About Us

We are dedicated to making the loan process a satisfying experience. We use up-to-date technology to provide you with the tools necessary to research the loan right for you, find answers to mortgage questions, and complete the mortgage application process. Our goal is to help the you find a loan that fits your unique needs while also easing "loan-process anxiety" as much as possible.

Our goal is to use our expertise in the mortgage industry, along with our commitment to you, to produce a positive loan experience. We work hard so that your work is easy.

Reverse Mortgage Loans

A reverse mortgage is a loan taken by senior citizens on the equity of their home—a loan that they will not pay back as long as the home is their principal residence. Although there are no monthly payments, the interest does build up. However, the lender will not loan all the equity; only a portion of the value of the house will be used to calculate the amount available. Usually the first mortgage is paid off, or only a very small balance remains. Sometimes any remaining balance on the first mortgage is paid off from the proceeds of the reverse mortgage. The reverse mortgage money can be taken in several ways:

• Equal monthly payments
• A line of credit,
• A combination of the two.

While a reverse mortgage and a home equity loan both rely on the borrower having equity in the home, a reverse mortgage is different from a home equity loan in many ways. The major difference is that a reverse mortgage does not have payments as long as the home is the borrower's principal residence. However, there are other differences as well. The reverse mortgage is based on age, current interest rate, equity, and the value of the home, but is not based on income; whereas, a home equity loan is based on the borrower's qualifications for a loan, such as a high enough debt-to-income ratio.

The most popular reverse mortgages are the HUD federally-insured private loans. HUD reverse mortgages, offered through the Federal Housing Administration (FHA), require that the borrower:

• Be a homeowner
• Be 62 years or older
• Own the home, or have a low mortgage that is paid off with proceeds from the reverse mortgage at closing
• Must live in the home as a principle residence

Along with no payments, another advantage of a reverse mortgage is that there are no restrictions on how the loan proceeds must be spent. The terms of the loan specify the length of the loan.  For instance, as the homeowner, you may take out a 20-year reverse mortgage loan.  Even if you outlive the loan, you still don't have to pay it back as long as it is still your principal residence.  And even better, the money is tax free.

So does this all sound too good to be true?

There are some disadvantages. For instance, reverse mortgages are extremely expensive. Also, they are not really free. The equity in your home is disappearing. Not only is the loan going against your equity, so is the interest on the loan and the interest on the interest. So why is that a problem? The very real worry is that the money will run out before all the many future expenses that may come your way. So before taking out a reverse mortgage, you should weigh all the possible risks, determine a financial plan for the future years, and look at other options first.  An educated decision is always best.

Zero Down Financing

Zero down financing can now be obtained by conventional loan borrowers. In other words, even Fannie Mae and Freddie Mac will more commonly offer zero (or very low down-3%) financing. This is a huge advantage when a home buyer has no money to put down but wants to purchase rather than rent. However, these loans require very good credit (a score of at least 700), low debt ratios, and private mortgage insurance since they require no cash down. Sometimes a lender will require proof of 6 months worth of PITI (principal, interest, taxes, and insurance).

While an advantage to home buyers with no money to put down, zero down financing costs more: the interest is higher by as much as ½ percentage point and the insurance is much higher, also. Another concern is the fact that the borrower is in a very precarious position if the economy turns down. With no equity, with no guarantee that interest rates won't jump, and with the possibility that the payment may end up being too high to sustain, the borrower needs to feel comfortable that the loan will meet current and future needs.

Zero down financing has most of the same options as any other loan: variable or fixed interest with a variety of term options. The closing costs are comparable to any other loan.

Sometimes the lender may offer what is known as a piggy-back structure, where the borrower takes out a first and a second mortgage at the same time in order to accomplish zero down financing with the most optimal structure. Also, the Rural Housing Services offers Section 502 loans (to qualified low income families) that require no down payments.

As with all loans, these options should be researched well and discussed with your loan officer. In spite of some of the risks, zero down financing offers the borrower a fast way to get into a purchased home and the possibility of building equity.

RHS Loans

Rural Housing Services (RHS) loans are administered by the USDA's Rural Development staff. The Housing and Community Facilities Programs (HCFP) is part of the USDA's Rural Development. Their mission is to improve the quality of life in rural areas. Part of fulfilling that mission is providing loans and grants for housing and community facilities. Loans can be obtained for building, repairing, renovating, relocating, purchasing, and even preparing sites for construction.

They have a variety of programs. Among these are the Section 502 housing programs which are either guaranteed or direct. The Section 502 loans are designed to help rural residents that are without adequate housing and cannot obtain credit elsewhere. They must have an acceptable credit history and must be able to make the mortgage payment (estimated at 22-26% of income).

The guaranteed loans are made by the private sector but guaranteed by RHS. They help rural residents with low-to-moderate income (up to 115% of Area Median Family Income) obtain housing. Section 502 direct loans are made directly by the government. They target low and very low income families (50-80% AMI and under 50%). The terms of the loans are generally long—30-33 years, sometimes, based on need, stretched up to 38 years.

While the Rural Housing Services are committed to helping rural residents obtain affordable housing, they do have requirements that the homes be modest in size, design and costs. As with any loan, the borrower must determine which loan program will best match their needs. RHS loans are an excellent way to obtain housing that fits within your means when other loans programs will not work.

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