Mortgages and Reserve Mortgages

Buying your dream home has never been this easy with the help of Reliable Financial, in Cherry Hill New Jersey. We offer mortgages to help fund your residential home purchase. Contact us at your convenience to learn about reverse mortgage. We are more than happy to assist you with your needs.

How We Help
After a thorough analysis of your financial situation, we provide you with a detailed action plan. This includes a review of your income and expenses. By the end of the consultation, you’ll get a comprehensive presentation of how mortgage or reverse mortgage processes work.
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New Home Purchase / Refinance

Loan product that doesn’t conform to Fannie or Freddie guidelines

Higher loan balances

Limited to no income verification loans

Non-Fannie Mae approved condominiums and co-ops

Specialty loans such as ARMs and no PMI options 100% financing options available

One to four family properties and Fannie Mae approved condominiums

Loan amounts up to $417,000 ($625,000 in higher market areas)

Rates are determined by an evaluation of risk, ensuring the best rate available

Flexible mortgage insurance options are available, including a non-monthly payment option

You can put as little as 3% down on a purchase

Conventional loans may be conforming or non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions.

Other Types Of Loans

FHA Loans

Advantages to FHA Loans

  • FHA loans can be used for a home purchase or a refinance.
  • Easiest type of real estate mortgage loan to qualify for because it requires a low down payment you can have less-than-perfect credit.
  • FHA insures your mortgage making lenders more willing to offer loans.
  • FHA loan is assumable, meaning if you want to sell your home, the buyer can “assume” the loan you have.

FHA Qualification Checklist

  • Steady employment history or worked for same employer for the last two years.
  • Valid Social Security number, lawful residency in the U.S., and be of legal age to sign a mortgage in your state.
  • Make a minimum down payment of 3.5% on the house. The money can be gifted by a family member (conventional financing does not allow gifting).
  • A property appraisal from an FHA-approved appraiser.
  • Mortgage payment (including principal, interest, property taxes, property insurance) needs to be less than 31% of your gross monthly income.
  • Monthly debt (mortgage, credit cards, auto, student loans, etc.) cannot be more than 43% of your monthly income.
  • A minimum credit score of 620.
  • Two years out of Chapter 7 bankruptcy with good established credit.
  • Three years out of Chapter 7 foreclosure with good established credit.
  • One year completed of Chapter 7 payment history.
VA Loans

A VA loan is a home loan guaranteed by the U.S. Veterans Administration. VA-guaranteed loans are available to eligible veterans and unmarried surviving spouses who can show entitlement through a Certificate of Eligibility. Eligible veterans may be able to purchase a home with no down payment and no cash reserve. The VA establishes the maximum loan amounts and eligibility requirements.

The more you know about our home loan program, the more you will realize how little “red tape” there really is in getting a VA loan. These loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran’s Certificate of Eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. Residential Home Funding Corp. is approved for automatic processing, which means with a VA loan, you can be processed and closed by us without waiting for VA’s approval of the credit application.

Benefits of VA Loans

  • You can lock in a loan with no down payment
  • Receive low monthly payments
  • No mortgage insurance is required
  • No closing costs
Home Rehabilitation Loans (203K)

FHA 203k loans are designated for houses that are damaged or sorely in need of rehabilitation. The loan covers not only the cost of the property but also the cost of necessary home repairs. The qualifications for the 203k loan program are the same as the FHA guidelines. Homeowners whose homes need improvement can also refinance with these loans. A vast range of repairs, including room additions, bathroom remodeling, roofing, flooring, and air conditioning systems, can be funded with these loans. They are perfect for first-time buyers, low-to-moderate income, buyers with limited cash, and for those who have minor credit problems. The first step in obtaining your rehabilitation loan is getting in contact with a loan officer who will walk you through the process and guide you the entire time.

Organize Your Documents

  • Two forms of identification - driver’s license, passport, or Social Security card suffice (permanent residence card if you are not a U.S. citizen)
  • Pay stubs covering most recent 4-week period
  • W-2 forms for the last 2 years
  • Last 2 years of tax returns (include all schedules)
  • Last 2 years corporate returns and year to date profit and loss statement (if incorporated) if self-employed
  • Copies of bank statements for the most recent 2 months (include all pages). If received quarterly then the most recent quarterly statements. If passbook then a copy of the entire book including cover. All large deposits must be sourced if not from payroll.
  • Contract of sale, signed by both parties
  • Architect design, plans, and specs
  • Contractor’s estimate with a complete breakdown of work and costs
  • Contractor’s license and insurance information
  • The contact information for your realtor and attorney

Reverse Mortgages

Top 10 Reverse Mortgage Myths

FHA-Insured Program for Buyers, 62 and Over
A reverse mortgage enables homeowners 62 and older to convert part of the equity in their homes into cash without having to sell the home, give up title, or take on a new monthly mortgage payment. The homeowner continues to pay insurance and taxes, live in, and maintain the home.
The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to you. Below are common myths that are important for you to be aware of as you investigate the benefits of our product.
Myth 1: I cannot get a reverse mortgage if I have an existing mortgage

Fact: False. If your house isn’t paid off, the proceeds you receive from the reverse mortgage must first be used to pay off any existing mortgage. This is the most common reason most homeowners 62 years and older take out a reverse mortgage.

Myth 2: If I take out a reverse mortgage the lender will own my home

Fact: False. Homeowners still retain title and ownership to their homes during the life of the loan and can choose to sell the home at any time. As long as the borrower continues to live in and maintain the home and property taxes and homeowners insurance are paid, the loan cannot be called due.

Myth 3: There are restrictions on how reverse mortgage proceeds may be used

Fact: False. There are no restrictions. The cash proceeds from the reverse mortgage can be used for virtually any purpose and borrowers should be cautious of lenders attempting to cross sell over products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet, or to have a financial reserve.

Myth 4: Only low-income seniors get reverse mortgages

Fact: False. Although some seniors may have a greater need than others for the monthly proceeds or lump sum funds reverse mortgages offer, most simply prefer to be free of monthly mortgage payments. Without monthly mortgage payments, many homeowners find they can maintain their existing quality of life and build their savings to help with future expenses. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

Myth 5: If I outlive my life expectancy, the lender will evict me

Fact: False.  Reverse mortgage lenders put no time limit on how long the borrower(s) can stay in their homes. Since homeowners still own the property, lenders cannot evict them as long as the borrower continues to live in and maintain the home and property taxes and homeowners insurance are paid.

Myth 6: A reverse mortgage will affect my government benefits

Fact: False. A reverse mortgage generally does not affect regular Social Security or Medicare benefit. However, if you are on Medicaid, any reverse mortgage proceeds that you receive would count as an asset and could impact Medicaid eligibility. To be sure, we recommend that potential borrowers consult their federal benefits administrators or financial advisors.

Myth 7: There are no objective advisors available to seniors trying to decide if a reverse mortgage suits their needs

Fact: False.  Borrowers are required to work with independent, third-party counselors approved by the U.S. Department of Housing and Urban Development (HUD) in their local communities. This educational session helps them make the right decision for their unique situations.

Myth 8: My children will be responsible for the repayment of the loan

Fact: If the borrower or the estate wants to retain the property, the balance must be paid in full. However, as long as the borrower or their estate sells the property to pay off the debt, there is no recourse if the HECM loan balance exceeds the home’s value at maturity. Any equity remaining in the property after the reverse mortgage is retained belongs to the borrower or their estate.

Myth 9: Reverse mortgage lenders take advantages of seniors

Fact: Seniors who have been victims of reverse mortgage lending schemes are extreme exceptions and typically victims of unsavory lenders. As a consumer, you should only work with reputable lenders. Protect yourself by conducting as much research as possible by consulting government agencies, your financial advisors and NRMLA, the National Reverse Mortgage Lender’s Association.

Myth 10: I’ve heard I won’t qualify for reverse mortgage because of my limited income

Fact: False. While a borrower must qualify for a HECM (Home Equity Conversion Mortgage) reverse mortgage under financial assessment guidelines, you are not incurring any new debt and your HECM proceeds may be used as an asset to show increased income. Speak to your reverse mortgage lender about this feature.

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