The dream of owning a home is a cherished one for many individuals and families across the United States. However, the soaring median existing-home price of around $400,000 can often make it seem like an unattainable goal, especially when faced with the prospect of a substantial down payment. A Common misunderstanding is that buying a home requires 20% for a down payment, equating to a significant sum, but there is good news – you have a variety of loan programs that require 10%, 5%, 3% or even 0% in certain instances. Everyone has a different set of circumstances and goals so the key is to meet with one of our experienced mortgage professionals here at Millennium Mortgage Group so we can identify the right loan program and down payment amount for you.

Understanding FHA Loans:

FHA loans are regarded as the first time home buyers mortgage program. It is called this for a variety of reasons. It is less stringent with regards to qualifying criteria. This means that you can have less than A+ credit scores and you can have some job changes or income fluctuations over the last few years. The FHA loan also allows for a down payment of only 3.5% which is a huge benefit since the average renters biggest hurdle to get over in order to buy a home is saving for the down payment. The FHA loan typically has a lower interest rate than conventional loans.

Understanding VA Loans:

VA loans are specifically for eligible military workers who have completed enough hours to be eligible. This loan program is highly considered the best loan program available but also the least utilized. When you are eligible for the VA loan you can take advantage of a variety of benefits. It also has less restrictive guidelines to qualify and it requires 0% down payment. This means that borrowers with less than prefect credit scores can qualify and that you do not need to make a down payment at closing. Another benefit to this program as opposed to other low down payment options is that unlike those other options this one allows for 0% down while also not having a monthly mortgage insurance built into he monthly payment. The VA loan typically has a lower interest rate than conventional loans.

Understanding Conventional Loans:

Conventional loans are more of the traditional mortgage programs we have all heard about. The qualifying criteria is a little more strict as it requires better credit scores and credit profiles in order to get approved. You can put as little as 3% down in some cases but the monthly mortgage insurance (MI) is going to be part of your monthly payment anytime you are putting less than 20% down. The MI amount is based on two main factors. How much you put down and what credit tier you may be. The more you put down the less it will be and the higher your credit scores the less it will be but if you are putting down

While eligibility criteria may vary among different DPA programs, the vast majority of assistance is aimed at first-time homebuyers. However, “first-timer” does not exclusively refer to someone purchasing their first home; it can also encompass individuals who have not owned a home in the last three years. Additionally, many programs exclude owners of rental or investment properties, emphasizing that the home should be your primary residence. Some programs may permit the purchase of duplexes or small multi-family properties if you intend to reside in one of the units.

Conclusion

Owning a home remains a significant milestone for many individuals and families, and how much is required for the down payment is commonly misunderstood.
Since every buyer is in a different situation and may qualify for different options it is important that once you determine that buying a home is the goal, that you meet with an experienced mortgage professional on order for them to gather all the information and documentation they need in order to map out a game plan for you to achieve your goal. At that point you can start your home search with confidence that you will not have any issues and will in the end get the keys to your new home.

We saw more activity in the market as rates dropped in a volatile business environment. Applications were up 7% and Freddie Mac reported the average rate on the average 30-year fixed mortgage was 6.60% this fell to 6.60% this week down from last weeks rate of 6.73%.

In statement by Freddie Mac’s Chief Economist Sam Khater, he said “turbulence in the financial markets is putting significant downward pressure on rates, which should benefit borrowers in the short-term.”

Rates fluctuate constantly so we always advise to LOCK in your loan right away. Removing that from being a concern is always a good idea as you tackle all the other aspects of buying a home. The last thing you want to hear is that your interest rate or loan costs have increased while your dealing with home inspections, appraisals and possibly counters with the seller.

Recent market volatility has had an impact on the housing industry, but it’s not all bad news for prospective home buyers. In fact, there’s some great news for those who are receiving FHA financing and paying mortgage insurance. Starting in March, these buyers will see a significant drop in their monthly fees, from 0.85% to 0.55%. This change is expected to benefit around 850,000 borrowers this year, resulting in an average savings of $800 annually.

The actual savings will vary based on the loan amount. For instance, a person with a $500,000 FHA loan will save $1,500 annually. This is great news for anyone looking to purchase a home and reduce their monthly costs.

At Millennium Mortgage Group, we’re committed to helping homebuyers find the best financing options available. We understand that purchasing a home is a big decision, and we want to help make the process as smooth and stress-free as possible. With this new reduction in mortgage insurance fees, we want to ensure that our clients are aware of the potential savings available to them.

If you’re in the market for a new home, we encourage you to fill out our quick home qualifier on our website. This tool will help us determine what type of loan best fits your needs and how much you can pre-qualify for. With our help, you can take advantage of this new reduction in FHA mortgage insurance fees and save money on your monthly mortgage payments.

At Millennium Mortgage Group, we’re dedicated to providing exceptional customer service and helping our clients achieve their dream of homeownership. Contact us today to learn more about the financing options available to you and how we can help you save money on your mortgage payments.

🏡💰👍 #FHAfinancing #MortgageInsurance #Homebuyers #MMG #Savings

An adjustable rate mortgage (ARM) is a type of mortgage in which the interest rate can fluctuate over time. The key advantage of an ARM is that its initial interest rate is usually lower than that of a similar fixed-rate mortgage, making your monthly payments more affordable initially. Depending on the terms of the ARM, these lower payments can last for several years or even a decade. This makes it a good option for those who plan to stay in their home for a short period of time, and move before the ARM resets to a variable rate. As interest rates rise, payments will also increase. ARMs can also be beneficial if you anticipate a significant increase in income or assets in the future. When the ARM resets, you will be able to pay off the loan or refinance into another mortgage. Additionally, choosing an ARM can be a wise strategy when interest rates are on the rise, but haven’t reached their peak yet. This allows you to lock in a rate that protects you from further increases. By the time the ARM resets, interest rates may have dropped, making it possible to refinance into a lower fixed-rate mortgage for the long haul.

In order to see what loan program may be best for you, contact us. We can schedule a free consultation through our website and tailor your loan specifically based on your circumstances and goals. 702-765-0868

Heading into the new year I have gotten a lot of calls with different thoughts on what is going to happen here in Las Vegas regarding the housing market and the mortgage industry. Many of those calls have been from Real Estate agents and past clients who experienced the crash of 2008 and they were asking what I thought would happen. They were nervous about the possibility of another crash and if I thought that was a possibility. Based on those discussions I thought that would be a great topic for our first newsletter in 2023.

Are we entering another crash like 2008? We are due for a market shift or correction for sure. This is based on the fact that we have had huge appreciation over the last 5+ years and that increase is not what we would consider to be normal in what would be considered a stable market. We experienced much higher home value increases and based on that alone we needed to have a shift as that is not sustainable.

In order for us to have another crash, we would need more than a market correction and we would need multiple factors to all work at the same time as a somewhat of a perfect storm and I do not see that happening. We would need inventory to spike considerably and with the current wave of people moving to Las Vegas I do not see that happening. We would also need the rental rates to drop as that may entice homeowners to go back to renting. Over the last few years rental rates have spiked and reversing that trend to the point it would need to be reduced is unlikely to happen. These key elements are unlikely to happen and with the reality that most homeowners currently have interest rates in the 3.25% range it would be difficult to entice them to stop owning and make renting pencil out. Even though interest rates have spiked in the last 9 months the majority of homeowners purchased and locked in their loans before the rate hike came into play which leaves very few people in the situation where they have a high interest rate and a bad equity position.

From a mortgage standpoint I think it is going to be another difficult year for loan officers and mortgage companies. Many were focused on refinances and with those essentially going away, the loan officers and companies that were focused on that segment of the market will continue to struggle and exit the market in 2023. It may be even worse than what they experienced in 2022. Experience and hard work will be the key for loan officers as they battle through another tough year and companies will need to continue to evolve in order to be successful in 2023. If they do not make the necessary changes they will end up being gobbled up by competitors or closing their doors.

At the end of the day 2023 will not be 2021 but it will not be 2008 either. I anticipate the housing market to correct in a way that was necessary and I see the mortgage business being a struggle for anyone who is not experienced or for any companies that were not positioned to be successful in any market. Things will always change and evolve and those who are able to evolve with it will be the ones who will be successful long term. The one thing we can always guarantee will happen is that the market will change and the industry will evolve and we all need to evolve with it and forecast where things will evolve if we want to be stable and consistent.

A good credit score is part of getting approved for a mortgage, it will also help you get a lower interest rate.
Here are some quick things to do to check and possibly improve your score.
Before we get started though, the first thing you should do is get your credit report!
You can order it free here – https://www.annualcreditreport.com Now that you have your report lets get to those tips! 🤓
1. Check for Errors! You want the report to be clean and mistake free. Check if there are misspellings of your name or addresses. Other things might be duplicate accounts, incorrect account information, closed accounts that are still listed as open, fraud etc!
2. Clean up the Errors! If you found something wrong the next step is to get the errors fixed. You can contact the major three bureaus directly to fix any errors! Be prepared with paperwork to back up your case! Here are links to the three bureaus on how to address errors: https://www.experian.com/blogs/ask-experian/credit-education/faqs/how-to-dispute-credit-report-information/ https://www.equifax.com/personal/credit-report-services/credit-dispute/ https://www.transunion.com/credit-disputes/dispute-your-credit
3. Pay Late Or Past Due Accounts This is important! Pay these off whenever possible. Here is a pro-tip: if you have an account with a late fee or in collection – contact them before paying and ask them to remove the record entirely if you pay the account off. This will really help your score!
4. Pay On Time Ok this is obvious but its important too – even if its the minimum payment make sure you get the payments in on time.
5. Open New Accounts Or Increase Your Limits This will help your credit to improve your credit utilization rate – how much of your available credit you use. The lower the rate used the better so don’t open a new card and max it out – just open it and use it a little and pay it off monthly if possible.
These are five quick tips that can really help boost your credit before you apply for a mortgage. If you are ready to apply contact us today and we will be glad to review the options with and see what best fits your needs!

Many Americans have considered moving in the last few years. Some are lucky enough to work remotely, others may be lured by housing prices. If you are considering moving here are seven things to consider.

1. Housing and Cost of Living: Research the cost of housing, groceries, utilities, and other expenses in the area to ensure that you can afford to live there.
2. Job market: If you are moving for a job, make sure it is secure and that there are other job opportunities available in the area.
3. Education: If you have children, consider the quality of the schools in the area. You may also want to consider the availability of higher education institutions if you or a family member plans to continue your education.
4. Safety: Research the crime rate in the area and consider the overall safety of the neighborhood.
5. Climate: Think about whether the climate of the new area is one that you can tolerate.
6. Amenities: Consider what types of amenities are important to you and whether the new area offers them. This might include things like libraries, parks, recreation centers, shopping, and dining.
7 Quality of life: Think about what is important to you in terms of your overall quality of life, and whether the new area offers those things.

As we say goodbye to 2022, if you are planning on buying a home in 2023 here are 5 things to do.
Put Savings In A High-Yield Account
If you are planning on buying you will need your money to be “liquid” or relatively easy to access for a down payment.
Check Your Credit
You may have heard this before but it’s important, so we’ll say it again. Review your credit report to make sure there are not any errors or attempts at identity theft that can erroneously lower your credit score.
Down Payment or Closing Costs Assistance
It’s a good idea to check to see if you qualify for down payment or closing cost assistance or grants.
Monitor Your Market
Real estate is local as they say so keep an eye on the areas you are looking to buy to see if there are trends in prices and inventory
Get Preapproved
You can fill out our approval qualifier on our website and we’ll help you see how much you can qualify for and pre-approval, this will help you to know you’re buying range.

From Our Family To Yours
We wish you and your family a safe and happy holiday with plenty of good food and cheer!