Mortgage Loan Origination Agreement: Fill & Download for Free

Many answering this question have rightly identified policy decisions that are, shall we say, “questionable.” Reneging on the Iran nuclear deal. Pulling out of the Paris Accords. Signing a tax bill that adds $1.4 trillion to our deficit and which benefits large corporations and very wealthy people, to the ultimate detriment of “regular” Americans. I have written about the Tax Cut and Jobs Act in considerable detail, so I won’t revisit that here. The effects of this bill won’t manifest for at least a year, and the effects will be long-lasting—and not, I believe, in a good way.I can point to one single action taken by Donald Trump that has affected me directly, and many whom I know personally. This action occurred on Inauguration Day, and it was the second official act of his presidency.You should know from looking at my credential that I am a mortgage loan originator, and have been for many years. My job is primarily to help people buy homes—often their first homes. One of the most popular loan programs for this important work is an FHA mortgage. This program has been in existence since 1934, and has helped millions of ordinary people become homeowners. In 2017 alone, there were nearly 1.3 million FHA loans issued, making up about 16% of all mortgages funded during the year.Because FHA loans require a very small down payment (as low as 3.5%), they carry mortgage insurance to protect the lender in the case of a borrower’s default. This is normal for almost all loans with down payments of less than 20%. FHA loans are different in that their insurance comes from a government agency—the Department of Housing and Urban Development (HUD).Borrowers pay FHA insurance in two ways: an up-front premium (currently 1.75%) which is typically added to the loan, and a monthly premium, paid each month along with the regular monthly payment. HUD adjusts the premium from time to time to insure that the insurance fund is 2% of the entire mortgage portfolio. The cost of monthly insurance is presently .85%. For someone buying a $300,000 home, the cost is $209 per month.Julian Castro, Secretary of HUD in the Obama Administration, oversaw one reduction in the monthly insurance premium, from 1.35% to .85%. That reduction, justified by the fact that the insurance pool had grown above the required minimum, resulted in an expansion of buyers’ ability to qualify because the monthly payment would be lower.In mid-2016, Secretary Castro ordered a second reduction of the insurance premium, to .60%. This would have cut new buyers’ payments significantly—nearly $70 per month for the $300,000 purchase I referred to earlier. More low- and moderate-income would be able to qualify for the homes they wanted to buy.On January 20, Donald Trump signed an Executive Order rescinding the scheduled insurance premium reduction. There was no economic reason for this change. As a result, two of my clients who had been in escrow to buy homes based on the announced reduction in premium no longer qualified and were unable to buy their homes.We who oppose the current president’s policies and behavior can do so on philosophical grounds. Were the Paris Accords good for our country, or bad? Is it good policy for Trump’s Environmental Protection Agency to roll back pollution and fuel economy standards? Was the Iran nuclear agreement a “terrible deal?” Was uber-conservative Neil Gorsuch a good choice for the Supreme Court? Reasonable people may take either side of those questions. Furthermore, the effects of those actions—ill-conceived and impulsive in some cases—may not affect us immediately or directly.But this one action, taken on January 20, 2017, directly harms more than a million Americans, either by preventing them from buying the homes they wanted to buy, or increasing the cost of those homes that they do buy.I believe this action, though it may seem insignificant to some, is symbolic of the utter contempt this president has for the American people, many of whom were taken in by his sales pitch. It was a sales pitch that we have seen time and again to be the empty promises and outright lies of the consummate con man who presently occupies the highest office in our nation.

Yes. Getting a loan if the most common real estate financing option. There are many types of loan that a real estate investor can obtain to buy a rental property. Here are a few of them:1) Conventional Mortgage LoansBy a landslide, the most common financing rental property method is through a conventional bank loan. Buying an investment property through conventional loans is possible through both big banks and local banks. Conventional loans consist of long terms, down payments of usually 20%, and low interest rates. Two of their most important requirements is having good credit and having a steady history of employment.2) Mortgage Loans from Local BanksIf you’re interested in buying an investment property in a certain area, consider obtaining a mortgage from local banks. Like big banks, local banks offer conventional investment property mortgage loans. One of the differences, however, is that local banks tend to offer better deals than big banks if a real estate investor is interested in buying investment property in the local area.3) Owner-Occupancy LoansOwner-occupancy loans allow investors to purchase real estate investments with less strict financial requirements and better terms. The catch is that the investment property must be occupied by the owner for the first year of purchase. After that time period, the real estate investor is free to turn the property into a rental, with no change to the original loan terms.4) FHA MortgagesFederally qualified lenders can issue a certain type of owner-occupied mortgage called FHA loans. Just like standard owner-occupancy mortgages, FHA loans allow investors to purchase real estate investments and rent them out after living in them for a year. What makes FHA loans stand out, however, is their low down payments (as low as 3%!), easy credit requirements, and long terms. This makes FHA loans among the top financing options for beginning real estate investors.5) Lease with the Option to BuyLike owner-occupancy loans, financing real estate investments with a lease with the option to buy allows an investor to live in a property before buying it. The difference between this form of real estate investment financing and owner-occupancy is that the investor rents out the property; it is not a primary residence. A lease with the option to buy is when a real estate investor reaches an agreement with a tenant who is looking to buy the property. Portions of the paid rent go towards the final purchase, and there is a deadline set between the two parties.6) Hard Money LendersIf you plan to begin financing rental property quickly, hard money loans might be for you. These investment property mortgage lenders can provide loans within a matter of days. Instead of credit requirements, hard money lenders will be more interested in the fair market value of your real estate investments.Hard money investment property mortgage loans might sound like a stress-free financing method, but they are far from that. These loans carry considerable risk. For instance, hard money loans have very short terms, which usually last up to 36 months. It is virtually impossible to pay off a real estate property in merely 3 years. For this reason, hard money loans are best used for investments that are quickly bought and sold, like fix-and-flips. The second risk with hard money loans is that they have high interest rates, much higher than the average.7) Private Money LendersPrivate money investment property mortgage loans are the less risky counterpart of hard money loans. This real estate investment financing method is also a short-term loan, like hard money loans, but the terms can be negotiable.Interest rates are still higher than the average when financing rental property with these loans, but they are still lower than those of hard money loans. It’s most suitable to use high interest loans when you are sure that the investment property you’re buying will generate high rental income.8) Home Equity Mortgage LoansIf you are buying an investment property but own a primary residence or investment property, you could decide not to finance the new property with money. Instead, you could use the equity of one of your real estate properties to finance the loan. Home equity investment property mortgage loans allow real estate investors to borrow up to 80% of a property’s equity for financing rental property.9) Purchase-Money MortgageA purchase-money mortgage, also known as owner financing or seller financing, is a real estate investment financing method in which a property seller issues a loan to the property buyer. Essentially, the seller acts as a bank lender, and the buyer pays monthly payments to the seller.Purchase-money investment property mortgage loans might seem like a strange method of financing rental property, but they come with their benefits to both parties involved. A buyer who does not meet the standards of conventional financing options could acquire such a mortgage. The property seller receives higher interest payments, which means that anyone interested in such a financing method must ensure the investment property will generate high rental income.Hope this helps!

Answering for consumers located in the United States.An "intent to proceed" document is somewhat new and part of the Dodd Frank Wall Street Reform Act rules that went into effect during the fall of 2015.However, I agree with Craig Lawrence. Were you owed an official Loan Estimate? Here are the six pieces of info that, if you have provided these to your loan originator, you are owed a Loan Estimate:NameIncomeSocial Security NumberProperty AddressEstimated Value of the PropertyLoan Amount soughtIf you are still shopping for a home and have not yet signed a purchase and sales agreement to buy a specific property, then you have not yet provided the loan originator with "Property Address" and a loan estimate is not due. However, once you do decided on a specific property, then the official loan estimate is due to you within 3 days of providing the above six items.The loan originator is not allowed to require that you provide anything else other than the above six items in order to obtain an official Loan Estimate.One of the new, 2015 Dodd Frank rules requires the LO to obtain an "intent to proceed" document in order to collect an upfront fee for, say, a credit report as long as the fee is bona fide. (bona fide example: credit report costs the company $25. They can collect $25. They cannot collect $250.)HOWEVER, you are owed an official Loan Estimate before any upfront fee can be collected.Good for you for asking this question.