American Residential Lending

Products And Services

• FHA Mortgage

  What does FHA have for you? Buying your first home? FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties. Want a fixer-upper? FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to remodel or repair, you can refinance what you owe and add the cost of repairs – all in one loan. Financial help for seniors Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer “yes” to these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash. FHA Loans: A Unique Solution Unlike most loan programs, FHA does not have specific credit score requirements. Although a high credit score may assist in getting the mortgage approved, a low score is not automatically cause for denial. If the credit scores are low, then it is up to the borrower to demonstrate his/her ability and willingness to pay the loan back. This allows the borrower to explain the circumstances surrounding the credit difficulties and have that explanation considered in the underwriting process. Because of FHA’s leniency, some borrowers with past credit problems elect to use FHA for loans when they have a substantial down payment rather than getting a higher interest rate conventional loan. FHA tends to be more flexible than Conventional financing in the money needed to purchase the home. In an FHA mortgage, the customer must put at least 3% of the sales price into the transaction. Some of this money may be used for down payment and the rest for closing costs. Keep in mind, however, that the total cost to close on an FHA is commonly over 3%. With the down payment, closing costs, money to establish escrows for taxes and insurance plus interest to finish out the month of closing, the total costs can be closer to 6 or 8% of the sales price. The interest rate that you select will also have a bearing on the total costs. If you select a lower rate so that you can reduce your payment, you may end up paying additional money towards “points”. At the same time if you are comfortable with a slightly higher payment you may find a lender that is willing to reduce the costs to close in favor of a higher interest rate. FHA allows the borrower to get the funds necessary to close from several sources. They include such areas as personal savings, gifts, grants, loans from retirement accounts and seller contributions.

  Link: FHA Mortgage

• VA Home Loans

  VA Loans – American-100 Allow you to do a cash-out refinance up to 100% of the value of your home loan without having to pay PMI. Expanded credit and underwriting guidelines. You don’t have to currently have a VA loan to qualify. VA Loans Offer Ultra-Competitive interest rates. It’s possible to purchase home with no money down* You don’t have to be on active duty to use your VA Benefits. If you have already used your benefits you can use them again as long as the previous loan has been paid off* Reduced Cost for Disabled Veterans* Loans Up to 1.5 Million Dollars Plus at higher LTV’s than Standard Jumbo Programs. To Refinance you will typically need to provide the following documents for a VA Loan: Copy of DD-214 (for VA Loans Only) Copy VA Certificate of Eligibility (for VA Loans Only) Verification of Assets and Income. Current Appraisal and Analysis. Social Security numbers for both you and any co-borrowers. Copies of checking and savings accounts statements for the past two months. Evidence of any other assets such as bonds, stocks, or money saved in retirement programs (i.e. 401k or 403b program). Recent paycheck stubs. W-2 withholding forms, or income tax returns for the past two years to verify your income and proof of employment. The name and address of someone who can verify your employment. Residence history for the past two years. Sales contract for the purchase of a new home. Homeowner’s association information with contact information if property is a condo or part of a homeowner’s association Buying your first home?

  Link: VA Home Loans

• Reverse Mortgage HECM

  REVERSE MORTGAGES Improve your life by cashing in on your home’s equity Reverse mortgages (sometimes called “home equity conversion loans”) enable older homeowners to benefit from their equity without having to sell their home. You can choose to receive these funds in a monthly payment, a line of credit, or a lump sum. The amount of loan funds you may receive depends on the value of the home and the age of the youngest borrower or eligible non-borrowing spouse. The loan does not have to be repaid until the borrower sells his home, moves out, or passes away. You or your estate representative is obligated to pay back the reverse mortgage amount, interest accrued, and finance fees at the time your home is sold, or you are no longer living in it. Who can participate? Reverse mortgages are typically appropriate for borrowers who are at least 62, have a small or zero balance owed against their home, and use the property as their main living place. Homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages ideal for their situation. Social Security and Medicare benefits aren’t affected, and the funds are not taxable. Reverse mortgages can have adjustable or fixed rates. You cannot lose your home under normal circumstances, but it is important to understand that foreclosure may occur if you do not pay your taxes and/or insurance and otherwise comply with the terms of the loan. You are also responsible for home maintenance.

  Link: Reverse Mortgage HECM

• HARP - Home Affordable Refinance Program

  HARP Millions of homeowners found themselves in a difficult predicament after the U.S. housing bubble burst in 2006. As inventories soared nationwide, home prices plummeted. Many new homeowners saw the value of their homes drop below the balance of their mortgages, or nearly so. Later, these same homeowners were prevented from taking advantage of lower interest rates through refinancing, since banks traditionally require a loan-to-value ratio (LTV) of 80% or less to qualify for refinancing without private mortgage insurance(PMI).Take for example a house that was purchased for $160,000 but is now worth $100,000 due to the market decline. Further, assume the homeowner owes $120,000 on the mortgage. In this scenario, the loan-to-value ratio would be 120%, and if the homeowner chose to refinance, he would also have to pay for private mortgage insurance. If the homeowner was not already paying for PMI, the added cost could nullify much of the benefit of refinancing, so the homeowner could be effectively prohibited from refinancing. The Home Affordable Refinance Program (HARP) was created by the Federal Housing Finance Agency in March 2009 to allow those with a loan-to-value ratio exceeding 80% to refinance without also paying for mortgage insurance. Originally, only those with an LTV of 105% could qualify. Later that same year, the program was expanded to include those with an LTV up to 125%. This meant that if someone owed $125,000 on a property that is currently worth $100,000, he would still be able to refinance and lock in a lower interest rate. In December 2011, the rule was changed yet again; there would no longer be any limit on negative equity for mortgages up to 30 years – so even those owing more than 125% of their home value could refinance without PMI. Qualifying criteria Certain criteria must be met to qualify for HARP. While there may be additional criteria imposed by the mortgage servicer, the government requirements are as follows: The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. Many homeowners are unaware that their mortgages are linked to one of these organizations, since neither Freddie Mac nor Fannie Mae deals directly with the public. The mortgage must have been acquired by Freddie Mac or Fannie Mae on or before May 31, 2009. The homeowner must not have a previous HARP refinance of the mortgage, unless it is a Fannie Mae loan that was refinanced under HARP during March-May 2009. The homeowner must be current on their mortgage payments, with no (30-day) late payments in the last six months and no more than one late payment in the last twelve months. The current loan-to-value ratio (LTV) of the property must be greater than 80%. The homeowner must benefit from the loan by either lower monthly payments or movement to a more stable product (such as going from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage). HARP 2.0 and PMI Having Private Mortgage Insurance (PMI) can be a problem for borrowers interested in the new 2012 Making Home Affordable Refinance Program. Homeowners who purchased their home by putting down less than 20% of the purchase price typically have PMI (typically with Freddie Mac or Fannie Mae). PMI would have been required by the original lender due to the high loan-to-value ratio and correlation to foreclosure. Having PMI attached to a loan made that loan easier to sell on the Wall Street secondary market as a "whole loan". PMI hedged this risk by offering insurance against forclosure for whomever owned the "whole loan". If your current loan has PMI it is likely your lender will not approve you. There are only a handful of lenders who will. Why? The main reason is most lenders will not accept the new PMI. Most of the major PMI companies have signed on to support HARP, however most lenders have not. Also, depending on the type of PMI and who the PMI company is may also be a roadblock. The good news is you don't need to go to your current lender if they don't accept your PMI, you can apply for the new HARP 2.0 loan with any lender. Appraisal waiver Another feature of HARP is that applicants can forgo a home appraisal if a reliable automated valuation model is available in the area. This can save the borrower time and money, but is subject to the discretion of the mortgage servicer. HARP 3.0 As part of the 2012 State of the Union Address, President Barack Obama referenced a plan to give "every responsible homeowner the chance to save about $3,000 a year on their mortgage". Within the mortgage industry, this plan is being referred to as HARP 3.0. The plan has not passed. HARP 3.0 is expected to expand HARP's eligibility requirements to homeowners with non-Fannie Mae and non-Freddie Mac mortgages, including homeowners with jumbo mortgages and Alt-A mortgages, those whose original mortgages were stated income, stated asset, or both.

  Link: HARP - Home Affordable Refinance Program

• Cash Out Refinance

  Cash Out Refinance Cashing out refers to the refinancing of a loan where the borrowers will borrow money on their own home. If a home is appraised at $100,000 and the borrower's outstanding mortgage loan is $60,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $80,000 (80% of $100,000). The new mortgage of $80,000 will pay off the $60,000 loan and leave $20,000 cash-out to the borrowers. What are the benefits? By cashing out on your home, you can obtain cash on the value of your own home to pay off debts or upcoming expenses. The refinance transaction can also provide you with a better mortgage loan interest rate that will save on your monthly mortgage payments during the loan. And it's tax-deductible. How can we help? If you are looking for this type of refinancing, American Residential Lending can find a program suited to your financial needs. We offer cash-out programs for Owner-occupied homes and Non-owner occupied homes, with low, affordable rates.

  Link: Cash Out Refinance

• Jumbo Home Loans

  Jumbo Loans For a loan to be considered a "jumbo" mortgage, the loan amount must exceed conventional conforming loan limits, which are currently $417,000 in most areas of the country. It is important to note that jumbo mortgages can exceed these limits. The U.S. Housing Department has a useful tool on their website, where you can find limits in each state/county.   For further information on jumbo loans, please contact us. Our mortgage professionals will review your loan options and help you figure out whether a jumbo loan is right for you.

  Link: Jumbo Home Loans

• FHA Streamline Refinance

  We Currently Offer FHA Streamline refinances

  Link: FHA Streamline Refinance

• VA IRRRL

  The VA Streamline Refinance - VA IRRRL - VA Interest Rate Reduction Loan

  Link: VA IRRRL