second home

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When it comes to purchasing a home, buyers may find it difficult to find financing beyond the conforming loan limit. In this instance, you may need to apply for a jumbo loan.

What is a jumbo loan?

A jumbo loan in Kentucky is a type of mortgage that is used to finance homes that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Oftentimes, this type of loan is necessary for high-end, luxury homes or homes located in expensive housing markets. 

If the home you’re purchasing will require you to borrow more than the conforming loan limit (CLL), you’ll need to apply for a jumbo loan. However, keep in mind that jumbo loans come with higher interest rates and stricter requirements than conventional loans due to the larger loan amounts and risk associated with them. For instance, a larger down payment and a higher credit score may be required to qualify for a jumbo loan in Kentucky.

What is the jumbo loan limit in Kentucky?

In Kentucky, the conforming loan limit is $726,200 across all counties. For example, the conforming loan limit in Jefferson County is $726,200, so if the loan amount needed is even one dollar more than this amount, it’s considered a jumbo loan.

As a reminder, the loan amount is what determines whether or not you’ll need a jumbo loan, not the price of the home you’re buying. So, if you were to put $50,000 down on a $750,000 home in Louisville, the mortgage would be $700,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.

To identify the conforming loan limits where you’re considering buying a home in Kentucky, check out this FHFA map. 

What are the requirements for a jumbo loan in Kentucky?

As previously mentioned, the requirements for a jumbo loan are much more stringent than the requirements for a conforming loan. Each lender may have different requirements or processes, but below are the typical requirements for borrowers seeking a jumbo loan.

Higher credit score: When it comes to jumbo loans, lenders generally look for a credit score of 720 or above to qualify a borrower. While some lenders may accept a score as low as 660, this is typically the lowest score for qualification.

Larger down payment: Buying a high-priced home often requires a larger down payment from the buyer. Conforming loans may offer programs for down payments as low as 3%- 5%, but jumbo loans require a minimum down payment of 10%, with some lenders requiring up to 30%. If the homebuyer puts down less than 20%, they will likely need to pay for private mortgage insurance (PMI).

More assets: Jumbo loan borrowers are typically required to have additional assets. In particular, lenders may require borrowers to demonstrate sufficient liquid assets or savings to cover one year’s worth of loan payments.

Lower debt-to-income ratio (DTI): When applying for a jumbo loan, Kentucky lenders typically look for a borrower with a debt-to-income ratio (DTI) below 43%. Ideally, a DTI closer to 36% or lower is preferred. The DTI is calculated by dividing the sum of all monthly debt payments by gross monthly income. A lower DTI signifies a borrower’s ability to manage their current debt load while taking on additional mortgage payments. It also indicates greater financial stability and the ability to make on-time payments towards their jumbo loan.

Additional home appraisals: Your lender may require a second home appraisal for a jumbo loan, in addition to the standard appraisal, to get a second opinion on the property’s value. This is especially true in places with limited comparable property sales. The second appraisal helps lenders ensure that they are providing funds for a property that is worth the loan amount or more.

Source: redfin.com

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Bank of America’s Affordable Loan Solution

  • The widely available 3% down home loan program
  • Is being branded by individual banks and mortgage lenders
  • Bank of America calls their version the “Affordable Loan Solution”
  • But it’s unique in that it’s backed by nonprofit Self-Help Ventures Fund

In what is looking a lot like a jab at the FHA, Bank of America is set to launch a 3% down payment mortgage nationwide with the help of Freddie Mac and nonprofit Self-Help Ventures Fund.

The new loan program, known as the “Affordable Loan Solution,” aims to help underserved borrowers obtain homes with very little down.

It counters the flagship FHA loan program, which requires 3.5% down payment and marginal credit scores, and appears to be quite similar to Freddie Mac’s Home Possible Advantage loan program.

Bank of America is rolling out the program as an alternative to the FHA, with many large lenders now shying away from the agency because of recent significant penalties.

His comments likely relate to a number of recent lawsuits with the Department of Housing and Urban Development (HUD) over faulty FHA loans.

Wells Fargo just agreed to pay $1.2 billion to settle claims it made reckless FHA loans, and Quicken has a pending lawsuit involving the quality of the FHA loans it originated.

Put simply, lenders are losing confidence in the FHA because they’re unsure of the potential liability/penalties they face if the loans are deemed defective.

Update: Bank of America has launched a zero down mortgage!

Affordable Loan Solution Requires 660 Credit Score

  • The underwriting guideline are fairly flexible
  • But you do need at least a 660 FICO score
  • The good news is PMI is not required
  • Unlike most other 3% down loan programs, but it could result in a higher interest rate

Bank of America’s new Affordable Loan Solution has some pretty liberal requirements, though the credit score needed to qualify is a bit more reasonable (with regard to not being completely dismal).

Borrowers are required to have a 660 credit score or higher to qualify for the loan, which is significantly higher than the 580 required at the FHA.

However, the down payment required is just 3%, as opposed to 3.5% at the FHA.

I believe the loan is only available on owner-occupied properties, though I don’t know if it’s limited to just single-family properties or condominiums as well.

Another pro to Bank of America’s low-down payment loan program is the lack of private mortgage insurance (PMI).

Because the loan will be originated by Bank of America and then sold to Self-Help Ventures, who will then sell it to Freddie Mac, PMI isn’t required.

Apparently Self-Help will take a “big chunk of the losses” if the loan defaults before Freddie Mac will step in. Still, that doesn’t mean borrowers won’t pay a premium to avoid PMI.

The bank says a $150,000 mortgage will cost about $782 per month for those with a credit score between 680 and 719, compared to $887 on a comparable FHA loan.

If we reverse engineer the math, the mortgage rate is 4.75% on the new loan program, which isn’t particularly low, even for a low-down payment mortgage.

So you can argue that the risk is built into the loan, even if the payment is lower than an FHA loan.

Borrowers must also make an income that is below the area’s median to ensure the loans go to those who actually need it most.

$500 Million Set Aside for the Affordable Loan Solution

  • Bank of America earmarked half a billion in annual funding
  • For the new Affordable Loan Solution program
  • They assume it’ll be a popular alternative to an FHA loan
  • With less money down and no MI

Bank of America is limiting the new loan program to $500 million in funding annually, at least initially.

Despite this, they still expect that three of four borrowers who get funding via the new loan would otherwise have gone through the FHA.

That could dent the FHA’s numbers and put more pressure on the agency to lower premiums again, though they recently said such a move was not in the works.

Bank of America only made a reported $1.36 billion in FHA loans, last year, per data from Inside Mortgage Finance, dropping to 22nd place among FHA lenders. The bank had been in the top 10 before pulling back.

Frequently Asked Questions

Where can I get the Affordable Loan Solution mortgage?

It is available in all of Bank of America’s sales channels, and you can apply at one of 4,700 financial centers nationwide, online, or by phone.

Do I have to be a first-time home buyer?

No, but if you are you must participate in home buyer education through Bank of America’s network of housing counselors.

Can I use this loan program to finance a second home or investment property?

No, applicants must occupy the property being financed.

Are reserves or down payment required?

You may use secondary financing, including second mortgages or a grant, and reserves aren’t required in most cases.

Can I get approved with non-traditional credit?

Yes, Bank of America will consider applicants with non-traditional forms of credit to document acceptable credit history.

What is the maximum loan amount?

$453,100, the conforming loan limit.

Are there income requirements?

Yes, income cannot exceed 100% of the HUD median income for the area.

Will Bank of America keep the loans?

No. They will sell them and the servicing rights immediately to Self-Help’s designated specialty servicer.

Source: thetruthaboutmortgage.com

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If you’ve watched a Cleveland Guardians baseball game lately, you may have noticed a big sign for “Union Home Mortgage” out in center field.

That’s because UHM is the official mortgage partner of the Guardians, along with the Professional Bull Riders (PBR) organization.

They also recently partnered with former Cleveland Browns quarterback Bernie Kosar for some commercials, and are now the title sponsor of the Cleveland Marathon.

So it’s clear they’re big sports fans and proud to call Northeast Ohio home.

The company’s headquarters also aren’t too far away from two other major players in the mortgage industry, Quicken Loans and United Wholesale Mortgage.

Like those two heavy-hitters, Union Home calls itself a “high-growth” company and has plans to keep building out its campus and expanding.

Let’s learn more about them.

Union Home Mortgage Fast Facts

  • A retail mortgage lender based out of Strongsville, Ohio
  • Founded in 1970, led by former MBA chairman Bill Cosgrove
  • Licensed in 44 states and the District of Columbia
  • More than 150 branch locations and nearly 1,400 Partners nationwide
  • 22% of total loan volume comes from the state of Ohio
  • Funded more than $12 billion in home loans during 2021

Union Home Mortgage, or UHM for short, is a direct-to-consumer retail lender based in Strongsville, Ohio.

That means you can call them up or visit a branch to get a mortgage, or simply surf over to their website to get started.

They are an approved direct lender for Fannie Mae, Freddie Mac, the FHA, USDA, and VA, and also operate a wholesale lending division for mortgage brokers.

The company funded roughly $4 billion via the retail channel in 2019, and more than $12 billion in 2021.

The Buckeye State is where they happen to do most of their mortgage lending, with roughly a quarter of overall loan volume coming out of Ohio.

But they don’t just originate mortgages in Ohio – they’re licensed in 44 states nationwide and the District of Columbia.

They do quite a bit of lending in nearby Michigan, along with Indiana, Pennsylvania, and even far-away Arizona.

And they’re the new title sponsor of the Gasparilla Bowl, which is played down in Tampa, Florida, so they’re probably looking to grow in the Sunshine State as well.

Recently, their loan servicing portfolio surpassed the $10 billion mark, and they now service loans for more than 60,000 families nationwide.

How to Get a Loan with Union Home Mortgage

  • You can apply online, by phone, in person, or via mobile
  • They offer a digital mortgage application powered by Ellie Mae
  • Borrowers can scan and upload documents via the smartphone app
  • And receive status updates as their loan progresses to the finish line

As noted, you can call them up over the phone, visit their website, or go to a brick-and-mortar branch if doing business in person is your thing.

If you choose to go the online route, you’ll first need to fill out a very brief form to get matched with a loan officer (assuming you haven’t already been referred or know who you want to work with).

Once you complete that quick step, you get the option to begin the loan application process without any human interaction. Or you can wait for a loan officer to call/email you.

Those who already know who they want to work with can use the loan officer directory on the company’s website by clicking on “Find a Branch.” Simply enter their name and you’ll be directed to their personal webpage.

From there, you can see which states they’re licensed to do business in, get their contact information, apply for a loan, or check loan status.

UHM offers a digital mortgage app powered by Ellie Mae that lets you complete just about everything online.

Additionally, they offer a free smartphone app that allows you to securely scan and upload documents, message your loan officer instantly, and receive status updates as your loan moves along.

Build Your Payment Program

In March 2023, Union Home Mortgage launched the “Build Your Payment Program,” which they refer to as a “new way for homebuyers to create a mortgage built around their budget.”

It’s not totally clear what that entails, but the company said customers work one-on-one with a dedicated mortgage expert “to craft an ideal monthly payment.”

These loan officers then present the best options based on each customer’s unique circumstances, presumably a type of loan, or a certain loan amount.

The main goal is to make the home loan process simple, while keeping the focus on monthly payments that align with home buyer budgets.

This is especially important as costs increase across the country thanks to pesky inflation.

Loan Types Offered by Union Home Mortgage

  • Home purchase loans
  • Refinance loans: rate and term and cash out
  • Home renovation loans
  • New construction home loans
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Government loans backed by the FHA, USDA, and VA
  • Non-conforming loans: jumbo and non-QM

Union Home Mortgage offers both home purchase loans and refinance loans, along with renovation loans like the FHA 203k loan and new construction home loans.

You can get financing on a primary residence, second home, or investment property, whether it’s a single-family home or condo/townhouse.

Union Home Mortgage offers conventional financing backed by Fannie Mae and Freddie Mac, along with government-backed home loans from the FHA, USDA, and VA.

It’s also possible to get a jumbo home loan or a non-conforming loan thank to their non-QM offerings.

Those looking for new home construction financing can choose from conventional, FHA, and VA options.

And they offer both fixed-rate mortgages and adjustable-rate mortgages in various terms to suit all borrowers.

Union Home Mortgage Rates

One slight negative is that Union Home Mortgage does not advertise its mortgage rates, unlike some other mortgage lenders.

While you can chalk it up to the questionable usefulness of advertised rates, I do give lenders bonus points for transparency when they take the time to list their rates on their website.

Additionally, Union Home Mortgage doesn’t list their lender fees on their website, so it’s unclear what they charge, e.g. a loan origination fee, underwriting and processing fees, and so on.

As such, be sure to shop your home loan with other lenders to see where they stand pricing-wise. While price isn’t everything, it’s certainly important.

Union Home Mortgage Reviews

On Zillow, Union Home Mortgage has a 4.89-star rating out of 5, based on more than 700 customer reviews.

Many of the reviews indicate the interest rate that was lower than expected, while some also say closing costs were lower than anticipated.

Zillow allows you to drill down and look at the reviews of individual loan officers, helpful if you want to handpick who to work with beforehand.

On LendingTree, they’ve got a 4.8-star rating out of 5, based on more than 300 reviews. Some 95% of customers recommend working with Union Home Mortgage.

Lastly, they aren’t an accredited business with the Better Business Bureau and they’ve got a questionable C+ rating with the BBB.

Per the BBB, their rating is low because they failed to respond to one complaint filed against them. So it may have been an oversight or a one-off, but it’s something to take note of.

Union Home Mortgage Pros and Cons

The Good

  • Can apply for a mortgage online or in-branch
  • Offer lots of different loan programs
  • Customers can use the free UHM smartphone app
  • Excellent customer reviews
  • Free mortgage calculators on site
  • More than 150 branch locations located nationwide
  • They service their own loans

The Maybe Not Good

  • Need to fill out a contact form before applying for a loan unless you use the loan officer directory
  • Not licensed to do business in Alaska, Hawaii, New York, North Dakota or South Dakota
  • C+ rating with the Better Business Bureau

Source: thetruthaboutmortgage.com

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If you’ve watched a Cleveland Guardians baseball game lately, you may have noticed a big sign for “Union Home Mortgage” out in center field.

That’s because UHM is the official mortgage partner of the Guardians, along with the Professional Bull Riders (PBR) organization.

They also recently partnered with former Cleveland Browns quarterback Bernie Kosar for some commercials, and are now the title sponsor of the Cleveland Marathon.

So it’s clear they’re big sports fans and proud to call Northeast Ohio home.

The company’s headquarters also aren’t too far away from two other major players in the mortgage industry, Quicken Loans and United Wholesale Mortgage.

Like those two heavy-hitters, Union Home calls itself a “high-growth” company and has plans to keep building out its campus and expanding.

Let’s learn more about them.

Union Home Mortgage Fast Facts

  • A retail mortgage lender based out of Strongsville, Ohio
  • Founded in 1970, led by former MBA chairman Bill Cosgrove
  • Licensed in 44 states and the District of Columbia
  • More than 150 branch locations and nearly 1,400 Partners nationwide
  • 22% of total loan volume comes from the state of Ohio
  • Funded more than $12 billion in home loans during 2021

Union Home Mortgage, or UHM for short, is a direct-to-consumer retail lender based in Strongsville, Ohio.

That means you can call them up or visit a branch to get a mortgage, or simply surf over to their website to get started.

They are an approved direct lender for Fannie Mae, Freddie Mac, the FHA, USDA, and VA, and also operate a wholesale lending division for mortgage brokers.

The company funded roughly $4 billion via the retail channel in 2019, and more than $12 billion in 2021.

The Buckeye State is where they happen to do most of their mortgage lending, with roughly a quarter of overall loan volume coming out of Ohio.

But they don’t just originate mortgages in Ohio – they’re licensed in 44 states nationwide and the District of Columbia.

They do quite a bit of lending in nearby Michigan, along with Indiana, Pennsylvania, and even far-away Arizona.

And they’re the new title sponsor of the Gasparilla Bowl, which is played down in Tampa, Florida, so they’re probably looking to grow in the Sunshine State as well.

Recently, their loan servicing portfolio surpassed the $10 billion mark, and they now service loans for more than 60,000 families nationwide.

How to Get a Loan with Union Home Mortgage

  • You can apply online, by phone, in person, or via mobile
  • They offer a digital mortgage application powered by Ellie Mae
  • Borrowers can scan and upload documents via the smartphone app
  • And receive status updates as their loan progresses to the finish line

As noted, you can call them up over the phone, visit their website, or go to a brick-and-mortar branch if doing business in person is your thing.

If you choose to go the online route, you’ll first need to fill out a very brief form to get matched with a loan officer (assuming you haven’t already been referred or know who you want to work with).

Once you complete that quick step, you get the option to begin the loan application process without any human interaction. Or you can wait for a loan officer to call/email you.

Those who already know who they want to work with can use the loan officer directory on the company’s website by clicking on “Find a Branch.” Simply enter their name and you’ll be directed to their personal webpage.

From there, you can see which states they’re licensed to do business in, get their contact information, apply for a loan, or check loan status.

UHM offers a digital mortgage app powered by Ellie Mae that lets you complete just about everything online.

Additionally, they offer a free smartphone app that allows you to securely scan and upload documents, message your loan officer instantly, and receive status updates as your loan moves along.

Build Your Payment Program

In March 2023, Union Home Mortgage launched the “Build Your Payment Program,” which they refer to as a “new way for homebuyers to create a mortgage built around their budget.”

It’s not totally clear what that entails, but the company said customers work one-on-one with a dedicated mortgage expert “to craft an ideal monthly payment.”

These loan officers then present the best options based on each customer’s unique circumstances, presumably a type of loan, or a certain loan amount.

The main goal is to make the home loan process simple, while keeping the focus on monthly payments that align with home buyer budgets.

This is especially important as costs increase across the country thanks to pesky inflation.

Loan Types Offered by Union Home Mortgage

  • Home purchase loans
  • Refinance loans: rate and term and cash out
  • Home renovation loans
  • New construction home loans
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Government loans backed by the FHA, USDA, and VA
  • Non-conforming loans: jumbo and non-QM

Union Home Mortgage offers both home purchase loans and refinance loans, along with renovation loans like the FHA 203k loan and new construction home loans.

You can get financing on a primary residence, second home, or investment property, whether it’s a single-family home or condo/townhouse.

Union Home Mortgage offers conventional financing backed by Fannie Mae and Freddie Mac, along with government-backed home loans from the FHA, USDA, and VA.

It’s also possible to get a jumbo home loan or a non-conforming loan thank to their non-QM offerings.

Those looking for new home construction financing can choose from conventional, FHA, and VA options.

And they offer both fixed-rate mortgages and adjustable-rate mortgages in various terms to suit all borrowers.

Union Home Mortgage Rates

One slight negative is that Union Home Mortgage does not advertise its mortgage rates, unlike some other mortgage lenders.

While you can chalk it up to the questionable usefulness of advertised rates, I do give lenders bonus points for transparency when they take the time to list their rates on their website.

Additionally, Union Home Mortgage doesn’t list their lender fees on their website, so it’s unclear what they charge, e.g. a loan origination fee, underwriting and processing fees, and so on.

As such, be sure to shop your home loan with other lenders to see where they stand pricing-wise. While price isn’t everything, it’s certainly important.

Union Home Mortgage Reviews

On Zillow, Union Home Mortgage has a 4.89-star rating out of 5, based on more than 700 customer reviews.

Many of the reviews indicate the interest rate that was lower than expected, while some also say closing costs were lower than anticipated.

Zillow allows you to drill down and look at the reviews of individual loan officers, helpful if you want to handpick who to work with beforehand.

On LendingTree, they’ve got a 4.8-star rating out of 5, based on more than 300 reviews. Some 95% of customers recommend working with Union Home Mortgage.

Lastly, they aren’t an accredited business with the Better Business Bureau and they’ve got a questionable C+ rating with the BBB.

Per the BBB, their rating is low because they failed to respond to one complaint filed against them. So it may have been an oversight or a one-off, but it’s something to take note of.

Union Home Mortgage Pros and Cons

The Good

  • Can apply for a mortgage online or in-branch
  • Offer lots of different loan programs
  • Customers can use the free UHM smartphone app
  • Excellent customer reviews
  • Free mortgage calculators on site
  • More than 150 branch locations located nationwide
  • They service their own loans

The Maybe Not Good

  • Need to fill out a contact form before applying for a loan unless you use the loan officer directory
  • Not licensed to do business in Alaska, Hawaii, New York, North Dakota or South Dakota
  • C+ rating with the Better Business Bureau

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll check out SWBC Mortgage, short for Southwest Business Corporation.

They’re a Texas-based direct-to-consumer mortgage lender, which is part of a larger diversified financial services company called, you guessed it, SWBC.

Their claim to fame is being a top company to work for, and they boast that many of their loan officers have made the list of top 1% of mortgage originators in America.

They currently offer home loans in 40 states and the District of Columbia. Let’s learn more about them.

SWBC Mortgage Quick Facts

  • Direct-to-consumer retail mortgage lender founded in 1988
  • Headquartered in San Antonio, Texas
  • Funded nearly $4 billion in home loans during 2019
  • More than a quarter of total loan volume came from home state of Texas
  • Have branch locations in many states across the country
  • Licensed in 40 states and D.C.
  • All loan processing, underwriting, and closing is done in-house

Last year, SWBC Mortgage originated roughly $4 billion home loans via the retail channel.

They allow prospective home buyers and existing homeowners to apply via their website or a brick-and-mortar branch.

A good chunk of their total loan volume comes from their home state of Texas, and they also do quite a bit of lending in Colorado, Tennessee, and many Southern states.

About two-thirds of total production came from home purchase lending, with about a quarter refinance business and the remainder powered by home equity lending (HELOCs).

At the moment, they don’t appear to provide mortgage lending services in the states of Hawaii, Maine, Massachusetts, Missouri, New York, North Dakota, Rhode Island, South Dakota, Vermont, or Wyoming.

Getting a Home Loan with SWBC Mortgage

  • You can apply directly from their website in minutes
  • Digital mortgage application known as TurnKey powered by Blend
  • Can link financial accounts and/or scan and upload documents securely
  • They say they’re generally able to close loans in less than 3 weeks

When it comes time to apply for a mortgage, you can do so directly from the SWBC website. They have a digital mortgage application called “TurnKey” powered by fintech company Blend.

As the name suggests, you can quickly get through the application thanks to technology like income and asset validation, which lets you link financial accounts instead of inputting that information manually.

At the same time, you can expect one-on-one customer service from a dedicated loan officer if you need any help along the way.

To that end, you can choose a loan officer to work with before you apply by using the directory on the SWBC Mortgage website.

Simply click on “Find a Pro,” then search by city, state or zip code, or by loan officer name. Once you find a branch, you can see who works in that office.

And once you’ve got your loan officer picked out, you can contact them directly or apply from their own dedicated webpage.

All in all, SWBC Mortgage makes it super easy to apply for a home loan without needless steps and wasted time. But you also get the human touch if and when you want/need it.

Loan Types Offered by SWBC Mortgage

  • Home purchase and refinance loans
  • Conforming mortgages backed by Fannie/Freddie
  • Government-backed loans: FHA, USDA, and VA
  • Jumbo loans up to $3 million loan amounts
  • Home renovation loans: Fannie Mae HomeStyle and FHA 203k (Standard and Limited)
  • Texas Vet Mortgage Loans

SWBC Mortgage offers both home purchase financing and refinance loans, including rate and term and cash out refinances, along with home renovation loans.

You can finance a primary residence, second home, or multi-unit investment property.

They’ve got all the typical loan types, such as conforming loans backed by Fannie Mae and Freddie Mac, as well as government loans like FHA loans, USDA loans, and VA loans, the latter two allowing zero down financing.

They also offer home equity loans by way of HELOCs, so if you want to tap your home equity while leaving your first mortgage intact, you can do so.

It may also be possible to take out a piggyback second mortgage if you want to extend your home purchase financing while avoiding PMI.

If you have a particularly expensive property, they offer jumbo home loan financing as high as $3 million, with some of their jumbos coming with down payment options of just 10%.

They also have options for self-employed borrowers, and low down payment options (3% down) for those with little set aside in the way of assets.

Lastly, because SWBC Mortgage participates in the Veterans Housing Assistance Program (VHAP), they’re able to offer Texas Vet mortgage loans that come with special interest rate discounts.

In terms of loan program, you can get a fixed-rate mortgage, such as a 30-year or 15-year fixed, or an adjustable-rate mortgage, like a 5/1 ARM or 7/1 ARM.

SWBC Mortgage Rates

SBMC does not advertise or disclose its mortgage rates online or elsewhere to my knowledge. If you want to get pricing, you’ll need to apply and/or speak with a loan officer.

As such, it’s unclear how competitive they are relative to other mortgage lenders. The same goes for lender fees, which don’t appear to be posted on their website.

This isn’t necessarily a bad sign, it just means you’ll need to speak to someone to find those things out.

Once you have that important pricing information, you can compare their interest rates and closing costs to other lenders while comparison shopping.

Yes, you should take the time to gather more than one mortgage quote, otherwise you’re doing yourself a disservice.

SWBC Mortgage Reviews

SWBC says it has over 1,000 Google reviews, with an average customer rating of 4.9 out of 5 stars. Those reviews may be spread across their many branch locations, so be sure to filter by location.

Some of their locations are very highly-rated, such as the Oklahoma City branch, which has a 5-star rating out of 5 on Birdeye based on nearly 250 reviews.

You can also see individual SWBC Mortgage loan officers’ reviews on Zillow – some have more than others, but this is perhaps the best way to drill down and see how one person performs as opposed to just looking at the entire company.

Since they’re large and located across the United States, it may be best to look at individual reviews for an indication of future performance.

SWBC Mortgage is an accredited company with the Better Business Bureau, and currently enjoys an A+ rating.

SWBC Mortgage Pros and Cons

The Good

  • Can apply for a home loan directly from their website in minutes
  • Offer a digital mortgage application powered by Blend
  • Plenty of loan options to choose from including home equity products
  • Great reviews from past customers
  • Free mortgage calculators on site
  • A+ BBB rating

The Maybe Not Great

  • Not licensed in all 50 states
  • Do not advertise their mortgage rates
  • Do not list lender fees on their website

(photo: Nicolas Henderson)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Today we’ll review Axia Home Loans, an up-and-coming independent mortgage bank that’s licensed in 17 states nationwide.

In case you were wondering, Axia is a Greek word that means “value” or “worth.”

They’re based out of the Pacific Northwest, Bellevue, Washington to be exact, and have been around for just over a decade, since 2007.

But they’ve still managed to become a billion-dollar mortgage lender, funding nearly $1.4 billion via the retail channel in 2019.

Axia Home Loans Fast Facts

  • Retail mortgage lender founded in 2007
  • Headquarters in Bellevue, Washington
  • Licensed to originate home loans in 17 states
  • Nation’s first 100% employee-owned independent mortgage bank
  • Funded roughly $1.4 billion in home loans during 2019
  • Half of their loan volume comes from Nevada and Washington
  • About two-thirds of total volume was home purchase financing
  • Just launched a mortgage broker division called United Reliance Wholesale (UR Wholesale)

Axia did about 30% of total loan volume in its home state of Washington, with another 20% in nearby Nevada.

Aside from those two states, they’re also licensed in Arizona, California, Florida, Hawaii, Idaho, Minnesota, Montana, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Utah, Wisconsin, and Wyoming.

They seem to specialize in home purchase financing, likely due to strong relationships with local real estate agents. But they also do a lot of refinance volume as well.

In October 2020, they launched a wholesale lending division for mortgage brokers called Unified Reliance Wholesale (UR Wholesale), with plans to focus on the West Coast, primarily in California.

How to Apply with Axia Home Loans

  • You can get started online, in-branch, or over the phone
  • They offer a digital mortgage application known as Axia Express
  • Allows you to securely link financial accounts and scan documents
  • Axia processes, underwrites, and funds all their home loans in-house

Axia Home Loans processes, underwrites, and funds their loans in-house, allowing them to close your mortgage quickly and efficiently.

They rely on emerging technologies like a digital mortgage application and smartphone app to make it easier to finance a new home purchase or refinance an existing home loan.

Their loan application is known as “Axia Express,” a platform that gives customers the option to automatically pull in tax returns, employment history, and bank statements.

Additionally, you can securely scan and upload documents from your mobile device and chat with your loan officer if you have questions.

Once submitted, you can track loan progress and receive status updates as your home loan makes its way to the finish line.

To get started, you can visit their website and select “Start the Home Loan Process” or “Connect with a Local Advisor.”

If you choose the first option, you can select a loan officer if you’ve been referred or know who you’ll be working with. From there, you can apply for a loan.

If you don’t have a loan originator, you’ll need to fill out a basic form with contact info and wait for a loan officer to contact you.

If you choose the Connect with a Local Advisor option, it’ll show you branches nearby and local loan officers who work there. Once you click through to a specific branch, you can apply online.

Axia Home Loans Mortgage Options

  • Home purchase loans
  • Rate and term refinances
  • Cash out refinances
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Government-backed loans including FHA, USDA, and VA
  • Jumbo home loans
  • HomePath financing
  • Fixed-rate and adjustable-rate loans in various terms

Axia Home Loans offers both home purchase financing and mortgage refinances, including rate and term refinances and cash out refinances.

Those thinking of buying a home can take advantage of Axia’s Certified Homebuyer Program, which is an actual credit approval that is analyzed by their underwriting department (verified pre-approval).

You can get a home loan on a primary residence, second home, or an investment property.

They offer conventional loans backed by Fannie Mae and Freddie Mac and government home loans, including FHA, USDA, and VA loans.

Those in need of larger loan amounts can get a jumbo home loan from Axia as well.

Additionally, they provide HomePath financing on Fannie Mae-owned properties.

In terms of loan programs, you can get either a fixed-rate mortgage (such as a 15-year or 30-yer fixed) or an adjustable-rate mortgage, like a 5/1 ARM.

It’s unclear if they offer renovation or construction loans, or any home equity line/loan products.

All in all, they have loan programs to fit the needs of most customers.

Axia Home Loans Mortgage Rates

While Axia says they offer competitive rates, they don’t advertise mortgage rates on their website.

While this doesn’t indicate whether their rates are good, bad, or just plain average, it does make it a bit more difficult to get pricing.

In other words, you’ll need to get in contact with a loan officer to see what type of mortgage rate you qualify for.

The same goes for lender fees, which don’t appear to be listed on their website. Be sure to inquire about what they charge, such as underwriting, processing, and loan origination fee.

All that will factor into the mortgage APR, which is an important calculation that takes into account both the interest rate and the fees included.

Axia Home Loans Reviews

On Zillow, Axia Home Loans enjoys a 4.95-star rating out of 5 on roughly 2,000 customer reviews.

You can click on individual loan officer names as well to get their ratings if you want to work with someone highly-rated.

While they keep us in the dark regarding mortgage rates, many of the Zillow reviews indicate that both interest rates and closing costs were favorable.

On SocialSurvey, they’ve got a 4.92 rating out of 5 from more than 13,000 customer reviews.

And on BirdEye, a 4.9 rating based on more than 200 reviews. So they appear to consistently make their customers happy.

They also say they’ve got a 98% client satisfaction rating based on current surveys.

Lastly, they are accredited with the Better Business Bureau and currently have an A+ rating. There are no customer reviews on the BBB website and few complaints.

Axia Home Loans Pros and Cons

The Good

  • Can apply online, by phone, or in-branch
  • Offer free personalized mortgage consultations
  • Digital mortgage application
  • Free smartphone app
  • Free mortgage calculator on site
  • 100% employee-owned mortgage lender
  • Some of their loan officers speak Spanish and Vietnamese
  • Excellent customer reviews
  • A+ BBB rating

The Maybe Not Good

  • Only licensed in 17 states
  • Do not disclosed their mortgage rates
  • No mention of lender fees
  • Don’t offer home equity loans/lines

(photo: SounderBruce)

Source: thetruthaboutmortgage.com

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If you’ve used Zillow’s Marketplace to compare mortgage rates, you may have come across Sebonic Financial.

While they may be unfamiliar to you, they’re actually a dba of Cardinal Financial, which is a top-40 mortgage lender nationally.

So while they might not be as big or as recognizable as other mortgage lenders out there, they’re backed by one the largest mortgage lenders in the country.

You can read my Cardinal Financial review as well if you’re curious about them, but for quick reference, they’re a mortgage bank based out of Charlotte, NC that’s been around since 1987.

Sebonic Financial Quick Facts

  • Direct-to-consumer lender located in Charlotte, North Carolina
  • A dba of Cardinal Financial, a top-40 mortgage company nationally
  • Considered the digital startup division of Cardinal Financial
  • Licensed to do business in all 50 states and the District of Columbia
  • A Zillow Marketplace mortgage lender

Sebonic says it’s a digital startup fueled by tech, new ideas, and fast execution, anchored by the resources of a well-established and experienced mortgage bank.

It’s unclear how long Sebonic Financial has been around, but I recall seeing them for years now, so I would assume nearly a decade or longer despite being known as a newcomer.

I also can’t tell you what the name Sebonic means, whether it’s a made-up word or a surname. I’d like to know the origin and will keep digging on that one.

However, they do appear to be licensed in all 50 states and DC thanks to their relationship with Cardinal Financial, which is a plus.

Additionally, they seem to be the more digitally-oriented division of Cardinal that deals mainly with borrowers looking to apply for a mortgage online, remotely.

So if that’s your thing, they could be a good choice for your mortgage needs, especially if their interest rates and lender fees are low.

Applying for a Home Loan with Sebonic Financial

  • You can apply by phone or request a free rate quote on their website
  • Or use their loan officer directory, then apply via that individual’s personal webpage
  • Some applicants may start the process via the Zillow Marketplace where they seem to advertise heavily
  • They offer a digital mortgage application process known as Octane

Like Cardinal Financial, they offer a proprietary digital mortgage application known as Octane.

It allows you to start the loan process online and complete most things digitally, as opposed to having to fax or email documents.

You can also e-sign documents, scan and upload conditions, check loan progress at any time, and receive status updates as your loan makes its way to the finish line.

You’re able to call them up directly to get started as well, or alternatively request a free rate quote via their website.

Alternatively, you can use the loan officer directory on their website to select an originator to work with, then apply directly via their personal webpage.

As noted, you might also get started if using Zillow’s Marketplace to compare mortgage rates, at which point someone will contact you once you submit your loan request.

Loan Types Offered by Sebonic Financial

  • Home purchase and refinance loans (including cash out)
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Government-backed loans: FHA, USDA, and VA loans
  • Jumbo loans with loan amounts up to $3 million
  • Interest-only home loans

Sebonic Financial offers the full suite of loans programs on both home purchases and mortgage refinances.

You can also get a cash out refinance if you’re looking to tap your home equity.

You can get financing for a primary residence, second home, or investment property, including condos and townhomes and multi-unit properties.

In terms of loan type, you can get a conventional home loan backed by Fannie/Freddie, or a government-backed loan such as an FHA loan, USDA loan, or VA loan.

They also offer non-conforming stuff like jumbo loans up to $3 million loan amounts and an interest-only jumbo ARM.

You can get a fixed-rate mortgage such as a 30-year or 15-year fixed, or an adjustable-rate mortgage, such as a 5/1 or 7/1 ARM.

It’s unclear if they offer renovation or construction loans, such as the FHA 203k.

Sebonic Financial Mortgage Rates

While they don’t advertise their mortgage rates on their own website, you can often see their daily rates via the Zillow Marketplace.

They seem to be a big advertiser/partner with Zillow, so if you search for mortgage rates via that platform, they’ll often pop up alongside other lenders.

From what I’ve seen personally, their mortgage rates were pretty competitive relative to other lenders on Zillow.

While perhaps not always the very lowest listed, they often advertise their rates with $1 lender fees, compared to other lenders typically charging $1,000 – $2,000.

So while you might see a rate an eighth higher than the cheapest lender listed, don’t forget to factor in the closing costs.

Sebonic Financial Reviews

On Zillow, they’ve got a 4.49-star rating out of 5 based on more than 3,000 customer reviews.

That’s close to excellent, but there are some mixed reviews if you scroll through them.

Some past customers have complained about them not following up or communicating effectively, or even making contact to begin with.

But others have said they aren’t pushy and provide exceptionally responsive service – so your mileage may vary here.

As always, take the time to look at individual loan officer reviews to fine-tune who you ultimately work with for the absolutely best experience possible.

On SocialSurvey, they have a 4.62-star rating out of 5 based on more than 5,600 reviews, which is pretty consistent with their Zillow reviews.

While still very good, there are plenty of mortgage companies with even higher reviews on those sites.

There seems to be a consistency issue, with lots of customers very happy, and the occasional one seemingly dismayed.

This could be one of the drawbacks of working with an online mortgage lender without a physical presence.

The good news is their parent company Cardinal Financial is Better Business Bureau (BBB) accredited and has been since 2014.

They currently have an A+ BBB rating and a 4.25 out of 5-star rating based on roughly 200 customer reviews.

Sebonic Financial Pros and Cons

The Good

  • Licensed in all 50 states and DC
  • Backed by a very large and established mortgage bank
  • Provide a digital mortgage experience
  • Offer $1 lender fee options
  • Lots of loan programs to choose from
  • Mostly good reviews on both Zillow and SocialSurvey
  • A+ BBB rating
  • Free mortgage calculators on their website

The Possible Bad

  • Some mixed reviews with folks citing poor communication
  • No branch offices (you work with a loan officer remotely)
  • Don’t publish mortgage rates on their website
  • May not offer construction/renovation loans or home equity loans
  • They may not service your loan after closing

Source: thetruthaboutmortgage.com

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For many individuals and families, owning a home is a lifelong dream. However, with rising real estate prices, some may find themselves seeking financing beyond the conforming loan limit. This is where jumbo loans come into play.

What is a jumbo loan?

A jumbo loan in Alaska is a type of mortgage that enables homebuyers to borrow more than the limits set by the Federal Housing Finance Agency (FHFA) for conforming loans. The conforming loan limit (CLL) is the maximum amount of money that a lender will provide to borrowers at a specific interest rate and is established each year. Jumbo loans are necessary for homebuyers who want to purchase a high-value property, such as a luxury home, that exceeds the conforming loan limit. 

If you’re considering purchasing a home that requires financing beyond the CLL, then you’ll need to apply for a jumbo loan. But because of the larger loan amounts and increased risk for lenders, Alaska jumbo loans often come with higher interest rates and stricter requirements than conventional loans. For instance, a larger down payment and a higher credit score may be required to qualify for a jumbo loan.

What is the jumbo loan limit in Alaska?

In Alaska, the conforming loan limit is $1,089,300 across all counties. For example, if you’re buying a home in Anchorage Municipality, where the median sale price is $400,000, a loan limit exceeding $1,089,300 would be considered a jumbo loan.

Keep in mind that the loan amount is what determines whether or not you’ll need a jumbo loan, not the price of the home. So, if you were to put $200,000 down on a $1,200,000 home in Anchorage, the mortgage would be $1,000,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.

For more information on the conforming loan limit in your county, use the FHFA map.

What are the requirements for a jumbo loan in Alaska?

The requirements to qualify for a jumbo loan are more stringent than the requirements for a conforming loan. Each lender may have different requirements or processes, but below are the typical requirements for borrowers seeking a jumbo loan.

Higher credit score: When it comes to receiving a jumbo loan in Alaska, credit score requirements are typically more stringent than for conventional mortgages. It’s possible that some lenders may accept a lower score, a credit score of at least 720 is generally required to qualify for a jumbo loan. It’s important to have a strong credit profile and a solid financial history to increase your chances of being approved for a jumbo loan.

Larger down payment: Jumbo loans are a popular financing option for homebuyers looking to buy higher-priced homes. However, compared to traditional mortgages, jumbo loans typically require a larger down payment. The exact amount required will vary depending on the lender and the borrower’s finances, but down payment requirements for jumbo loans can be as high as 20%, sometimes 30%. It’s worth noting that putting down a larger sum upfront can often help borrowers secure a better interest rate on their jumbo loan.

More assets: Jumbo loan lenders generally require borrowers to demonstrate a strong financial profile, including substantial liquid assets or savings. To qualify for a jumbo loan, borrowers must have enough reserves to cover at least one year of mortgage payments. This requirement ensures that borrowers have the financial flexibility to meet their loan obligations in the event of a financial hardship.

Lower debt-to-income ratio (DTI): Whether you’re applying for a traditional mortgage or a jumbo loan, lenders evaluate your spending habits and creditworthiness by analyzing your debt-to-income ratio (DTI). The DTI is determined by dividing the total of your monthly debt payments by your gross monthly income. While some lenders may accept a DTI as high as 50% for a conforming loan, those applying for a jumbo loan should aim for a DTI under 43% and ideally closer to 36%.

Additional home appraisals: Mortgage lenders may require a second home appraisal as an extra layer of protection when it comes to jumbo loans. The second appraisal serves as an additional opinion to ensure the property’s value aligns with the loan amount. In areas with limited comparable property sales, this extra appraisal may cost more than in neighborhoods with more frequent sales.

Source: redfin.com

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Kathy Robb always knew she wanted to do interior design, back as far as high school.

While her degree is in accounting, she took classes focused on upholstery and interior design in hopes of one day breaking into the business.

She started by selling at Round Top Texas Antiques, one of the largest flea markets in the world, in her native Texas. Interior designers would come from other countries and set up shop. She also did vetted pop-up shows between Texas and Charleston, South Carolina.

When she moved to Birmingham, she met Tom Findlay of Thomas Andrew Art Gallery, who invited her and her daughter, Penelope Baggett, to open their own shop, The Blended Bungalow, in the front of his store.

Their ideal customer is someone buying their first or second home, Robb said, and they want to help blend new pieces with any family heirloom pieces that are coming into the home. If every piece of furniture is new, it looks staged, she said, but if everything is an heirloom, it looks old.

The pair also want to avoid giving people “sticker shock,” with affordable pieces that don’t break the budget, Robb said.

The store offers furniture, home decor, candles and some women’s clothing as well, Robb said. There are also fun seasonal items and vintage china, she said.

Baggett, who lives in Texas, handles the behind-the-scenes work, social media and more, Robb said, and will fly in to help at times. Baggett opened her own business focused on refinishing furniture nine years ago, before joining her mother at The Blended Bungalow. The store features her “uniquely refinished dining sets” and Robb’s custom-upholstered chairs blended with “new, traditional pieces for a blended home that’s unique to the owner,” Robb said.

“Our mission and our goal is to bring affordable, gorgeous furniture to the public,” she said.

The store is located at 1925 29th Ave. S. and is open from 10 a.m. to 5 p.m. Wednesday through Friday and from 9 a.m. to 4 p.m. on Saturday.

For more information, visit the shop online at The Blended Bungalow on Facebook and Instagram and at their website, blendedbungalow.myshopify.com.

Source: thehomewoodstar.com