Q1: Just how does JP Mortgage Lending Function?
A1: We're licensed real estate finance professionals acting as independent contractors. The range of services and products available is evolving rapidly. JP Mortgage Lending does not service your loan. We help in assisting you with placement of your loan with the servicer who is best suited for your needs and specifications.
Q2: Why choose a mortgage broker?
A2: Over half all Americans do. Brokers provide consumers with:
The consumer receives a knowledgeable, licensed professional through the complex mortgage lending process. The broker offers the consumer extensive choices and access to many different types of home loans.
Q3: Does the mortgage broker really care about the quality of the loan itself?
A3: Yes, absolutely. The safety and soundness of the mortgage lending community is directly linked to the success and integrity of its home loan originations. Furthermore, mortgage brokers represent the single largest residential origination source today, emphasizing that they play a significant role in the mortgage loan process. These numbers highlight the fact that consumers who exercise their choice, choose mortgage brokers; most likely because brokers are dedicated to their customers: consumers, wholesale lenders, and ultimately, American taxpayers.
Q4: Should brokers be regulated?
A4: Brokers are regulated by several federal laws and regulations and dozens of state laws and licensing boards. NAMB supports reasonable and fair state and federal regulation of mortgage brokers and lenders. The industry is regulated by 17 federal laws and numerous state and federal regulations
Q5: What is a rural housing loan?
A5: Rural housing is a 30 year fixed rate product designed for first time home buyers through the USDA. It is designed to help folks who do not currently own property and have limited resources to obtain a mortgage.
Q6: So, who would qualify for a rural housing mortgage?
A6: Potential candidates should have a two year work history at the same job or in the same profession, or possibly someone who receives retirement pension, disability income or SSI, who has a combined household income of less than $74,750 for a family of 4 or less, with the limit being higher for larger households. The borrower must have good credit with a score of 620 or higher with 3 trade lines with a 12 month history of on time payments. If the borrower does not have three reporting on their credit, we can use alternate credit in the form of utility payments or cell phone bills, verification fo rent, anything in their name that the borrower pays with their own funds in a monthly format. The debt to income ratio should be at or below 41% to qualify, although it is possible to go slightly higher than this if we can show strong compensating factors.
Q7: What properties would qualify?
A7: The property has to be in good condition with no peeling paint and the roof has to have two years or more of economic life left. The appraiser will be looking for a heat source in every room, two electrical outlets in every room with FGI outlets in the kitchen and bathrooms, handrails on stairs with more than 3 risers, railings on all decks, things of that nature. If the appraiser notes repairs that need to be addressed, then at that point the seller and buyer would have to work out who would pay for those repairs. The property can't be a double wide and it cannot be located in a flood zone. There are certain designated areas that will not qualify - the more populous areas such as Altoona or State College would be exempt. This product is more for the rural areas such as Tyrone, Bellwood, Claysburg and most of Bedford and Cambria county would qualify.
Q8: What advantages does this product have over others?
A8: This product is 100% financing, allowing a buyer with limited savings to purchase a home with no down payment. The seller is permitted to pay for all closing costs, although most lenders place their own overlay on this and cap seller's assist at 6% of the contract price. This allows the buyer to step into a mortgage with little or no money out of pocket. Although rural housing does have a monthly mortgage insurance premium that is part of every payment, the low interest rate tends to still make this a low cost option for many buyers to qualify.