In which states can USALLIANCE Financial lend?
Answer:
For Purchase Transactions - ONLY in the following States: AZ, CA, CT, FL, GA, IL, IN, KY, ME, MA, MI, NH, NJ, NY, OH, PA, RI, SC, VT, VA, WV.
For Refinance Transactions - all States EXCEPT: AK, HI, TX.
For Home Equity Transactions - all States EXCEPT: AK, HI, SC, TX.
For Construction to Permanent Transactions ��� ONLY in the following States: CT, MA, NH, NJ, NY, RI. ME and PA are considered on a case-by-case basis.
Do you have a First Time Home Buyer (FTHB) program?
Answer:
Yes, we have a First Time Home Buyer mortgage program. This is a special program where you���d only have to put 5% and there is no private mortgage insurance. The credit union would give you a 80% first mortgage and a 15% second
mortgage. Jumbo loan amounts are included in this program. It is available to US Citizens and Permanent Resident Aliens (no H1-B visas) with 680 FICO scores or better who have not owned a home in the last three years and who
have had continued employment for the last two years. The property must be either a single family home or a condominium. You must complete a home ownership counselors course (Now available online and in Spanish) and provide us
with the certificate of completion. You must have two months reserves in a deposit account in addition to the down payment and closing costs. At least 3% of the down payment must come from your own funds.
Do you offer Home Affordable Refinance Program (HARP) mortgages?
Answer:
Yes, but only to mortgages sold to Fannie Mae prior to June 2009. The program with Fannie Mae will accept the last application on September 30, 2017.
What is the difference between PreQualification and a PreApproval?
Answer:
Prequalification means that we have reviewed your application and pulled your credit report and you have met preliminary guidelines for mortgage lending. Preapproval means that we���ve reviewed and approved your application,
credit report, income and assets, the only thing missing is the property. The credit union only offers prequalification letters at this time.
Can I get a PreQualification if I don���t have any funds saved yet?
Answer:
We don���t issue Prequalification without funds to close available. Please reapply when you have the down payment.
What is the minimum down payment I need to purchase a property?
Answer:
We have first time home-buyer programs loan programs that only require a 3% down payment with PMI or 5% down payment with or without PMI. A bigger down payment will be required for 2-4 unit homes.
How do I apply for a prequalification?
Answer:
By completing the online
pre-qualification application. When you are asked ���Do you have a property address?��� Select No. Please complete to the best of your ability and we will contact you in 1-3 days to review your application.
How do I calculate the property taxes for my prequalification application?
Answer:
Please check MLS listing online or consult a local real estate broker.
Why should I refinance my mortgage?
Answer:
There can be several reasons to refinance. The 3 most common reasons to refinance are to lower your monthly mortgage payments, to reduce the term of your loan, or to obtain cash back at the time of closing.
What is the best way to apply for a mortgage refinance?
Answer:
The fastest, most efficient way to apply for a mortgage is thru our online
mortgage application. We do not charge an application fee and there is no obligation on your part. If you wish to change any information after you submit the loan, we can easily do so.
What is a home equity line of credit?
Answer:
A home equity line of credit or HELOC is typically a second mortgage loan that gives homeowners access to an open line of credit where only the outstanding balance accrues interest. HELOCs provide flexibility by allowing borrowers
access to money on an as needed basis. Learn more about it
here.
What���s the difference between a jumbo and conventional loan?
Answer:
The terms Jumbo and Conventional refer to the size of the mortgage. Effective January 1, 2017: Conventional mortgages are capped at $424,100 for single family homes. Anything over that loan amount is considered
a Jumbo mortgage. There are stricter guidelines for Jumbo mortgages. If you have a two family home conventional mortgages are capped at $543,000, three family homes are capped at $656,350 and four family homes at $815,650.
What are included in the closing costs?
Answer:
Closing costs can be divided into 3 main categories:
Lender fees: Fees paid to the lender for the processing of your loan. These fees include points, investor fees, and origination fees.
Third-party fees: Fees paid for services rendered by parties other than the lender. These fees include the appraisal fee, the credit report fee, the attorney fee, the title insurance
fee, the flood certification fee, state mortgage taxes and the recording fee.
Prepaid costs: Costs that are collected at the time of closing for items such as prepaid or per diem interest, property taxes and hazard insurance.
These closing costs depend on your loan amount, the loan-to-value, your credit score, and the type of loan you are requesting.
I don���t have enough liquid assets to pay for my closing costs, do I have any other options?
Answer:
If you are refinancing your mortgage, you may be able to include closing costs in your mortgage loan amount if your loan to value (LTV) allows for such. Please contact the Mortgage Lending Department for additional information
at
(800) 431-2754, extension 2320.
What is the APR?
Answer:
APR stands for annual percentage rate and its purpose is to give borrowers a truer representation of the effective interest rate on their loan. APR factors in certain closing costs and fees and spreads these costs over the life
of the loan to arrive at a more accurate annualized percentage rate than the note rate alone represents.
What are points?
Answer:
A ���point��� is a one-time closing fee. One point is equal to 1% of the loan amount. Two points are equal to 2% of the loan amount. For example, 1 point on a $100,000 loan would equal $1,000 ($100,000 x 1% = $1,000).
What is private mortgage insurance (PMI)?
Answer:
Private mortgage insurance (PMI) is paid by the borrower to protect the lender against payment default on the mortgage and is required when the loan amount is in excess of 80% of the value or purchase price of a property.
What are reserves?
Answer:
Reserves are funds above and beyond the money saved for a down payment and/or closing costs. It would equal monthly payment of the principal, interest, taxes and insurance (HOA dues) on the subject property. Depending on the
loan scenario, we could ask for no reserves up to 12 months, generally we ask for two months. Acceptable reserves would be funds in a liquid account such as savings, checking, money market accounts, 401K, mutual funds or stocks.
What is the purpose of escrow?
Answer:
An escrow account is established with a first mortgage lender to ensure that your real estate and/or school taxes are paid on time and a lien is not put in front of the mortgage they gave you. Mortgage lenders have a database
of all taxing authorities and know when each bill is due in any given city or town. Each month, the escrow portion of the mortgage payment is put in separate interest bearing account. When the tax bill is due, your lender will
take the funds saved in that escrow account and pay the tax collector. If you want to waive your escrow requirement, an exception request must be made by the borrower and approved by senior management of the credit union. Currently,
the credit union does not escrow for homeowners insurance.
What documentation will we typically require to process the mortgage loan?
Answer:
On a typical fully documented loan application (where an applicant is seeking to qualify based on an employee's salary), we will require: one month's current paystub's, W-2's for the prior two years, and bank and investment account
statements for the prior 2-3 months. If an applicant is self employed (has a 25% or greater ownership in a business) then additional documentation will be required (i.e. 1040's, 1165's, 1120's, P & L statement).
How do you calculate the loan-to-value (LTV) ratio?
Answer:
The loan-to-value (LTV) ratio of your home is calculated by dividing the loan amount by the purchase price (if a purchase) or the appraised value, whichever is less.
What does DTI stand for?
Answer:
DTI stands for Debt-to-income ratio. We rarely exceed 45%, however with First Time Home Buyer programs we do not exceed 42%.
What formula do we use to calculate how much house I can afford?
Answer:
We add up all the monthly payments from your credit report (auto loans, credit cards, student loans- we must calculate 1% of balance on deferred student loans, personal loans, etc.) plus your housing expenses (principal and interest
on the mortgage, homeowners insurance, property/school taxes, homeowners association dues, payment on a second mortgage on ALL real estate owned) plus any other recurring monthly debt obligations (union dues, child support or
alimony). Then we divide that sum by your gross monthly income (if you���re self-employed we use net income on you tax returns) and will equal the DTI ratio.
What is the minimum credit score?
Answer:
620
Are there any types of mortgages USALLIANCE Financial does not approve at this time?
Answer:
We do not offer mortgages on land, mobile homes, cooperatives, investment properties, properties held in a revocable trust, held in a realty trust or held in a life estate, properties that are in a leasehold (not fee simple),
reverse mortgages, FHA, VA and applications with a non-occupant co-borrower.
Was your question not listed here? Our Mortgage Loan Representatives will offer professional expertise and guidance to help you explore alternatives, evaluate choices and select the right home financing to suit your needs. Please Contact Us by email or call (800) 431-2754, option 1, extension 2320. Get to know the lingo by heading over to our Glossary.