Canopy Mortgage, LLC

08/13/2019

Many first time buyer clients search for a condominium instead of a single family home for their first time home purchase. Why? Because in general, condos are priced much less per square foot compared to a single family home resting on its own lot. Of course, high-rise, downtown “luxury” condos will be priced differently but a two-bedroom condo in a suburban area can be an excellent choice. And for anyone looking at condos, they might also look at the FHA home loan program.

Conventional loans can require a much higher down payment compared to the minimum 3.5% down payment FHA requires for a new purchase. Combine that with a lower priced condo and that means home buyers can take advantage of home ownership with less cash to close and easier qualifying. But, the condo must be approved by the FHA before an FHA loan can be placed.

There are several requirements for a condominium to be eligible for an FHA loan. There are both financial and structural requirements for a condo project to be approved. First, the loan can only be used to finance an owner occupied property. Next there can be no more than 49% of the livable square footage dedicated to commercial space and there are other requirements as well. Developers who plan on building condos with FHA loans in mind, adhere to these requirements as part of their plans and specs.

The FHA sponsors a database of previously approved projects. If a project already has FHA approval, there is no need for an additional approval. All you need to do is type in the property address and name of the condominium project to see if it’s on the approved list. If it is, and your buyers are using an FHA loan, it’s easy sailing from there.

If you want to purchase a condo, please call me and I'll check and see if it's FHA or Fannie Mae approved!

Best Regards,

Danny Nassar
Residential Mortgage Loan Originator
NMLS 220172
Mid America Mortgage, Inc. NMLS 150009
301 Denali Pass Dr Suite 3
Cedar Park, TX 78613
· cell 512-743-5512 · office 512-342-1038 · fax 512-287-4373

06/14/2019

Appraisals vs. Inspections-

Both are extremely important, but to different people. If one of them doesn’t work out, the whole deal can fall through. At the same time, you need to know what each is and what’s important and what can be managed. Otherwise, something that looks like a sure closing can turn out to be otherwise.

An inspection is a physical review of the property from the ground up. The licensed property inspector will go through an extremely thorough list of things to check ranging from a light switch that does or doesn’t work to an air conditioning system that doesn’t quite “condition” in our hot summers. The inspector will note that the item reviewed works good, needs some attention or doesn’t work at all.

A light switch won’t be any big deal but an HVAC system will. Does the kitchen sink continuously drip? That’s an easy fix. Cheap, too. But if a potential buyer balks at a leaky faucet after making an offer on a home and placing an earnest money deposit with the escrow company probably won’t get that money back. An inspection is better used to help buyers and sellers have an independent third party make a determination f the physical condition of the property which could ultimately lead to a negotiation of price.

The appraisal on the other hand is the only report the lender uses to determine value. The sales contract will have a price listed and the buyers and sellers can agree to it but the appraiser will have its own say. The appraiser uses the sales contract as a starting point but also does extensive research on recent sales of similar properties in the area. The appraiser makes value adjustments based upon variances between the homes uses for comparison and then comes to the final value.

The lender will then use the lower of the sales price or appraised value as the final value. If the value comes higher, then great you know you have equity going in to closing! If it comes lower, it’s time to start renegotiating with the sellers.

Both reports are important but they’re designed to accomplish two different goals. The inspection is optional…the appraisal is not.

Have a great weekend, and let me know if you have any questions about appraisals, required repairs by the appraiser, or an inspection report!

04/13/2019

Much advice is given to home buyers about how to qualify for a home loan. And that’s fair. Because it is important. But the funny thing is, home sellers are also home buyers. Otherwise, where else are they going to live? Yes, some will sell and soon rent but most will take the equity in the home and buy the next one. But what should home sellers be aware of when starting to list their home with an eye to financing the next? Here are five.

Spin Just Two Plates Okay, selling a home also means you’re probably buying another but it also means you should pay attention to your preapproval for your next home. It also means paying big attention to your buyer’s preapproval. Your buyer’s preapproval letter should clearly spell out what their lender has reviewed and approve and it’s also more than okay to check with your buyer’s mortgage company for a progress report.

Two Ducks in a Row We all know how important it is when buying a home to get your “ducks in a row” but when buying and selling there’s more than just one duck. There’s a lot going on when listing your home, showing it while at the same time shopping for the new property. It’s critical to keep in constant contact with your new lender and follow your real estate agent’s promptly. Your agent is managing several players at the very same time, and especially so if (preferred, btw) your agent is also your listing and buying agent.

Be Prepared Buying and financing real estate means lots of personal and financial validation is involved. Before you get too much farther into the process, remember what you had to provide when you first bought your home. Bank statements, tax returns, pay check stubs and more. Check with your loan officer to get a complete list and start documenting early. You don’t want your escrow to be held up because your lender asked for something that you’ve yet to provide. If your loan officer asked for it, it’s needed and can’t be ignored.

Keep Clean Finally, keep your property clean and ready. That means an appealing curb appeal. Keep the lawn trimmed and free of debris. Power wash your sidewalks and driveway. Pay attention to your shrubbery and overall landscaping. On the interior, clear out the living areas by moving furniture and “clutter” into a storage unit. A thoroughly cleaned interior and exterior will tell potential home buyers you’ve taken good care of the property as well as inviting potential buyers who drive by your home to take the next step.

I hope this helps! Please send any comments or questions, and have a great weekend!

03/02/2019

USDA loans are the only loans that do not require a down payment other than the VA mortgage. There is no down payment and interest rates are extremely competitive. The loan also carries a guarantee to the mortgage company should the loan ever go into default, which is rare.

But many ignore the USDA loan because they don’t want to buy and live in a rural area. USDA guidelines require the property being financed be located in an area previously approved by the USDA and designated as a rural area by the United States Census Bureau. But it’s for that very reason you might want to rethink this program for your clients who want or need a mortgage with no down payment but aren’t eligible for a VA loan.

These areas that are approved for the USDA loan are reviewed once every 10 years. Remember those census forms you filled out back in 2000? Well, that data is coming up on eight years old. Now think about this- have you noticed how fast suburban areas grow in what was once considered “rural?” As major cities in Texas continue to expand in all directions, eligible areas are starting to shrink.

Just take a look around and then call and give me the address of one of the homes and I’ll tell you if it’s in an approved zone. But hurry, the next census is just around the corner.

Best Regards,

Danny Nassar
Residential Mortgage Loan Originator
NMLS 220172
Mid America Mortgage, Inc. NMLS 150009
301 Denali Pass Dr Suite 3
Cedar Park, TX 78613
· cell 512-743-5512 · office 512-342-1038 · fax 512-287-4373

01/08/2019

There are three primary government-backed mortgage loans and all three carry some degree of a guarantee to the lender. The VA loan is a zero down program but unless you’re a veteran, active duty or other qualified status, your government-backed options include the FHA and USDA loan programs. So, if you’re looking for a loan that requires very little cash to close, both of these options should be in your portfolio. But which should you choose?

The USDA loan is reserved for those wanting to finance a property in a rural or semi-rural area. The USDA keeps a list of approved areas where the USDA loan can be used. All it takes is a quick phone call to your loan officer and by providing the property address of a home you’re considering, you’ll be told whether or not the USDA loan can be used based upon the location of the property. If it is, then you’ll also need to verify your income is at approximately 115% of the median income for the area. If both criteria are met, this is a solid choice. The USDA loan requires no money down and with very competitive 30 year fixed rates. The loan guarantee is financed with a one-time guarantee fee rolled into the loan amount and an annual fee paid in monthly installments along with the mortgage payment.

The FHA loan isn’t restricted by geography nor by income and is the third of the three guaranteed programs. There are loan limits set on a county-by-county basis and you can get these limits from your loan officer. The FHA loan also comes with two separate guarantee fees, the upfront mortgage insurance premium that is rolled into the loan amount and a annual premium paid in monthly installments, just like the USDA loan. You’ll also need a down payment of at least 3.5% of the sales price of the home. There are more loan choices with the FHA program than there are with the USDA loan. That said, how do you know which to choose?

If you meet the USDA requirements, you really can’t beat the zero down feature this loan has. Your loan will be a 30 year fixed and the rate is competitive with other loan programs. But again, it has to be in an approved area and your income must meet certain limits. If either of these guidelines can’t be met, your next best choice is the FHA mortgage.

Please call or email me if you have any questions regarding these awesome programs.

Best Regards,

Danny Nassar
Residential Mortgage Loan Originator
NMLS 220172
Mid America Mortgage, Inc. NMLS 150009
301 Denali Pass Dr Suite 3
Cedar Park, TX 78613
· cell 512-743-5512 · office 512-342-1038 · fax 512-287-4373

11/05/2018

We have some incredible new products that you must know about. If you, or anyone you know needs something like this please let them know. It could make them a home owner!

1. We no longer require tax returns! If you are W2 we don't require them. If you are self employed and write off a lot of your income, we only need bank statements. This is for investment homes as well!

2. If you are a foreign natiional, with no green card or Visa, we may have a program for you. Just give us some bank statements, no tax returns!

3. If you want to build a home outside city limits, we can provide a construction loan with no down payment!

4. Can find a single family home in your budget? We finance double wide manufactured homes.

Please let me know if this fits a scenario you or anyone you know may need!

Danny Nassar
Residential Mortgage Loan Originator
NMLS 220172
Mid America Mortgage, Inc.
A trusted lender since 1940 NMLS - 150009
301 Denali Pass Dr Suite 3
Cedar Park, TX 78613
cell 512-743-5512
office 512-342-1038
fax 512-287-4373

08/14/2018

There are five categories that make up a person’s credit score. They are, the Payment History, Account Balances, Length of Credit History, Types of Credit Used and Credit Inquiries. All contribute a certain percentage to someone’s final three-digit credit score with the two most important being Payment History and Account Balances. These two along account for around two-thirds of the final score. How long someone has used credit is the next most important with Types of Credit and Inquiries following suit, each contributing 10 percent of the final score. But even though Inquiries only contributes 10 percent, if not careful it can stop a loan application in its tracks.

What is a credit inquiry? A credit inquiry is when a consumer applies for credit. It does not include when a potential creditor researches someone’s recent credit past to decide whether or not to send an application for a credit card. A credit inquiry is relatively harmless but when there are multiple, recent requests for new credit, it can indicate the individual may be experiencing some financial issues and new credit might be the only way to pay bills in the near future. And while that’s true, there’s another, more important reason. A lender won’t know about any future monthly payments until the first bill arrives.

Businesses report when someone applies for credit but then later reports the monthly payments. The credit inquiry will be reported first but credit lines and monthly payments won’t. When a lender sees a new credit inquiry on a credit report with no data other than the request, the lender can’t calculate monthly payments to determine affordability. This is the reason why it’s best not to apply for any new credit.

Please let me know your thoughts!

08/14/2018

It’s no secret that home values are continuing to climb, which directly impacts how much someone can not only buy but borrow. And while interest rates have mostly been kept in check over the past couple of years they have gone up nonetheless. Not a lot, but higher still. If recent Federal Reserve comments stay true, there could be two more rate increases before the end of the year. It’s certainly not a given but all indications are the Fed will in fact make a move or two. Higher home values and rising rates hurt buying power. But what we can look forward to in the coming months is the announcement regarding conforming loan limit changes we might see, if any, next year.

These limits are important because conforming loans generally carry slightly higher rates compared to high balance conforming and jumbo loans. Lower rates help buyers.
Conforming loan limits are set by the Federal Housing Finance Agency, or FHFA each year. This agency reviews the national median home value in October and compares it to the median home value from one year ago. Then, the new limits are announced in November. If there is a year-over-year increase, the conforming limit for the following year will be adjusted accordingly. For instance, the conforming loan limit for 2018 is $453,100 and the limit for 2017 was $424,100. This increase was due to the national values increasing by 6.6%.

If we look into our crystal ball and try and guess what the median home value for 2019, we could estimate the national median values increasing by 5.0%. That’s a guess, but it’s a good one. If we increase the current limit of $453,100 by 5.0% that gives us a new limit of $475,755. Again, that’s the crystal ball talking but in most every corner of the country, home values have been on a gradual rise and there’s no reason to think they’ll turn and reverse course.

07/27/2018

You already know you can check your own credit report without having to have a mortgage company pull one for you, right? The three main credit repositories of Experian, Equifax and TransUnion put together and sponsor the website consumers can use to get a free report once per year at www.annualcreditreport.com. When you first get contacted by a new buyer your conversation soon leads to how far along they are in the process. Have they spoken with a mortgage company? Did you get your preapproval letter? These questions and more are asked to get a sense of the commitment to home buying or are they just simply the casual type and just curious about buying in general.

Many times when asked about credit, they can respond that they’ve already checked in on their own and they’re just fine. But it’s important to know the scores consumers can get on their own are a bit different than what lenders use. Consumers get Vantage scores while mortgage companies use FICO scores.

Both have ranges from 300 to 850 and they both take a look at the same basic characteristics such as payment history, account balances, how long someone has used credit, the types of credit used and any new requests for credit. There are some minor differences between the two so someone can have a 600 Vantage score and a 620 FICO using the very same data. For instance, while both penalize late payments, Vantage penalizes late mortgage payments more than FICO does. FICO looks at credit inquiries and scrutinizes inquiries over the past 45 days while Vantage only requires a 14 day window.

When you pull your own credit, understand the FICO might be a little different with a lender. We may pull a higher score, or a lower score. So please, don't think you don't qualify just because of what you pull online! Use the online tool strictly to know what's on your report, and what can be done to get your scores up. Please call or email me if you have any questions on how we can increase your FICO score.

Have a great weekend!

Best Regards,

Danny Nassar
Residential Mortgage Loan Originator
NMLS 220172
Mid America Mortgage, Inc. NMLS 150009
301 Denali Pass Dr Suite 3
Cedar Park, TX 78613
· cell 512-743-5512 · office 512-342-1038 · fax 512-287-4373

Suspicious activity or accounts you don't recognize can be signs of identity theft. Review your credit reports to catch problems early.

10/21/2017

The news lately has been extremely heart breaking. Hurricane Harvey has devastated so many parts of Texas, and we are here to help.

-If you lived in a home that you either owned or rented that has been impacted, you can now purchase another home with no down payment. Anywhere!

-We can go down to a 500 credit score

-Damaged home must be in a designated disaster area

-We may not count the current payment with the home that was impacted to help you qualify

Please take advantage of this program if you or someone you know has been struggling to get back on their feet.

Please call me with any quesitons or concerns!

Best Regards,

Danny Nassar
Residential Mortgage Loan Originator
NMLS 220172
Mid America Mortgage, Inc.
A trusted lender since 1940 NMLS - 150009
12001 W. Parmer Ln. Suite 250
Cedar Park, TX 78613
cell 512-743-5512
office 512-342-1038
fax 512-287-4373

09/15/2017

Equifax announced a cybersecurity breach that compromised the personal information of many consumers. You can use the link below to see if your personal information was impacted.

www.equifaxsecurity2017.com/potential-impact/

You can also look to freeze your credit with each credit bureau. See below. The charge is $10 per bureau and you can easily unfreeze it. I suggest picking at least one if not two bureaus.

Equifax - www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp
Experian - www.experian.com/ncaconline/freeze
Transunion - https://freeze.transunion.com/sf/securityFreeze/landingPage.jsp


Equifax has stated the following:

Unauthorized access occurred from mid-May through July 2017
No evidence of any unauthorized activity on Equifax’s core consumer or commercial credit reporting databases
Information accessed includes:
Names
Social Security numbers
Birthdates
Addresses
In some instances driver licenses numbers
Credit card numbers were accessed for 209,000 U.S. consumers
Dispute documents with personal identifying information for approximately 182,000 U.S. consumers were also accessed
Equifax has established a dedicated call center. The call center is available at 866-447-7559, every day (including weekends) from 7:00 a.m. – 1:00 a.m. Eastern time.

If you have any other questions or concerns, please call me at 512-743-5512.

Best Regards,

Danny Nassar
Residential Mortgage Loan Originator
NMLS 220172
Mid America Mortgage, Inc.
A trusted lender since 1940 NMLS - 150009
12001 W. Parmer Ln. Suite 250
Cedar Park, TX 78613
cell 512-743-5512
office 512-342-1038
fax 512-287-4373
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