Darrel shares his journey in the Coast Guard, working his way up to rescue pilot to becoming an Entrepreneur, father, husband and author of two books.
Having been friends for nearly 15 years, Darrel was the perfect guest. Darrel has always expressed loyalty and friendship not to mention that Darrel seems to know how to fix anything.
Do Corvette Engines Fit Into the Body of a Ford 150?
During our friendship, I’ve watched Darrel labor over an old beat up F150 with the intent of installing a Corvette engine. I would question him regularly and say….”Hey!”, “Should a Corvette engine every be put into a F150!?” Darrel paid no mind and eventually was successful, but not without constant maintenance. LOL!
Darrel is so knowledgeable about his industry that I would have no problems referring him to a buyer or Realtor.
Darrel Creacy, Owner and Operator of Amvet Inspections, Entrepreneur and ex-LifeFlight and Coast Guard Pilot
Darrel is Father and mentor. His son Derek who used to run marathons with my family is now mentoring to be an inspector just like is father.
If you need a realiable, knowlegdable and friendly inspector, reach Darrel at: Amvet Inpsections.
Thanks for tuning in. See you next week at 830 a.m. for MortgageMack Live – Monday Morning Commute.
2018 Bike to School and Work Day – City of Sugar Land
An Amazing group of people came together for one day to show support for cycling in the City of Sugar Land as May Joe Zimmerman declared May as Bike Month in our beautiful city. We had an extraordinary turn out for our 2018 Bike to School and Work Day here in the City of Sugar Land, TX.
So, it’s been awhile since I’ve posted on my video blog and I had a couple of inquiries recently specific to VA loan.
VA Loan Eligibility – The Seller can Pay ALL the Closing Costs on Behalf of the Veteran
As many of you know, I’ve been a mortgage banker for a long time and I’ve done quite a few VA loans in my career. And the inquiry, the question was whether or not the seller could pay for the funding fee on a purchase transaction to benefit the VA buyer. And the answer to that question is yes. And actually, the seller could pay all the closing costs and including the funding fee. And so, a veteran could move in for literally zero dollars in that type of scenario.
So, you know, veterans administration has a fantastic loan program for veterans that qualify. And to know whether or not you qualify, the veteran can request a certificate of eligibility and I’ll leave a link here to where they would go to request that in the VA portal using their DD 214 or we can do it for you.
VA Loan Eligibility – Veterans Receiving Service Connected Disability maybe exempt from the VA Funding Fee
So, a veteran’s home loan iszero down and it does have what we call a funding fee. And it doesn’t have monthly mortgage insurance like many conventional loans do or FHA loans. And it has a funding fee. For the first time usage, it’s 2.15%. And for subsequent use, it’s 3.3. So, a veteran doesn’t usually pay the funding fee at closing, it is normally added to the loan unless of course the veteran has a certain amount of disability. When I request the certificate of eligibility and it tells me that the veteran is not required to pay the funding fee, then there’s no funding fee.
The VA Home Loan is a GREAT Benefit to those Who’ve Served their Country
So, it really is just a great program. If you’re a veteran and you have served your country and you think you might wanna buy a house call, you know, give us a call. Go to mortgagemack.com and apply and let us look at your scenario and see if we can help you.
The loan limit who for 0 down is up to the maximum conforming limit for our area, which is 453,100. And that is the absolute max. So, if you have a funding fee beyond that, the funding fee would have to be paid in cash and/or by the seller. But a lot of people don’t know that you can go up to a million dollars on VA loans as far as the loan amount is concerned. However, to do that, the veteran would put in essence what is 25% down for every dollar of above the 453,100 plus pay the funding fee in cash. So, I’ve actually had a scenario in my career where the amount borrowed was beyond the scope of the loan limit and then veteran did have to pay the funding fee at closing, but that was all. And that was all he had to pay plus whatever closing costs that weren’t paid by the seller.
And you know, there’s a lot of advertising out there that would lead you to believe that that is indeed the case. I mean, the Veterans’ Administration has recently come down pretty hard on some of those lenders that advertise on TV. And one of the things that they say is that they say no appraisal required for a VA we finance. And you know, veterans’ administration doesn’t require an appraisal for an interest rate reduction loan for a veteran. So, that’s kind of misleading and/or what I would term intellectually dishonest.
So, I encourage you that if you’re a vet and interested in inquiring about the opportunities for you as a veteran for a zero down loan or even to refinance your current VA loan, I will encourage you that if your current VA loan and the interest rate is above say— I would say today’s 5%-5.5% and it might be worth it, but just give us a call and we’ll be glad to help.
Thanks a lot. I hope you have a great day. I hope you find this helpful. I’d love to see your comments and/or questions below and I’d be happy to answer them for you.
I think I’ll do a different installment on divorce, which is just for a lot of people are— I guess for some it could be rather liberating. For others, it’s a real challenge and a real challenge financially.
So, I had a scenario recently where a person was divorced and the divorce decree wasn’t neatly executed properly or what I would consider properly by their attorney.
Divorce Mortgage – Owelty Deed can pay you your equity and relieve you of liability
If you’re married and you have common debt, specifically a mortgage, then the divorce decree alone does not relieve you of the liability associated with that mortgage.
However, there is an instrument called an Owelty deed. It’s a deed that allows the owner of a home to utilize the equity they have in a home to assist in the dividing of their property. So, the Owelty deed is in essence a refinance.
So, I’ve done several of these in my career where I have a couple, who are in the process of getting divorced. The one that’s gonna keep the home applies for the mortgage. We refinance and we in essence cash out and without doing an actual cash out home loan. And remember that. This is not a cash out. It’s an Owelty deed. So, it’s a refinance. It’s a regular refinance. And with the decree, with the amount of equity defined in the decree by all parties as they’ve agreed, we pay the other party who will not occupy the home, who will move on be paid their equity share and no longer be obligated on the loan.
Divorce Decrees should spell out the division of debt as accurately as it does assets
And so, that’s the situation I found myself in with a client who just didn’t get the appropriate counseling. He thought the divorce decree alone would be sufficient to take the loan out of his name. And unfortunately, his ex-spouse made late payments on the mortgage.
So, I would encourage anybody that if you are listening to this podcast or this video blog that if you know anybody that’s getting a divorce or might get a divorce or anything along those lines, they really should give me a shout and let me coach them to how they will create a scenario that would relieve them of the liability associated with a mortgage and/or allow them to refinance the loan, pay the other spouse off, and take their name off the note because, again, the divorce decree does not supersede the original note signed by the original parties.
Revolving Debt and Installment Loans need to be refinanced or closed where both parties share the debt
In essence or in addition to that, you know, when it comes to common debt associated with credit cards, car loans, all of those things, if you’re in the process of getting a divorce, you should include those debts in the decree not only to be assigned to say the other responsible party, but I suggest that you have them closed and/or your name removed and/or have them refinance without your name on them.
I guess the only way to figure that out is to sit down, do a credit report with your attorney, and look at the common debts and itemize those debts in your request for divorce and make it part of the divorce that the other party has to either refinance the house and/or pay you your equity with an Owelty deed or refinance the house and just take your name off of it and along with any other common debt that you might share with the other party just to protect your credit into the future should the other party experienced any financial difficulties.
So, if you have any questions or comments, please leave them below and/or give me a call.
And I’ll be glad to share my experience with you.
I hope you have a great day. Mortgage Mack out. Take care. Bye.
You know, I have a video for you that I hope you’ll find very inspiring. My friend, Brandon Adame, is the #1 all blind triathlete in the United States and he’s ranked 26th I believe worldwide. He is just an exciting young man who does not allow his challenges and disabilities to get in the way of being active.
Triathlon for Kids – April 21 & 22 at NRG Stadium – Houston Texans & NFL Play60
Now, I was asked to be a guide and I’ve been a guide for Brandon years ago when I was younger and faster, but I was asked to guide him at a recent NFL Play60 event at River Oaks Baptist School. The event was a rally to encourage kids to participate in this year’s Kids Triathlon at NRG StadiumGet Ready to be Inspired by and Extraordinary Young Man
So, here’s a video. Hope you enjoy. Hope it inspires you. And if you or someone you know would like to be a guide, please contact me or EyeCan Alliance. Or if you think that you might be inspired to become a donor, we, along with myself and EyeCan Alliance, would be just immensely grateful for your donations. Please contact me if you are interested in that aspect of being involved with this organization that not just helps Brandon, but helps many other athletes. And I will include photos of their most recent endeavor at the Houston Chevron Marathon. Have a great day. Thanks.
Get Ready to be Inspired by and Extraordinary Young Man
Announcer: Brandon Adame worked hard and he amazingly became one of the greatest athletes in today’s Houston area. Welcome the one and only, Brandon!
[Cheering]
Announcer: The highest ranked totally blind para-triathlete in the United States.
EyeCan Alliance athletes and their guides at the 2018 Houston Aramco Marathon
Mack: Brandon, what would you like to tell the boys and the girls here today?
Brandon’s Advice to the Students
Brandon: I will leave you with 3 points.
Point #1: Listen to your parents, your teachers, and your coaches.
Point #2 is trust your training.
And point #3 is always remember to have fun. Thank you.
Brandon’s Advice to Parents, Faculty and Adults
Brandon: I want to leave the adults with 3 points.
Point #1 is I can do all things through Christ who strengthens me (Philippians 4:13).
Point #2 is when you set a goal, you will attract people to you and will help you accomplish your goal.
Point #3 is once you have accomplished the goal that you have set, you will never know who you will inspire to do something greater than they thought they can ever be.
If you or someone you know would be interested in being a corporate donor, guide or just make a donation, EyeCan Alliance and MortgageMack would be very grateful for your support!
Hi. Mortgage Mack here. And today, I thought we would talk about home equity loans.
Texas Home Equity Loan — Once Unconstitutional in Texas
You know, I’ve been in the mortgage business for 25 years. For a small part of that time-frame, home equity loans were not even allowed in the State of Texas. I think legislation was passed in 1998 (legislation passed on Nov. 1997 ballot 60% to 40%) and took effect on January 1, 1999 and allowed homeowners in Texas to take equity out of their primary residence. Prior to that, it was unconstitutional.
Homestead Rules within the Texas Constitution Protected Settlers from Creditors Abroad
And the constitution (homestead protections in the Texas Constitution) was written to protect the homestead for a multitude of different reasons and one of those reasons was to protect the homestead of early settlers of the Republic of Texas from creditors.
Texas Home Equity Loan – 20% Equity Must Remain at Closing
And one of the most important aspects of the original amendment to the constitution to allow home equity loans is that it doesn’t allow you to borrow more than 80% of the value. And so, basically, what that means is if your home is valued $100,000 and you owe $80,000 already, well, you can’t borrow the remaining $20,000.
But let’s say the home is valued at 100,000 and you owe $60,00, you can have access to $20,000 for a total of 80% loan to value with 20% equity remaining in that scenario, which would meet the ceiling of 80% of the value.
Texas State Capitol
Texas Home Equity Loan Changes for 2018
So, one of the recent changes that took effect were specific to closing costs. And previously, we had a limitation of closing costs to 3% of the loan amount. Well, that’s been changed to reduce to 2% of the loan amount. However, what’s happened is the legislators excluded some of the type of charges specific to that calculation, which I’ll include a link below. And I also am including a link here of conversation that I had with a local attorney. It was a conversation specific to the law that you might find helpful as well.
So, what they’ve done is they’ve reduced the limitation of fees to 2% of the loan amount rather than 3% and excluded some type of charges such as the appraisal and survey along with title insurance and title examination.
Proposition 2 also allows home equity loans to be refinanced as a rate and term. Now, the reason that’s important is because previously once you did a first lien home equity loan, your loan always remained a home equity loan and we developed the cliché that “once a home equity always a home equity”. Well, that’s no longer the case. So, if you’ve had a home equity loan in the past, you can refinance at 80% of the value less what you owe with no cash out and have the lien renewed and extended as a rate and term refinance.
Texas Home Equity Loan and Agricultural Exemptions
So, they also repealed the prohibition on origination of home equity loans that were secured by a homestead with an agricultural exemption. So, this really impacts folks in the rural areas because in the past we couldn’t do a home equity loan for say a couple that owned a home in a rural area where they may have owned 20, 30, 40 acres on which there was an agriculture exemption on the property. The to take equity out of a borrower residence in those days we had to survey out 1 acres of land around the residence. Have it re-surveyed to exclude the portion of the property on which the agricultural exemption remained. and appraise the property just on that 1 acre and the residents which didn’t allow them to fully utilize the full equity on the property.
Now, there were a couple of other changes that don’t directly impact me and not necessarily the products that I offer. I don’t do the home equity lines of credit. However, I would gladly refer you to organizations that do locally that I’ve had previous experience with. And the legislature also expanded— I think it’s the list of lenders or lenders that are authorized to offer home equities. I don’t know much details about that, but I will include some links here and hope you find this helpful.
If you have any comments, please leave your comments at the bottom. Or if you have any questions, please let me know. And I’ll get with our in-house attorney and find an answer for you. Have a great day.
Hi, it’s Mortgage Mack. And I had another real scenario that I thought was very interesting that I would share with everyone today.
A Mortgage For Elderly Parents can be Treated as a Primary Residence even if the Loan is in the Name of the Children Only
A real estate agent that I’ve done business with for many, many years called me and said he had a couple that wanted to buy a home for an elderly parent. And this parent is elderly and on social security and does not have a full-time job. And his question to me was, what is minimum required down payment. He assumed that in this situation that it would be an investment property for the children to buy a home for their elderly parents and will therefore require a much larger down payment than a traditional primary residence. And so, we were thankful to discover that FannieMae makes provisions for children to buy homes for elderly parents as a primary residence and put as little as 5% down as opposed to on an investment property. The minimum down payments for an investment property is 15% but the best opportunity for terms on an investment property require a down payment of 25% down.
So, Fannie allows parents. I’m sorry. Fannie allows children to buy homes as primary residence with as little as 5% percent down for elderly parents or parent.
FannieMae also Allows Parents to Purchase a Home for Children with Disabilities
FannieMae also makes provisions for parents to buy homes for children with disabilities or who maybe physically challenged who cannot qualify on their own. In this scenario, the parents would be purchasing a home as their primary residence. They would indeed be on the Note and the Deed. And they would buy it as a primary residence for as little as 5% down.
So, I think that covers that. But you know, there’s a couple of other scenarios too where parents can buy a home for their children and the children actually be on the loan and we call that a non-occupant co-borrower and parents can also be co-mortgagors on the loan, but maybe not have ownership interest as a co-mortgagor.
And so, I’ll leave some notes and some links specific to co-mortgagors and non-occupant co-borrowers along with maybe some notes specific to our first scenario where we were able to help a couple buy a home for their elderly parents for as little as 5% down.
Hi, it’s Mortgage Mack and Happy New Year. I hope you don’t mind the facial hair today. It is very cold in Houston, Texas. So, it’s helping me keep my face warm.
Non-Conforming Loans or Jumbo Loans – 80/10/10 – Less Money Down for Your Dream Home
You know, I have a scenario that I thought I’d share with you today. I have a young couple who have not sold their home, but they found a home they wanna buy. The home they wanna buy is in the $800,000 price range. So, that makes it what we call a jumbo mortgage loan. Now, a jumbo loan is— Maybe that’s the wrong term. Maybe a better term would be a non-conforming loan. And what a non-conforming loan means or jumbo loan means is that— First of all, the first parameter is that the amount financed is higher than the limits established by FannieMae and Freddie Mac. And I’ll include links for both of those here in the show notes, but also— But you know, you could buy an 800,000-dollar house and it’d still be conforming or non-jumbo loan if you didn’t finance any more than 453,100.
But, in the instants of my clients, we wanna finance more than that because we have a home that we haven’t sold yet and we wanna put this through as 10% down. Now, I’ll go into that here in just a second, but I wanna make sure that I’m clear about what a jumbo mortgage loan is, is that it’s a loan wherein we finance any more than the conventional loan limit established by Fannie or Freddie, which is $453,100 for the current year of 2018 for the Houston, Texas Metropolitan Area. And once the loan amount exceeds that,
then we fall into what is called the jumbo or nonconforming category at which the underwriting requirements are far more rigorous than traditional FannieMae or FreddieMac
You Can Borrower Your Down Payment with a Second Mortgage Loan
So, let’s talk briefly about our scenario and solution that I’m gonna help my clients with today. So, what I have is I have a jumbo loan that allows for as little as 10% down. Now, most jumbo loans require much more than 10% down. The traditional requires at least 20, maybe 25, but I have a special product here for them. And it’s what we call an 80/10/10. So, they can put as little as 10% down. I’m going to borrow another 10$ as what we call a second mortgage for them on their behalf. Now, I can arrange this type of financing for a client to $900,000 as the maximum amount borrowed. It does require 6 months reserves and what that means is that it will $100,000 to close and your payment was 5,000, then you have to have at least $30,000 left in the bank after closing.
therefore require a much larger down payment than a traditional primary residence. And so, we were thankful to discover that 
that,
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