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Utah Million Mortgage Loan
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Utah Million Mortgage Loan - $1MM to $40 Million Mortgage loan products are very popular in Utah, especially amongst borrowers seeking to purchase or refinance luxury real estate or vacation or investment / rental properties in areas such as Park City.Due to the large number of mortgage options it is important to consult with a professional regarding your Utah mortgage loan to ensure that you have a mortgaeg loan that is suited for your individual needs.
Conforming Loans - Conventional home mortgages eligible for sale and delivery to either the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC). These agencies generally purchase first mortgages up to loan amounts mandated by Congressional directive
Conforming loan size limits make these mortgages unavailable to many residents of higher cost states such as California, New York, New Jersey, Connecticut, Colorado, Arizona, Nevada, Florida, Maryland, Washington DC, and Washington. Borrowers in these states increasingly require non-conforming jumbo or super jumbo loans.
Conforming loans go can be approved through a process called automated underwriting. Typically these types of loans will require a credit score of 620+ but because there is a sophisticated formula used in the computation that takes into account compensating factors like assets and cash reserves, it is wise to have your broker try to approve it thorough automated underwriting even if your score is below 620.
The other possibility is an FHA loan. The credit limitations are less stringent and the rates are often better than even conforming loans.
Conforming loans are less than $417,000. They generally have a lower rate than loans above that amount which are called non-conforming, or jumbo.
"Conforming mortgages" as they are called consists of all home mortgages that meet the underwriting requirements of the portfolio and government sponsored enterprises.
The $57,350 increase in conventional loan limits comes at an opportune time, as the interest rates have been creeping up since last August. A 30 year conforming loan at 6.25% versus a non-conforming (jumbo) loan at 6.75% would increase the monthly payment by $138.
These loans offer the best rates for borrowers. You do not need perfect credit to qualify and they also will take very high debt to income ratios, sometimes as high as 65%.
Another factor of conforming loans is a persons credit history. Government Sponsored Entities such as FNMA have credit history standards for credit depth, timely payments, trade line diversification, and risk scores.
With the use of automated underwriting, many loans that might not have been approved as a traditional conforming loan, can be approved as a conforming (A paper) loan with the assistance of compensating factors such as: low debt to income ratio's, low loan to value, low mortgage terms (10 year, 15 year, 20 year), and/or lots of verifiable liquid assets (checking, savings, mutual funds, 401k's, etc...). Any combination of these compensating factors may be what it takes to give your loan that little extra something to qualify you for that conforming rate you desire. An experienced mortgage broker will generally have the knowledge and resources to provide you with the best opportunities and automated underwriting engines available to qualify you for a conforming loan and get you the best mortgage rates available.
Conforming loans are typically what brokers refer to as A paper loans for A borrowers.
Conforming loan amount limits may change from year to year. As of 2006 the conforming loan amount limit is $417,000.00 anything over that amount is usually considered a jumbo loan.
Besides setting the Conforming Loan Limits, Fannie Mae (FNMA) and Freddie Mac (FHLMC) also limits the type of homes used as collaterals for Conforming Loans. For a loan to be Conforming (eligible for delivery to Fannie Mae and Freddie Mac), the property used to secure the mortgage has to be a Single Family Residence, 2 family, 3 family, 4 family residence, condominium, cooperative, or Planned Unit Development. Loans that are secured by Mixed-use (residential homes with a commercial unit) and properties with more than four units are considered Non-conforming.
Conforming loans are the lowest available interest rates for home financing.
Mortgages of $650,000 or more are considered super jumbo mortgages. While jumbo mortgages are only slightly more difficult to obtain than conforming mortgages, there are very few lenders and sources of funding for super jumbo mortgages. Working with a company specialized in super jumbo mortgage financing ensures that your high value refinance or purchase mortgage transaction will have a positive outcome.
Single-Family Mortgage Conforming Loan Limits effective January 1, 2006:
First mortgages
•One-family loans: $417,000
•Two-family loans: $533,850
•Three-family loans: $645,300
•Four-family loans: $801,950
One- to four- family mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher than the conforming limits for the rest of the country.
Conforming limits for second mortgages
•$208,500
•In Alaska, Hawaii, Guam, and the U.S. Virgin Islands: $312,750
Loan amounts higher than conforming loan limits are considered jumbo loans.
Conforming loans are easier to sell to investors.
Negative Amortization Loan - Negative Amortization Loan programs, which were once available to only the wealthiest of a banks customers due to their ability to allow borrowers to defer interest, are now being marketed to more "conventional" self employed borrowers, business owners, and beneficiaries of passive income, investment income, rental income or even substantial bonus or commission income.
When they were originally introduced, negative amortization loan programs were marketed under names such as "deferred interest mortgage" or "payment cap ARM", which very accurately reflect the nature of these "neg-am" mortgages, which are very powerful tools intended for homeowners with a certain degree of financial sophistication. While reverse mortgages are one type of negative amortization loan, the sort which have received the most press and the widest number of names are the so called "pay option" negative amortization loan program, which allows borrowers to choose each month whether or not they will defer or pay down the interest due on their mortgage.
As negative amortization loans have entered the mainstream in recent years, they have shed their "technical" sounding names and have been marketed to consumers under a nearly countless number of different monikers.
Here is a list of some of the most popular names for negative amortization loan programs, compiled by mortgage professionals from across the industry, although no opinions are expressed or implied about these loans or the companies who market them. This is just a list of names for nagative amortization loan programs:
The negative amortization loan may increase your principal balance when your monthly payment is below the interest accrued on your loan that month.
Minimum Payment Option
Investor Loan
Minimum Payment Option ARM
Deferred Interest Loan.
GPM
Fixed Negative Amortization Loan
Graduated Payment Mortgage
OptPay ARM
1% Loan
1-1 Buydown (no negative amortization if buy down account is fully funded)
Option Payment
Scheduled Negative Amortization Loan
Fixed Rate Pick a Pay
Equity Builder
Neg-Am Loan
0.25% Option ARM
Interest Only (misnomer)
Quicken Smart Loan
Fixed Pick a Pay
Pick Your Payment
Secure Advantage
Deferred Interest Mortgage
Minimum Payment Loan
Pay Option
Negative Mortgage
1% Mortgage
Cash Flow Advantage
Cash Flow Construction Loan
Pay Option ARM
Fixed Option ARM
Power Option ARM
Flex Option
Flex Pay Option
Negative Amortization Mortgage
NegAm Home Loan
Cash Flow ARM
Flex 5
Secure Advantage
Payment Cap ARM
5 Year Fixed Pay Option
30 Year Fixed Rate Option ARM
Pick a Pay
Pick a Payment
Smart Choice
Smart 30 Mortgage
1 Month MTA
1 Month ARM
Self Employed Cash Flow Loan
Investor ARM
12 MAT Mortgage
Lower Than Interest Only
Managed Mortgage Amortization Loan
Pay Advantage Plus
MTA Option ARM
Fixed Rate Option ARM
Fixed Pay Option
Power Fixed 30
COSI ARM
One Percent Mortgage
Payment Advantage Mortgage
Deferred Interest Home Loan
3-2-1 Buydown (no negative amortization if buy down account is fully funded)
Reverse Mortgage
Monthly Adjustable Rate Mortgage
FlexPay
2-1 Buydown (no negative amortization if buy down account is fully funded)
Flexible Payment Loan
Negative Equity Loan
5 Year Cashflow Loan
Option ARM Loan - Option ARM mortgages, which allow borrows to defer or prepay interest at will by offering four monthly payment options, are known and marketed under a variety of names:
The following is an attempt to assemble a rather exhaustive list of all the names by which Option ARM mortgages and other mortgages with payment options are known:
5 Yr Hybrid Option Arm
5 Yr Fixed Option Arm
1 Month Option ARM
Flex 5
Neg Am Loan / NegAm Mortgage
Adjustable Rate Option ARM
Option Plus Loan
An Option ARM Loan may increase your principal owed due to negative amortization when the monthly payment is less than the interest accrued for the month. The loan will usually be recast when the pricipal rises to 110% of the beginning principal balance.
GPM
NegAm
Pay-Option ARM
If you are considering one of these loans, make sure you are living in an area with moderate gains and not using the minimum payment option every month because if you are making only a minimum payment you could possibly lose some of your equity due to negative amortization.
Hybrid ARM
Quicken loans smart choice loan
Pick A Payment
Flex Pay Option
Minimum Payment Option Mortgage
Pick Your Payment
Fixed Rate Pay Option
Power Option
Payment Advantage Mortgage
Cash Flow ARM
Cash Flow Option Loan
Negative Amortization Mortgage
Fixed Option ARM
COFI ARM
30 Year Fixed Option ARM
Quicken buyers advantage loan
Hybrid Option Arm
The Secure Option Arm
PayOption
Negative Mortgage
1 Month MTA Option ARM
Payment Option ARM
Secure Advantage Loan
Smart 30 Mortgage
Investor ARM or Investment ARM
COSI ARM
Deferred Interest Mortgage
Pay Option ARM
Option ARM
Fixed Rate Pick a Pay
1% Mortgage
One Percent Mortgage Solution
COFI, COSI, CODI ARM
Even thought the option ARM mortgage has many different names it is still essentially the same product from lender to lender.
Pick A Pay
30 Year Flex Pay Plus
Option ARM - Option ARM is a general term used to describe mortgages which allow borrowers to choose from multiple payment options every month. While Option ARM mortgages go by many names, they have one feature in common:
The Minimum Payment Option
By including a Minimum Payment Option on the borrowers monthly payment coupon, Option ARM-type mortgages allow you to actually defer mortgage interest until a later date by making a lower payment than would otherwise be required. Minimum payment options can be as low as one percent or even lower. In fact start rates of 0.25% are available.
Option ARM may increase your principal balance if your minimum payment is less that your interest only payment. The difference between the interest only payment and minimum payment will be added to your principal balance causing your principal to increase.
Option ARM loans are widely cited in the media as causing negative amortization, or the increase in the borrower's loan balance. In fact, the mortgage itself is not what causes negative amortization, it is the choice of a borrower in any given month whether or not to defer interest or make a larger payment to the principal balance of the loan. Understanding that interest which you are permitted to defer must eventually be paid is the key to understanding how to effectively utilize an Option ARM mortgage to improve your financial situation.
Deferring Interest by selecting the minimum payment option of an Option ARM mortgage is a popular way to effectively increase cash flow by tapping into the equity in your home. Unlike Home Equity Line of Credit and Home Equity Loan mortgages, deferring interest on an option ARM does not mean a higher payment today. Instead, interest which is unpaid is deferred until the option ARM loan recasts, which is generally after 5 to 10 years or when the loan balance increases past a pre-defined negative amortization limit.
Option ARM loans are not in fact all pure ARM loans, or Adjustable Rate Mortgages. In fact, we now offer loans with all of the minimum payment flexibility and ability to defer interest that an Option ARM offers, but with fixed rates for 3, 5, 7 or 10 years. There is a even a Fixed Rate Cash Flow loan available which has a fixed rate for a full 30 years.
Option ARM mortgages are not ideally suited for borrowers who cannot afford to make anything more than the minimum payment except in cases of temporary emergency or lifestyle change. While you may be qualified for an option ARM mortgage, it is important to determine whether or not you will be able to make more than the minimum payment once the initial start rate expires or the loan recasts in 5 or 10 years. If you are using an Option ARM to purchase real estate which would otherwise be outside of your price range, you may wish to reconsider use of an Option ARM mortgage.
Typically Option ARM loans allow borrowers to defer from 115% to 125% of the balance of the loan over the course of the initial "minim payment" period which may last from 5 to 10 years. In California and Florida along with a handful of additional states we offer certain loan products which allow up 135% to be deferred, and in New York nearly all option ARMs are limited to a negative amortization cap of 110%.
The more interest you are permitted to defer, the more equity you are able to tap over the course of the initial period in exchange for enhanced cash flow.
Option ARM minimum payments are typically 40% to 50% lower than a normal mortgage payment for the same loan amount, which means you can defer up to half the interest due on your Option ARM mortgage during the initial period. Because of the extremely low minimum payment rates, Option ARMs have been the favorite mortgage of the self employed, business owners, high net worth individuals, and real estate investors for several years.
Utah Grant Programs - In Utah there are many state, county, an even city sponsored grant programs to help with your down payment.
Utah Down Payment Assistance Programs - Utah Down Payment Assistance
Logan Neighborhood Non-Profit Welcome Home Own in Logan Program (DPA)
$5,000
Multi Counties Bear River Association of Governments First Time Homebuyer Program (FTHB)
$1,600 (435) 752-7242
Multi Counties Housing Services of Utah Valley Loan to Own Program (LTO)
$7,000 (801) 852-6164
Ogden Lincoln Court Townhomes Downpayment Assistance Program (DAP)
$4,249 (801) 629-8942
Ogden Own-in-Ogden Program
$10,000 (801) 629-8942
Ogden Urban Homestead Program (UHP)
$50,000 (801) 629-8942
Provo 80/20 Down Payment and Closing Cost Assistance Program (DPA)
$24,000 (801) 852-6160
Provo Down Payment and Closing Cost Assistance Program (DPCCA)
$7,000 (801) 852-6160
Provo Neighborhood Housing Services, Inc. Down Payment and Closing Cost Assistance Program (DPCCP)
$10,000 (801) 375-5820
Salt Lake Community Development Corporation of Utah Own in Salt Lake Downpayment Assistance Program (DAP)
$2,500 (801) 994-7222
Salt Lake Neighborhood Housing Services Inc A Home to Own Program (DAP)
$2,000 (801) 539-1590
Tooele County Down Payment Assistance Program (DAP)
$2,000 (435) 882-7875
West Jordan Down Payment Assistance Program (DPA)
$5,000 (801) 569-5060
West Valley City Home Ownership Program (HOP)
$5,000 (801) 963-3280
In addition to the government sponsored down payment assistance programs, there are many non-profit organizations that will grant you your down payment. You should ask your mortgage broker what program is right for you.
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