3 Home Repairs or Improvements to Make with Your Reverse Mortgage

October 22, 2020 by Mitch Stam

Reverse Mortgage Tips In Phoenix Arizona

Living from paycheck-to-paycheck for aging Americans leaves little-to-no room to make necessary changes in your routine expenses, particularly in creating a dedicated budget for home remodeling or repairs.

The elderly population often lives in homes that are wearing down through time as well. While some renovations can bump down to the lower end of your financial priorities, other upgrades are necessary.

Many avoid making the right updates due to financial restrictions, but the good news is that there are reverse mortgage loan options available to help senior citizens make home improvements.

What is a Reverse Mortgage?

Homeowners who are 62 years old and older can borrow money by using the house as the loan’s security. The payment takes effect once the principal residence moves out of the home, usually by selling the property. In the meantime, elderly homeowners can cover for the following repairs or renovations after receiving their reverse mortgage:

Roof Repairs. One of the most critical repairs any homeowner should make, any signs of wear-and-tear should be addressed since it can lead to costlier damages that can put its inhabitants at risk. Replacing a leaky roof, for example, can quickly burn holes in pockets as it costs between $9,000 to $10,000. While roofs are designed to last for years, obtaining a reverse mortgage allows you to cover for its replacement once the roof’s lifespan reaches its end.
Kitchen Improvements. The kitchen is the heart of the home that sees the most action, so it makes sense that installing improvements can ease the living experience for senior homeowners. Switching old appliances with smart, energy-efficient appliances can help shave the burden on their shoulders by cutting back on the electricity bill.
Furnace Replacement. Furnaces are essential features in any home as it is responsible for keeping the space warm and comfortable, especially during the colder months. Leaving any problems unchecked can compromise your senior’s health and comfort, especially when they have old, worn-out furnaces that are only 60 to 65 percent efficient. By replacing the furnace with newer models, it can guarantee 95 percent efficiency, which can shave down your utility bills for the long haul, all while offering better performance.

The Bottom Line: Exploring Different Home Upgrades to Make After Receiving Your Reverse Mortgage

A reverse mortgage makes it possible for the elderly population to make necessary repairs in their home, which may otherwise be too expensive for their fixed income. Whether it’s to address leak problems, HVAC troubles, or investing in upgrades to improve their home living experience, reverse mortgages are a financial solution for senior homeowners.

How Can Our Phoenix Mortgage Lender Help?

Setting aside a budget for your home repairs or upgrades can be expensive, but if you need emergency funds that can cover for the renovations you need, our expert loan officers can take the guesswork out of supplementing your income with our reverse mortgage.

We’re a full-service mortgage brokerage company in Phoenix, Arizona, so get in touch with us at (623) 432-1309 and see our extensive list of financing options.

3 Reasons to Consider an FHA Loan in Arizona

October 15, 2020 by Mitch Stam

Are you facing financial problems and can’t afford to purchase a house all on your own? Do you already have a dream house in mind, but don’t have enough resources to build it with what you’ve saved up?

Don’t worry. Your future home is still within your reach. Even if your current resources aren’t enough for you to buy or build your dream house, you can always avail of a Federal Housing Administration (FHA) mortgage loan.

If you’re looking to purchase your first home in Phoenix, there are a variety of financing options for you to choose from. What you should really be asking, though, is why these options are best for you. Taking out a mortgage may seem like a daunting task, but, in reality, it should be considered as an investment. A mortgage can benefit not only your future but your family’s future as well.

Here’s why you should consider availing an FHA mortgage loan:

FHA Loans are Easy on the Pocket

Taking out an FHA mortgage loan in Phoenix won’t require you to prepare too many documents, thus saving you the costs of arranging documentation to present when applying for said loan. A credit score of 580 or higher is required for you to avail of an FHA mortgage loan, and all you need to prepare is 3.5% of the loan you wish to take out.

However, you may need to present more proof of capability to pay back your loan should your credit score fall below 620, such as a debt to income (DTI) ratio of 43% or less depending on other significant compensating factors. This still shouldn’t be a problem, though, for those who are purchasing a home for the first time.

Preparing these requirements won’t take too much out of your time and break the bank! This is perfect if you’re purchasing a home for the first time straight out of college. Owning your own home at 25—or even before! —can’t get any easier than this!

FHA Loans can be Paired with Flexible Assistance Programs

FHA mortgage loans can be paired with other down payment assistance programs! All you need to do is be eligible for these programs, and you should be able to apply them to an FHA mortgage loan with the help of a skilled loan officer.

It’s always best to consult a loan officer before taking out an FHA mortgage loan in Phoenix. Loan officers will best advise you on what to do and what to prepare before you take out any loan so that you don’t face unanticipated problems along the way.

FLA Loans Offer a Wider Reach

It’s never late to reap the benefits of an FHA mortgage loan. Even those in their late 30s with a limited income can still take one out and reach their dreams of becoming homeowners. FHA mortgage loans were designed to break the barriers to homeownership that a lot of small-to-medium-income households face.

FHA Loans in Phoenix with Desert Springs Mortgage

With easier access to these loans and lower loan rates, FHA mortgage loans are your best bet to owning your dream home with minimal problems! You don’t need to worry about your credit score as well! As stated above, with a credit score of at least 580, you’re still close to owning your dream home!

Desert Springs Mortgage LLC is a full service mortgage brokerage in Phoenix, AZ. If you’d like to know more about their different mortgage programs and financing options, get in touch with them at (623) 432-1309.

Different Mortgages You Can Get With a 680 Credit Score

October 5, 2020 by Mitch Stam

Credit scores play a pivotal role in a person’s eligibility in obtaining a suitable mortgage, especially since it impacts several factors – from your qualification down to the interest rate you need to pay. The number serves as a benchmark for lenders to estimate your risk, so the lower the score, the more precarious you become.

Different Credit Scores and What It Means

Generally, lenders stick to brackets when viewing your credit score. While there are no set standards in the industry, the range below can be a good basis when considering your mortgage approval for FICO scores:

740 – 850 – Known as the highest FISCO score possible, borrowers can quickly gain credit approvals and get the lowest interest rates.
670 – 740 – Falling only second behind, this range is characterized as a good credit rating, which means you can qualify for most loans.
620 – 670 – Standing at an average rating, borrowers can still get approval, but it typically comes with higher interest rates.
580 – 620 – For borrowers that need to get their foot in the door, this subprime credit can still let borrowers get a mortgage but expect to settle with less-than-desirable terms.
300 – 580 – Down to the lowest scale in the FICO credit scoring system, borrowers with low scores will have little-to-no chance of getting approval for a mortgage unless you improve your score.

What If You Have A 680 FICO Score? What Mortgage Loans Can You Apply For?

As mentioned above, a 680 FICO score is a good indicator and means you can qualify for most home loan programs, though the interest rates will not be as competitive compared to borrowers with perfect credit scores. With that in mind, some of the mortgage loans you can obtain with a 680 credit score include the following:

Conventional – 3% Down payment
Fannie Mae HomeReady/Freddie Mac Home Possible – 3% Down payment
FHA Loan – 3.5% Down payment
VA Loan – 0% Down payment
USDA Loan – 0% Down payment

On top of a wealth of options for your mortgage loans, you also have the flexibility to choose a program that suits your budget and needs.

How A 680 FICO Score Affects Your Mortgage Opportunities

Having a credit score of 680 nowadays is no longer sufficient as lenders demand a higher score if you want to qualify for better mortgage rates. The FICO credit scoring system can be limiting in more ways than one if you don’t meet the mark – from reducing your mortgage options when buying your first home or financing your start-up venture.

Since a FICO score of 680 puts you in the lower end of the “above average” spectrum, finding the right lender is crucial if you want to have better mortgage rates.

Phoenix Home Loans with Desert Springs Mortgage

If you’re looking to get the best deals on your mortgage with only an average credit score, our expert mortgage lenders in Arizona can introduce better alternatives that can help you come closer to unlocking the coverage that suits your needs. Get in touch with us at (623) 432-1309 and see how we can help you obtain the ideal mortgage for you!