Fresh Start Program

Fresh Start Program              


Wright Mortgage's Fresh Start Program is a specialized mortgage solution designed specifically for self-employed business owners and borrowers who have experienced a recent life or credit event, or investors that are currently unable to find a program in the marketplace that meets their needs as they work to re-establish a strong credit history. Under the guidelines of the expanded program, more credit-worthy borrowers who have experienced a credit or life event, as recently as within the past year, may now meet the requirements to receive a loan.

Over the past few years, many hard-working people who lost their homes or were forced into bankruptcy due to a layoff or reduced income have since rebuilt their credit and are able to demonstrate their ability to repay. For these borrowers who may be unable to obtain mortgage financing due to seasoning or other requirements, Fresh Start may be the lending solution they have been looking for.

Loan Features:

• LTV up to 85% with no MI l
• No seasoning requirement on derogatory housing events including: Bankruptcy, Foreclosure, Deed-in-Lieu, Mortgage Charge-off, or Short Sale
• No mortgage or rental pay history required
• Minimum credit score 580
• DTI ratios greater than 50% considered with compensating factors
• Loan amounts from $100,000 to $1,000,000
• Non-warrantable condominiums

New Program!!

Wright Mortgage offers an innovative new loan program to homebuyers – before they find their home!

We can complete the loan process – actually approving your buyer – without an identified property.

With TBD Approvals, buyers have the confidence that they have already been approved for their mortgage which means their buying power is improved:

• Sellers know the loan process has been completed so there is no worry that the sale won't close.
• Buyers can negotiate a good purchase price because they know they can close quicker than with a traditional loan process and they can offer the seller an assured closing

How does it work?

• The buyer completes a mortgage loan application with Wright Mortgage, providing us with all of the information needed for a mortgage loan – except for the address!
• We process the loan and, upon approval, we're ready to close once the property is identified.

Who is eligible for this program?

• Those mortgage loan borrowers who have challenged credit or very high debt to income ratios.
• Your clients are available for both FHA insured mortgage loans and Conventional mortgage loans, people who have excellent credit or people who is below 640 credit score and consider below average credit.
• Qualify more borrowers with credit challenges to achieve the American Dream.

VA Loan

A VA loan is perhaps the most powerful and flexible lending option on the market today. Rather than issue loans, the VA instead pledges to repay about a quarter of every loan it guarantees in the unlikely event the borrower defaults. That guarantee gives VA-approved lenders greater protection when lending to military borrowers and often leads to highly competitive rates and terms for qualified veterans. 

Benefits of VA Loans

Far and away, the most significant benefit of a VA loan is the borrower's ability to purchase with no money down. Apart from the government's UDSA's Rural Development home loan and Fannie Mae's Home Path, it's all but impossible to find a lending option today that provides borrowers with 100 percent financing. 

VA loans also come with less stringent underwriting standards and requirements than conventional loans. In fact, about 80 percent of VA borrowers could not have qualified for a conventional loan. These loans also come with no private mortgage insurance (PMI), a monthly expense that conventional borrowers are required to pay unless they put down at least 20 percent of the loan amount. 

VA loans offer a few other bells and whistles:

• Competitive interest rates that are routinely lower than conventional rates
• No prepayment penalties
• Higher allowable debt-to-income ratios than for many other loans
• Streamlined refinancing loans that require no additional underwriting

Debt?

How to figure debt-to-income ratio

There are two types of debt-to-income ratios that lenders look at when you apply for a mortgage:

• The front-end ratio, also called the housing ratio, shows what percentage of your income would go toward your housing expenses, including your monthly mortgage payment, real estate taxes, homeowner's insurance and association dues.
• The back-end ratio shows what portion of your income is needed to cover all of your monthly debt obligations. This includes credit card bills, car loans, child support, student loans and any other debt that shows on your credit report that requires monthly payments, plus your mortgage payments and other housing expenses.

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What is Debt Forgiveness?

To make a long story short, debt forgiveness is when some or all of a debtor’s outstanding debt is written off.  This might happen because a lender wants to minimize the loss after a default.  When this unpaid debt is cancelled, this is considered borrower income and is taxable, unless there are any exemptions such as the Mortgage Debt Relief Act of 2007. 

What Do I Need To Know About the Mortgage Debt Relief Act?

First of all, you need to know that your tax credit can be claimed with the IRS Form 982.  You also need to know that you can only qualify if you have restructured your mortgage or gone through a foreclosure.  Talk to your lender about specific tax exemption rules and qualifications.  To qualify for the Mortgage Debt Relief Act, you must have had debt cancelled between the years of 2007 and 2013.

If you do have any cancelled debt that took place in between 2007 and 2013, talk to your lender and/or tax professional for sound advice regarding how to make the best financial decision.  If you think you're at risk for default or foreclosure in 2014, also have a conversation with your lender to see what he or she can do for you to stop that possibility.

Renting or Buying in 2016

Traditionally, part of the American dream was home ownership, and many adults worked towards that goal. Following the recent housing bubble, many people began to question whether buying a home was actually smarter than renting, with some advocating that home ownership came with lots of risks and few real rewards. That couldn’t be further from the truth, though! There are many advantages to buying your own home, and we’ve gathered up several of them below!

1.       Tax breaks. It’s been said that the only guarantees in life are death and taxes – so why not get a break on how much you owe each year?! One of the major benefits of home ownership is the tax deductions you will be eligible to take. There are tax advantage and tax breaks whether you are a home owner with juts a primary residence where you live, or whether you also own investment properties that you rent out. Home owners are eligible for tax deductions on the mortgage interest they pay, which can really add up! These tax deductions reduce your total taxable income, as long as you itemize your deductions. Lower taxable income results in a lower tax owed to the government and more money back in your pocket come April.
2.       Homes are valuable assets. When you own your own home, every month you’re be making a payment directly towards a tangible, valuable asset: real estate. When you rent, you hand your money over to someone else, who in 15, 20 or 30 years will then own land and a building that has no mortgage on it. They could choose to live there, “rent free” (save for taxes and other normal living expenses), or they could continue to earn income on it, perhaps allowing for an earlier retirement. Although real estate values can certainly ebb and flow in the short-term, in the long-term real estate is nearly always a solid move. There’s also something nice about the idea of owning a home where you know you’ll stay, where your kids will grow and where your grandkids will come and visit. That home will be a built-in part of your families’ memories. 

3.      Home ownership gives you freedom. With most rentals, you’ll be subject to a lease and all the rules, terms and conditions of that lease. You likely won’t be able to paint your home any colors you wish, replace carpet with hardwood, or get new kitchen appliances. You may not be able to own pets, or you might be limited in the type and number of pets you can own. You may even be restricted on throwing larger birthday parties for your children, having a pool to play and splash in in summer, or in planting your favorite flowers out front. But with home ownership, the freedom to make a house your home is 100% yours!

Mortgage After a Bankruptcy?

 According to the Federal Housing Administration, "A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower's payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction." So, as long as you filed for bankruptcy more than 1 year ago, and within that time you have made all required payments under your bankruptcy settlement, you will likely be eligible for an FHA mortgage.

Additionally, the federal government has a program which may be available for homeowners who are in the middle of a bankruptcy: the Home Affordable Modification Program (or, HAMP). HAMP-modifications to mortgage loans can take place during an active Chapter 13 bankruptcy case, and require that you and your bankruptcy attorney submit a HAMP-modification require to the mortgage lender or servicer.

Traditionally, conventional mortgage lenders will often require a period of 2 years to have passed since the discharge of a bankruptcy, or 4 years since the dismissal of a bankruptcy. However, once that period of time has elapsed, you will likely be able to obtain a mortgage without many roadblocks, assuming that your credit score and any down payment are sufficient – just the same as any prospective borrower.

Although a bankruptcy, whatever the reason, will likely put you on a slower path to home ownership, there is no reason why you cannot recover from a bankruptcy and move forward with your plans to own a home. Today, lenders understand that people can get in over their heads financially, many times for reasons outside of their control. Given a bit of time, and proof that you are on the road to financial recovery, you’ll find that there are many lenders willing to give prospective borrowers with a bankruptcy on their record a mortgage at competitive interest rates

6 Easy Ways to Mess Up a Home Purchase

If you’ve never purchased a home before, you might not know how easy it is to mess up a home purchase.  There are many factors that first time home buyers especially fail to remember when looking for a home for various financial and emotional reasons.  Here are the seven ways you can easily mess up your first home purchase:

Be Emotional.

One of the biggest mistakes first time home buyers make is to get emotional about the house they are purchasing.  The reason why this can be bad is it often leads to home purchases that are out of the buyer’s price range.  Figure out what features you love about that house, and look for those features in another house that’s in your price range.

Buy a Home that Needs Improvements.

Right now, it’s a buyer’s market, meaning there are a plethora of homes that are available.  Don’t get stuck with a home that needs major improvements, because you will be able to find another home that is perfectly suitable.  Repairs will cost you a lot of money, which will lead to you having a decreased savings.

Forego the Home Inspection.

You already saw the home and you think it looks great, so you decide to forego the home inspection so you can move in sooner.  Good decision, right?  Wrong.  You need to have a professional assess the state of the home and tell you whether or not any repairs will be needed now or in the immediate future.

Forget about Maintenance Costs.

Remember to factor in maintenance costs when you are planning your home budget.  You should plan to spend a few thousand dollars every year you own your home on routine maintenance.

Forget about Property Taxes.

Many first time home buyers forget to factor in property taxes, which can be extremely high in certain areas that have a higher cost of living.  Ask your lender what property taxes you’ll owe on your home before you sign any contract.  If you don’t, you could find your savings dwindling quickly.

Spending Too Much Money.

This is a no-brainer.  Don’t spend too much money on your first home.  You need to remember that you’ll most likely be making these payments for 30 years, and you’ll still need to save for other expenses such as college, medical bills, and retirement.  Buy a home within your price range, and you’ll be much happier in the long run.