A different way to exercise inclusivity: in practice.
As part of our dedication to this mission, we bring to the table not just a passion for real estate but also the financial lending expertise that empowers us to guide you through the intricate process of securing your dream home. We believe in creating inclusive communities, and we are committed to ensuring that everyone has access to real estate knowledge.
Types of loans we offer
Qualified mortgages
Conventional
VA
USDA
HELOC
FHA
Construction
Reverse
Non-qualified mortgages
Bank Statement loans
Modular Homes
Mobile Home Loans
FHA Mobile Home Loans
Debt Service Loans
Hard money loans
P and L/ bank statements
Are You Getting the Right Financing for Your Property?
Understanding Your Loan Options
When exploring financing for a property, it’s crucial to ask the right questions—many of which often go unasked. Here’s what you need to consider to make informed decisions.
There are two methods to buy down your rate: a permanent buy-down and a temporary buy-down. Understanding the differences can significantly impact your financial strategy and flexibility.
Key Considerations Before Signing a Loan
1. Rate Flexibility
- More Fees vs. Less Fees: What is the rate if I choose to pay more fees? What if I pay less?
- Fee Recoupment: How long will it take to recoup any fees I pay upfront?
2. Cost Over Time
- Short-Term Costs: How much will this loan cost me over the time I plan to stay in the house?
- Long-Term Costs: What are the total costs over a 30-year period?
3. Rate Buy-Down Options
- Should I Buy Down My Rate? Is it financially beneficial to lower my interest rate by paying upfront?
- Savings from Buying Down: How much could I potentially save by buying down my rate?
- Methods of Buying Down
- Permanent Buy-Down: Opt for a 30-year fixed rate. Once bought down, the rate is locked in for the entire loan term. However, if rates decrease later, you cannot recoup the initial investment.
- Temporary Buy-Down: If the rates decrease, you can recoup your investment through principal adjustments.
Qualified Mortgage (QM)
A Qualified Mortgage is a category of loans that have certain, more stable features that help make it more likely that you’ll be able to afford your loan. These loans are defined by the Consumer Financial Protection Bureau (CFPB) and are designed to meet requirements that prevent lenders from offering loans with risky features such as:
- Excessive upfront points and fees (total points and fees cannot exceed 3% of the total loan amount for loans over $100,000).
- Interest-only periods, where payments are not made towards the principal balance.
- Negative amortization, where the loan principal increases over time.
- Balloon payments (lump-sum payments typically due at the end of a loan term), except under certain conditions in rural areas.
Why are they called “Qualified”?:
The term “Qualified” refers to the compliance of these loans with specific guidelines that qualify protections for lenders against borrower lawsuits. Essentially, a QM follows guidelines that are believed to reduce the likelihood of borrower default, making them a safer and more “qualified” investment for lenders.
Non-Qualified Mortgage (Non-QM)
Non-Qualified Mortgages are those that do not conform to the CFPB’s rules. They include loans that are geared towards borrowers with unusual or variable income streams, higher levels of risk, or those who require flexibility in terms that don’t meet QM criteria. These might include:
- Loans with features like interest-only payments, high loan-to-value ratios, or terms that exceed 30 years.
- Loans for borrowers with non-traditional income or those who prefer asset-based lending over income verification.
- Loans that exceed the points and fees thresholds established for Qualified Mortgages.
Why are they called “Non-Qualified”?:
They are called “Non-Qualified” because they do not meet the stringent criteria set forth by the CFPB to qualify for the safe harbor protections offered to lenders and borrowers under the QM rules. These loans typically present a higher risk and are often priced to reflect that risk.
Senior Mortgage Solutions
Certified Expertise: Senior & Probate Real Estate
Navigate probate with ease or learn how to avoid it altogether with our certified senior Real Estate expertise. At Surroundings, we simplify the complexities, ensuring a smooth & sensitive approach to your real estate needs.
Mortgage Solutions: Financing Your Future
Explore tailored mortgage solutions with us, from forward and reverse mortgages to home equity lines of credit (HELOC) and creative financing options. Our team’s expertise ensures you secure financing that perfectly fits your unique needs, providing financial comfort and ease.
Ready to learn more?
We’re here to guide you through the process and answer any questions along the way.