Mortgage Blog

Episode 2 – MortgageMack Live – Why and How to Have a FB Live Show

Episode 2 – MortgageMack Live – Why and How to Have a FB Live Show

With Guest Speaker and co-founder of SpokenAbout, Randall Chesnutt shares his boundless knowledge of human behavior.  In this episode, Randall shares with us the why and how to develop a Facebook Live Show.

Episode 2 - MortgageMack Live - Why and How to Have a FB Live Show

Everything a business needs to turn leads into customers and customers into lifelong clients. Automatically and with minimal manual effort

As co-founder of the digital marketing firm, SpokenAbout, Randall and his team have created a place where small, medium or large business can go to have a formal Social Media Marketing plan developed, implemented and measured.  Randall’s firm specializes in lead generation and brand building along all social media outlets with an additional caveat of outbound callers who set appointments for the client.

Randall is an Esby Award Winner, a father, Public Speaker and leader in his industry.  To contact Randall, please go to his website at:  SpokenAbout

Thanks for tuning in.  We hope to see you next Monday at 830 a.m. for MortgageMack Live – Monday Morning Commute.

Espisode #1 – MortgageMack Live with Darrel Creacy

Episode #1 MortgageMack Live with Darrel Creacy

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.

Espisode #1 – MortgageMack Live with Darrel Creacy
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.



Leigh’s Heartwarming Journey to Home-ownership

Leigh’s Heartwarming Journey to Home-ownership

Leigh's Tearful Journey to Homeownership

2018 Bike to School and Work Day

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.


FHA and Deferred Student Loans

FHA and Deferred Student Loans

MortgageMack Here and today we’re going to discuss FHA and Your Student Loans.

FHA and Your Student Loans

FHA is a mortgage loan insured by the Federal Housing Administration that requires the borrower to pay mortgage insurance to insure the lender against default.  I just completed a Blog Post specific to the FHA purchase and refinance loan called FHA 203b.

Now, for many years, FHA has allowed for the lender to exclude student loan payments in their qualification analysis or what we call debt to income ratio…

if we could prove the student loan payments were deferred for at least 12 months from the day of closing.  But,

Today’s FHA requirement differentiate between deferred loans and student loans and we’re going to talk specifically about Student Loans debt.

FHA and Your Student LoansStudent Debt has Reached the Highest it has Ever been in our History.

The average Student Loan debt for the Class of 2017 was $39,400 per student.  The total amount owed by American students and their parents is $1.48 trillion spread among 44 million borrowers with a 90 plus days delinquency rate of 11.2%.*

Many economic professionals, I’ve listened to and spoken to over the past years have stated Student Debt is likely to be the next major US economic bubble.**

Now, I’ve had a couple of borrowers with an exceptional amount of total Student Loan obligations and FHA gives me 3 options for declaring that debt on the mortgage application which we’ll analyze now.

So, let’s define Student Debt.  FHA refers to Student Loans as a liability incurred for educational purposes.  Pretty simple?

FHA also, states all Student Loans owed by the borrower must be included as an active liability with the following requirements.

  1. If the payment used for the monthly obligation is: a) less than 1% of the outstanding balance reported on the credit report and b) less than the monthly payment reported on the Borrower’s credit report, the lender just obtains written documentation of the actual monthly payment, the status and evidence of balance and term: THEN
  2. Regardless of the payment status, the Lender must use either the GREATER of: a) 1 percent of the outstanding balance of the loan or b) the monthly payment reported on the credit report unless c) the actual documented payment provided is fully amortized to full term from beginning to end!

Now, as I stated before, I had client with an $80,000 Student Loan and according to the guidelines, I must use the the 1% which $800 and there was no payment reported on the credit report and even if there was and the payment was less than 1%, I still had to use the $800/mo. calculation.

Therefore, I asked my borrower to call the Creditor and request a full amortization schedule for her Student oan, which the servicer obliged and the payment was reduced to $319/mo.

Big difference from $800/mo., wouldn’t you agree?

So, if you have Student Loan debts and are afraid can’t qualify, call me or apply at and help you with a FREE analysis of your Student Loans.

Thank you for watching.  I welcome your questions and comments and please subscribe to


*Student Loan Statistics

**Student Loans Economic Bubble

FHA Mortgages Texas

FHA Mortgage Texas

MortgageMack Here.

Today we’re going to discuss FHA loans, specifically the FHA 203b program, FHA also offer disaster relief mortgages which you can find information about on my vBlog.

FHA Mortgages in Texas

FHA Mortgages in Texas – What is a FHA Home Loan?

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). … However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 550 or higher with OneTrust Home Loans.

Benefits of a FHA Mortgage…

  • Low down payment of 3.5% and you do not have to be a first time home buyer or meet income limits as FannieMae requires for their 3% down program
  • The minimum credit score with OneTrust Home Loans is 550 subject to approval wherein the minimum score for a conventional loan is 620
  • FHA will allow for a person to currently be in a Chapter 13 BK as long as they can prove on time payments to the courts for 12 months in accordance with their original BK plan and a letter from courts granting permission to enter to a mortgage transaction
  • Allows the seller to pay up to 6% of the sales price towards the buyer closings and pre-pays not to exceed the actual total of the closing costs and pre-pays wherein conventional will only allow 3% from the seller with 3 to 5% down payment
  • There are no income limits but the maximum mortgage for Harris County and the surrounding area is: $331,200 for a single family dwelling and higher for 2 to 4 unit residences
  • The debt to income ratio is much higher for FHA affording people the opportunity to buy more house. Subject to AUS approval, I’ve seen DTI up 57% approved and recently closed a transaction with a 57% DTI ratio wherein conventional is limited to 50%.

FHA Mortgages in Texas

So, those are some the benefits of FHA and the #1 reason folks might avoid FHA is the extra mortgage insurance costs relative to a conventional loan.  FHA’s has an upfront mortgage insurance premium of 1.75 and monthly, depending on down payment and length of the loan of as much as .85% and the monthly amount is permanent for the life of the loan.

Most owner don’t live in their home past 9 years, so I’m not sure the permanency of the monthly mortgage insurance is that big a deal.

In summary, FHA is great loan program that offers more opportunity to more folks who want to own a home.

If you or someone you know would be interested in knowing more about a FHA home loan, call me or email me at or go to to apply and please subscribe to my vBlog at

I look forward to your questions and comments.

Thanks for watching and have a great day!  MortgageMack out

2018 Economic Outlook

2018 Economic Outlook – Ted C. Jones, PhD, Chief Economist, Stewart Title

VA Loan Eligibility

VA Loan Eligibility

Hi, Mortgage Mack here.

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.

VA Loan Eligibility

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 is zero 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.

VA Loan Eligibility

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 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.

Have a great day. Take care.

Divorce Mortgage – Owelty Deed

Divorce Mortgage – Owelty Deed

Hey. MortgageMack here!

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.

Divorce Mortgage

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.

If your getting a divorce, apply at and we’ll help you

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.

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!


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

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