For the vast majority of mortgage and homebuying situations, a home appraisal is an important part of the process. This involves a third party appraiser examining the property inside and out to provide a professional estimate of its market value, helping confirm to both buyers and sellers (and even lenders) that the price being agreed upon is realistic plus multiple other areas.

At Altius Mortgage, we’re happy to assist all our clients with the appraisal process if needed, including first-time homebuyers, for whom we offer great mortgage rates and programs while also providing expertise and guidance through this process. We’re also available to work with borrowers for a more unique pursuit: A no-appraisal loan, which is much rarer than the normal appraisal process but will still be used in some cases. This two-part blog will go over the details of this program and why it’s sometimes used, plus the kinds of borrowers who might be good candidates for it.

No-Appraisal Loan Basics

As the title suggests, a no-appraisal loan is a home loan that requires no professional appraisal. There are a few methods by which this type of loan might be attained, the most common of which is known as an appraisal waiver – this gives the homebuyer the right to decline having a traditional appraisal done on their property.

As we’ll dig into a bit further later on, no-appraisal loans are not common at all for private residential properties, largely because they present a great risk to both the parties involved and the lender. If there is no objective evaluation of the property, it could come in far more or less valuable than the mortgage amount – leaving borrowers at risk of default on one side of the coin, or sellers stuck with far less than their asking price on the other. However, as of 2017, both Fannie Mae and Freddie Mac have begun offering some select appraisal waivers.

Appraisal Alternatives

The most common alternative used during a no-appraisal loan is a computer calculation program that plays something of a similar role, though with less specific involvement. This program will utilize information like previous home value and other properties in the area to place a value on the home – but as you may have guessed, this alternative is less precise than an actual in-person appraisal.

In other cases, no appraisal will be required at all.

Refinances

A no-appraisal refinance loan is also possible using this same method, and this is an area that isn’t quite so restrictive. Especially in cases where you’re using the same lender for both your original loan and your refinanced loan, there are often relaxed standards allowing no-appraisal refinances – programs like the VA loan, the FHA loan and the USDA loan all have systems in place to make refinancing easier from an appraisal standpoint.

For more on no-appraisal home loans, or to learn about any of our mortgage loan services, speak to the staff at Altius Mortgage today.

In part one of this two-part blog, we went over some of the basics on recent changes to the VA loan program that makes it both more accessible and more beneficial for those who qualify. Backed by the US Department of Veteran’s Affairs and bringing benefits like no down payments and fantastic mortgage rates, VA loans are meant for military service members, veterans and their families to repay them for their service to our country.

At Altius Mortgage and our partners at Mortgage Ogden, our wide range of loan programs includes robust VA loans and mortgage rates for any of our clients who qualify here. Based on the 2019 Blue Water Navy Vietnam Veteran’s Act, which went into effect in 2020, many of our military veterans and spouses have seen significant positive changes to their ability to borrow and the amounts they can obtain. Here are some further details on how this has happened.

Changing Eligibility

In addition to eliminating the conforming loan limit in many areas for veterans, as we went over in part one, the act above also increases access to VA loans for two groups of veterans: Those who have been awarded a Purple Heart and any Native American service member. For the former group, funding fees will be waived entirely for those who close on their home while on active duty; for the latter group, the $30,000 cap on loans for building or purchasing a home on federal trust land has been lifted.

This simply makes it easier for those in this position to obtain loan funds easily, which was the primary goal of this section of the act.

Fees for Funding

Speaking of funding fees, there have been some small changes made here as well. Specifically, veterans and active service members will pay a slightly increased funding fee of 0.30 percent, up from 0.15 percent. However, National Guard and Guard Reserve members will now see their fees decreased to match this same 0.30 percent figure that active service members pay. This change is meant to be temporary.

Now, several groups of veterans were already exempt from funding fees, including those with service-related disabilities and surviving spouses. In these cases, this exemption remains.

Application Process Stays Unchanged

One area that saw very little change due to the act we discussed above is the application process for VA loans, which remains identical. Veterans who wish to use their VA benefits to purchase a home must still obtain a Certificate of Eligibility, plus potentially additional documents that your loan officer will be happy to detail for you.

For more on recent changes to the VA loan program and how they might impact you, or to learn about any of our mortgage rates or home loan services, speak to the staff at Altius Mortgage today.

While we’re proud of all of our mortgage loan programs offered at Altius Mortgage and our partners at Mortgage Ogden, perhaps the area that gives us the most pride is our VA loan services for military veterans, service members and select spouses. Backed by the US Department of Veteran’s Affairs, VA loan programs contain several benefits for those who qualify, from no down payment requirements to great mortgage rates.

One of the most common questions we’re asked about this program by those who are looking to apply: If I qualify, what are the limits to what I can borrow under a VA loan? And as it turns out, some major developments here within the last two years have actually made this area less restrictive for those who qualify, allowing them a wider range of loans covered by the VA than previously. This two-part blog will go into all the recent changes you should be aware of, plus the basics to understand on loan limits if you’re a veteran or military member applying for a VA loan.

2019 Blue Water Navy Vietnam Veteran’s Act

A very important event to be aware of down these lines was the passage of what’s known as the Blue Water Navy Vietnam Veteran’s Act in June of 2019. While the primary purposes of this act were to change certain benefits for Vietnam veterans who were exposed to certain herbicides or chemicals, the act also contained vital language covering anyone eligible for the VA loan program.

The changes, which we’ll go over further in our upcoming sections, were in several areas. They touched on everything from loan limits to eligibility changes for veterans, generally expanding the range of individuals who qualify while also expanding the maximum borrowing amounts for many. Let’s dig into how they did this.

Loan Limits Vs. Cost Limits

It’s important as we move forward here to understand that loan limits and cost limits are not the same thing in a mortgage situation. Loan limits only apply to the amount the VA will actually approve for a loan; cost limits do not apply to any loan, including VA loans.

One more important piece here: Any person who is eligible for a VA loan but also has other VA guaranteed loans already active may fall under different restrictions. Our subsequent sections will go into the specific changes the 2019 Blue Water Act helped usher in for VA loans.

Conforming Vs. Jumbo Loans

In previous situations, veterans or military members who lived in higher-value areas faced some challenges due to county-specific conforming loan limits. However, the 2019 act we discussed above – which went into effect in 2020 – provides relief for this restriction. Now, veterans can obtain no-down payment VA-backed loans no matter where the home is and no matter whether the home exceeds conforming loan limits in the area.

For more on the recent changes that improved borrowing power for veterans and military members under the VA loan program, or to learn about any of our mortgage loan services, speak to the staff at Altius Mortgage today.

In part one of this two-part blog series, we went over some of the reasons why some of those who are approaching retirement age often try to increase their mortgage repayment schedule to pay the entire home loan off before retiring. When this is financially possible, it’s a move that can not only reduce stress and make retirement budgeting easier, but also one that can reduce the total amount of interest you pay through the life of the mortgage.

At Altius Mortgage and our partners at Mortgage Ogden, we’re happy to provide a number of mortgage resources for those in this age range, including reverse mortgages for those over age 62. While some who are able will try to pay down their existing mortgage before retiring, this isn’t always possible – and even if it is, it might not always be the most practical move given your situation. Here are some basic circumstances where you might not choose to prioritize this effort, plus how our loan officers will help.

Simple Affordability

In some cases, those who are not flush with extra income simply won’t be able to afford accelerating their mortgage repayment schedule ahead of retirement. There are several other major areas that must be budgeted for during this same period, and you might not have room in yours for making these extra payments.

And if this is the case, that’s totally okay! You are not necessarily putting yourself in any kind of bad position by continuing to pay your mortgage during retirement, so long as you’ve included this area in your future budgeting. It’s much better to be realistic about this than to strain your finances in a misplaced attempt to pay the mortgage down earlier than you realistically can.

Saving for Future

Down related lines, putting all your current funds into paying down the mortgage may significantly hamstring your ability to contribute to long-term savings. Locking all your money into home equity leaves very little left over, and is only good for taking out a home equity loan or selling your home – neither of which are common events during retirement.

Loan Officer Assistance

Are you on the fence here, unsure whether to divert more funds toward your mortgage payoff or simply continue making the same payments ahead of retirement? You’re not alone – this is a conversation many in this age range tend to have, both with their spouses and/or their loan officers. Our loan officers are happy to assist you with all the basic variables involved here, helping you evaluate your finances and remaining loan balance to determine the best course of action.

For more on how to handle your mortgage as you approach retirement, or to learn about any of our mortgage rates or home loan solutions, speak to the staff at Altius Mortgage today.

For those who are approaching retirement age and considering ideal timing and budgeting themes here, an active mortgage is one of the key areas that will be considered. As one of your largest individual expenses, remaining years and amounts on a mortgage may play a major role in determining when you can retire – and some in this position will make extra efforts to pay off their mortgage before retirement.

At Altius Mortgage and our partners at Mortgage Ogden, we’re happy to provide not only a wide variety of mortgage options, including reverse mortgages for those over age 62, but also tips and expertise for those who have an existing mortgage and are looking for advice on how to proceed with it leading up to retirement. While some make it a major priority to pay the mortgage off ahead of retirement, others don’t feel quite the same rush – and both groups are often justified here. This two-part blog will go over some reasons why many make this effort, but then also why others don’t and why it’s okay to be on either side of this coin depending on your specific situation.

The Stress of Debt

Owing money can be a stressful thing, especially for larger sums like an outstanding mortgage. Those who are constantly worried about their debts may see these struggles transfer over to other areas of their life, such as their sleep quality or general anxiety levels.

For those who are able from a reasonable financial standpoint, paying down the mortgage at a slightly accelerated rate before retirement is a great way to limit this stress entering what’s supposed to be a rewarding period of life. Be sure not to go too crazy here and risk your retirement funds or other parts of your budget; that said, there are many simple ways to increase your payments and move a bit quicker through the final few months or years of your mortgage so you own the home outright by the time you retire.

Budgeting Themes

In addition, retirement comes with some significant budgeting needs. You won’t be working or receiving the same kind of steady income, meaning you must budget well. Without an expensive mortgage taking up a significant portion of your funds each month, it will be much easier to budget other retirement areas.

Interest Savings

Maybe the biggest reason some homeowners look to fully pay down the mortgage before retirement: Paying less overall interest. You might be able to save thousands or even tens of thousands of dollars in future interest payments by accelerating your mortgage payments. Be sure to check about early payment fees, which are present for some lenders in certain cases.

For more on how to consider your mortgage when approaching retirement, or to learn about any of our mortgage rates or other home loan services, speak to the staff at Altius Mortgage today.

In part one of this two-part blog series, we went over some of the basics on making the all-important transition from renting into homeownership. Owning a home holds several major benefits over renting, both financial and otherwise, but many potential buyers struggle with understanding when they’re in the right financial shape to consider this leap.

At Altius Mortgage and our partners at Mortgage Ogden, we’re happy to offer a variety of mortgage loans for first-time homebuyers, from FHA and VA mortgage programs to certain low-down payment conventional loans available to those who qualify. While much of part one went over the benefits of homeownership and finding the ideal time to make the transition from renting, today’s part two will dig into some of the specific steps we recommend following once you’ve decided to go down this road.

Do Your Research

The first major area to lean into is research, both on your own financial situation and the broader market out there. This is a field that can be complex to those who have not dealt with it before, and given the amounts of money that are at play and the long-term impact of the decisions you’ll be making, it pays to know what you’re getting into.

For some, various homebuyer education courses – offered both online and in other settings – might be ideal, helping them grasp basic terms and pieces of the mortgage application and home search process. For others, leaning on trustworthy sources like friends or family who work in real estate or the mortgage industry may be beneficial, though you should be quite sure this is someone you trust – and not someone who is going to try and lock you into working with them, which shouldn’t be decided until later in the process.

Credit, Debt and Income

Another major area to focus on for the homebuying transition is your overall finances, which can generally be split into credit history, current debts and your income. Ensure your credit score is at a high enough figure and is also accurate, plus that you are not paying exorbitant amounts of debt that will raise your debt-to-income (DTI) ratio above where many lenders will feel comfortable lending money to you. In addition, look at your savings and expected future income to determine your capacity to make a robust down payment, plus to understand the general range of home prices you’ll be looking for.

Specific Budgeting Themes

Some of the specific areas you’ll need to be budgeting for as part of a homebuying process:

• Down payment
• Closing costs, earnest money or mortgage “points”
• Moving and relocation costs
• Utility deposits
• Insurance and property taxes
• Emergency expense savings

For more on making the transition from renting to owning a home, or to learn about any of our mortgage rates or other mortgage solutions, speak to the staff at Altius Mortgage today.

Are you tired of renting continuously for your living situation? Whether in an apartment, condo or even a rented home property, those in this position are often looking for the ideal opportunity to make the leap to eventual homeownership, which comes with several major financial and other benefits.

At Altius Mortgage and our partners at Mortgage Ogden, we’re happy to offer a wide range of ideal first-time homebuyer mortgage options, from conventional loans to FHA loans, VA loans and several other specialty programs meant to assist those making the jump from renting to owning. Not only this, but we’ll also assist clients with the transition from renting to homeownership, one that can be a struggle for some if they don’t have the right guidance. This two-part blog series will go over all the major touch points you need to know here, from why it’s beneficial to make this move to the practical steps you should be following while doing so.

Why Some Remain Renters

Firstly, it’s important to understand the reasons why many people remain in the renting cycle instead of purchasing a home. Two general situations to consider here include:

• Simple finances: For many, there’s a desire to own a home – but not the means, namely the required funds to do so. Important financial areas here include credit score and history, down payment savings and enough income to be able to make monthly mortgage payments consistently. This is one area where working with our loan officers may improve your prospects significantly.
• Flex: For others, it’s more of a choice to remain in a rental situation, one that’s based on their day-to-day needs. Some people travel around a ton and relocate every few years or even more often, whether for work or personal desires. In these cases, remaining in a more flexible rental situation is often the way to go.

Benefits of Owning a Home

Now, the above stated, there are a few specific benefits to transitioning into homeownership:

• Financial stability: While it takes crossing some financial benchmarks to enter homeownership, the resulting benefits are vast once you do. You don’t worry about rising rent or finding a home, plus can capitalize on the equity you build up in your home – which is really an investment in your future as much as a living space.
• Community: Owning a home allows you to set down your roots in a home you can stay in for many years, learning about the community and building relationships with neighbors.
• Family themes: There are also several ways homeownership benefits growing families, from additional space to consistency in school district, familiarity with the local surroundings and more.

Ideal Timing for Homeownership Transition

A common question we get from potential first-time buyers: When is the right time to make the move to owning a home? Here are a few benchmarks to consider:

• Your credit score should be at least 580, the minimum threshold for qualifying for an FHA loan.
• You should have steady income and be prepared to settle down in a single location for multiple years.
• Your debts and expenses do not take up too high a portion of your income, allowing you to manage mortgage payments as part of your future finances.

For more on the transition from renting to homeownership, or to learn about any of our mortgage rates or services, speak to the staff at Altius Mortgage today.

In part one of this two-part blog series, we went over some of the basics on low down payment options for those on the mortgage market. There are several specific programs designed to help buyers obtain mortgages without gutting their savings for a large down payment, including several that are easy to qualify for even with imperfect credit.

At Altius Mortgage and our partners at Mortgage Ogden, we’re happy to offer numerous home loan options, from mortgages for first-time homebuyers to mortgage refinances, reverse mortgages and more. Today’s part two of our series will go over a few additional mortgage programs available for those looking for a low down payment, including a couple you may not have heard of.

USDA Loans

Backed by the US Department of Agriculture, the USDA loan is another example of a loan program that often allows buyers to achieve no down payment in many cases. The credit requirements are a bit stricter than something like an FHA loan: You must have a score of at least 640 in most cases for automatic approval.

Generally, USDA loans are meant for those in rural areas. In other cases, they’ll be given to those who will be helping settle or develop such areas anew. They come with 30-year terms in most cases.

Conventional 97 Loans

As we noted in part one, the conventional loan is the one type where 20% down is generally preferred – and where you’ll likely have to pay private mortgage insurance if you aren’t able to obtain this number. As we discussed as well, paying PMI isn’t necessarily a bad option.

However, there is another program known as the Conventional 97 Loan Program. The “97” in the title refers to 97% of the down payment being covered, requiring only 3% down from the buyer. In addition, the entire down payment in a Conventional 97 loan can come from gifted funds in many cases.

HomeReady Mortgage

Provided by Fannie Mae, the HomeReady mortgage is an option that actually allows buyers to get in the market for rates below the current average. It also assists with mortgage insurance and underwriting areas, and even allows for multiple people living in the same home to become qualified and approved simultaneously. There are several additional benefits of this program if you qualify, which our loan officers will help you determine.

Piggyback Loan

Finally, for buyers with higher credit scores, the piggyback loan program is also offered. This is technically two loans in one, and they are offered with a unique 80/10/10 structure.

What does that mean? At closing, the buyer brings a down payment of 10% of the purchase price. The remaining loan is split into two parts – the larger chunk of 80% is a conventional loan, usually via Fannie Mae or Freddie Mac and at current rates. The other 10%, then, is a second mortgage, usually a home equity loan or home equity line of credit. Essentially, this second mortgage “piggybacks” on the first and helps buyers obtain excellent pricing and a limited down payment.

For more on options for a low mortgage down payment, or to learn about any of our mortgage loan programs or services, speak to the staff at Altius Mortgage today.

When navigating the mortgage process, one of the most important areas for many homebuyers will be achieving a low down payment. While interest rates and other mortgage factors are generally good for many buyers currently, fewer have large chunks of saving built up, and will be looking for mortgage options that allow for lower down payments as a result.

At Altius Mortgage and our partners at Mortgage Ogden, we’re here to help with a variety of potential home loan programs, including several meant in some part to help buyers obtain mortgages without putting a burdensome amount of money down up front. This two-part blog series will go over some important areas to consider when it comes to low or even no down payment on your mortgage, plus some of the top loan options available for those with this goal in mind.

Don’t Fixate on 20%

Within many circles, there’s a myth that all homebuyers, no matter the mortgage type, must be putting 20% of the home’s total purchase price up as a down payment. This simply isn’t the case.

Rather, that 20% figure is only a benchmark for conventional loans – and even then, it’s not actually a hard requirement. Conventional applicants who do not have 20% of the purchase price to put down will have to take out private mortgage insurance to cover the lender’s risk, but that doesn’t mean they can’t take out a loan. Meanwhile, there are several other special loan programs meant to lower down payments, or even eliminate them altogether (more on these below).

Private Mortgage Insurance Basics

We noted private mortgage insurance, or PMI, as something you’ll have to pay if you’re a conventional mortgage borrower putting up under 20% on your down payment. Some view PMI as a negative to be avoided at all costs, but this really isn’t the case.

In reality, PMI allows you to obtain a lower down payment without ruining your finances. In addition, PMI is not permanent – once you reach about 20% equity owned in the home (or sometimes even less), PMI will be cancelled and you’ll simply be paying your monthly mortgage amount from that point forward. This allows you to proceed without depleting your full savings for a down payment while still obtaining the home of your dreams.

Our next several sections will go over some of the top mortgage programs that may help you lower your down payment significantly.

FHA Loans

FHA loans, so-named because they’re backed by the Federal Housing Administration, allow for down payments as low as 3.5% with credit scores of at least 580. For those below this number but above 500, the same loan is available for 10% down.

VA Loans

VA loans refer to those supplied by the US Department of Veteran’s Affairs, and are offered to military members, veterans and surviving spouses. VA loans often allow borrowers to pay no down payment whatsoever, plus typically don’t require any mortgage insurance either.

For more on the kinds of loans to consider if you want a lower down payment, or to learn about any of our mortgage programs, speak to the staff at Altius Mortgage today.

In part one of this two-part blog series, we went over some of the basics on mortgage closing day for those who have reached this important threshold. The culmination of the closing process, closing day involves the actual transfer of property ownership from one party to the other, plus several other important details.

At Altius Mortgage and our partners at Mortgage Ogden, we’re here to help with closing and a variety of other variables for any of our home loan clients, for whom we provide a wide selection of mortgage programs and the best mortgage rates around. We’ll be happy to assist you with every part of closing, from several areas of the weeks-long process to actual closing day itself. Today’s part two of our series will dig into a few additional factors for preparing for closing day.

What to Bring

There will be a few important documents and items you’ll need to ensure you have on-hand for closing day when you meet with the other primaries in the sale. You should be sure to check with your closing agent and loan officer on the specifics here, but some of the typical items that are required here include:

• Driver’s license or other proof of ID – in some cases, lenders will require two forms of ID and you will also need to bring a passport or some other alternative.
• Closing Disclosure: Usually three days before closing day, the buyer’s mortgage lender will provide you with a Closing Disclosure. This contains several valuable pieces of information, including final loan terms and costs, and it should be compared to previous loan estimates to ensure there aren’t major differences.
• Cashier’s check or wire transfer receipt of the required closing funds.
• Proof of purchase of homeowners’ insurance, which is often a lender requirement before the home can change possession.

Closing Costs to Remember

Closing costs will vary for each sale, but you can get a strong idea of what yours will be like ahead of time. In many cases, some or all of your closing costs will be built into your future mortgage payments – but this won’t always be the case, and there may be certain costs that cannot be folded into mortgage payments in this way.

Closing costs will generally include things like title fees, homeowners’ insurance, appraisals, property taxes and escrow, title or attorney fees. There may be others here, so be sure to consult with your loan officer in advance and ensure you’re prepared.

What Will Happen At Closing Day

The primary purpose of closing day is to sign several documents, including the Closing Disclosure we already mentioned plus the deed of trust (or mortgage) and a promissory note, which serves as a guarantee that you’ll make your mortgage payments moving forward. Be sure to read all these documents and any others involved carefully before signing them, and feel free to ask questions or have your attorney make clarifications.

For more on the closing process and closing day during a mortgage and homebuying process, or to learn about any of our mortgage services, speak to the staff at Altius Mortgage and our partners at Mortgage Ogden today.