Category: Conventional

Triathlon for Kids

Triathlon for Kids

Hi, Mortgage Mack here.

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.

Triathlon for Kids
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!

Thank you.

Houston Texans Kids Triathlon

EyeCan Alliance

EyeCan Alliance Donation and Sponsors

Texas Home Equity Loan Changes for 2018

Texas Home Equity Loan Changes for 2018

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 Home Equity Loan Changes for 2018
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.

Links:

Proposition 2 – Home Equity Amendment 2017

Homestead Law – Texas State Historical Association

Constitution of the Republic of Texas (1836)

Proposition 8 – Types of Homestead Liens (1997)

Definition of Voluntary Liens

Mortgage For Elderly Parents

Mortgage for Elderly Parents

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 Mortgage For Elderly Parentstherefore 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.

Hope you have a great day. Happy New Year.

FannieMae Occupancy Types for Primary Residence

See also:  FannieMae HomeReady Low Down Payment

Non-Conforming Loans

Non-Conforming Loans

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 Non-Conforming Loansthat,

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.

Low Down Payment FannieMae HomeReady

Low Down Payment

Low Down Payment Home Loans

Hi, it’s Mack with One Trust Home Loans and thank you for being here today. You know, I’ve talked about the disaster relief mortgage recently and just had a real scenario where we had a young man who did qualify for the disaster relief mortgage, but was unfortunately not able to participate in it just because he was looking for condominiums and we just couldn’t find a condominium project in the areas that he wanted that were approved for FHA loans. As I stated before, the disaster relief mortgage is a FHA 203(h) mortgage.

HomeReady Offers Low Down Payment Home Loans for Houston Home Buyers

So today, I thought I would talk about FannieMae’s HomeReady program. Now, it is a program that is not designed just for first time homebuyers, and the down payment requirement is only 3%.  HomeReady is designed for low to moderate income and does have geographic or income restrictions for the geographic areas in which the home is located.

Low Down Payment Home Loans

You don’t have to be a first time homebuyer, but you can’t currently own a home to participate in this program. What else can I say about it?  HomeReady has a slightly lower than market interest rate. So, the interest rate is very aggressive. Mortgage insurance is cancellable. So, you don’t have to carry the mortgage insurance for the life of the loan like you would if you were to do a disaster relief mortgage. It also has flexibility on income.

FannieMae HomeReady Allows for Boarder Income

I had a young man recently whose father lived with him and helped him pay the bills. And with appropriate documentation, I was able to use a portion of that income, what we call boarder income, to help him qualify for more home.

30-year fixed mortgages and 15-year fixed loans are available for single family dwellings and condominiums as well

HomeReady does require home buyer education with Framework  or an approved HUD Counselor

I hope this information was helpful. Thank you again for attending and this MortgageMack out. Have a great day and happy holidays