ZMortgageOnline.com

11/28/2023

Home Loans - Z-Mortgage NMLS 2547130
Equal Housing Opportunity

09/23/2022

About Us:

We work with multiple lenders to provide you the best home loan option that fits your needs. Our experienced Loan Processors assure that your loan is processed and closed on time. With us, your Interest is Prime and our top priority. We want to provide you the best experience so you could refer

09/23/2022

Home buyer Grants and Assistance Programs:

A number of programs are available for First time home buyers. If you have not owned a home in the last three years, you are considered a first time home buyer. You may be eligible for a grant, a very low Interest down payment assistance program or an "Interest free down payment assistance

09/23/2022

Reverse Mortgages:

The HECM is a Reverse Mortgage Insured by the Federal Housing Administration (FHA) for borrowers of at least 62 years of age. This government insured loan allows the borrowers to convert their home equity into cash. The acronym HECM stands for Home Equity Conversion Mortgage. There are some

09/23/2022

Mortgage FAQ's:

History of the Mortgage Industry in the United States

07/24/2022

Sections of a Uniform Residential Loan Application

The Uniform Residential Loan Application commonly known as a Fannie Mae form 1003 or Freddie Mac form 65 is a Standard nine page Application with nine sections required for a Home Loan. The Application include sections for personal information of the Borrower, co-borrower, their Income, Assets and liabilities. In addition, it includes sections for the property being purchased and certain disclosures. The Following links can be helpful in completing and understanding each section of the Uniform Residential Loan Application.

Section 1 : Borrower Information Section 2: Financial Information - Assets and Liabilities Section 3: Financial Information - Real Estate Section 4: Loan and Property Information Section 5: Declarations Section 6: Acknowledgements and Agreements Section 7: Military Service Section 8: Demographic Information Section 9: Loan Originator Information

The Uniform Residential Loan Application commonly known as a Fannie Mae form 1003 or Freddie Mac form 65 is a Standard nine page Application with nine sections required for a Home Loan. The Application include sections for personal information of the Borrower, co-borrower, their Income, Assets and

07/12/2022

Home Buyer Grants and Assistance Programs

A number of programs are available for First time home buyers. If you have not owned a home in the last three years, you are considered a first time home buyer. You may be eligible for a grant, a very low Interest down payment assistance program or an "Interest free down payment assistance

07/12/2022

USDA Loans

USDA stands for U.S Department of Agriculture. USDA loan is a type of mortgage that is available in Rural areas and are more favorable towards people with less Income. The program may offers 0% down payment to eligible borrowers with lenient underwriting guidelines. These loans are guaranteed by

07/12/2022

VA Loans

The VA Loan program was designed to help Service members, Veterans, and eligible surviving spouses become homeowners. As part of VA's mission to serve, VA provide a home loan guaranty benefit and other housing-related programs to help buy, build, repair, retain, or adapt a home for your own

07/04/2022

Conventional Loans
Conventional loans are not guaranteed or backed by the Federal government or its agencies. Most conventional loans are conforming loans while some are non-conforming loans.

Therefore, all conforming loans are Conventional Loans, however not all conventional loans are conforming loans. The Conventional Loans are defined by lending Institution such as banks, credit unions, mortgages companies however a Conforming Loan is defined by the Lending criteria, i.e conforming to the criteria of Fannie Mae and Freddie Mac guidelines.

Definition of a Conforming Loan: A Conforming loan or Mortgage conforms with the guidelines of Fannie Mae and Freddie Mac. Any loan not conforming with the guidelines of Freddie Mae and Freddie Mac are Non Conforming Loans.

A Conforming Loan typically has a stringent lending criteria and has a lower Interest rate. They can be sold in the secondary mortgage market such as Fannie Mae and Freddie Mac. A non-conforming loan typically has a higher Interest rate.

For High value homes, homes that exceed the maximum loan limits for Conventional Loans, some of our Lenders offer Jumbo Loans. These loans may or may not have a higher interest rate however typically have a more strict lending criteria such as a high credit score, more down payment and reserves. The criteria for Jumbo loans can vary from Lender to Lender.

Freddie Mac is The Federal Home Loan Mortgage Corporation (FHLMC) that is publicly traded government sponsored enterprise. Freddie Mac was chartered by Congress in 1970 so money could keep flowing to the mortgage lenders and to support home ownership and the Rental market. The statutory mission of Freddie Mac is to provide liquidity, stability and affordability to the US Housing market. Freddie Mac is not a government agency but chartered by the Congress as a private company serving a public purpose.

The Federal National Mortgage Association (FNMA) or Fannie Mae was first chartered by the US government in 1938 to help ensure a reliable and affordable supply of Mortgage funds throughout the country.

Both Fannie Mae and Freddie Mac buy mortgages from lenders. They perform an important role in the nation's housing finance system. They buy mortgages from lenders, either hold them in their portfolios or package the loans into Mortgage Backed Securities (MBS) that may be sold in the Secondary Market. The cash raised by selling these mortgages to the enterprise is used by lenders to further use the funds for additional lending.

A Mortgage Backed Security (MBS) is an asset backed security, secured by a mortgage or a collection of mortgages. Fannie Mae and Freddie Mac buy mortgages, package them and guarantee the timely payment of interest and principal on these mortgages. This makes it an attractive investment in the secondary market. The process helps improve the overall mortgage market liquidity and keeps the interest rates lower for home buyers.

To determine whether a loan is going to conform with Fannie Mae and Freddie Mac guidelines, an underwriter will submit the loan file through an automated underwriting system (AUS). Fannie Mae's AUS is called the Desktop Underwriter (DU). Freddie MAC's AUS is called Loan Prospector or LP. Common loan types used in conforming lending are 30 year and 15 year fixed rate mortgages and Adjustable Rate Mortgages.

General Requirements for Conventional Loans:

The Maximum Loan limit for a Conventional Loan is $647,200 conforming loans, Over 647,200 non-conforming Conventional loan. It changes every year and is available at the website of Federal Housing Finance Agency

The Minimum Down Payment required for a Conventional Loan 3%, up to 97% Loan to value (LTV).

As a General Rule of Thumb, The Minimum Credit Score Required for a Conventional Loan is 640 FICO, however it can vary and could go lower.

Usually, 2-4 moths Reserves are required for a Conventional Loan

Up to 3% Seller Concessions allowed on Conventional Loans

Non-Occupying Co-Borrower are not allowed on Conventional Loans

Conventional Loans are not Assumable

2 years of Employment History needs to be verified for Conventional Loans

Borrowers with Bankruptcy are Qualified for a Conventional Mortgage after One Year from Chapter 13 discharge, four years for Chapter 7 filing, or after two years with extenuating circumstances.

Borrowers with Prior Foreclosures a Qualified for Conventional Loans after two years of Foreclosure.

An Appraisal is always Required for a Conventional Loan

Gift Funds are Allowed for Down Payment on a Conventional Mortgage

The Maximum Debt to Income Ratio for a Conventional Loan is 28% / 36%.

Private Mortgage Insurance is Required for a Conventional Loan if down payment is less than 20%, or if a Loan to Value (LTV) is over 80%.

85% maximum Loan to Value (LTV) is Required on Cash-Out Refinances for Conventional Loans.

https://www.zmortgageonline.com/conventional-loans

06/28/2022

FHA stands for Federal Housing Administration. FHA loans are insured by the Department of Housing and Urban Development (HUD). When a loan is insured by HUD, it protects the lender from incurring damages due to an FHA loan defaulting.

The National Housing Act was signed by President Franklin D Roosevelt on June 27th, 1934. The Federal Housing Administration (FHA) was created by the Act. The (FHA) was created to help the housing Industry recover from the Great Depression. Originally, FHA was not intended to fund loans but to provide mortgage insurance to banks to protect banks against losses incurred by home loans. As a result, FHA allowed lenders to commit more funds to home mortgage loans. Today, FHA is the largest insurer of mortgages in the world.

FHA home loans are generally easier to obtain as their underwriting guidelines are more lenient than Conventional guidelines. To originate FHA loans, a lender must be approved through FHA.

Underwriters or Lenders use FHA's "four C's of underwriting" when evaluating FHA applications:

Credit History of the borrower

Capacity to repay the loan

Cash assets available to close the mortgage

Collateral, which evaluates the value of the home

Some General information about FHA Loans:

The Maximum Loan limit for FHA Loan change every year and are available at The US Housing and Urban Development webpage.

The Minimum Down Payment required for an FHA Loan is 3.5%. The Loan to Value (LTV) amount is 97.5%.

The Minimum Credit Score Required for FHA Loan is 580 FICO score that would allow a borrower to obtain loan with 3.5% Down Payment. A borrower must make a down payment of 10% if FICO Score is between 500-579.

There is no Reserve Requirement for FHA loan.

Up to 6% Seller Concessions are allowed on FHA Loans

A Non-Occupying Co-Borrower is allowed on FHA Loans

FHA Loans are Assumable with an FHA creditworthiness check.

Generally two years employment history needs to be verified, however FHA loans are less strict on employment. FHA loans are meant for people who have less than perfect credit and Income Qualifications.

Borrowers for FHA loans are Qualified two years after Chapter 7 Bankruptcy discharge and one year after Chapter 13 filing.

Borrowers with Prior Foreclosures are Qualified for FHA Loans three years after foreclosure.

An Appraisal always Required for a FHA Loan

Gift Funds are Allowed for Down Payment on FHA Mortgages.

The Maximum Debt to Income Ratio for FHA Loan is 31% / 43%

Unlike Conventional Loans that require a PMI, FHA mortgage requires an Upfront Monthly Mortgage Insurance (MMI). UFMIP is currently at 1.75% of the base loan amount.

85% maximum Loan to Value (LTV) is allowed on Cash-Out Refinances for FHA Loans

Owner Occupancy is required on FHA Loans and the owner must move in within 60 days of closing.

https://www.zmortgageonline.com/fha-loans

06/24/2022

Conventional loans are not guaranteed or backed by the Federal government or its agencies. Most conventional loans are conforming loans while some are non-conforming loans.

Therefore, all conforming loans are Conventional Loans, however not all conventional loans are conforming loans. The Conventional Loans are defined by lending Institution such as banks, credit unions, mortgages companies however a Conforming Loan is defined by the Lending criteria, i.e conforming to the criteria of Fannie Mae and Freddie Mac guidelines.

Definition of a Conforming Loan: A Conforming loan or Mortgage conforms with the guidelines of Fannie Mae and Freddie Mac. Any loan not conforming with the guidelines of Freddie Mae and Freddie Mac are Non Conforming Loans.

A Conforming Loan typically has a stringent lending criteria and has a lower Interest rate. They can be sold in the secondary mortgage market such as Fannie Mae and Freddie Mac. A non-conforming loan typically has a higher Interest rate.

For High value homes, homes that exceed the maximum loan limits for Conventional Loans, some of our Lenders offer Jumbo Loans. These loans may or may not have a higher interest rate however typically have a more strict lending criteria such as a high credit score, more down payment and reserves. The criteria for Jumbo loans can vary from Lender to Lender.

Freddie Mac is The Federal Home Loan Mortgage Corporation (FHLMC) that is publicly traded government sponsored enterprise. Freddie Mac was chartered by Congress in 1970 so money could keep flowing to the mortgage lenders and to support home ownership and the Rental market. The statutory mission of Freddie Mac is to provide liquidity, stability and affordability to the US Housing market. Freddie Mac is not a government agency but chartered by the Congress as a private company serving a public purpose.

The Federal National Mortgage Association (FNMA) or Fannie Mae was first chartered by the US government in 1938 to help ensure a reliable and affordable supply of Mortgage funds throughout the country.

Both Fannie Mae and Freddie Mac buy mortgages from lenders. They perform an important role in the nation's housing finance system. They buy mortgages from lenders, either hold them in their portfolios or package the loans into Mortgage Backed Securities (MBS) that may be sold in the Secondary Market. The cash raised by selling these mortgages to the enterprise is used by lenders to further use the funds for additional lending.

A Mortgage Backed Security (MBS) is an asset backed security, secured by a mortgage or a collection of mortgages. Fannie Mae and Freddie Mac buy mortgages, package them and guarantee the timely payment of interest and principal on these mortgages. This makes it an attractive investment in the secondary market. The process helps improve the overall mortgage market liquidity and keeps the interest rates lower for home buyers.

To determine whether a loan is going to conform with Fannie Mae and Freddie Mac guidelines, an underwriter will submit the loan file through an automated underwriting system (AUS). Fannie Mae's AUS is called the Desktop Underwriter (DU). Freddie MAC's AUS is called Loan Prospector or LP. Common loan types used in conforming lending are 30 year and 15 year fixed rate mortgages and Adjustable Rate Mortgages.

General Requirements for Conventional Loans:

The Maximum Loan limit for a Conventional Loan is $647,200 conforming loans, Over 647,200 non-conforming Conventional loan. It changes every year and is available at the website of Federal Housing Finance Agency

The Minimum Down Payment required for a Conventional Loan 3%, up to 97% Loan to value (LTV).

As a General Rule of Thumb, The Minimum Credit Score Required for a Conventional Loan is 640 FICO, however it can vary and could go lower.

Usually, 2-4 moths Reserves are required for a Conventional Loan

Up to 3% Seller Concessions allowed on Conventional Loans

Non-Occupying Co-Borrower are not allowed on Conventional Loans

Conventional Loans are not Assumable

2 years of Employment History needs to be verified for Conventional Loans

Borrowers with Bankruptcy are Qualified for a Conventional Mortgage after One Year from Chapter 13 discharge, four years for Chapter 7 filing, or after two years with extenuating circumstances.

Borrowers with Prior Foreclosures a Qualified for Conventional Loans after two years of Foreclosure.

An Appraisal is always Required for a Conventional Loan

Gift Funds are Allowed for Down Payment on a Conventional Mortgage

The Maximum Debt to Income Ratio for a Conventional Loan is 28% / 36%.

Private Mortgage Insurance is Required for a Conventional Loan if down payment is less than 20%, or if a Loan to Value (LTV) is over 80%.

85% maximum Loan to Value (LTV) is Required on Cash-Out Refinances for Conventional Loans.

https://www.zmortgageonline.com/conventional-loans