5 Common Mistakes that Borrowers Should Avoid

It’s is very common for Mortgage Loan Originators to provide inaccurate credit tips when working with their borrowers.

 

So we put together a list of things NOT to do when trying to improve a borrowers credit.

 

Don’t do these things:

 

1. Don’t Pay Off Collections or “Charge Offs”. If you want to pay off old accounts, do it through escrow, making sure that the debt is yours. Request a “letter of deletion” from the creditor.

 

2. Don’t Close Credit Card Accounts or it may appear that your debt ratio has gone up. It also affects other factors in the score, including credit history.

 

3. Don’t Max Out or Over Charge Credit Card Accounts. Keep your balances below 40% of their limit during the process. Pay down balances if possible.

 

4. Don’t Consolidate Your Debt. When you consolidate all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.

 

5. Don’t Do Anything That Will Cause A Red Flag To Be Raised By The Scoring System. This includes adding new accounts, co-signing on a loan or changing your name or address with the bureaus.

 




Reverse Mortgage Counseling – Common Questions

Reverse Mortgages require the applicants to go through HUD-Approved counseling before your approval can be issued. Here are the most common questions we hear, and our responses:

  • “Which counselor should I choose?” – A list of HUD-approved, third-party counselors near your area will be provided to you. You may contact any of the eligible counselors on this list to schedule a session.
  • “Do I have to go somewhere in person?” – In most states, including Colorado, counseling can be done on the phone. The session will last about an hour.
  • “Why is counseling necessary?” – Educational counseling is a requirement of the U.S. Department of Housing and Urban Development. This is done to ensure that borrowers are well-informed about the reverse mortgage.

To learn more about Reverse Mortgages, or apply quickly, give us a call or shoot us an email to info@cmglending.com

 




Colorado Mortgage Group can now offer $679,650 Conventional High-Balance loan program

On March 1st, 2018, Colorado Mortgage Group will offer conventional high-balance loans in Colorado, providing access to a more cost-effective loan product in areas that previously lacked high-balance loans.

Currently, only 7% of U.S. counties (220 out of 3,234) have access to loan amounts over $453,100, through FHFA conforming loan limits, with the most expensive areas going up to $679,650. For the rest of the country, the only option is a true jumbo loan, which comes with higher fees, additional guideline requirements and stringent overlays.

We are filling this gap by offering a conventional high-balance loan program that covers every county in Colorado. The program gives consumers access to a $679,650 loan amount, competitive rates, a streamlined underwriting process and the accessibility of an $849,570 purchase price with a 20% down payment.

With lower rates, more flexible guidelines and fewer requirements than jumbo, Conventional High Balance is popular with many lenders.

Guidelines of this High-Balance Colorado Loan include:

  • 680 minimum FICO
  • 43% debt-to-income
  • 80% loan-to-value
  • Primary and second homes
  • Average turnaround time of 15 days or less from submission to closing

Some areas of Colorado have an average purchase price well above the Conforming loan limits and High-Balance Loan Limits. Jumbo loans often have more rigorous requirements than conventional loan limits. This is a great opportunity for home-buyers who might otherwise not be able to qualify for a home loan.




2018 VA Loan Limits in Colorado

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment. These loan limits vary by county, since the value of a house depends in part on its location.

The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to 4 times a Veteran’s available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price.

VA county loan limit:

  • VA’s 2018 Loan Limits are the same as the Federal Housing Finance Agency’s limits
County Name 5-Digit County Code 2018 Loan Limit
1 Unit
2018 Loan Limit
2 Unit
2018 Loan Limit
3 Unit
2018 Loan Limit
4 Unit
ADAMS 08001 $529,000 $677,200 $818,600 $1,017,300
ALAMOSA 08003 $453,100 $580,150 $701,250 $871,450
ARAPAHOE 08005 $529,000 $677,200 $818,600 $1,017,300
ARCHULETA 08007 $453,100 $580,150 $701,250 $871,450
BACA 08009 $453,100 $580,150 $701,250 $871,450
BENT 08011 $453,100 $580,150 $701,250 $871,450
BOULDER 08013 $578,450 $740,500 $895,100 $1,112,400
BROOMFIELD 08014 $529,000 $677,200 $818,600 $1,017,300
CHAFFEE 08015 $453,100 $580,150 $701,250 $871,450
CHEYENNE 08017 $453,100 $580,150 $701,250 $871,450
CLEAR CREEK 08019 $529,000 $677,200 $818,600 $1,017,300
CONEJOS 08021 $453,100 $580,150 $701,250 $871,450
COSTILLA 08023 $453,100 $580,150 $701,250 $871,450
CROWLEY 08025 $453,100 $580,150 $701,250 $871,450
CUSTER 08027 $453,100 $580,150 $701,250 $871,450
DELTA 08029 $453,100 $580,150 $701,250 $871,450
DENVER 08031 $529,000 $677,200 $818,600 $1,017,300
DOLORES 08033 $453,100 $580,150 $701,250 $871,450
DOUGLAS 08035 $529,000 $677,200 $818,600 $1,017,300
EAGLE 08037 $636,150 $814,500 $984,525 $1,223,475
ELBERT 08039 $529,000 $677,200 $818,600 $1,017,300
EL PASO 08041 $453,100 $580,150 $701,250 $871,450
FREMONT 08043 $453,100 $580,150 $701,250 $871,450
GARFIELD 08045 $679,650 $870,225 $1,051,875 $1,307,175
GILPIN 08047 $529,000 $677,200 $818,600 $1,017,300
GRAND 08049 $453,100 $580,150 $701,250 $871,450
GUNNISON 08051 $453,100 $580,150 $701,250 $871,450
HINSDALE 08053 $453,100 $580,150 $701,250 $871,450
HUERFANO 08055 $453,100 $580,150 $701,250 $871,450
JACKSON 08057 $453,100 $580,150 $701,250 $871,450
JEFFERSON 08059 $529,000 $677,200 $818,600 $1,017,300
KIOWA 08061 $453,100 $580,150 $701,250 $871,450
KIT CARSON 08063 $453,100 $580,150 $701,250 $871,450
LAKE 08065 $625,500 $800,775 $967,950 $1,202,925
LA PLATA 08067 $453,100 $580,150 $701,250 $871,450
LARIMER 08069 $453,100 $580,150 $701,250 $871,450
LAS ANIMAS 08071 $453,100 $580,150 $701,250 $871,450
LINCOLN 08073 $453,100 $580,150 $701,250 $871,450
LOGAN 08075 $453,100 $580,150 $701,250 $871,450
MESA 08077 $453,100 $580,150 $701,250 $871,450
MINERAL 08079 $453,100 $580,150 $701,250 $871,450
MOFFAT 08081 $453,100 $580,150 $701,250 $871,450
MONTEZUMA 08083 $453,100 $580,150 $701,250 $871,450
MONTROSE 08085 $453,100 $580,150 $701,250 $871,450
MORGAN 08087 $453,100 $580,150 $701,250 $871,450
OTERO 08089 $453,100 $580,150 $701,250 $871,450
OURAY 08091 $453,100 $580,150 $701,250 $871,450
PARK 08093 $529,000 $677,200 $818,600 $1,017,300
PHILLIPS 08095 $453,100 $580,150 $701,250 $871,450
PITKIN 08097 $679,650 $870,225 $1,051,875 $1,307,175
PROWERS 08099 $453,100 $580,150 $701,250 $871,450
PUEBLO 08101 $453,100 $580,150 $701,250 $871,450
RIO BLANCO 08103 $453,100 $580,150 $701,250 $871,450
RIO GRANDE 08105 $453,100 $580,150 $701,250 $871,450
ROUTT 08107 $625,500 $800,775 $967,950 $1,202,925
SAGUACHE 08109 $453,100 $580,150 $701,250 $871,450
SAN JUAN 08111 $453,100 $580,150 $701,250 $871,450
SAN MIGUEL 08113 $625,500 $800,775 $967,950 $1,202,925
SEDGWICK 08115 $453,100 $580,150 $701,250 $871,450
SUMMIT 08117 $625,500 $800,775 $967,950 $1,202,925
TELLER 08119 $453,100 $580,150 $701,250 $871,450
WASHINGTON 08121 $453,100 $580,150 $701,250 $871,450
WELD 08123 $453,100 $580,150 $701,250 $871,450
YUMA 08125 $453,100 $580,150 $701,250 $871,450



CHFA SmartStep Program

CHFA SmartStep Program

CHFA SmartStep purchase mortgage program is open to home-buyers that have a mid credit score of 620 or higher. This program features CHFA’s lowest mortgage interest rate.  It features FHA, VA, and USDA Rural Development. If you qualify, you may also pair CHFA SmartStep with CHFA’s down payment and closing cost assistance programs.  You may also add a CHFA Statewide Mortgage Credit Certificate (CHFA MCC) for an annual tax credit. Continue reading




CHFA Advantage

CHFA Advantage

Do you have a minimum mid credit score of 680? It could be possible for you to purchase or refinance with a 30-year fixed rate mortgage with only 3 percent down and no mortgage insurance.  On a traditional loan borrowers would need to contribute 20 percent down to avoid paying for costly mortgage insurance (MI). Continue reading




CHFA Preferred Loan Program

​With CHFA Preferred, you could save money up front and throughout the life of your loan with a lower down payment requirement and lower monthly mortgage insurance payments than similar programs in the market.

The CHFA Preferred loan may be paired with CHFA’s down payment and closing cost assistance programs.

 ​​​Benefits

​CHFA Preferred offers the following unique benefits:perferred photo

  • Only 3 percent down payment requirement (similar conventional programs require 5 percent)
  • An optional CHFA Down Payment Assistance Grant (CHFA DPA Grant) to help cover down payment, closing costs, and/or prepaids
  • Reduced-cost mortgage insurance
  • The possibility to cancel your monthly mortgage insurance payments once you reach 80 percent loan-to-value (competing FHA mortgage programs do not allow the same flexibility)
  • Eligible homebuyers may also be able to increase their savings with a CHFA Mortgage Credit Certificate (CHFA MCC​).

CHFA Preferred Qualifications

​Applicants must meet the following minimum criteria:​

  • Have a mid credit score of 620 or higher
  • Meet income limits​​​
  • Complete a CHFA-approved homebuyer education class prior to loan closing
  • Contribute a minimum of $1,000 toward the transaction

Looking to the Future

Want help or advice to start moving forward into a new home, we would love to help at Colorado Mortgage Group. Call today at (303) 444-5251 or email us at Info@cmglending.com.