|
|
Founded in 1998, Costa Mesa, California-based Americash Mortgage serves as one of the country’s leading residential mortgage lenders, with a license to operate in 21 states. By conducting its business primarily over the Internet, Americash Mortgage saves on advertising and brick-and-mortar locations, savings the company returns to consumers in the form of more competitive mortgage rates. Whether a customer shows interest in purchasing a new home, refinancing an existing mortgage, investing in home improvements, or consolidating debt, Americash Mortgage works to find the best loan package for their needs. Thanks to its status as a direct lender with no brokerage operations, Americash Mortgage also offers an ideal venue for customers who might have problems qualifying for a loan elsewhere, including those who are self-employed, have a poor credit history, or currently possess a high debt-to-income ratio. The process of applying for an Americash Mortgage loan consists of six important steps. First, customers should organize their documents, including two years of prior tax returns and W-2s, the last three consecutive paycheck stubs, and bank statements for all their accounts. This data is necessary for the second step, the pre-approval process, which involves verification of income, credit, assets, and liabilities. Once pre-approved, the customer will know the maximum amount they are qualified to borrow. Thus the client now has a price range in which they can use to shop for a affordable new home. This allows the closing to occur more quickly once the client finds an appropriate property. The third step is to evaluate different loan programs. Americash Mortgage works to determine which program is best for the customer’s budget and the amount of time they plan to keep the home. The fourth step involves the application for the desired loan, which leads to the fifth step, Americash Mortgage approving of the full loan. If the loan receives approval, the customer can proceed to the sixth step, closing the loan. The mortgage process is then complete, and the new home can be purchased.
Documents
-
The Federal Housing Administration
 The official logo of the Federal Housing Administration, a government agency
Americash Home Loans holds licenses as a direct lender in 21 states and has earned the approval of the Federal Housing Administration (FHA). First founded as part of the National Housing Act of 1934, the FHA is an American government agency that strives to keep the mortgage market stable, support the domestic home financing system, and improve American standards for housing. The FHA was incorporated into the Department of Housing and Urban Development (HUD) in 1965. The FHA currently carries a portfolio of almost 5 million insured mortgages for single families, and another 13,000 insured multifamily projects. Since the FHA began operations in 1934, the FHA and HUD together have insured more than 34 million home mortgages and more than 47,000 mortgages for multifamily projects. In order to qualify for an FHA loan, an individual must meet a set of requirements which include a history of continued employment with two or more years at the current workplace; no foreclosures within the last three years; steady or rising income over the last two years; and a suitable credit report with no more than one 30-day late payment in the last two years. In addition, no mortgage seeker may be approved for a mortgage in which the monthly payment is more than 30 percent of his or her gross monthly income. The FHA currently maintains a variety of programs involved in single-family housing. The new PowerSaver Pilot program, announced by HUD Secretary Shaun Donovan and U.S. Vice President Joe Biden near the end of 2010, offers low-cost loans for home improvements that create increased energy efficiency. This program is only available to credit-worthy applicants. The FHA also offers the Emergency Homeowners Loan Program, which received an initial $1 billion from the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The FHA also works to increase its support for multifamily housing projects. One multifamily program, the Rental Housing Integrity Improvement Project (RHIIP), was created to help make sure that rental assistance funds available through HUD end up with appropriate recipients.
-
Americash Mortgage Bankers: Pros and Cons of Choosing Points Versus Rates for Your Home Loan
At Americash Mortgage Bankers, our customers are sometimes unsure whether to accept a higher interest rate or take a lower rate and pay points instead. Following is a brief discussion of the pros and cons of points versus rates to help guide you in making the right decision for your financial situation.
In essence, points consist of pre-paid interest on your mortgage. Usually, 1 point equals 1 percent of the home’s value. Therefore, on a $200,000 home, a point would cost $2,000. The buyer pays that amount to the lender, and in exchange the lender reduces the interest rate on the loan.
Over a long period of time, points usually pay off. If you are planning to keep your home for over five years, then points make financial sense as you will be saving on your monthly payments and will pay much less interest over the course of the loan than you would otherwise.
However, over the short term, it makes more sense to take the higher interest rate without points. If you are planning to sell the home in less than five years, then the points will not be recouped in savings by the time you sell the house.
In many cases, the decision of whether or not to pay points comes down to your financial picture. If you have a longer-term perspective and possess the funds, points can significantly decrease your mortgage obligation. Alternatively, if you are a fairly shrewd investor and comfortable with higher risk, it may be possible to take the money you would have placed into points and invest it into another vehicle with the potential for greater long-term profits. However, this approach is not for everyone, and you run the risk of losing your investment, unlike with points.
Once you understand the benefits and drawbacks of points as well as the details of your mortgage agreement, make your decision based on what you can afford and your personal investing style.
|
