Latest News

Current Specials:

In response to the economic troubles facing our country, such as the Fannie/Freddie bailout, the failure of major banks etc, interest rates for veterans and other us citizens (fha loan holders) have fallen steeply in recent months.  Flagship Financial will pay you $250 if you can find another lender willing to give you a lower APR than what we can get.  Some minor restrictions apply, (you must be getting a VA or FHA loan for example).  Please call 888-657-2848 for details

VA Loans

Benefits of using a VA loan:
NO money down on purchases is required.  100% financing!
NO monthly mortgage insurance regardless of money down or not
NO minimum FICO requirement is set by the VA
More lenient underwriting guidelines than most conventional loan programs
Low Fixed Rates available
Streamline Refinancing avaialbe when rates go down.  (which they always do

FHA Loans

Benefits of using a FHA loan:
Low down payment required (0-3%)
NO minimum FICO requirement set by FHA
Very lenient underwriting guidelines
High LTV on cashout refinances
Low Fixed Rates available
Streamline Refinancing available when rates go down.  (whicch they always do)

Other Loan Programs also available

Examples of other available loans
Reverse Mortgage (actually FHA)
Conventional Loans
Investment Property (non owner) Loans
Lot and Land Loans
Construction Loans
Equity Loans
Mortgage Accelerator Loans

Mortgage Industry Faces Huge Bottleneck - Patience Needed

Online VA loan community yourvapro.com says bank failures have caused a huge bottleneck for customers trying to get a home mortgage loan or refinance.

The problem started last year when the mortgage industry cut 75-80% of its staffing.  Then the economy soured and the federal government cut interest rates to historical lows.  Suddenly demand spiked and mortgage lenders didn't have the staff to respond which has crippled the market said Eric Kandell, Manager Flagship Financial Government Loan Division.  Flagship Financial is an approved lender for yourvapro.com.


Now mortgage lenders can not hire fast enough.  Then the banks got into trouble and the credit crunch hit.  Most of the smaller middle man banks closed.  The result is that just a few large institutional banks are left to handle most of the loan processing and mortgage companies are short staffed.


Customers are waiting longer to get loans approved and funded.  Wells Fargo, Countrywide, and Citi have all seen large increaseds in the number of mortgage loans and refinances because of record low mortgage rates.  They can't meet the demand and that means customers are waiting longer.  They can't get anyone on the phone, said Kandell.


Flagship Financial has the experience to help.  yourvapro.com works with Flagship Financial, a mortgage lender who understands these issues.  Flagship's loan officers have been working 14 hour days.  They are doing all they can to facilitate an easy process for clients in light of this major log jam the industry is suffering, said Kandell.

Two weeks ago Chase, one of the few banks still offering loans, left the wholesale and third party loan origination business.  That crippled the market, making things even worse.  Now only the bigger banks are left to service this huge industry.  Borrowers and homeowners need to be patient and work with mortgage companies that understand these frustrations.  Flagship Financial can lock loans for longer - for both 45 to 60 days.

How has this affected consumers?  They are seeing huge delays or problems even getting loans.  While many homeowners need the reduction in their monthly payments, getting a loan can be a frustratingly long process.  Underwriting turn times went from 48 hours up to 4 weeks at some banks.  Some are even denying loans right at closing.


Flagship Financial and yourvapro.com have advice for people who are looking for loans - along with a $250 guarantee.  Borrowers need to be patient and trust that we will get them closed as fast as we can.  We still stand behind our $250 guarantee to offer the highest level of service, whether for veteran loans (www.yourvapro.com) or other loans, says Kandell.


Consolation comes knowing that although there are still issues, working with Flagship Financial has advantages.  Nate Burt, Loan Officer, many of our large lending partners, like Wells Fargo, have coined 'stop brokers' or given us special tier services so that our clients don't have to wait at the end of such a long line.  Our dedication to loan management and service has allowed us to come out on top of this big mess.

Rates have risen slightly recently, which means more customers will try to lock in against further increases.  Given the banking climate, and uncertain future, lowering monthly mortgage payments can help alleviate financial stress for years to come.

FAQs

This page is designed to assist you in answering any questions you might still have regarding any of your loan needs.  If you have a question that is not answered here, please email us (info@yourvapro.com) and we will not only answer your question immediately, but we will add it to our FAQs page also.

OUR MOST FREQUENTLY ASKED QUESTION IS:

How do I take advantage of your $250 lowest APR% Guarantee?

If one of our loan officers cannot get you the lowest offer you find, then we will pay you $250.  Keep in mind in order to prove that you got a better offer somewhere else, you MUST close your loan with said better offer.  In the event you were given a better offer, but did not take it or the offer was not honored, then we are not responsible for paying the $250.  For complete written details, please go to our contact us page and submit a request for lowest APR% details and we will send them to you.  WE KNOW WE WILL GET YOU THE LOWEST APR OUT THERE.

 

How do I know if I am entitled to a VA loan?

Military Service Requirements for VA Loan Eligibility:

Note:  Applications involving other than honorable discharges will usually require further development by VA.  This is necessary to determine if the service was under other than dishonorable conditions.

Wartime - Service During: WWII 9/16/1940 to 7/25/1947
  Korean 6/27/1950 to 1/31/1955
  Vietnam 8/5/1964 to 5/7/1975

 

You must have at least 90 days on active duty and been discharged under other than dishonorable conditions.  If you served less than 90 days, you may be eligible if discharged for a service connected disability.

Peacetime - Service during periods: 7/26/1947 to 6/26/1950
  2/1/1955 to 8/4/1964
  5/8/1975 to 9/7/1980 (enlisted)
  5/8/1975 to 10/16/1981 (officer)


You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions.  If you served less than 181 days, you may be eligible if discharged for a service connected disability.

Click here to get more info directly from the VETERANS AFFAIRS SITE

How can I apply for a loan?

Simply go to our mortgage tools button and apply there or directly from our home page by accessing the pre-qualify now button from there.  You will receive a call from one of our preferred lenders within 24 hrs.

What are rates, terms, and APR?

All mortgages have an interest rate, a term, and an annual percentage rate (APR). For example, a mortgage might be defined as a 30-year fixed-rate loan at 7.625 percent, with an APR of 7.800 percent. In this example, the mortgage term is 30 years. As the borrower, you will pay back the loan in installments over the course of 30 years. The interest rate in this example is 7.625 percent. This means you must pay interest on the money you've borrowed at a rate of 7.625 percent per year. That is, in addition to paying back the loan, you will pay your lender an additional 7.625 percent of the current loan balance every year. This interest is basically the fee your lender charges you in return for lending you the money. The annual percentage rate (APR) is a measure of the cost of credit, expressed as a yearly rate. Because APR includes points and other costs such as origination fees, it's usually higher than the advertised rate. The APR allows you to compare different mortgages based on actual annual costs.

What is a Good Faith Estimate (GFE)?

It is an estimate of the fees that you will pay to close your loan.  The GFE may change between the time you apply for the loan and actually close, as it is an ESTIMATE only.

Can I pay off my loan early?

VA loans do not have any pre-payment penalties and therefore can be paid off early. Whether you are going to make an additional $50 a month principal payment or you end up selling your house before the loan is up, you will not be penalized.  If you do not have a VA loan, then it is possible that your loan come with a prepayment penalty.  You will need to discuss this option when applying with your lender.  Even if your loan has a prepayment penaltly you will still be allowed to make additional principal payments as long as you don't pay off the entire balance generally within a 3 yr period.

Can I be self employed and still get a loan?

Yes.  Even those that are self employed are eligible for all types of loan programs.  It is possible that the requirements to qualify for the loan might be a bit more strict.  Generally the lender will want at least 3 yrs of tax returns for a self-emplyed borrower.

How do I know how much equity I have in my home?

Equity is the value of a homeowner's interest in real estate. Equity is computed by subtracting the total of the unpaid mortgage balance and any outstanding liens or other debts against the property from the property's fair market value. A homeowner's equity increases as he or she pays off his or her mortgage or as the property appreciates in value. When a mortgage and all other debts against the property are paid in full, the homeowner has 100 percent equity in his or her property.

What is an appraisal and who completes it?

The appraisal determines the value of the property in question, which becomes a prime factor in determining the loan-to-value — or LTV — ratio (the amount of your loan divided by the value of your property). Your LTV is important because it determines your equity in the property. With the exception of leveraged equity and some second mortgages, our preferred lenders will arrange an appraisal of your property to verify its value. An appraiser is an authorized professional who estimates the value of the property and sends the information to your lender.

What is an impound/escrow account?

An impound account or an escrow account (the terms are interchangeable; each is used in different states) is the name of the account in which a lender collects payments you make toward your property taxes and hazard/fire insurance. If you have an impound/escrow account, each of your monthly payments will contain a fraction of your annual property tax and insurance costs. Your lender keeps these funds in the impound/escrow account and then pays your taxes and insurance directly when they become due. An impound/escrow account can be a convenient and trouble-free manner of ensuring that your insurance and tax payments are made on time. Additionally, choosing the convenience of an impound/escrow account allows New Freedom Mortgage to offer you a better rate or lower fee. Please note that impound/escrow accounts are mandatory for purchase or refinance Loans where the loan amount is 80.01 percent or more of the property value (loan-to-value ratios of 80.01 percent or more), unless otherwise restricted by laws in your property's state (in California, impound accounts are required for refinance loans, purchase loans with LTV of 90 percent or greater, and for second mortgages with LTVs of 80.01 percent or greater).

What is PITI?

PITI is the acronym referring to the above-referenced components of your monthly mortgage payments. That is, each month your payment to your lender will consist of:

  • Funds to be applied to the principal — to repay the actual money you borrowed
  • Funds to be applied to the interest — to repay the interest you're being charged on the loan, over the life of the loan
  • Funds being collected in an impound/escrow account to pay your property taxes when they come due
  • Funds being collected in an impound/escrow account to pay your hazard/fire Insurance when it comes due

What is PMI?

Private Mortgage Insurance (PMI) is usually mandatory for loans when the ratio of the amount of the loan to the value of the subject property is greater than 80 percent — that is, 80.01 percent% or more of the property is being paid for by the loan. Loan-to-value ratio (LTV) knows this as the loan. Basically, the lower your Loan-to-value ratio, the higher your equity in the property. You can think of equity as the part of your property you actually own. If you sold your property (for its appraised value), equity is the amount of cash you'd have left after you repay your loan balance in full. Common wisdom holds that the more equity a borrower has in a property, the lower the risk of defaulting on the loan. Thus, Private Mortgage Insurance (PMI) must be paid for lower equity (high LTV) loans to safeguard the lender from possible loan defaults.

How do I know what my rate will be?

Rates vary primarily based on the type and purpose of the loan, your credit history and income, value of the property, and the number of points you are willing to pay.

What are points and how many do I have to pay?

Generally speaking, points are fees added onto loans. One point is equal to 1 percent of your loan amount. Points are paid when the loan closes, not at the time you apply for the loan.

What will a loan cost?

Your monthly payments go partly to repay your loan and partly to pay the fees for your loan, many of them relating to the closing, or settlement. Most lenders require an up-front application fee to cover their expenses as they approve you. But New Freedom Mortgage doesn't. That's right — with us, it's free to apply! Additionally, lenders charge a loan origination fee. It's generally expressed as a single point (a point is defined as 1 percent of your loan amount). For example, if you were borrowing $100,000, your loan origination point would be $1,000 ($100,000 X 1%).

The typical fees that cover the loan processing and closing are:

Lender Fees
  • Origination fee
  • Appraisal fee
  • Credit report
  • Inspection fee (newly constructed homes only)
  • Underwriting fee
  • Document preparation fee/review fee
  • Tax service fee
  • Mortgage insurance
Title Charges
  • Attorney’s fees
  • Title insurance
  • Transfer tax (excludes refinances)
  • Recording tax
Miscellaneous Charges
  • Property survey
  • Termite inspection
Prepaid Expenses (not part of the actual cost of the loan, but included with payment)

Prepaid interest (interest that accrues between closing and the end of the closing month - paid in advance)
Homeowner’s insurance

Real estate taxes

Can I get a loan with Bad Credit?

Of course!  The VA loan actually has NO FICO score requirements.  What this means is that it doesn't matter what your FICO or credit score is.  Each loan is looked at on a case by case basis by an approved VA underwriter.  Keep in mind that at LowVARates.com if we are not able to place you with a VA loan, then our lending partners will do all they can to get you into the next best alternative loan available for you.