The Family Opportunity Mortgage helps families who are buying or refinancing homes for college students, elderly parents and disabled adult children. Without this program, these transactions would often have to be considered as “investment properties” with higher interest rates and closing costs. Now, it can essentially be treated as a primary residence.
Mortgage Programs
Not all mortgage loans are the same — and choosing the right program can make a significant difference in your payment, qualification, and long-term financial flexibility.
This section covers the most common and specialty mortgage programs available to homebuyers and homeowners, including:
- FHA Loans
- VA Loans
- USDA Loans
- Conventional & Jumbo Loans
- HomeReady & Home Possible
- Down payment assistance programs
- Washington State Housing Finance Commission (WSHFC) programs
- Specialty programs for medical professionals and unique scenarios
Understanding eligibility guidelines, loan limits, credit requirements, and program benefits allows you to compare options strategically rather than relying on headlines or general advice.
As a Mortgage Advisor with over 25 years of experience, I help clients evaluate which program best aligns with their income, assets, and long-term plans.
Explore the programs below to better understand your options.
Family Opportunity Mortgage…now at Mortgage Master Service Corporation
September 12, 2007 by 12 Comments
Concerned questions from a home owner regarding the “credit crisis”
August 12, 2007 by Leave a Comment
The other day, one of my past clients asked me:
“I was wondering if there are issues that could arise if this credit crisis continues in a downward spiral? The market hasn’t been doing well in the past week with concerns about the “credit crisis”.
Is there any reason for concern that we could have our home loan called in early if our mortgage company gets into trouble? Are there other issues that we should be thinking about if this causes a ripple affect to other areas of the economy?”
What’s going on in the mortgage industry? A must see graph spells it out.
August 11, 2007 by Leave a Comment
This graph from the New York Times paints a picture that I can’t call pretty.
"So what’s gone wrong in the last few months? An unfortunate combination: more loans in default (many borrowers were never in a position to pay them off), risky bets worth billions made by some investors (deals now gone sour), and the reversal of the housing boom."
A big hat tip to Behind The Mortgage.
Don’t let your ARM smack you (or your friends)
August 4, 2007 by 2 Comments
If you currently have an adjustable rate or balloon mortgage that is scheduled to adjust within the next 12 months, I strongly encourage you to contact a Mortgage Professional as soon as possible. Especially if you are considering keeping your home beyond the adjustment date.
Don’t wait. Here’s why:
- Odds are your payment will increase significantly (depending on your caps) and you won’t want the new mortgage payment.
- Underwriting guidelines have tightened significantly. If you have issues with your credit, it is best to start work on repairing or improving your scores now instead of waiting until it’s time to refi (that’s too late).
- Lenders are pulling back on programs. Especially non-conforming loans (loan amounts over $417,000 or credit, assets, income or employment not meeting traditional guidelines) and ARMs.
- Some lenders are shutting their doors as they are not able to fund loans they’ve committed to.
- Less available loans may translate to fewer buyers for properties. This will impact sales comps for appraisals. You cannot count on huge appreciation or values on your home to bail you out of your ARM. We’ve been fortunate in Seattle so far; I cannot see how this won’t impact our local market home values.
This is truly an urgent situation that requires your immediate attention. The more time you can give yourself and your Mortgage Professional to determine the best strategy for your next mortgage, the better off you’ll be. And, if you know that your friends or family members have ARMs that are due to adjust anytime soon, please encourage them to contact a Mortgage Professional as well.
Take control of your ARM or it just may leave you stinging.
Are You Preapproved for an Interest Only Mortgage?
July 20, 2007 by Leave a Comment
You better double check with your Mortgage Professional. As of Sunday, July 22, 2007 underwriting guidelines are tightening up for interest only conventional (loan amounts $417,000 and lower) mortgages.
- Fixed Rate Mortgages (ex. 30 year fixed with 10 year interest only payments) will be based on the full PITI payment using the Note Rate. (If there is a temporary buy down, the qualifying is still based on the Note Rate).
- Interest Only ARMs: Qualifying is based on the full principal and interest payment (PITI) at the fully indexed rate (index + margin).
- Negative Am. (deferred interest) ARMs: Qualifying will be based on the full PITI at the fully indexed rate amortized over the full repayment term using the loan amount based on the amortization cap. (I am not a fan of Option ARMs and I have never provided one to any of my clients. For some people, they have probably been very successful tools…most of my clients, once they understood how the mortgage works, would opt for an interest only ARM instead of this mortgage).
So what does this mean?
Previous Guidelines: If a buyer was preapproved using a 5/1 Interest Only LIBOR ARM based on an interest rate of 6.125% (note: this is NOT a rate quote and is only for purpose of illustrating the guideline changes) earlier this week qualified for a payment in the amount of $2041 (plus taxes and insurance), they could borrow $400,000.
New Guidelines: The current index for LIBOR is 5.4 plus the margin of 2.375% for this particle loan program = a fully indexed rate of 7.775% for the same ARM mentioned above. Qualifying the borrower for a $2041 payment based on a 30 year amortization at 7.775% means the borrower now qualifies for a loan amount of $284,200.
This will obviously have a dramatic impact on purchases and refinancing out of interest only products. This is still very new and we’ll see if non-conforming products follow suit.
Here’s what you need to do:
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Agents: Contact your Mortgage Professional today to see if you have clients who are preapproved for conventional financing with any interest only payments. Confirm your buyer is still qualified. (Your LO may need to check Fannie Mae guidelines).
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Buyers/Borrowers: If you’re using interest only products with loan amounts of $417,000 or less, contact your Mortgage Professional to verify you are still approved.
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Buyers: Now more than ever, it’s crucial that you meet with a Mortgage Professional prior to buying a home to become preapproved. With mortgage programs and underwriting “tightening”, there will be less options compared to just a few months ago.
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Buyers/Borrowers: Having solid credit is also more important. You should review your credit a couple times a year. If your scores are below 680, work on improving your credit.
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Borrowers who currently have ARMs: Do not wait until just before your ARM is about to adjust if you are considering retaining your home. Contact your Mortgage Professional six months in advance to review your credit in case you need to make adjustments and/or repairs.
This is not the time to be hiding or not dealing with your mortgage…guidelines are changing quickly and you need to be proactive and responsible with your largest investment. If you need help, find a qualified Mortgage Professional such as a Certified Mortgage Planning Specialist, who has been acquired additional training and education or get a referral from someone you trust and respect.
