When it comes to purchasing a home, buyers may have difficulty finding financing beyond the conforming loan limit. If this is the case, you may need a jumbo loan. Whether your sights are set on a new construction home in Overland Park or a home in Wichita, let’s break down what a jumbo loan is in Kansas, the 2023 conforming loan limits, and what’s needed to qualify for this type of loan.
What is a jumbo loan?
So what are jumbo loans in Kansas? They are large loans that exceed the loan limits set by the FHFA for conforming loans. Jumbo loans allow borrowers to finance homes that exceed the conforming loan limit, making it possible to buy high-end properties that may not be otherwise affordable.
If you find yourself in a situation where the home you wish to purchase requires borrowing beyond the conforming loan limit (CLL), then you’ll need to pursue 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 Kansas.
What is the jumbo loan limit in Kansas?
In Kansas, the conforming loan limit is $726,200 across all counties. For example, if you’re buying a home in Johnson County, where the median sale price is $450,000, a loan limit exceeding $726,200 would be considered a jumbo loan.
Keep in mind that the amount being borrowed is what determines whether or not you’ll need a jumbo loan, not the home price. So, if you were to put $100,000 down on a $780,000 home in Olathe, the loan would be $680,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.
You can find more information on the conforming loan limits specific to where you’re looking to buy a home in Kansas by using the FHFA map.
What are the requirements for a jumbo loan in Kansas?
To qualify for a jumbo loan in Kansas, borrowers must meet stricter requirements than they would for a conforming loan. The specific requirements may vary from lender to lender, but below are the typical requirements for borrowers seeking a jumbo loan.
Higher credit score: In order to have your loan application approved for a jumbo loan, most lenders will require a credit score of 720 or higher. While some lenders may be more lenient and accept a score as low as 660, a score below this is generally not accepted. In contrast, a credit score as low as 620 could suffice for a conforming loan with some lenders.
Larger down payment: Jumbo loans are a popular financing option for homebuyers looking to buy higher-priced homes. However, compared to conventional loans, jumbo loans typically require a larger down payment. While the exact amount varies depending on the lender and the borrower’s financial profile, down payment requirements for jumbo loans can be as high as 20% or more. 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 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): Mortgage lenders consider a borrower’s debt-to-income ratio (DTI) when evaluating their eligibility for a jumbo loan. To qualify for a jumbo mortgage in Kansas, borrowers typically need a DTI below 43%, though closer to 36% is preferred. The DTI represents the borrower’s monthly debt payments divided by their gross monthly income.
Additional home appraisals: For a jumbo loan, mortgage lenders may require a second home appraisal to ensure that the property’s value is accurate. This is particularly true in regions where there are few comparable property sales. The appraisal acts as a second opinion and helps the mortgage lender to mitigate their risk. It’s important to note that the cost of a second appraisal may be higher than a typical home appraisal, particularly in areas with fewer sales.
The COVID-19 pandemic could result in waves of people moving from the city and into the suburbs in search of more space, forecasts show.
While 30% of American say they’ve browsed real estate listings recently, those who live in urban areas are twice as likely as those living in the suburbs or rural areas to actually be interested in buying or renting a home or apartment, according to a new Harris Poll conducted last month. Almost a third of American say they’re considering a move to a less densely populated area due to the coronavirus, the same poll shows. Moreover, nearly four in 10 of those respondents were urbanites who say COVID-19 is what has prompted them to consider such a move.
John Downs, a real estate pro with Berkshire Hathaway in Connecticut, told The Wall Street Journal he’s expecting to see much greater demand for McMansions in more remote locations, once the coronavirus has passed. He said that he’s already noticed an increase in inquiries about properties in remote areas from city dwellers.
A separate report by CNBC shows an uptick among New York’s wealthiest residents who’re looking to move into the suburbs or exurbs in order to enjoy a less crowded lifestyle. Most are seeking more space and distance from their neighbors and crowds, real estate professionals say. For some, it may be they’re interested in buying a second home that’s still close to the city. For others, it may be more permanent.
“It seems like everyone wants to leave the city,” said Steve Magnuson, a broker with Douglas Elliman in Greenwich, Connecticut, in an interview with CNBC. “Our problem is not enough inventory for sale. We’ve been on the phone 24/7 and on email.”
Magnuson recently rented a five-bedroom home with an infinity pool in Greenwich for $55,000 a month—a record high for the town. The rental is now available again but is listed at a more expensive price—$65,000 per month—and has a waitlist of 18 people desiring to rent it.
People in the city who are eyeing suburbia are looking for a more spacious place to run, walk, and ride bikes. Wealthy buyers are also focusing on homes with a pool, large home office, and strong internet and cell services, Magnuson notes.
Could the rush from city to the suburbs be temporary, as it was following the Sept. 11, 2001, terrorist attacks? Brokers report a momentary shift in the market during that time as more people fled the city. But they quickly returned, driven by overseas buyers and young professionals. Even without an exodus, brokers are still banking on a desire for second homes to grow among the wealthy after the pandemic.
“Being able to go someplace not far from your home, where you have a home office and can keep your friends and family safe—that’s number one,” Magnuson told CNBC.
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
American Financial Network Inc. bills itself as one of the fastest growing mortgage bankers in the United States, and is indeed ranked in the top 50 nationally.
But they’re not satisfied with that, and believe they have what it takes to land in the top-10 one day. Of course, the competition is pretty fierce at the very top of the pile.
Aside from being a high-growth company, they are also a highly-rated one, finding themselves among the top three lenders on LendingTree based on customer reviews.
That’s pretty impressive given the fact that there are more than 800 mortgage lenders listed there.
Let’s dig into the details to learn more about this SoCal mortgage lender.
American Financial Network Quick Facts
Retail direct-to-consumer mortgage banker founded in 2001
Headquartered in Brea, CA – licensed in all 50 states and D.C
Offers home purchase loans and refinance loans
A top-50 mortgage lender nationally by loan volume
Funded more than $7 billion in home loans last year
185+ physical locations and 700+ loan officers nationwide
One of the top-rated mortgage lenders on LendingTree based on customer reviews
American Financial Network Inc. was founded in Chino Hills, California by mortgage industry veteran Jack Sherman back in 2001.
The company later relocated to nearby Brea, CA before growing rapidly and hitting its first billion-dollar funding year in 2012.
Today, it’s one of the nation’s largest mortgage lenders (top-50), having funded over $7 billion last year alone.
In 2019, they signed on New York and Vermont to achieve their goal of nationwide licensing, and recently celebrated their eighth billion-dollar origination month in a row.
That means they’re on track to fund more than $10 billion in mortgages this year, which should make 2020 a record year for loan volume.
While they have the ability to lend anywhere, including Alaska and Hawaii, the company is most active in the states of Arizona, California, Florida, Texas, and Virginia.
Nearly half of last year’s volume was made up of home purchases, with the remainder split about evenly between cash out refis and rate and term refis.
One other fun fact about the company – apparently 37 different languages are cumulatively spoken, a testament to their diversity.
How to Apply with American Financial Network
You can apply directly from their website without human assistance
They use a digital mortgage loan process known as SNAP
Allows you to scan/upload paperwork, eSign documents, and order a credit report on your own
Can check loan status 24/7 and contact your loan officer via text/phone at any time
AFN is a Fannie Mae Seller/Servicer, Ginnie Mae and Freddie Mac Issuer, and USDA & VA LAPP approved, meaning they can get things done quickly in-house.
Additionally, they provide fully underwritten mortgage pre-approvals, so you can be confident to move forward as a prospective home buyer.
If you’d like to apply for a home loan, you can do so directly from their website or via their free smartphone app.
I believe they offer a digital mortgage application powered by Ellie Mae that lets you complete most tasks electronically. It’s known as SNAP.
Once your loan is approved, you’ll get a to-do list with the ability to scan and upload conditions, eSign documents, and track loan progress 24/7.
Loan Types Offered by American Financial Network
Home purchase loans
Refinance loans (rate and term, cash out, streamline)
Home renovation loans
Conventional loans backed by Fannie Mac and Freddie Mac
Jumbo home loans up to $2 million loan amounts
Government-backed home loans: FHA, USDA, and VA
Down payment assistance programs
Fixed-rate and adjustable-rate home loan options available
American Financial Network is a mortgage banker, meaning they have correspondent relationships with lots of investors to ensure they’ve got every loan product a borrower could need in-house.
This basically allows them to resell loan products from other companies, providing a wider breadth of offerings than other lenders.
Additionally, their loan officers may have the ability to broker out loans if you have a unique loan scenario that can’t be placed in-house.
They offer tons of loan options, including home purchase loans, refinance loans, and home renovation loans. It’s unclear if they have construction loans.
You can finance a primary residence, second home, or investment property, including condos and townhomes.
With regard to loan type, you can get a conventional home loan backed by Fannie Mac or Freddie Mac, a government loan backed by the FHA/USDA/VA, or a jumbo home loan that exceeds the conforming loan limit.
They also have a variety of down payment assistance programs for those who may need a little helping hand asset-wise.
Aside from all the usual stuff, they say they’ve got bank statement programs for self-employed borrowers and real estate investors, and other specialty products to accommodate other needs.
American Financial Network Mortgage Rates
Like many others, American Financial Network doesn’t publicize their mortgage rates on their website.
This says nothing about their rates in general, but it does leave us in the dark unfortunately.
I give lenders transparency points for listing their rates on a daily basis, but I also understand the shortcomings of advertised rates, which often only fit one ideal loan scenario.
That being said, you can get a quick, free mortgage rate quote by filling out a short form on their website or by simply calling them directly.
The form is very short, though you will need to provide contact information.
AFN also doesn’t list its lender fees anywhere, so we don’t know if they charge a loan origination fee and/or other common fees like underwriting, processing, or application fees.
Be sure to speak with a loan officer to get a mortgage rate quote along with the applicable lender fees and mortgage APR so you can shop your rate with other lenders.
American Financial Network Reviews
They are a top-rated mortgage lender on LendingTree (top 3 at last glance) with a 4.9-star rating out of 5 based on nearly 23,000 customer reviews.
The company also boasts a 99% recommendation rate on LendingTree, which is clearly hard to beat.
The only two lenders that are rated above them on the LT network are New American Funding and Fairway Independent Mortgage.
On SocialSurvey, AFN has a 4.82-star rating out of 5 on a whopping 51,000 customer reviews. That’s pretty impressive given the high volume of customer feedback.
On Zillow, they’ve got a 4.94 rating out of 5 based on more than 2,100 reviews.
Lastly, they’ve got a ‘B+’ rating with the Better Business Bureau, and have been an accredited company since 2019.
In summary, American Financial Network checks all the major boxes and seems to really excel in customer satisfaction, a big plus for those seeking a mortgage.
American Financial Network Pros and Cons
The Good
Can apply for a mortgage directly from their website without speaking to anyone
Lots of different loan programs to choose from
Thousands of excellent customer reviews
Top ranked company on LendingTree
Loan officers and support staff may also speak Spanish
Brick-and-mortar locations if you prefer to work in-person
Free smartphone app to manage your loan
Mortgage calculators and mortgage glossary on their website
Today I thought I’d highlight a smaller community bank that does a really good job marketing mortgages, Farmers Bank of Kansas City.
While their history extends far beyond that of most mortgage lenders, 113 years old to be exact, their use of technology is a great example of what a bank can do right when it comes to home loans.
Just because you’re a big bank doesn’t mean you can’t have a great website, or embrace the latest tools available.
Farmers Bank of Kansas City says they offer a customized approach to every mortgage they originate, and they’re happy to do business any way you like, whether that’s by text, phone call, or email.
Farmers Bank of Kansas City Mortgage Fast Facts
Depository bank headquartered in Overland Park, Kansas
Founded more than 100 years ago
A branch of Farmers Bank & Trust
Offer home purchase loans, refinance loans, and home equity products
Licensed to lend nationwide
Farmers Bank of Kansas City is actually a branch of the larger Farmers Bank & Trust, which has assets nearing $1 billion dollars.
It appears they are the tech-savvy arm of the bank that has invested in technology so you can apply for a home loan from just about anywhere, without the typical inconvenience.
While they love what technology can do, they don’t forget to offer the personal attention you’d feel from a small town bank.
How to Apply for a Mortgage with Farmers Bank of Kansas City
It’s possible to apply for a home loan via their website without any human assistance
They offer a digital mortgage application powered by fintech company Ellie Mae
Securely submit documents online, check loan status 24/7, and communicate with their lending team via text, phone, or email
You can also compare mortgage rates before you apply and search their loan officer directory if you want to work with someone specific
One awesome thing about Farmers Bank of Kansas City Mortgage is the ability to apply for a home loan directly from their website, without any assistance.
You don’t need to fill out a contact form or wait for someone to call you back. Instead, you can dive right in on your own.
They offer a digital mortgage application powered by Ellie Mae that lets you complete much of the loan process paperlessly.
You can link financial accounts, scan and upload paperwork, and eSign documents along the way to get things done fast and securely.
To begin, simply head to their website and click on “Get Started.” That will take you to their mortgage rate quote page where you can enter basic details to see loan pricing.
Alternatively, you can just click on “Quick Apply” and go straight to the loan application without getting pricing.
A better strategy might be to check out rates first, then if you like them, browse their loan officer directory (also on their website) to handpick someone to work with.
You can apply from each loan officer’s own webpage or short bio section. Check their personal reviews to find out who might be the best fit.
Those looking for a mortgage pre-approval can also use the digital application to get started.
Loan Types Offered by Farmers Bank of Kansas City Mortgage
Home purchase loans and refinance loans
New construction and home renovation loans
Conforming home loans backed by Fannie/Freddie
Government-backed home loans: FHA/USDA/VA
Jumbo home loans
Home equity lines and loans
Fixed-rate and adjustable-rate options available in various terms
Farmers Bank of Kansas City offers the full suite of mortgage loan offerings, including home purchase loans, refinance loans, construction and renovation financing, and home equity products.
You can get a mortgage on a primary residence, second home, or investment property, including condos and townhomes.
Whether you are a first-time home buyer or an existing homeowner, they’ve got all the major loan programs to choose from, including conforming loans, jumbo loans, and government-backed loans including FHA, USDA, and VA loans.
In terms of loan type, you can choose from various fixed-rate and adjustable-rate mortgages, including the popular 30-year fixed or a 7/1 ARM.
Those looking to keep their first mortgage intact can inquire about a home equity line of credit (HELOC) or a home equity loan if they need cash.
All in all, they appear to offer just about everything you’d need mortgage-wise.
Farmers Bank of Kansas City Mortgage Rates
One great thing about Farmers Bank of Kansas City is the fact that they let you see their mortgage rates without having to call or fill out a lengthy mortgage rate quote form.
Simply head to their website, find the Home Loans menu, then click on “Get Rates.” From there, you’ll be able to create your own custom rate quote without any assistance necessary.
You can see rates for all types of different loan scenarios, including home purchase loans, refinance loans, and cash out refis. There’s even an option to waive escrows.
They list a variety of different rates with varying costs or lender credits so you can compare options with and without discount points.
From what I saw, their mortgage rates were super competitive relative to other lenders, even the rates they listed without any lender fees being paid out of pocket.
Speaking of fees, they do seem to charge a $1,295 loan origination fee, but as noted this can be covered by a lender credit.
They’ve also appeared on the Zillow Mortgage Marketplace, with seemingly excellent rates and lender fees as low as $1.
So it seems you can take the no cost refinance approach if wanted and still wind up with a great rate.
Farmers Bank of Kansas City Mortgage Reviews
On Zillow, the company has a 4.82-star rating out of 5 from nearly 300 customer reviews.
One nice thing about the Zillow reviews is you can fine-tune by loan officer to see how a particular individual performed in the past.
They have roughly 20 loan officers on their roster, so it shouldn’t be hard to check out their personal reviews, then go with who you like best.
Their parent company is not Better Business Bureau (BBB) accredited, but does have an ‘A+’ rating based on customer complaint history.
In summary, Farmers Bank of Kansas City gets bonus points for being transparent on mortgage rates and having an awesome and easy-to-use website.
But as always, take the time to shop around and compare their rates, fees, and loan process to other banks and lenders to ensure you get the best deal.
Farmers Bank of Kansas City Mortgage Pros and Cons
The Good
Offer a digital mortgage experience
Can apply directly from their website without a human
They display their mortgage rates on their website
Plenty of loan options to choose from including HELOCs and home equity loans
Excellent customer reviews and A+ BBB rating
Lots of free mortgage calculators and mortgage glossary on site
Overall great website design and easy to navigate
The Maybe Not
No physical locations other than some branches in Kansas
Today we’ll take a deep dive into a major credit union that’s also a sizable mortgage lender, Pentagon Federal Credit Union, or PenFed for short.
While originally intended to serve the U.S. military, veterans, and various defense department government employees, today anyone can join PenFed, whether part of those groups or not.
For example, if you have no military affiliation whatsoever, it’s possible to join if your employer is eligible or if you make a small donation to an organization.
PenFed has been around since 1935, and today serves more than two million members worldwide with a whopping $25 billion in assets.
They lend in all 50 states and the District of Columbia, as well as in Guam, Puerto Rico, and Okinawa. Let’s learn more.
PenFed Mortgage Fast Facts
Members-only credit union federally insured by NCUA
Founded in 1935, headquartered in Alexandria, Virginia
Anyone free to join regardless of lack of military background
Offer checking and savings accounts, credit cards, mortgages, and HELOCs
Licensed to lend in all 50 states, D.C., Guam, Puerto Rico, and Okinawa
Funded $18.9 billion in home loans last year
Did about a fifth of total loan volume in home state or Virginia
Also operate a wholly-owned title insurance company called PenFed Title, LLC and real estate brokerage called PenFed Realty
As noted, anyone can join PenFed, though they are a members-only credit union. So once you become a member, you can take advantage of their many product offerings, including home mortgages.
Last year, the Alexandria, VA-based credit union did roughly $18.9 billion in total home loan origination volume, with about a fifth of it in its home state of Virginia.
A good chunk was also originated in the nearby states of Maryland and Florida, along with Texas and faraway California.
Home purchase loans accounted for roughly 50% of volume, with 25% rate and term refinances, almost 20% cash out refinances, and the remainder HELOCs.
And while most of their home loans were fixed-rate mortgages, they offer a variety of adjustable-rate mortgages as well.
How to Apply for a Home Loan with PenFed Mortgage
Members can submit their loan application directly from their account on PenFed Online
They ask that you call them or submit a call back request online if refinancing or inquiring about a HELOC
Those looking to generate a pre-approval can do so right away via the online portal
They offer a digital mortgage loan experience that allows you to complete most tasks electronically
Assuming you’re a PenFed member, it’s possible to get the ball rolling simply by calling them up directly or by filling out a short call back request form on their website.
If you’re looking for a mortgage pre-approval for a home purchase, you can also begin on your own via the PenFed online portal.
Speaking of real estate, PenFed operates an affiliated real estate brokerage known as PenFed Realty, which is backed by Berkshire Hathaway HomeServices.
Like many other banks and lenders, PenFed offers a digital mortgage experience where you can eSign disclosures, scan and upload documents, receive real-time status updates, and check loan progress 24/7.
PenFed also operates its own title insurance company, which might speed up the loan process and/or result in discounts on such services.
Loan Programs Available at PenFed Mortgage
Home purchase loans
Refinance loans (rate and term and cash out)
Conventional loans backed by Fannie Mae and Freddie Mac
Jumbo loans up to $5 million loan amounts
VA loans for eligible military and veterans
Home equity lines of credit (HELOCs)
Various fixed-rate and adjustable-rate options available
PenFed offers both home purchase financing and refinance loans on a variety of property types, including single-family homes and condos/townhomes, along with multi-unit properties.
It’s possible to finance a primary residence, second home, or investment property using a conventional loan backed by Fannie Mae and Freddie Mac, or a jumbo home loan that exceeds the conforming loan limit.
They also specialize in VA loans seeing that they were originally geared specifically toward military and veterans.
While they don’t offer FHA loans or USDA loans, which is a major downside for some borrowers, they do offer a home equity line of credit (HELOC) product, with the possibility to tap equity up to 90% CLTV.
PenFed pays most of the closing costs on the HELOC, and will waive the $99 annual fee if $99 in interest is paid during the preceding 12-month period.
The only caveat on that product is if you pay it off or close it within 36 months you’ll need to reimburse the full amount of the PenFed-paid closing costs for the loan.
PenFed also offers some unique proprietary loan programs like their 15/15 ARM or their 5/5 ARM if you’re looking for something a little different.
And they offer traditional ARMs like the 5/6 ARM and 7/6 ARM, along with the usual fixed-rate options like a 30-year and 15-year fixed.
PenFed Mortgage Rates
One nice thing about PenFed is the fact that they openly advertise their mortgage rates for all to see on their website.
You don’t need to sign in to see their rates – simply surf over to their site to see today’s rates on a variety of products including conventional fixed-rate loans, jumbo fixed-rate loans, and VA loans.
They don’t advertise their ARM rates so you’ll either need to click on “Get My Rate” to generate your own mortgage rate quote on their website or call in for pricing if you want an adjustable-rate mortgage.
From what I saw, their mortgage rates were competitive, especially since they say they don’t charge lender fees.
Additionally, those purchasing a home get a lender credit ranging from $500 to $2,500 depending on loan amount, which can be used to offset any third-party closing costs like the home appraisal or title insurance.
All in all, PenFed’s mortgage rates seem competitive and the lack of lender fees makes them even more desirable when you consider the mortgage APR.
PenFed Mortgage Reviews
They have a rather marginal 3.8-star rating out of 5 on Zillow, though it’s only based on about two dozen customer reviews. Still, it leaves a lot to be desired.
Similarly, they have a 3.9-star rating out of 5 on WalletHub from a much larger sample size of about 6,000 reviews, but that may include non-mortgage related products.
However, quite a few seem to focus on their mortgage or home equity products, so you’ll be able to read about relevant customer experiences.
It’s the same story over at Bankrate, a 3-star rating from eight reviews. Again, not a lot there, but still seems to be consistent with other ratings sites.
While they aren’t a Better Business Bureau accredited company, they do currently have an ‘A+’ BBB rating based on complaint history.
But their customer reviews on the BBB website are rather poor, with a 1.2-star rating on 75 reviews at last glance.
So it seems they’re struggling a bit in the customer satisfaction department, despite having a solid website, competitive mortgage rates, and no lender fees.
PenFed Mortgage Pros and Cons
The Good
They openly advertise their mortgage rates which appear to be competitive
Don’t charge lender fees
Lender credit specials on home purchase loans
Can apply for a mortgage online via digital process
Offer lots of home loan programs including home equity products
Jumbo loan amounts as high as $5 million
Free mortgage calculators on their website
They service their home loans
The Maybe Not
Limited number of branches if you don’t live by a base
Don’t it always seem to go That you don’t know what you got till it’s gone? They paved paradise, put up a parking lot …
—Joni Mitchell
It seemed like old times at my favorite Hollywood restaurant the other night. The rains had stopped and everyone was coming out for their favorite California comfort food. A fire was crackling in the fireplace and dessert soufflés were puffing up in the ovens. The party room upstairs was packed with 35 colleagues at a celebratory business dinner and downstairs every table was filled. But something strange was happening.
When diners finished their meals, they took out their phones and began photographing the place. Pictures on the walls had price tags on them. So did lamps and antique tables. Every now and then people hugged each other and wiped away tears. I was one of them.
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This was the last week of life for Off Vine restaurant, a treasured refuge from the hurly burly of Sunset Boulevard, housed in a bungalow with a 115-year history, a repository of countless, colorful movieland stories.
For me, this was personal. Off Vine had become my own Cheers. Like the theme of the TV show, it was the place “Where everybody knows your name / And they’re always glad you came.”
With my friends and neighbors I found camaraderie and a warm welcome at Off Vine for over 30 years. Like so many other Angelenos, we built memories here and shared delicious meals.
“You’re crying for a restaurant?” she said.
“No,” I said. “I’m crying for all we are losing.”
We also formed a society here called the Oy Luck Club, a tongue-in-cheek title that conveyed this was a place to have a good time. We celebrated birthdays and anniversaries. Some of us brought our children as babies and they grew up with this special group of “aunts” and “uncles.” They are now adults and still came back to Off Vine as if it were a second home, a family home. It was the glue that bound us together for the rest of our lives.
How can I tell you why Off Vine matters? If you have been there for a festive brunch on the graceful patio with its bowers of bougainvillea, you may understand. If you took family there for birthday dinners or, like one of my friends, you hosted foreign dignitaries for lunch to show them another side of Hollywood, you will understand.
Recently a friend told me, “You will have to find a new place to go instead of Off Vine.”
I caught my breath, whispered, “I can’t” and began to cry.
“You’re crying for a restaurant?” she said.
“No,” I said. “I’m crying for all we are losing.”
The owners did not plan this. They hoped to stay for a long time. But this is a story of the cost of insensitive development, the devaluation of our city’s history and a place that deserves to be preserved. Otherwise, a treasured piece of Hollywood history will soon be unremembered by anyone.
Hollywood legends
My own story is linked indelibly to the history of Hollywood.
Long ago and far away in a land called New Jersey, I spent many snowy days of childhood dreaming of a magical place called Hollywood where it was always warm and movie stars were everywhere. My dreams were enhanced by movie magazines, which showed a never-ending stream of glamorous actors dining and dancing at night clubs like Ciro’s, Cafe Trocadero, Mocambo and the Earl Carroll Theatre.
Food and drink played a role in the glamour life. Stars had private booths at the likes of Chasen’s and the Brown Derby, where an artist drew caricatures of the famous that hung on the walls. Even a soda fountain, Schwab’s, was famous because legend had it that Lana Turner had been discovered there sitting on a stool sipping a milkshake.
Years later, I would move to Hollywood, but those places were mostly gone, torn down in the march toward modernization. The celebrated history of the movie capital would become confined to the footprints at Grauman’s Chinese Theatre (now TCL Chinese Theatre), stars on the sidewalk and books about its fabled past. As a journalist with the Associated Press, I had the chance to interview stars at the Brown Derby with its big brown hat on the rooftop looming over Hollywood. But soon that too was gone, as was C.C. Brown’s, the birthplace of the hot fudge sundae.
So often I’d strike out when I went in search of a Hollywood landmark such as the Garden of Allah residential hotel, where stars such as Errol Flynn and famous writers including F. Scott Fitzgerald and Dorothy Parker lived and partied in their heyday. I found it had been demolished and replaced by a bank (which was itself torn down a couple of years back for a never-built Frank Gehry project).
But all was not lost. One day in 1989 I was driving around Hollywood with my best friend and fellow reporter, Theo Wilson, when she and I discovered a remaining piece of the wonderland I‘d been searching for. It was a small, hidden oasis of a restaurant called Off Vine. Tucked away on a street just south of Sunset Boulevard and east of Vine Street, it was a delightful bungalow with a traditional porch and an outdoor patio. When we stepped inside, the warming fireplace, coffered ceilings and vintage pictures of old-time stars and movie premieres made us feel we had come home. We learned the place had a colorful Hollywood history and just recently had opened as an eating place.
We sat down for a meal of California cuisine coupled with old-fashioned comfort food that pleased our taste buds. We knew this place was a keeper.
Over the years it became our go-to destination for brunches, dinners, birthdays and pretheater meals. We brought neighbors from our Hollywood Heights enclave and founded the Oy Luck Club, a name that reflected the lighthearted intent of the members who were part of a unique community that was not the glitzy movie capital but was Hollywood, a small town with homes and shops, block parties and interesting people.
At one time there were so many of us that we brought our own huge, round tabletop that unfolded to accommodate up to 16 people, our own version of the Algonquin Round Table.
Amid this idyllic camaraderie, we never imagined that one day we would lose our treasured piece of history and community. Sadly, that time appears to be now unless some rescuer turns up at the last minute to save it.
The parcel of land on which the restaurant sits has been sold to an investor who plans to tear it down and put up a row of apartments on the whole block. Off Vine sits on what will become an underground parking garage. (Cue the Joni Mitchell song.)
For the record:
12:29 p.m. March 29, 2023The final Oy Luck Club gathering at Off Vine was on a recent Saturday, not a Sunday as originally stated.
A couple of Saturdays ago the surviving members of Oy Luck Club gathered at Off Vine to celebrate two birthdays and reminisce about our beloved clubhouse.
One of those being feted was Diva Ward, 31, who had first come to an Oy Luck at Off Vine as an infant in the arms of her mother, Carol, who flew in from Wisconsin for the event. Also celebrating was architect Michael Mekeel, a founding member of Oy Luck. The oldest member present was famed actor Alan Oppenheimer, 92.
We ordered favorites from the brunch menu: a huge Belgian waffle with berries and bacon, eggs Benedict with exquisite hollandaise sauce, omelets, a breakfast quesadilla and salads. The grand finale was, as always, the signature Off Vine soufflé available in chocolate, raspberry or Grand Marnier. It had to be ordered half an hour ahead but was worth the wait. Nowhere else have I ever tasted such a rich, puffy soufflé.
Movie-worthy history
We shared memories with co-owner Richard Falzone who has saved Off Vine repeatedly. Everyone listened as I recounted the colorful story of the little house, which itself could be the inspiration for a movie.
The classic Craftsman bungalow was built in 1908 on a dirt road surrounded by fruit trees and orange groves off a newly formed country path called Vine Street.
With the burgeoning film industry in its infancy, houses began popping up to accommodate the actors, crews and producers who came west to get in on the new art form.
The house at 6263 Leland Way off Vine Street eventually was purchased by theater and nightclub impresario Earl Carroll for the actress and showgirl Beryl Wallace.
Carroll discovered Wallace in New York and put her onstage in his famous and somewhat scandalous “Vanities,” which featured elaborate productions with beautiful, scantily clad showgirls. She was his star. The two fell in love and for the next two decades she would be his girlfriend and constant companion. When he left Broadway under a cloud due to increasingly risqué shows, he decided to go West to seek a new venue for his extravagant dreams. He brought Wallace with him to Hollywood, where she had small roles in 23 films and performed at the Earl Carroll Theatre, a supper club and entertainment venue on Sunset Boulevard. The building’s exterior bore a 24-foot neon likeness of Wallace with the slogan, “Through these portals pass the most beautiful girls in the world.”
The club, which was colossal in size and from 1997 to 2017 housed Nickelodeon’s TV production studios, is set for renovation and has been declared a historic monument. Built by Carroll in 1938, it housed a 1,000-seat showroom where productions featured 60 showgirls performing on a double revolving stage. Members of Hollywood royalty were among those who paid $1,000 each for VIP lifetime memberships.
Wallace was its premier star, and Carroll felt she needed a residence that would also serve as a retreat between shows. He purchased the charming bungalow on Leland Way that became Wallace’s home. Later her mother lived with her there while the town of Hollywood grew around them. The Pantages Theatre is a few blocks away and the Cinerama Dome is around the corner. Schwab’s was up the street at Hollywood and Vine.
But not all Hollywood stories have happy endings. Tragedy struck in 1948 when Wallace and Carroll, en route to New York to discuss an even bigger project, died together in a plane crash in Pennsylvania. A year later, her mother, suffering from depression over the loss of her daughter, committed suicide.
The little bungalow was home to Beryl’s sister for a time and then was rented to several short-term tenants, including a music production company and a shoe repair shop.
In 1989 it emerged from hiding and became the unexpected restaurant known as Off Vine, which offered an escape from the chaos and glitz that is current-day Hollywood. One historian of the area said of the spot: “It has survived through the Roaring Twenties, the Great Depression, Hollywood’s Silent and Golden eras, numerous earthquakes, ambitious landowners and, in 2007, a disastrous fire.” But even the electrical fire that gutted the upper story and forced closure of the restaurant for two years while repairs were done could not kill Off Vine. Its savior since 1997 has been Falzone, a former Broadway theater performer who came West in search of his movieland dreams.
He found an unexpected career change when he took a temporary job as a server at Off Vine. He loved the place, worked his way up to general manager and became a part owner with two partners. Eight months later the fire sparked in antiquated wiring panels devastated the house.
But Falzone persisted. He set up an office on the front porch to handle calls from loyal customers and to deal with the city and insurance companies. Two years later, the Craftsman bungalow, looking the same as ever, reopened. It took $750,000 to save it.
The owners were required to bring the house up to code and added a sprinkler system, larger restrooms, a wheelchair ramp and a new state-of-the-art kitchen. The upper floor, used for parties, was restored with its 13-foot coffered ceiling.
“Our journey has been long and tumultuous, full of struggles and setbacks,” Falzone said at the reopening ceremony. “It also has come to exemplify the strength of a community that has continually offered guidance, encouragement and support to a small business that found itself struggling to reopen its doors during one of the worst economic crises our country has ever seen.”
Then L.A. City Council president and future mayor Eric Garcetti said, “This Hollywood gem adds to the continued revitalization of our community.” Loyal customers, including the Oy Luck Club gang, returned in droves. The rebirth of the Pantages Theatre as a venue for Broadway road shows brought audience members there for pretheater meals.
Things were going so well that Falzone decided it might be time to apply for designation as a Hollywood historic landmark. He was supported by Hollywood Heritage, a preservation group whose co-founder, architect Fran Offenhauser, has spearheaded campaigns to save historic buildings from the wrecking ball.
But the arbiters of such decisions looked at its history and ruled that because of the fire, which resulted in a few visible exterior changes, Off Vine did not qualify.
Then the pandemic hit and Falzone had to close. But again the little restaurant that could, with the help of government COVID subsidies, survived. Off Vine reopened as soon as it was safe and struggled to get enough servers. Some loyal employees returned. Amid all of that, Falzone was blindsided by the sale and was given notice that when the lease expires this April he would be required to vacate the property.
It turns out that Earl Carroll, in a seeming premonition and an act of love for his inamorata, added a codicil to his will stating that if he and Wallace should die together the property would go to her heirs. It was still owned by Wallace’s descendants 75 years later when they yielded to a multimillion-dollar offer from Invesco, a development firm that was interested not in the lovely little house but the land on which it stands.
Notice also was given to other nearby restaurants. A Chipotle has already relocated.
“This has been my life for 26 years. It’s been my heart, my soul, my baby and my family. It’s been my everything,” Falzone told me. “It’s not just a restaurant. People are coming into a family home and they are our family. It’s a home where there’s love, good food and good cheer.”
Offenhauser, who also is a founding member of the Oy Luck Club and a powerful advocate for Hollywood preservation, sees this as another nail in the coffin of Hollywood’s history.
“There is a real Hollywood and it’s getting smothered,” she told me as we commiserated about the impending loss. “It is not a sign of progress to destroy things that are meaningful. It’s important to integrate them with whatever is new that is compatible and complementary.
“It’s not rocket science to be able to save Off Vine,” she said. “If you recognize something is important you can build around it. It’s possible to build new and not destroy the old. In the alternative, the building could be moved to another lot. It’s not that complicated.”
We reflected on how many of us who are transplants to Hollywood made it our real hometown.
“For whatever reason when we came to Hollywood we bonded with it deeply,” Offenhauser said. “This bungalow reflects that. It means something much bigger than our individual personal memories. It manifests what neighbors mean; what Beryl’s life meant; how Richard knit people together with his unique grasp of food in a home; what a livable humanistic neighborhood in Hollywood — with neighbors walking by that porch — did mean and should mean.”
When I asked Falzone the other day what happened to the pictures and memorabilia of the beautiful Beryl Wallace that adorned the walls of Off Vine as long as I had been going there, he said the family came and collected everything. Sadly, there remains no evidence that the glamorous star ever lived there.
Deutsch, longtime special correspondent for the Associated Press, is known for covering the trials of O.J. Simpson, Angela Davis, Phil Spector, Patty Hearst, Charles Manson, Robert Blake, Lyle and Erik Menendez, Michael Jackson and many more. She has been a resident of Hollywood for more than 50 years, first in the Hollywood Heights and currently the Hollywood Dell.
Today we’ll check out “Blue Spot Home Loans,” which derives its name from a combination of Blue the Cat and Spot the Dog.
Blue is apparently always on the hunt for tips and tricks to help you better understand how a mortgage works, while Spot is eager to fetch you a good mortgage rate and sniff out the perfect loan program.
Let’s learn more about this Denver area direct-to-consumer mortgage lender that says it’s proud of its “highly-competitive rates.”
Blue Spot Home Loans Fast Facts
Direct-to-consumer mortgage lender launched in 2017
Offers home purchase loans and mortgage refinances
Headquartered in Greenwood Village, Colorado
A division of Cherry Creek Mortgage Co.
Currently licensed to do business in 20+ states
Most active in their home state of Colorado
Also do a lot of business in California and Texas
Blue Spot Home Loans is a direct-to-consumer mortgage lender located near Denver, Colorado that offers home purchase loans and mortgage refinance loans.
They are actually the online lender division of their larger parent company Cherry Creek Mortgage, and have a pretty nifty website to boot.
Think of them as a more no-frills, straight to the point digital lender for those looking to complete a mortgage refinance quickly from a remote location.
Other than their corporate headquarters in Greenwood Village, Colorado, they don’t have any physical branches you can visit.
That should suit most folks these days as it’s now quite common to work with an online mortgage lender, pandemic or not.
One neat feature about Blue Spot Home Loans is the fact that their loan officers are salaried as opposed to commissioned, meaning they shouldn’t pressure or hassle you into a mortgage.
Per their website, they’re currently licensed in 20 states (but it might be more now), and seem to be most active in California, Colorado, and Texas.
How to Apply with Blue Spot Home Loans
You can call them up or send an email to get pricing and apply
Or simply visit their website and begin the application process there
Their loan officers are salaried-employees so you shouldn’t feel pressured
They offer a digital mortgage application and online loan portal where you can check your loan status 24/7
You’ve got a few options to get started with Blue Spot Home Loans. You can either call or email them to get in contact right away, or head over to their website.
If you visit their website, you can check out daily mortgage rates by clicking on “today’s rates,” or alternatively fill out a short lead form and wait for a loan officer to call you back.
They also give you the option to apply immediately via the website. First you need to register and then you can access the online loan portal from any device, such as a desktop computer, tablet, or smartphone.
Their digital mortgage application allows you to link financial accounts, scan and upload necessary documents, and eSign disclosures.
If you’re a prospective home buyer, they say you can get pre-qualified for a home loan in under 10 minutes.
Once your loan is submitted, you can check loan status and get a to-do list if any additional conditions must be met before closing documents are prepared.
Blue Spot Home Loans claims it can close loans fast, in as little as 14 days if no events beyond their control (home seller, appraisal or title/escrow issues) take place.
Loan Programs Offered by Blue Spot Home Loans
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Conventional loans backed by Fannie Mae and Freddie Mac
Jumbo home loans that exceed the conforming loan limit
FHA loans
VA loans
Like all other mortgage lenders, Blue Spot Home Loans offers both home purchase loans and refinance loans.
They work with first-time home buyers and existing homeowners looking to refinance their mortgage, whether it’s a rate and term refinance or a cash out refi.
They lend on all property types, including single-family homes, condos/townhomes, and multi-unit properties (1-4 units).
You can get financing for a primary residence, second home, or investment property.
In terms of loan type, you can get a conforming loan backed by Fannie or Freddie, or a jumbo mortgage up to $3 million.
Additionally, they’ve got FHA loans and VA loans, which offer low-down and no-down payment options, respectively.
It’s unclear if they offer USDA loans or home renovation/construction loans, but if not, they could probably refer you to their parent company who does.
Blue Spot Home Loans Mortgage Rates
One advantage to using Blue Spot Home Loans is the fact that they openly advertise their mortgage rates and lender fees on their website.
So instead of having to call a loan officer, or provide your valuable contact information, you can simply cruise over to their website and generate your own free mortgage rate quotes on the fly.
They have a nifty mortgage rate table that lets you plug in various loan scenarios to compare different loan programs and closing costs at once.
You can toggle between purchase rate and refinance rates, and see both 30-year fixed and 15-year fixed rates.
Assuming you’re happy with what you see, simply click on “next,” at which point you’ll be asked to enter your contact information in order to be linked up with a mortgage loan officer.
From what I saw, their mortgage rates looked pretty competitive relative to other online mortgage lenders.
They say if you do happen to find a better rate, to give them a chance to beat the other lender’s quote.
While you can see rates and total closing costs on their website, it’s unclear what exact lender fees they charge as they aren’t listed individually.
So it’s unclear if they charge a loan origination fee, application fee, and so on. Be sure to get those details when you speak to a loan officer about a mortgage rate quote.
Blue Spot Home Loans Reviews
On Google, the company enjoys a 4.7-star rating out of 5 from just over 200 customer reviews.
They’ve got an even better 4.9-star rating on Bankrate from about 150 reviews, with 97% saying they would recommend this lender.
And on Zillow, Blue Spot has a 4.85-star rating from nearly 100 reviews, which is pretty close to perfect as well.
Remember, you can see individual loan officer reviews on Zillow if you want to fine-tune and seek out someone specific based on their past performance.
Lastly, they’ve got a 4.2 out of 5 on LendingTree from about 20 reviews, with a 79% recommendation rate. Not as good, but a pretty small sample size.
Their parent company is Better Business Bureau accredited (since 2014), and currently has a perfect ‘A+’ rating.
All in all, Blue Spot Home Loans could be a good choice for a borrower with a straightforward loan scenario looking to fund a mortgage quickly without a sales pitch.
Blue Spot Home Loans Pros and Cons
The Pros
They publicize their mortgage rates and lender fees
They use salary-based mortgage consultants
You can apply for a home loan directly from their website
Offer a digital mortgage application and borrower loan portal
It’s time for another mortgage review, this time we’ll take hard look at Summit Funding Inc., which bills itself as “The Home Loan Experts.”
There might be some truth to that because the direct lender has been around since 1995, almost as long as the duration of a 30-year fixed mortgage.
The company started off small with just a few employees, known then as Sacramento Residential Mortgage, but has rapidly expanded into a national mortgage lender.
Today, they fund billions in home loans annually and are working to become one of the top lenders in the nation and a household name.
Summit Funding Fast Facts
Direct-to-consumer retail mortgage lender that offers home purchase and refinance loans
Founded in 1995, headquartered in Sacramento, California
Licensed to do business in 45 states and the District of Columbia
Funded more than $4 billion in home loans last year (a top-100 lender nationally)
About two-thirds of their business consisted of home purchase lending
More than half of their loan volume came from home state of California
Summit Funding, Inc. is a direct mortgage lender and loan servicer that was founded by current CEO Todd Scrima in the mid-1990s.
Since then, they have grown to be a top-100 mortgage lender nationally based on loan volume, and may even be close to cracking the top-50 today.
Last year, they originated roughly $4 billion in home loans, with about two-thirds of it driven by home purchase loans. That means real estate agents trust working with them to get the job done.
The rest was comprised of refinance loans and reverse mortgages, and about half the overall total came from the state of California.
The company also appears to be very active in Oregon, Arizona, Michigan, and Nevada.
At the moment, Summit Funding is licensed to do business in 45 states and the District of Columbia.
They don’t seem to be available in the states of Alaska, Connecticut, Massachusetts, New York, or Rhode Island.
How to Apply for a Mortgage with Summit Funding
Visit their website and click on Apply Now to get started on your application
Browse their loan officer directory if you’re not currently working with someone
They offer a digital mortgage process along with a free smartphone app to track your loan progress
You can securely upload paperwork, eSign disclosures, and get in touch with your loan officer instantly
To get started, simply visit their website and click on apply. They’ll then ask if you’re working with a loan officer, and if not, prompt you to find one nearby using their online directory.
Once you locate the individual you wish to work with, you can apply directly online via a digital mortgage application.
It will allow you to get pre-qualified, securely upload paperwork, eSign documents, and message your loan officer instantly as you make your way through the process.
You’ll also be able to see your progress and get updates once your loan is submitted via the online borrower portal, which is powered by ICE Mortgage Technology (formerly Ellie Mae).
Those who wish to download the free smartphone app can also manage their home loan that way.
Before you do all that, it is recommended that you obtain mortgage rate pricing and inquire about lender fees.
Once you speak to a loan officer to determine if they’re competitive and/or have the loan program you’re looking for, you can proceed with the application.
Summit Funding embraces technology but also incorporates human touch to give borrowers the best of both worlds.
Loan Programs Offered by Summit Funding
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo home loans up to $3 million loan amounts
FHA loans
VA loans
USDA loans
Reverse mortgages
Fixed-rate and adjustable-rate options available
One nice thing about Summit Funding is they offer lots of different loan options. You can get a home purchase loan or a refinance, including a cash out refinance.
Additionally, you can get a jumbo loan with a loan amount as high as $3 million, or a reverse mortgage if you’re aged 62 and older.
They also offer the full suite of government loan programs, including FHA, USDA, and VA loans.
You can get financing on a primary residence, second home, or an investment property, including condos and townhomes.
In terms of specific loan programs, you can take out a fixed-rate mortgage such as a 30-year or 15-year fixed, or a hybrid adjustable-rate mortgage like a 5/1 or 7/1 ARM.
Summit Funding Mortgage Rates
One slight negative to Summit Funding is the fact that they do not publicize their mortgage interest rates online.
As a result, it’s unclear how competitive they are relative to other lending options, and the only way you’ll be able to find out is to get in touch with a loan officer for pricing.
The same goes for lender fees – we don’t know if they charge a loan application fee, loan origination fee, underwriting/processing fees, and so on.
Be sure to inquire about all these important costs when you speak to a loan officer so you can compare their offer(s) to other lenders properly.
While customer service is great, so is a low-priced mortgage. You’ll want to make sure you get the best of both worlds.
Summit Funding Reviews
On SocialSurvey, the company has a very impressive 4.86-star rating out of 5 from about 60,000 reviews. Attaining a score that high from such a large number of reviews says a lot.
They’ve also landed in the top-10 for customer satisfaction in past years among a large group of like-sized lenders.
Over at Zillow, it’s an even better 4.97-star rating from about 2,000 reviews, with a lot of them indicating that the interest rate and closing costs were lower than expected.
The company also has a perfect 5-star rating on Google from about 300 reviews for their corporate headquarters, which is obviously also quite impressive.
While Summit Funding isn’t an accredited business with the Better Business Bureau, they do have an ‘A+’ rating based on customer complaint history.
In summary, the company could be a good fit for both first-time home buyers and existing homeowners looking to refinance a mortgage thanks to their local offices and plentiful online tools.
Summit Funding Pros and Cons
The Good Stuff
Can apply for a home loan instantly from any device
Offer a digital mortgage process powered by ICE
Also have brick and mortar locations in many states
Excellent customer reviews across all ratings websites
Lots of loan programs to choose from including jumbos and reverse mortgages
Free smartphone app
Free mortgage calculators and glossary on their website
As we learned in our post about FHA loans and the
history of mortgages, being a homeowner prior to the Great Depression
was a major challenge that only few could take on. Thankfully, the mortgage
industry was revamped in order to make homeownership a more attainable goal. One
of the changes made was the introduction of modern conventional loans with the
most common loan terms being 15 and 30-year mortgages. Today, conventional
loans are regulated by The Federal National Mortgage Association (Fannie Mae)
and The Federal Home Loan Mortgage Corporation (Freddie Mac).
Fannie Mae was created by congress in 1938. Fannie Mae mortgages
–long termed and fixed-rate – allowed the American Dream to become a reality.
The new mortgage products also allowed borrowers to refinance. In 1968, Fannie
Mae became a private shareholder-owned corporation and began funding its
operations through Wall Street instead of the federal government. During these
thirty years, Fannie Mae was the largest buyer and seller of government-insured
mortgages.
Freddie Mac, on the other hand, was created in 1970 to provide
continuous and affordable mortgages for the American people as well as to keep
Fannie Mae from functioning as a monopoly in the mortgage industry. Nearly 20
years later, in 1989, Freddie Mac went public.
In 2017, conventional loans (Fannie Mae and Freddie Mac) funded
73.8% of new homes. Conventional loans, sometimes known as conforming loans,
dominate the mortgage industry. With close ties to the government, they are
likely to never fail, allowing Americans to forever be able to accomplish the
American Dream.
Credit Score Requirements for Conventional Home
Loans:
Your credit score is kind of like an adult GPA. These three
numbers follow you throughout your adult life and determine what you are
qualified for. However, it is important that you maintain and improve
your credit score.
When applying for a conventional loan, you should have a
minimum credit score of 620. If your credit score is not there yet, contact
your Total Mortgage lender about your options and down the road, you may be
able to refinance into a conventional loan.
Conventional Mortgage Down Payment Requirements:
Down payments for conventional loans range between 3% and 20%.
The variance of down payments depends on the type of conventional loan that you
qualify for and the property that you are purchasing. For example, a
Conventional 97 has a 3% down payment requirement, and is the lowest down
payment available for conventional loans. If you are buying a second home, a
multi-family home, an adjustable rate mortgage, or a jumbo loan, your down
payment requirement will range from 5% to 40%.
With the variance of down payments, there is also a PMI, or
private mortgage insurance, that is required on the loan if less than 20% is
put down by the borrower. However, unlike FHA PMI, conventional PMI is able to
be removed from your mortgage payment once you reach 20% equity on your home.
You should contact your lender to do so, or PMI will automatically fall off
after 22% equity on the home has been reached.
In short, if you put a down payment of 20% on your loan, you
will not have to enter into PMI. PMI is put in place on loans to protect the
lender if the borrower defaults on the loan.
What are your options if a Conventional Home Loan isn’t
for you?
With the requirements above, what if you do not qualify for a
conventional loan? What do you do?
Mortgages have been made for every financial background. If conventional loans are not the way you want to go, consider:
USDA Loans – these loans are great if you are looking to live in rural or suburban areas. There is also no down payment requirement and credit score requirements are made by the lender themselves.
VA Loans – if you have served or had a spouse that has served, this loan option is available to you. It does not have a down payment or credit score requirement.
FHA Loans—these loans are great for first-time home buyers that do not want to live in a USDA approved property or who don’t qualify for a VA loan. FHA loans have a low-down payment requirement and have low credit score requirements. You can learn more about FHA Loans here.
If you are unsure still, you can visit our my mortgage builder. This program will ask you some questions and help you determine which mortgage option might be best for you.
OR, contact our Loan Officers today! They will be able to find a loan that is the best fit for you based on your wants and needs.
Summary:
Conventional loans are a great option for borrowers with a
credit score over 620 who don’t qualify for other loan products like VA or USDA
loans, and could potentially put you in a home for as little as 3% down. If
you’d like to find out more about conventional loans, or to get pre-approved
today, please contact one of our loan officers at totalmortgage.com/bankers.
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
Today we’ll check out “Loan Cabin,” yet another online mortgage lender that has turned to technology to streamline the home loan process and lower costs for its customers.
It’s seems to be a common theme these days, and if it results in more consumer choice and a cheaper mortgage, I’m all for it.
After all, few people want to visit a branch, fill out paperwork by hand, or do things the old-fashioned way, at least when it comes to a mortgage.
Loan Cabin says it can provide a quick, simple, and transparent home loan using tech. And instead of it taking 45 days or longer, they aim to close in as few as 21 days.
Loan Cabin Fast Facts
A direct-to-consumer mortgage lender
Offers home purchase financing and mortgage refinances
Founded in 2015, headquartered in Lombard, Illinois (Chicago)
Currently licensed to do business in 16 states nationwide
Aim to close loans in 21-30 days using leading edge technology
Loan Cabin is a direct mortgage lender based in Lombard, Illinois, which is a suburb of Chicago.
They are a relatively young company, having been formed in 2015. But their pitch is that of a modern lender, not a stale old bank that uses outdated processes and clunky technology.
Instead, they say they’re able to provide aggressive quoted rates in just minutes, and an initial pre-approval in 20 minutes or less, with a 100% online application process available.
The company is currently licensed in 16 states nationwide, including:
Alabama, California, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, New Jersey, Ohio, Pennsylvania, Mississippi, Tennessee, Texas, and Washington.
They say they’re working to expand throughout the country.
How to Apply for a Mortgage with Loan Cabin
Visit their website and click “Get Started” to apply immediately
They offer a digital mortgage application powered by ICE
Allows you to complete most loan tasks electronically from the device of your choosing
Loans are underwritten, processed, and closed in-house using their own funds
Loan Cabin makes it easy to apply for a home loan. Simply cruise over to their website, click on “Get Started” and you’ll be in their digital mortgage application powered by ICE technology.
But before you do that, you can see their daily mortgage rates online to ensure they have competitive pricing relative to other lenders.
However you approach it, they make it simple thanks to the latest technology, which allows you to complete most tasks electronically, whether it’s uploading documents or eSigning disclosures.
Once you complete the application, a loan officer will get in touch to discuss pricing and tie any loose ends before loan submission (or provide you with a pre-approval).
Assuming you like what you hear, you can go ahead and lock your loan, order the appraisal, and wait for an underwriter to issue you a conditional approval.
All in all, they aim to close loans in three weeks as opposed to 45 days or longer, which tends to be the industry average.
They’re able to move quickly because they’re a direct mortgage lender, meaning everything is completed in-house and they uses their own funds to close loans.
Mortgage Programs Offered by Loan Cabin
Home purchase loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie/Freddie
Jumbo loans
FHA loans
VA loans
Fixed-rate mortgages: 15, 20, and 30-year terms
Adjustable-rate mortgages: 5/1 and 7/1 ARMs
Loan Cabin offers most of the major home loan programs you’d expect from a mortgage lender, other than perhaps USDA loans.
You can get both a home purchase loan or a mortgage refinance, including a rate and term refinance or a cash out refinance.
In terms of qualifying property types, they finance single-family homes, 1-4 unit multi-family properties, townhouses, condos, and PUDs. The only real exception is co-ops.
And you can get a mortgage on a primary residence, second home, or an investment property.
With regard to loan type, they offer conforming loans backed by Fannie Mae and Freddie Mac, FHA loans, VA loans, and jumbo home loans.
It’s possible to get a fixed-rate mortgage in a 15-, 20-, or 30-year term, or an adjustable-rate mortgage, such as a 5/1 or 7/1 ARM.
Ultimately, they should have a loan program to fit most borrowers out there, whether you’re a first-time home buyer or existing homeowner.
Loan Cabin Mortgage Rates
One positive to Loan Cabin is the fact that they publicize their mortgage rates online for all to see.
So before you jump into an application, you can see where they stand pricing-wise. From what I saw, they appeared to be pretty low on all their fixed-rate offerings.
To see for yourself, simply navigate over to the “View Rates” tab on their website and you’ll be able to check out daily rates for a variety of loan programs.
You can even enter in your own loan scenario to explore different options, or to simply obtain a more customized rate.
This level of transparency is always a plus and tells us they’re going to do their best to be competitive in the pricing department versus the lenders that don’t even mention rates.
That being said, they don’t list their lender fees online, other than saying you can request a mortgage without lender fees.
While it’s nice to have that option, it’d also be helpful to know upfront if they charge a loan origination fee or any other fees.
Loan Cabin simply says it does not charge any application fees or so-called junk fees.
Loan Cabin Reviews
On Zillow, the company has a 4.84-star rating out of 5 from nearly 200 customer reviews, which is a very solid score.
A good number of those reviews indicate that the interest rate and closing costs were lower than expected as well.
Over at Bankrate, they have a similar 4.8-star rating from about 50 reviews, with most of them perfect 5-star reviews and 95% of customers saying they would recommend them.
Lastly, they’ve got a 4.4-star rating out of 5 on Google from just over 50 reviews, which while not as strong, is still quite positive.
In summary, Loan Cabin appears to be well-liked and big on technology, which aside from being convenient could also save you money if they pass the savings along as they say.
Because they are an online mortgage lender, they could be well-suited for an existing homeowner looking to save money via a refinance, or even a home buyer who is confident to do most things remotely.
Loan Cabin Pros and Cons
The Good
Can apply directly from their website on any device without a human
Offer a fully-digital mortgage application powered by ICE technology
They post their daily mortgage rates online
Plenty of home loan programs to choose from
Excellent customer reviews across all ratings websites
Lots of helpful mortgage tutorials on their website
They process, underwrite, and fund loans in-house
The Not So Much
Not licensed in all states
No brick-and-mortar locations
Do not offer USDA loans, second mortgages, or HELOCs
No mention of lender fees
Will transfer your mortgage to a loan servicer shortly after closing