An asset depletion mortgage can give asset-rich borrowers another way to qualify when traditional monthly income does not tell the whole financial story. Having plenty of money does not always make it easy to qualify for a home loan.

It is a situation we see fairly often with retirees, business owners, investors, and other borrowers who have accumulated significant savings or investments but do not receive a large traditional paycheck.

For these borrowers, an asset depletion mortgage or asset qualifier mortgage may provide another way to qualify.

Consider a retiree receiving about $2,000 per month in Social Security. Based on that income alone, qualifying for a larger mortgage could be difficult. But what if that same borrower has $1 million or more in retirement and investment accounts?

That is a very different financial picture.

Traditional mortgage qualification tends to focus heavily on recurring monthly income. For someone who is asset-rich but income-light, that can create a roadblock even when the borrower has substantial financial resources available.

Fortunately, there are mortgage programs designed to look beyond traditional employment income.

What Is an Asset Depletion Mortgage?

An asset depletion mortgage allows eligible assets to be converted into a calculated monthly income amount that can be used for mortgage qualification.

Instead of looking only at wages, Social Security, pension income, or other monthly income, the lender may also consider funds held in eligible accounts.

Depending on the program, those assets might include:

• Checking and savings accounts
• Certificates of deposit
• Brokerage accounts
• Stocks, bonds, and mutual funds
• IRAs and other retirement accounts
• 401(k) and 403(b) accounts

Not every dollar is necessarily counted at face value. The amount that can be used depends on the type of asset and the specific mortgage program. Funds needed for the down payment, closing costs, and required reserves may also need to be deducted before the final calculation is made.

Start With the Borrower’s Existing Income

Before using asset depletion, it still makes sense to identify all of the borrower’s dependable income.

That may include:

• Social Security
• Pension income
• Annuities
• Retirement distributions
• Required Minimum Distributions
• Other documented recurring income

Sometimes those income sources are enough to qualify on their own.

When they are not, asset-based income qualification may help make up the difference.

How the Calculation Works?

With an asset depletion loan, eligible assets are generally converted into a monthly qualifying income figure.

The lender determines the amount of eligible assets available and divides that amount according to the calculation required by the particular loan program.

Different mortgage programs can use very different calculations.

That distinction is important. A calculation that produces too little qualifying income under one program may produce a very different result under another asset-based mortgage program.

That is one reason these loans should be evaluated based on the borrower’s complete financial picture rather than assuming that one asset depletion calculation fits every borrower.

What Is an Asset Qualifier Mortgage?

An asset qualifier mortgage takes a somewhat different approach.

Rather than converting assets into monthly income and then relying on a traditional debt-to-income calculation, certain programs allow a borrower to qualify primarily based on the amount of eligible liquid assets available.

This can be particularly useful for borrowers who have substantial wealth but little traditional documented income.

One example available through Accurate Mortgage Group is the ATR-in-Full program, which is designed for borrowers who are cash-heavy but income-light. The program allows borrowers to qualify using sufficient liquid assets rather than relying on employment income.

ATR-in-Full Mortgage Program

The ATR-in-Full asset qualifier program can be an option for borrowers whose financial strength is reflected more clearly in their assets than in their monthly income.

Some of the program features currently include:

• Up to 80% financing on a purchase
• Up to 75% financing on a refinance
• Minimum 600 FICO
• Loan amounts up to $4 million
• Employment not required
• No traditional income documentation
• Two months of statements for the qualifying account
• Liquid assets can be used to qualify
• Owner-Occupied and Second Homes allowed 
• Reserves are not required at 75% LTV or below

For the right borrower, an asset qualifier mortgage can provide a much different path to approval than trying to fit significant assets into a traditional W-2 or tax-return-based mortgage calculation.

Asset Depletion vs. Asset Qualifier Mortgage

Although the terms are sometimes used interchangeably, asset depletion and asset qualification are not exactly the same thing.

With asset depletion, eligible assets are converted into a monthly income amount. That calculated income can then be combined with the borrower’s other qualifying income.

With an asset qualifier program, the borrower’s liquid assets can become the primary basis for qualifying. Depending on the program, employment or traditional income documentation may not be required.

That difference can be significant.

A borrower who does not generate enough qualifying income through a traditional asset depletion calculation may still qualify under an asset qualifier program.

Who Is a Good Fit?

An asset-based mortgage may be worth exploring for borrowers such as:

• Retirees with substantial IRA or investment balances
• Borrowers living primarily on Social Security or pension income
• Investors with significant brokerage assets
• Business owners whose tax returns do not reflect their full financial strength
• High-net-worth borrowers with limited recurring income
• Borrowers who recently retired or stopped working
• People with substantial liquid savings but little or no employment income

Having limited monthly income does not automatically mean someone is a weak borrower. In some cases, income simply does not tell the whole story.

Options for Retired Borrowers?

Yes. Depending on the borrower’s circumstances and the loan program, retirement and investment assets may help a retiree qualify for a mortgage.

For some retirees, Social Security, pensions, annuities, and retirement distributions provide enough qualifying income.

For others, an asset depletion mortgage for retirees may supplement that income. Borrowers with particularly large liquid asset balances may also be candidates for an asset qualifier mortgage.

The right approach depends on the amount and type of assets available, the loan amount, property type, credit profile, and other qualification requirements.

Asset-Based Mortgage vs. Reverse Mortgage

For borrowers age 62 and older, a reverse mortgage may also be an option. But it should not automatically be assumed to be the best solution simply because the borrower is retired.

A reverse mortgage works very differently from an asset depletion or asset qualifier mortgage.

With a reverse mortgage, the borrower accesses home equity and generally does not make a monthly principal and interest payment. The loan balance can increase over time, and the homeowner remains responsible for property taxes, homeowners insurance, and maintaining the property.

With an asset-based traditional mortgage, the borrower typically continues making monthly mortgage payments but may be able to qualify using assets rather than depending entirely on employment income.

Neither option is automatically better. The appropriate choice depends on the borrower’s assets, equity, cash flow, age, long-term plans, and financial goals.

Looking at the Whole Financial Picture

When a borrower has significant assets but limited monthly income, the first question should not simply be whether their W-2 income is high enough.

A better question is whether there is another legitimate way to document their ability to repay the loan.

That could involve combining Social Security, pensions, annuities, or retirement distributions with an asset depletion calculation.

For another borrower, an asset qualifier mortgage may make more sense.

And depending on the circumstances, a HELOC, cash-out refinance, or reverse mortgage may also be worth comparing.

The key is looking at the entire financial picture before deciding that a borrower does not qualify.

Talk With Accurate Mortgage Group About Asset-Based Mortgage Options

A modest monthly income does not necessarily mean someone is a poor mortgage candidate.

A retiree with substantial retirement savings, an investor with a large brokerage account, or another borrower with significant liquid assets may have mortgage options that are not obvious when looking only at traditional income.

At Accurate Mortgage Group, we work with borrowers and referral partners to evaluate asset depletion mortgages, asset qualifier mortgages, Non-QM loans, and other mortgage solutions based on the borrower’s actual financial situation.

If you or your client is asset-rich but income-light, contact Accurate Mortgage Group at (615) 833-0456. We can review the income, assets, property, credit profile, and loan request to determine which mortgage options may be worth pursuing.

The post Asset Depletion Mortgage Options for Asset-Rich Borrowers appeared first on Accurate Mortgage Group.

Know What You Owe Before You Call

Before reaching out to a loan officer, take thirty minutes and write down every debt you’re carrying outside your mortgage. Include the current balance, the monthly payment, and the interest rate for each one. Credit cards, auto loans, personal loans, student loans, medical bills in collections — all of it.

This isn’t just for your own clarity. When you sit down with a Mortgage Loan Advisor on our team, that list becomes the starting point for running real numbers. We can show you exactly what your new mortgage payment would look like with those debts rolled in, versus what you’re paying across all those accounts right now.

A common question we hear is whether every debt has to be included. The short answer is no. You choose which debts to pay off with the cash-out proceeds. If you have a car loan at a low rate with only a year left, it might make more sense to leave it alone. That’s a conversation worth having with your loan officer, and it’s one we have every day.

Check Your Equity Position

Cash-out refinancing requires equity in your home. If you’ve owned your home in the Franklin area or anywhere in Tennessee for several years, there’s a good chance your property has appreciated meaningfully. Even if you bought more recently, you may have more equity than you think — especially if you made a larger down payment or your neighborhood has seen strong demand.

You don’t need a formal appraisal before you call us. We can pull preliminary numbers and give you a realistic idea of where you stand. An official appraisal happens during the loan process, but knowing your approximate equity ahead of time helps you understand how much cash you could access and whether the math works for your situation.

Gather Your Documents Early

A debt consolidation refinance follows the same documentation process as any mortgage. Having these ready before you apply saves days of back-and-forth:

• Two recent pay stubs from each borrower
• Two years of W-2s (and tax returns if you’re self-employed)
• Two months of bank statements — all pages, even the blank ones
• Your most recent mortgage statement
• Statements for every debt you want to consolidate

If your income situation is non-traditional — maybe you’re a 1099 contractor, you receive VA disability income, or you have rental property — don’t assume that disqualifies you. Accurate Mortgage works with lending programs designed for exactly these situations. Bring what you have, and we’ll figure out the right path.

Understand What Changes and What Doesn’t

When you consolidate debt into your mortgage, your mortgage balance goes up. That’s the trade-off, and it’s important to go in with your eyes open. What you gain is a single fixed monthly payment replacing a handful of variable-rate revolving accounts and installment loans. For many homeowners, the total amount leaving their bank account each month drops significantly, and the predictability of one fixed payment makes budgeting far simpler.

Your home remains your collateral, just as it is now with your existing mortgage. The difference is that unsecured debt — like credit cards charging double-digit interest — gets replaced by mortgage debt at a much lower rate. That shift in interest cost is where the real savings come from.

One thing that doesn’t change: your obligation to make your mortgage payment on time. If part of the reason you’re consolidating is that juggling multiple due dates has led to late payments, simplifying down to one payment can genuinely help you stay on track going forward.

What Happens After You Apply

Once your application is submitted and documents are in, the process typically moves through underwriting and appraisal within a few weeks. Our team keeps you updated at every step — no guessing, no radio silence. If underwriting needs something additional, we’ll tell you immediately and explain exactly what’s needed and why.

At closing, the debts you’ve chosen to consolidate get paid off directly. You don’t receive a check and hope you use it responsibly. The title company sends payoffs to your creditors, and those accounts are closed or zeroed out.

Ready to See Your Numbers?

The best next step is a conversation with real numbers in front of you — not hypotheticals. Reach out to us at mhoover@accuratemtg.com to get a clear picture of what a debt consolidation refinance would look like for your specific situation. No obligation, no pressure — just the math laid out so you can make a confident decision.

The post How to Prepare for a Debt Consolidation Refinance appeared first on Accurate Mortgage Group.

Top Nashville Mortgage FAQs

1. How much down payment do I need?

Nashville, like most areas, offers various mortgage options with varying down payment requirements. 

Conventional Loans: Typically require a minimum down payment of 5%, however at least 20% is needed to avoid private mortgage insurance (PMI), which is an additional monthly fee paid by borrowers with a down payment of less than 20%. However, there are first time homebuyer programs that only require a 3% down payment, though they will also have PMI.

• FHA Loans: Designed for first-time homebuyers or those with lower credit scores, FHA loans allow a minimum down payment of 3.5%. However, they come with mortgage insurance premiums (MIP), which are similar to PMI but may differ in structure and cost.

Government-backed Loans:

• VA Loans: Offered to eligible veterans and active military personnel, VA loans require no down payment. These loans offer several benefits, including competitive interest rates and lenient credit score requirements.USDA Loans: Designed for rural areas, USDA loans can offer 0% down payment options for qualified borrowers meeting income limits.

• Qualifying for specific loan types: Certain loan programs, like FHA or VA loans, may have specific down payment requirements or limitations.

Tips for Determining Your Down Payment:

• • Consult a mortgage professional: They can analyze your financial situation and recommend a down payment strategy that aligns with your goals and affordability.
  • Consider using online mortgage calculators: These tools can help you estimate your monthly payments and potential savings based on different down payment scenarios.
  • Don’t deplete your emergency savings: While a larger down payment can offer benefits, it’s equally crucial to maintain a healthy emergency fund for unforeseen expenses.

Remember, the “ideal” down payment ultimately depends on your individual circumstances, risk tolerance, and long-term financial goals. By understanding the options available and seeking professional guidance, you can make an informed decision about the right down payment amount for your Nashville home purchase.

2. What are the current mortgage rates in Nashville? Rates are constantly fluctuating, so it’s crucial to stay updated. We recommend calling your loan advisor and asking to be put on their rate watch email or consulting a local mortgage lender like Accurate Mortgage for the most accurate and personalized rates.

3. Do I need to get pre-qualified before house hunting? Absolutely! In fact, you could say that it’s the most important point of our Nashville home buying guide. Prequalification gives you a clear picture of your affordability range, making your search more efficient and placing you in a stronger position when making offers. Once you know what your budget is, you can start searching for the perfect nashville home at sites like realtracs.com. Click here to start your pre approval process.

4. What type of mortgage is right for me? This depends on your individual circumstances. Let’s explore options like fixed-rate mortgages, offering stability with a constant interest rate.

Types of Mortgages

• Fixed-Rate Mortgages: These are the most popular choice for many and offer the greatest stability. Here are some common terms:
  • 15-year Fixed: A shorter term, ideal if you can afford the higher monthly payments to pay off your mortgage sooner and benefit from lower overall interest costs.

• • 30-year Fixed: This is the classic mortgage term with more manageable monthly payments compared to a 15-year. However, you’ll pay more interest over the longer term.FHA Loans: Backed by the Federal Housing Administration, they offer flexibility for buyers with lower credit scores and smaller down payments (minimum of 3.5%). Keep in mind that FHA loans typically come with mortgage insurance premiums.

• VA Loans: If you are an eligible veteran or active-duty military member, VA loans provide excellent benefits, including no down payment requirements and competitive interest rates.
• USDA Loans: Designed for those looking to purchase in designated rural areas, USDA loans can offer favorable terms and potentially no down payment requirements for income-qualifying borrowers.

How to Decide: Factors to Consider

• Long-term plans: If you intend to stay in your Nashville home for many years, a fixed-rate mortgage assures a predictable monthly payment and protection against interest rate hikes.
• Financial Situation: Assess your down payment capabilities, income stability, and credit score. These will impact your eligibility for specific loan types. Check your credit to buy a home in Nashville here.

Get Personalized Guidance

At Accurate Mortgage, we’re committed to navigating you through the wide range of mortgage options. Contact us at accuratemtg.com to explore the best fit for your Nashville homeownership dreams, whether it’s a fixed-rate mortgage or a government-backed loan.

5. What closing costs should I expect in Nashville? Nashville’s average home price in January 2024 was $570,00. Closing costs typically range from 2-5% of the loan amount and can vary depending on various factors. Ask your loan advisor for an estimated closing cost sheet upfront to avoid surprises.

Be a confident Buyer

Remember, a well-informed buyer is a confident buyer. At Accurate Mortgage, we’re dedicated to guiding you through the mortgage process smoothly and efficiently. This Nashville home buying guide is just the first step! Contact us today for a free consultation and let’s turn your Nashville homeownership dream into a reality!

#NashvilleHomes #NashvilleRealEstate #NashvilleMortgageLender #BuyingANashvilleHome #MortgageTips #FirstTimeHomebuyer #HomebuyingJourney #RealEstateInvesting #Homeownership

The post Nashville Home Buying Guide: Your Top Mortgage Questions Answered! appeared first on Accurate Mortgage Group.

BBB Rating and Reviews

Accurate Mortgage Group holds an A+ rating from the BBB, demonstrating their commitment to ethical business practices and customer satisfaction. Their BBB profile showcases a minimal number of complaints, each addressed promptly and professionally. This low complaint volume speaks volumes about Accurate Mortgage Group’s ability to resolve issues effectively.

Google Reviews

Accurate Mortgage Group maintains a 4.9 out of 5-star rating on Google, with over 200 customer reviews. This impressive rating reflects their consistent delivery of exceptional service and positive client experiences. Customers have praised the company’s knowledgeable loan officers, clear communication, and efficient loan processing.

Why Choose Accurate Mortgage Group?

Beyond their BBB rating and Google reviews, Accurate Mortgage Group offers several compelling reasons to consider them for your mortgage needs:

• Extensive Experience: With over 25 years of experience in the mortgage industry, Accurate Mortgage Group possesses the expertise to guide you through the homeownership process seamlessly.
• Diverse Loan Options: They offer a wide range of mortgage products to suit various borrower needs, including conventional, FHA, VA, USDA, and jumbo loans.
• Competitive Rates: Accurate Mortgage Group strives to provide competitive interest rates, ensuring that you get the best value for your mortgage.
• Streamlined Process: They prioritize efficiency and transparency, keeping you informed throughout the loan process and minimizing delays.
• Customer-Centric Approach: Their team of experienced loan officers is dedicated to providing personalized service and addressing your concerns promptly.

The Best Mortgage Company

Accurate Mortgage Group emerges as the top contender in the Nashville mortgage market, consistently garnering positive feedback from both the BBB and Google reviewers. Their strong rating, extensive experience, diverse loan options, competitive rates, streamlined process, and customer-centric approach make them a reliable choice for your mortgage needs. Whether you’re a first-time homebuyer or a seasoned homeowner, Accurate Mortgage Group is committed to helping you achieve your dream of homeownership. To find out why Accurate Mortgage Group can be the best mortgage company for you, visit them at accuratemtg.com or call (615) 833-0456.

The post Choosing the Best Mortgage Company: A Review of Accurate Mortgage appeared first on Accurate Mortgage Group.

Credit Score Ease: Your Key to the Easiest Mortgage

In the realm of mortgages, your credit score is the secret sauce. Aim for options like FHA loans, tailor-made for flexibility. With a potential qualification threshold as low as 580 and a minimal down payment of 3.5%, FHA loans make the journey to homeownership smoother for those with diverse credit histories.

Down Payment Assistance Programs: Your Financial Ally

Struggling with the upfront costs? Dive into the world of down payment assistance programs. These financial allies provide crucial support, offering assistance or low-interest loans to ease the burden of the initial investment, making your homeownership dreams more achievable.

FHA Loans: Simplifying the Mortgage Game

Ever heard of FHA loans? Think of them as the laid-back option in the mortgage world. Backed by the government, FHA loans are forgiving when it comes to credit scores and down payments. Boasting a minimum credit score requirement of around 580 and a down payment as low as 3.5%, they’re a hassle-free choice for aspiring homeowners.

VA Loans: A Salute to Simplicity for Veterans

If you’re a military veteran, VA loans are your ticket to a straightforward homeownership journey. Offering competitive interest rates and waiving the need for a down payment, these loans salute your service by simplifying the process. With a VA loan, your dream home might be closer than you think.

USDA Loans: Where Rural Living Meets Easy Mortgages

Dreaming of a home nestled in rural tranquility? USDA loans are your ticket. Designed for homes in designated rural areas, these loans require zero down payment. Ideal for those seeking simplicity in the mortgage process while embracing the charm of rural living.

Accurate Mortgage Can Help

In your quest for the easiest mortgage, finding the perfect fit is key. Explore options like FHA loans, dance with down payment assistance programs, salute to VA loans if you’ve served, and consider the USDA route for a simplified journey to homeownership.

Ready to dive into the mortgage world? Connect with Accurate Mortgage, where our expert Mortgage Loan Advisors specialize in simplifying the process for you. With their guidance, you’ll confidently navigate the maze, unlocking the door to your dream home with the easiest mortgage tailored to your unique situation. Start your homeownership journey with Accurate Mortgage today by calling (615) 833-0456 or visiting us at accuratemtg.com

The post Unlocking Your Homeownership Journey: Navigating the Easiest Mortgage Options appeared first on Accurate Mortgage Group.

Understanding Credit Scores

Before delving into the specifics of credit score requirements, it’s essential to understand the significance of credit scores in the mortgage application process. Credit scores, typically ranging from 300 to 850, provide lenders with an indication of your creditworthiness. The higher your credit score, the more likely you are to be approved for a mortgage with favorable terms.

Minimum Credit Score Requirements in Tennessee

While credit score requirements can vary among lenders, there are general guidelines that aspiring homebuyers in Tennessee should be aware of. In most cases, a minimum credit score of 620 is considered acceptable for conventional loans. However, some government-backed loan programs, such as FHA (Federal Housing Administration) loans, may have more lenient requirements, accepting credit scores as low as 500 with a larger down payment.

It’s important to note that meeting the minimum credit score requirement doesn’t guarantee loan approval. Lenders also consider factors such as your debt-to-income ratio, employment history, and overall financial stability when assessing your mortgage application.

Steps to Improve Your Credit Score

If your credit score falls below the desired threshold, don’t be discouraged. There are steps you can take to improve your creditworthiness and increase your chances of securing a home loan with better terms:

1. Check Your Credit Report: Obtain a copy of your credit report to review your credit history for inaccuracies. Dispute any errors you find with the credit bureaus.
2. Pay Your Bills on Time: Timely payment of bills, including credit cards, loans, and other debts, has a positive impact on your credit score.
3. Reduce Outstanding Debt: Aim to lower your overall debt, particularly credit card balances. This can positively affect your debt-to-income ratio.
4. Avoid Opening New Credit Accounts: Opening new credit accounts can temporarily lower your credit score. Focus on managing your existing accounts responsibly.

Your dream home awaits

In Tennessee, as in many parts of the country, a solid credit score is a key factor in securing a home loan. By understanding the minimum credit score requirements and taking steps to improve your creditworthiness, you can improve your chances of successfully navigating the homebuying journey. Remember that consulting with an Accurate Mortgage  Loan Advisor and exploring various loan programs can provide you with tailored advice based on your unique financial situation.Your dream home awaits, and Accurate Mortgage is here to help you turn that dream into a reality.

Visit us online today or give us a call today at (615) 833-0456!

The post Your Home Buying Journey: Minimum Credit Score Requirements for Home Loans in Tennessee appeared first on Accurate Mortgage Group.

But how do the Joneses keep doing it year after year? And what will it take to throw your name into the tall red hat for the most festive homeowner? 

At Accurate Mortgage, we know how much pride you take in your home and in the holidays. That’s why we’re dedicated to giving you an edge with these top trends in holiday decor.

Go Big

For the last decade or so, going big during the holiday season meant having the largest, loudest, most hard-to-ignore inflatable on your lawn. But playing by the old rules limits your margin for victory. This year, there’s a new king in outsized holiday decor: massive ornaments.

As bright and inviting as their tree-bound counterparts, these gigantic lawn ornaments make the kind of wonderland statement that turns heads and inspires awe among the ranks of the homeowners association. One giant ornament is enough to set your lawn apart from the pretenders, but two or three arranged together can put your house on the map for the traditional cruise around the subdivision.

Diversify Your Light

Trying to win the holiday season with more string lights turns the contest into a game of numbers. Your neighbor puts up 600, so you put up 800. Meanwhile, a guy down the street puts up 1,200 string lights and you’re suddenly out of the running. It’s time to diversify your lighting methods by introducing a little chaos into the certainty of your rivals.

Why limit your light sources when you could incorporate projectors instead? Full of preprogrammed light shows, animation, numerous festive patterns, and smart app capabilities, holiday projectors liberate festive lights from eaves and gutters for a more alluring holiday spectacle! 

Light up the front of your house like the arctic sky itself with only a carefully concealed tripod this holiday season.

LED Sculptures

While bright sculptures may feel like a step behind inflatables, recent advancements in LED technology and a new range of options make this trend worth returning to. A few years ago, you’d be lucky to find anything more than a wicker deer lifting and lowering its head. These days, LED sculptures come in all shapes and sizes.

From twinkling, LED willow trees to playful penguins, Santa’s sleigh to candy-striped signs, there are hundreds of ways to make your LED sculptures feel personal, powerful, and provocative. Find LED sculptures to fit your region, hobbies, sports fandom, and more this holiday season! The more personal your decorations are, the more they’ll get noticed!

Keeping the Holidays Bright

After spending more time than usual in our homes these last two years, it’s time to turn those homes into beacons of hope. After all, during the holiday season, “winning” means simply “giving back”. Together, we can be a part of the magic that holds communities together and inspires wonder in all.

Up your holiday decorating game this season and watch your neighborhood transform into a winter wonderland!

Upping your holiday decorating game with Accurate Mortgage

At Accurate Mortgage, we know firsthand the pride homeowners have. Homeownership is absolutely something to be proud of and decorating for the holidays makes the magic of homeownership accessible to everyone. To get into a home of your own by the next holiday season, contact Accurate Mortgage for lending and refinancing options! Visit us online to get your mortgage rate quote or give us a call today at (615)833-0456!

The post Decorating to Dazzle the Neighborhood: What Homeowners Have Done for the Holidays appeared first on Accurate Mortgage Group.

Regular listeners of Heino’s Home Show know that listener questions range from small decisions about renovations to huge concerns about refinancing, forbearance, and monthly mortgage commitments. This week’s listener questions are certainly no different! 

Second Home with VRBO Income

Janet from Spring HIll asks:

“I plan to buy a 2nd home that currently has VRBO income, which I plan to continue. Can I buy that as a 2nd home or can I purchase it as an investment property?”

Yes, you should be able to buy that as a second home instead of an investment property as long as a couple of guidelines are met. First, you cannot use the VRBO income in order to qualify for the loan. Secondly, the rental must not be under the exclusive control of another entity, like a management company, for example.

Forbearance

Allen in Mt. Juliet asks:

“My loan was in forbearance, and then I got a loan modification at the end. Can I refinance?”

This one is a bit tricky, so let’s step back and discuss forbearance for a minute. During the COVID pandemic, homeowners who were having difficulty making their mortgage payments were given the option of pausing their payments, otherwise known as forbearance.

What happens when you come out of forbearance depends on a few things. For example, if you continued to make your payments even during the forbearance period, you are clear to refinance immediately.

Alternatively, if you didn’t make payments during the forbearance period, then you won’t be able to refinance until three on-time payments have been made post forbearance.

Most lenders offered a few options to catch up on the payments that were missed during the forbearance period. You could pay it back in a lump sum, or you could increase your monthly payment by an agreed upon amount until the missed payments were caught up.

However, many lenders offered a third option: the missed payments could be added to the balance of the loan, thus modifying the original loan terms. In most cases, the other terms of the loan stay the same with the exception that the loan balance is now higher.

If this last option is what you did, then yes you may be able to refinance as soon as you have made three on-time payments at the end of the forbearance period.

So, since there are multiple answers to your question, it would be a good idea for you to contact a mortgage professional at Accurate Mortgage to discuss the specifics of your situation.

Truck Driving Income

Adam in Nashville asks:

“I’m a truck driver and I get paid by the hour. I’ve been offered a new position, but I will be paid by the mile. Can I still buy a house?”

Yes, you can still buy a home, but you might have to wait a while. When you’re paid by the hour, that’s considered predictable income. But when you’re paid by the mile, that’s considered variable income. 

Mortgage guidelines want to see a track record, a history of how much you end up actually earning when you’re paid by the mile. They’re going to require you to be paid by a mile for a year before you can use that income in order to qualify. It might be wiser to buy the house first and then switch jobs for the by-mile rate. 

Answering Your Questions

Have you got a simple or complex question about home ownership that you’d like answered? Call into Heino’s Home Show and your question may be featured in the upcoming podcast! Email your questions to heino@heinoshomeshow.com and your question could be featured on Heino’s Home Show, heard Sundays 5pm to 6pm on 99.7 WTN. You can also catch up on past episodes on the Heino’s Home Show podcast page (link) or wherever you listen to podcasts, including Apple Podcasts, iHeart, Spotify and Google Podcasts.

Accurate Mortgage is here to help you with purchasing a 1st or 2nd home, in addition to refinancing and more. For questions, applications, or anything else, visit our website or give us a call today.

Listening, Answering, Helping—Accurate Mortgage

Mortgage lending, refinancing, forbearance, and renovations/additions can be hard to understand in the context of home ownership. If you have questions, or are looking to borrow or refinance, we can help. Visit us online to get your mortgage rate quote or give us a call today at (615)833-0456!

The post Answering Listener Questions – Responding to You appeared first on Accurate Mortgage Group.

These days, purchasing a home in America can make us feel like pawns in a game played by nations, our fates resting on the movements of the market and the greater housing industry. But it doesn’t have to be as faceless and daunting as all that. 

In a sea of quick loan apps, foreign investment groups, and hedge funds, there are still some mortgage lenders who strive to put families in the homes they need—not as part of an ongoing lending portfolio, but simply as a solid business with an interest in people. Accurate Mortgage is one such lender, dedicated to helping you afford the home you need.

Here’s just a little bit of what makes Accurate Mortgage different, personal, and ideal for all your mortgage and refinancing needs.

We’re Right Here

When you sign up for a mortgage or refinancing loan through that popular app, where is that money coming from? Where is your lender located? What’s the name of your contact? While the digital age has made lending more accessible, it’s also estranged those lenders from our community, state, region, or country.

Accurate Mortgage is a Tennessee-based lender serving both local and regional residents, including those in Alabama, Florida, Kentucky, and Georgia. You don’t need a globe to find us and you don’t need a long, foreign telephone number to reach out. We’re your friends, neighbors, cousins, and uncles. Best of all, we’re only a phone call away.

We’ll Respond

One major benefit of being a domestic mortgage and refinancing lender is that our clients come from our very own community. Far from the emails, PDF agreements that have to be digitally signed, etc., etc., we can and often do meet our clients at nearby cafes to discuss their individual needs and see how we can help. 

If you have a question about your loan, you can simply unlock your phone and give us a call. We’ll probably even pick up on a weekend if we can—anything to help out or put you at ease about your prospects on that dream home or family starter.

We’re Dedicated

How many hands do you think your mortgage application passes through when you send it via app, website, or investment group login? Who do you call if your resources suddenly change or if an emergency situation leads to a drastic change of plans? At Accurate Mortgage, you won’t have to go Googling to find the right person to speak to. Our dedicated loan advisors are with you every step of the way. 

When you apply through Accurate Mortgage, you’ll get to know your advisor on a first-name basis. They’ll be with you from start to finish and available to help with anything thereafter. This personal touch may seem quaint in the digital age, but it makes all the difference in the world to our customers and, frankly, to us.

We Want to Help You

Whether you’re looking to purchase a first, second, or even third home, or if you’re looking to refinance your current home to bridge a sudden financial gap, Accurate Mortgage is here to help. As your personal mortgage and refinancing lender, we offer guidance that you can trust just a short drive away. 

Before committing yourself to the same digitized experience millions of homeowners take as default, give Accurate Mortgage a call. For peace of mind, human expertise (as opposed to algorithms), and a lender from your very own region or community, try Accurate Mortgage first.

We’re run by people, for people. No WiFi connection necessary. 

Accurate Mortgage is here for you.

There’s no denying that the housing market is hotter than an oiled skillet right now, but that shouldn’t keep you from receiving the funds you need to get into the home you want. At Accurate Mortgage, we’ll help you find the perfect home in your price range. Our dedicated lenders are committed to helping you succeed and thrive at this complicated moment. Visit us online to get your mortgage rate quote or give us a call today at (615)833-0456!

The post The Accurate Mortgage Difference – Personal Lending, Life-Changing Results appeared first on Accurate Mortgage Group.

What Is a VA Mortgage Loan?

In 1944, as a way to assist those returning from military service, a program was created by the U.S government to help veterans buy a home without having to come up with a 20% down payment or having great credit. The program has helped millions of active and veteran members of the military to buy and refinance a home.

A VA mortgage lets you make a 0% down payment and is issued by private lenders, like banks and mortgage brokers. The loans are guaranteed by the United States Department of Veteran Affairs. These loans differ from a traditional mortgage loan in a few ways:

• VA loans require 0% down and traditional loans require 20%
• VA loans don’t require private mortgage insurance; traditional mortgages do if making less than the 20% down payment
• VA loans tend to offer more competitive rates than traditional loans because they are considered less of a risk
• It’s usually much easier to qualify for a VA loan due to the less stringent qualification requirements

Fees and Regulations 

Those who qualify for full VA loan entitlement are able to borrow what a lender offers without having to pay the down payment. There are some limits, however, for those who don’t have full entitlement. This usually occurs when they already have an active VA loan or have lost a loan due to foreclosure.

There is also a funding fee, which gets put back into the VA’s funds to help this program to keep running for generations to come. This fee will vary depending on your circumstances. If you are applying for a VA loan for the first time, you will usually pay a 2.3% funding fee of the home’s purchase price. Those who have applied before will usually pay 3.6%. Those with a disability that is connected to their military service won’t have to pay this fee. The funding fee can be calculated into the mortgage amount.

There is also a limitation to closing costs, with sellers paying all or most of the expenses. This means that, when it comes time to close, you won’t have any money still due to be paid.

Eligibility Requirements for a VA Loan

For you or your spouse to qualify for a VA loan, you need:

• To meet the service requirements set out by the VA
• To have a valid COE (Certificate of Eligibility)
• To satisfy the requirements of the lender

Service Requirements

You need to meet one of the following requirements set out by the VA:

• You have been in active service for 90 consecutive days during wartime
• You have been in active service for 181 days during peacetime
• You have served 6 years in either the Reserves or National Guard
• You are the spouse whose partner has died while serving or has become disabled as a result of their service

COE

The Certificate of Eligibility lets the lender know that you are eligible for a VA loan. Lenders can usually find this out through the VA automated system, which means you don’t need to have it on hand before you submit your application. A CEO can be requested electronically and is an important part of the VA mortgage process. You can obtain a COE by:

• Applying for a mortgage using a VA approved lender
• Applying through the VA eBenefits site online
• Filling out a VA Form 26-1880 and applying by mail

You will also need proof of service to acquire your COE. This can be done using a DD form if you are regular military, NDB Form 22 for National Guard Service, and NGB Form 23 for the Reserves. There are documents that you will need with your application:

Lender Requirements

Lastly, you need to meet the lender’s requirements, such as your credit score, debt level, and income. You also need to have the property checked by an appointed VA appraiser.

If you have questions about applying for a VA loan, give our Tennessee mortgage lender team a call today at (615) 833-0456!

The post Your Guide to Qualify for a VA Loan appeared first on Accurate Mortgage Group.