All About Mortgage Loans with C2 Financial

What is a Mortgage Brokerage?

A Conventional Mortgage is simply any mortgage loan that is not insured or guaranteed by the federal government. Conventional Mortgages typically require a higher down payment, usually 5%-20%. They also have higher income and credit score requirements than government loans. Conventional Mortgages can have a fixed interest rate or an adjustable interest rate. Typical fixed-rate loans have a term of 30 or 15 years. However, C2 Financial Corp. offers 30-year, 25-year, 20-year, 15-year, and 10-year fixed-rate options.

With an Adjustable-Rate Mortgage (ARM), the interest rate stays constant for a term and then fluctuates based on market conditions. C2 Financial Corp. offers a 10/1 ARM, 7/1 ARM, 5/1 ARM, and 3/1 ARM.

Conventional Mortgages are also categorized as conforming or non-conforming. If a loan meets the underwriting requirements set forth by the government-sponsored entities Fannie Mae and Freddie Mac, it is considered a conforming loan. If a loan does not meet all these requirements, it is considered a non-conforming loan. One of the main factors that determine whether a mortgage is conforming is the loan amount. Generally, a mortgage with a loan amount below $548,250 is considered conforming, whereas any loan amount above $548,250 is considered non-conforming, or a Jumbo Mortgage. Conforming limits may be higher in areas of the country with more expensive housing; for example, the conforming limit is $625,500 in Alaska and Hawaii. Jumbo Mortgages usually have a higher interest rate because they carry greater risk.

What are the benefits of a Conventional Mortgage?

Conventional Mortgages offer the following features:

Buyer has immediate equity in the property.
No private mortgage insurance is required with a 20% down payment, which is a great advantage.
Closing costs and fees may be included in the loan.
Repayment terms are generally more favorable.
Fewer bureaucratic hurdles, making the loans quicker to process.
No government stipulations and prepayment penalties if you sell or refinance your house.

Who may benefit from a Conventional Mortgage?

Conventional Mortgages are ideal for buyers with excellent credit who can afford a down payment.

Conforming Loan Limits by County

Click on the image for larger view.

Refinancing Your Mortgage

What does it mean to refinance your mortgage?

When you refinance your mortgage, you pay off your existing mortgage and replace it with a new mortgage that typically has a lower interest rate, term period, or monthly payment. If you have both a primary mortgage and a second mortgage, you could refinance both by paying them off and replacing them with one new mortgage. You may also refinance a non-FHA loan with an FHA loan. But refinancing has costs, so it isn't always right for everyone. If you currently have an FHA-insured mortgage, you may be eligible for an FHA Streamline Refinance.

What are the benefits of refinancing?

Here are some of the benefits of refinancing:

Get a lower interest rate and make lower payments. A lower interest rate usually means you will make lower monthly mortgage payments. You may be able to get a lower rate because of changes in market conditions or because your credit score has improved.
Change the mortgage length.
- If you decrease the length of your mortgage-for example, if you go from a 30-year term to a 15-year term-you will usually have a higher monthly payment but a lower interest rate. You will likely pay off your mortgage sooner because you are paying more of the principal each month. The total amount of interest you pay throughout the shorter mortgage term will typically be less.
- If you increase the length of your mortgage, you will likely have a lower monthly payment, but the total amount of interest you pay throughout the longer term will typically be more. Note: Mortgage interest, unlike credit card debt, is tax-deductible; consult a tax professional for more information.
Build equity more quickly. With lower monthly payments, you may be able to make additional payments and build up equity in your home more quickly.
Get cash from the equity in your home. If you refinance for an amount greater than what you owe on your home, you can receive the difference in a cash payment. You may use this cash for home improvements, which will increase the value of your home, or for other major expenses.
Convert from an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate Mortgage. Interest rates for an ARM can increase or decrease, so monthly mortgage payments can also rise or fall. Because the variable ARM rate is unpredictable, many people are more comfortable switching to a Fixed-Rate Mortgage that has a steady interest rate and steady monthly payment.
Get an ARM with better terms. You may be able to refinance your existing ARM by getting another one with terms that are more advantageous to you. For example, you may be able to get a new ARM with smaller interest rate adjustments or lower payment caps (the interest rate can't exceed a certain amount), or the new ARM may start out at a lower interest rate.
Refinancing costs may be included in the loan.

Who may benefit from refinancing?

With interest rates at historic lows, now is a good time for every homeowner to consider and evaluate the option of refinancing. However, refinancing is typically a benefit only if you plan to stay in your home for a minimum of two to five years, in order to recover your refinancing costs.

For more information

Contact Lanny Clark today to see if refinancing may be right for you. We take pride in delivering value and savings to homeowners across the United States. It would be a pleasure to help.

Visit the Federal Reserve Board's online publication, A Consumer's Guide to Mortgage Refinancing
https://www.federalreserve.gov/pubs/refinancings/default.htm

What is a VA Home Loan?

C2 Financial Corp. proudly offers loan products that meet the home financing needs of active-duty military and veterans nationwide. VA home loan programs help veterans finance the purchase of homes with favorable loan terms and at an interest rate typically lower than rates charged on other types of mortgages.

What are the benefits of a VA Home Loan?

VA Home Loans offer the following features:

No down payment required (provided the veteran is income- and credit-qualified and the purchase price is more than the reasonable value of the property).
Buyer informed of property's reasonable value.
Negotiable interest rate.
Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
Comparable closing costs with other financing types (or may be lower).
No mortgage insurance required.
Gifts and seller contributions accepted toward closing costs.
An assumable mortgage (with the approval of the VA).
Right to prepay without penalty.
VA assistance to veteran homebuyers in default due to temporary financial difficulty.

Who may benefit from a VA Home Loan?

VA Home Loans are made to eligible veterans (who were honorably discharged) for the purchase of a home for personal occupancy. For VA housing loan purposes, the term "veteran" includes certain members of the Selected Reserve, active-duty service personnel, and certain categories of spouses. C2 Financial Corp. provides an equal opportunity for all qualified veterans to obtain a VA loan.

For more information

Contact Lanny Clark to see if a VA Home Loan is the right solution for you. We take pride in delivering value and savings to the men and women who serve our country. It would be a pleasure to help.

You may also review the Department of Veterans Affairs' website,
https://benefits.va.gov/homeloans/ VA-Guaranteed Home Loans for Veteran

What is an FHA-Insured Loan?

FHA-Insured Loans offer many benefits and a level of security that you won't find in other loans. While these loans are funded by C2 Financial Corp., the Federal Housing Administration (FHA) insures these mortgages so C2 Financial Corp. can offer you a better deal. With flexible qualification guidelines, these loans are particularly designed to benefit first-time homebuyers and buyers who don't have perfect credit or a lot of money to put down.

A few common FHA-Insured Loans are:

FHA 203(b) Home Mortgage Loans for qualified buyers wanting to purchase or refinance a primary residence.
FHA 203(k) Renovation Loans for those wanting to buy a home, fix it up, and include all the costs in one loan, or those wanting to refinance what they owe on their mortgage and add the costs to remodel or repair their existing home.
FHA Energy-Efficient Mortgages for those wanting to make their home more energy-efficient.

What are the benefits of an FHA-Insured Loan?

FHA-Insured Loans offer the following features:

Low down payments (as low as 3.5% of the purchase price).
Fixed-Rate and Adjustable-Rate Mortgages available.
100% gift funds acceptable for down payment and closing costs.
No prepayment penalty.
Flexible qualification guidelines.

Who may benefit from an FHA-Insured Loan?

FHA-Insured Loans may be of particular benefit to buyers who:

Are buying their first home.
Don't have a lot of money to put down.
Don't have perfect credit and are worried about qualifying for a loan.
Want to keep their monthly payments as low as possible and/or are concerned about their monthly payments going up.
Want to refinance a high-cost mortgage.
Are looking to finance one to four unit structures or approved condominiums.

For more information

Contact Lanny Clark Today to see if an FHA-Insured Loan is the right solution for you. We take pride in delivering value and savings to homebuyers across the United States. It would be a pleasure to help.

FHA Streamline Refinance

What is an FHA Streamline Refinance?

The two main features of this unique refinancing program are:

You must already be an FHA-insured homeowner to qualify ¹
An FHA Streamline Refinance might not require a home appraisal.

Other requirements for an FHA Streamline Refinance include the following:

Principal residence: The homeowners must be using the home as their principal residence.
A perfect 12-month payment history: No 30-day, 60-day, or 90-day late payments are allowed. Existing loans must be current at the time of closing.
A 210-day waiting period between refinances: The FHA requires that borrowers make six mortgage payments on their current FHA-insured loan and that 210 days (about seven months) pass from the most recent closing date in order to be eligible for an FHA Streamline Refinance.
"Net tangible benefit": Applicants must demonstrate that the refinancing has an allowable net tangible benefit, which is generally defined as reducing the [principal + interest + mortgage insurance] component of the mortgage payment by 5% or more. Another allowable net tangible benefit is refinancing from an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate Mortgage. Note that taking cash out to pay bills is not an allowable net tangible benefit.
Other requirements and costs may apply.

What are the benefits of an FHA Streamline Refinance?

Speed: If you qualify for an FHA Streamline Refinance, it is typically the fastest, simplest way to refinance your mortgage.
Rates: An FHA Streamline Refinance is available as a Fixed-Rate Mortgage and ARM. FHA Streamline Refinance rates are as low as those for regular FHA mortgages.
15- or 30-year terms.
No prepayment penalty.
No income verification required.

Who may benefit from an FHA Streamline Refinance?

Again, only those who are FHA-insured homeowners and who meet the other requirements outlined above are qualified for an FHA Streamline Refinance. Given that verification of income is not required, an FHA Streamline Refinance may be of particular benefit to those with lower incomes; however, the homeowner obviously must be able to pay the refinancing costs and make the monthly payments.

For more information

Contact Lanny Clark today to see if an FHA Streamline Refinance may be right for you. We take pride in delivering value and savings to homeowners across the United States. It would be a pleasure to help.

Visit the "Streamline Your FHA Mortgage" article at the website of the U.S. Department of Housing and Urban Development (HUD). Visit the Federal Reserve Board's online publication, A Consumer's Guide to Mortgage Refinancing at https://www.federalreserve.gov/pubs/refinancings/default.htm

¹ If you currently have a non-FHA loan, you may consider refinancing with an FHA refinance loan, but this will not be an FHA Streamline Refinance. You'll need to apply with the usual employment verification, credit check, debt ratio requirements, etc. C2 Financial Corp. can help you determine if this may be a beneficial option for you.

FHA 203(k) Renovation Loans

What is an FHA 203(k) Renovation Loan?

Purchasing a home in need of major repair or planning a remodel of your existing home can be overwhelming. But securing financing to tackle these projects doesn't have to be a daunting task.

FHA 203(k) Renovation Loans are designed for people wanting to finance both the mortgage to purchase or refinance a fixer-upper and the funds needed to repair and remodel the property all in a single loan with one application, one closing, and one monthly payment. The loan amount is determined by using the after-improved value; a borrower can receive up to 110% of the after-improved value up to the FHA loan limit.

An FHA 203(k) Renovation Loan can be used to purchase or refinance a primary residence, regardless of property condition. A minimum of $5,000 in eligible repairs is required, from upgrading appliances to scrapping a property and rebuilding (no luxury improvements, like pools, are allowed).

For Smaller Projects: Streamline 203(k) Loans

C2 Financial Corp. also offers FHA Streamline 203(k) Loans to address mainly cosmetic and minor home improvements ($0-$35,000 in repairs and no structural repairs). These loans are designed with efficiency in mind, and no general contractor and 203(k) consultant involvement is required.

What are the benefits of an FHA 203(k) Renovation Loan?

FHA 203(k) Renovation Loans offer the following features:

One loan, one closing, and one payment for both the mortgage to purchase or refinance the home and the funds needed for major and minor improvements.
Improvement funds are held in an interest-earning, FDIC-insured escrow account and disbursed as the work is completed (maximum of five disbursements).
Competitive long-term fixed or adjustable interest rates.
Low down payments starting at 3.5% of the property acquisition and repair costs.
Have the same underwriting guidelines as 203(b) loans.
Less-strict FHA qualification requirements.
Can finance up to six months' mortgage payments into the loan if the home is uninhabitable during rehab.
Include funds to cover potential expenses and fees.
May finance the cost to rent another home during renovations.
Numerous eligible properties, including one- to four-unit single-family dwellings, condominiums, manufactured housing, and mixed-use properties (residential with commercial); owner-occupied only.
Six months are allotted to complete the work.

Who may benefit from an FHA 203(k) Renovation Loan?

FHA 203(k) Renovation Loans may be of particular interest to the following:

Homebuyers

If you wish to purchase a less-than-perfect home in a great neighborhood, a foreclosure or short sale, or other distressed property.
If you want to take advantage of excellent prices and historically low interest rates on homes in need of repair or remodeling.
If you need to expand a home to meet your needs.
If you desire to invest in improvements that suit your tastes and lifestyle.
If you would like to eliminate problems with a property before ever moving in.
If you see fit to purchase a home from one site and move it to a desired location.
If you choose to demolish an existing structure and rebuild.

Current Homeowners

If you want to make improvements to increase your home's value.
If you would like to upgrade, add on, or make repairs without tapping into your savings or incurring additional consumer or credit card debt.
If you are looking to potentially save on your taxes; interest on renovation costs may be tax-deductible (consult a tax professional).
If you would like to offer property improvements instead of price reductions when selling.
If you hope to make repairs and improvements that limit or prevent minimum-down financing.

For more information

Contact Lanny Clark today to see if an FHA 203(k) Renovation Loan is the right solution for you. We take pride in delivering value and savings to homebuyers and homeowners looking to make their dream home come true. It would be a pleasure to help.

Visit the FHA website for more information on FHA 203(k) Renovation Loans.

HomeStyle Renovation Loans

Why choose Homestyle Renovation?

Homeowners are renovating like never before. With a HomeStyle Renovation loan, you'll have funds for a wide range of renovation projects, from repairs and energy updates to landscaping and luxury upgrades. A HomeStyle Renovation loan can make the difference between a house and a dream home, or help restore an older home to its former glory.

Features and Benefits:

Simple - With standard pricing and conventional execution, loan funds can be delivered even before the project starts.
Flexible - Use on any renovation project, including updating a bathroom, adding a mudroom, landscaping, or replacing a roof, up to 97% LTV or 105% CLTV when paired with eligible financing.
Affordable - Take the completed value of the project when determining the total loan amount, up to 75% of either the purchase price plus renovation costs or the "as-completed" appraised value, whichever is lower. For manufactured housing, eligible renovation funds cap at the lesser of $50,000 or 50% of the "as-completed" appraised value.
Competitive - Interest rates are typically lower than a home equity line of credit (HELOC), personal loans, or credit cards.

Visit Fannie Mae for more information on HomeStyle Renovation Loans

State Housing Agency Loans

What is a State Housing Agency Loan?

State Housing Agency Loans are designed to support strong, viable communities by ensuring an ongoing inventory of affordable housing for disadvantaged populations.

What are the benefits of a State Housing Agency Loan?

State Housing Agency Loans offer the following features:

Low interest rates.
A variety of down payment assistance programs for eligible buyers.

Who may benefit from a State Housing Agency Loan?

State Housing Agency Loans provide affordable housing opportunities for low- and moderate-income households, underserved minority populations, people with disabilities, and the elderly.

For more information