payments, credits or gift funds provided on the loan transaction.
When you close on your loan, the title of the property is transferred to the buyer, an escrow account is set up if applicable, funds are obtained by the buyer, and the security interest of the lender is recorded by the County or City Clerk. Should you need funds for closing, these must be in the form of a certified check.
After Your Loan Closes
You will make payments on your mortgage loan following an amortization schedule. An amortization schedule will show you the amount of principal versus interest you are paying each time you make a payment.
Once your loan has closed, your lender may transfer servicing of your loan to another lender or servicing company. You will be contacted both by your current lender and your new lender/servicer in the event that servicing is transferred. If you have any questions after your loan closes, you can reach out to your Loan Originator, or to your current loan servicer.
If you missed any of our 6 Step blogs, you can find them here:
Homeownership is a rewarding achievement. The home buying process may present challenges, but having qualified mortgage professionals by your side can make all the difference. If you have any questions about the home buying process, contact one of our licensed Mortgage Loan Originators. If you are ready to buy a home, click here to get started!
LINTHICUM, MD, June 1, 2016— NFM Lending is pleased to honor Matthew Hauser as the NFM Salute for June 2016.
Hauser has been in the U.S. Air Force for 5 years, working as an intelligence analyst, and was just promoted to Staff Sergeant. He has been deployed twice, once to Korea and once to Qatar. Hauser is currently stationed at MacDill Air Force Base in Las Vegas, going through an advanced enlisted mission planning course.
“I want to thank everyone for their support!” said Hauser. “Knowing that people appreciate the sacrifices that military members give makes it much easier to push through when we are deployed.”
Hauser was nominated as the NFM Salute of the Month of June by his wife, Jessie Hauser.
“He[Matthew] deployed when his son was just 2 months old and has just missed his son’s first birthday,” said Jessie. “He knows we wish we were here but we are so proud and grateful for the amazing things he is doing from afar. He is the hardest worker I know and I’m just so proud of him and all that he has accomplished in his career with the Air Force.”
NFM Salutes is an initiative in which one military member or Veteran is chosen each month to be honored as the “Salute of the Month.” Salutes are chosen from nominations on the NFM Salute 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. Hauser chose Platoon 22 to receive this month’s donation.
Selected NFM Salutes may choose from one of these four non-profits: Platoon 22, AnySoldier, Soldier’s Wish, and the Gary Sinise Foundation. NFM looks forward to the opportunity to continue to honor 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 28 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™.”