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How to Avoid 3 Common Mortgage Scams

There are scams out there for everything, and obtaining a mortgage is no exception. While home buying and ownership is typically a source of pride and happiness, unscrupulous individuals are always coming up with schemes to con you out of your hard-earned money and property. To avoid falling into a mortgage scam, here are some of the most common ones to look out for . reverse mortgage company Portland

Wire Fraud

Some scammers will gain access to information on customers who are in the middle of a mortgage transaction. They will then create a very convincing email, text, or phone call, claiming to be someone from the title or escrow company giving you instructions on where to wire your escrow funds. They may go so far as to set up fake websites or make the telephone number or business logo almost identical to the real thing. Once you wire the money, the criminals withdraw your money in an offshore account and it is gone forever. You can avoid this tragedy by verifying with your lender, using the original contact information they provided. And be leery of any digital requests for changes to the wiring process you have already received directly from your lender. You can call your settlement agent to verify the escrow account number and to immediately confirm the transfer.

Foreclosure Relief

If you have fallen behind on your mortgage payments, you may be feeling desperate to save your home. Scammers prey on those emotions, using public records to discover homeowners in pre-foreclosure, and posing as government housing assistance representatives. They promise to reduce your monthly payments if you pay a large, upfront fee. Or they might convince you that if you make your monthly mortgage payments to their company for a year, they will keep you out of foreclosure. In reality, they have no ability to change your mortgage terms. They just take your big chunk of change and head for the hills. You can protect yourself against this scam by going directly to your loan servicer first and asking for a loan modification or forbearance. A company that advises you NOT to talk to your lender is a scammer. You can also find out about more options from a HUD-accredited housing counsellor.mortgage broker services Portland or

Home Title Fraud

This involves a scammer obtaining the title of your property and transferring ownership to their own name. First, they steal your identity and secure as many loans as possible on your home using your existing equity. The criminals pocket all that loan money and soon lenders start sending foreclosure letters to you for all the unpaid mortgages.  You can help protect yourself against this terrible injustice by checking your credit report regularly for suspicious activity. Also pay attention to if you do not receive normal mortgage-related bills, like tax, water, or mortgage bills. And third-party identity or title protection companies can also help insure you against these types of losses. mortgage company Portland or

Avoiding common mortgage scams is all about being vigilant with your personal and financial information and verifying the identity of the home loan individuals you work with. Be wary of deals that seem too good to be true and double and triple check information before you transfer any money.

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Reverse Mortgage Loans | Key One Financial Inc. | Portland, OR

Reverse Mortgage Loans perfect for helping senior citizens take advantage of the equity in their homes from Key One Financial Inc. Call today at [phone].

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Bank Statement Loans For Self Employed | Vancouver WA | Portland OR

At Key One Financial Inc., We offer Bank Statement Loans for Self Employed in Vancouver, Washington & Portland Oregon. Call today at [phone] to learn about bank statement loans.

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Key One Financial Inc | Mortgages Broker | Refinance

We are a full-service mortgage company based in Vancouver, WA. We specialize in FHA, VA, Veterans, Renovation and Mortgage Loan Programs in Vancouver.

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Key One Financial Inc. | Mortgages Broker | Refinance | Vancouver, Washington

Key One Financial Inc is a Reverse mortgage companies in Vancouver, serving Portland and Washington consumers exclusively. We are a full-service mortgage company based in Vancouver, WA. We specialize in FHA, VA, Veterans, Renovation and Mortgage Loan Programs in Vancouver.

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Key One Financial Inc. | Mortgages Broker | Refinance

Key One Financial Inc is a Reverse mortgage companies in Vancouver, serving Portland and Washington consumers exclusively. We are a full-service mortgage company based in Vancouver, WA. We specialize in FHA, VA, Veterans, Renovation and Mortgage Loan Programs in Vancouver.

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Key One Financial Inc is a Reverse mortgage companies in Vancouver, serving Portland and Washington consumers exclusively. We are a full-service mortgage company based in Vancouver, WA. We specialize in FHA, VA, Veterans, Renovation and Mortgage Loan Programs in Vancouver.

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What You Need to Know About FHA Loans

It’s a new year and a new chance for many people to become homeowners. There are several mortgage products that are designed for first-time buyers; the FHA loan is especially helpful. Here’s what you need to know about them and the changes that have been made for this year.

What is an FHA loan?

It stands for a Federal Housing Administration loan, meaning it is backed by the U.S. government. It is not made by a government agency. You deal directly with a mortgage lender or broker to get the loan, but the FHA will typically buy the loan from the lender after it is made or guarantee the lender against loss. They require lower down payments and credit scores than most conventional loans, making them a clear favorite among first-time buyers.

What Are the Terms?

These loans can have terms of either 30 years or 15 years. The interest rate is fixed for the entire loan length. As long as borrowers have a minimum credit score of 580, they only have to contribute a down payment of 3.5%. Closing costs run between 3% to 5% of the loan total and up to 6% of those can be paid for by sellers, builders, or lenders.

FHA borrowers do have to pay mortgage insurance premiums for at least 11 years, not just until they reach 20% equity like with conventional loans. At the outset of the loan an upfront premium of 1.75% of the loan amount is due but can be financed into the overall mortgage. Then every year, the borrower will be responsible for an annual premium of between 0.45% and 1.05%, that is divided by 12 and paid monthly with the mortgage. If borrowers get tired of paying mortgage insurance, after a few years of timely mortgage payments and earning equity, they may be able to refinance into a conventional loan.

What Are the Qualifications?

To qualify for an FHA mortgage, home buyers need a FICO credit score of at least 500 and a 10% down payment, or a score of 580 or higher and a down payment of 3.5%. These loans also require a two-year employment and income verification and must plan to use the property as their primary residence. If they have had a bankruptcy, they must wait one to two years before applying and three years after a foreclosure. Lenders will also require that a borrower’s debts (mortgage expenses plus all other debts) are no more than 43% of their gross income.

What Are the Loan Limits for 2022?

Each year the Federal Housing Finance Agency sets loan limits for all government-backed mortgages. The limits are based on the average cost of housing in the country and certain regions. In 2022, for most parts of the U.S., FHA borrowers can take out a loan for up to $420,680, an increase from 2021’s limit of $356,362. For the priciest areas in the nation, like Hawaii, California, and Washington D.C., the loan limits are even higher: $970,800 this year, up from $822,375 last year.

With higher loan limits and currently low mortgage interest rates, an FHA loan might be the perfect tool to help you get into a home in 2022! Contact us today to find out more.

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Key One Financial offers Fast and easy FHA mortgage loans in Portland, Oregon.FHA loans are available at low interest rates.

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Key One Financial Inc is a Reverse mortgage companies in Vancouver, serving Portland and Washington consumers exclusively. We are a full-service mortgage company based in Vancouver, WA. We specialize in FHA, VA, Veterans, Renovation and Mortgage Loan Programs in Vancouver. More info :

Reverse Mortgage Loans | Key One Financial Inc. | Vancouver WA | Portland

Reverse Mortgage Loans perfect for helping senior citizens take advantage of the equity in their homes from Key One Financial Inc. Call toda

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5 Benefits of Non-Conforming Mortgage Loans - Key One Financial Inc

When you apply for a home mortgage, lenders will check your credit score, income, assets, and debt. All of this will get factored into an algorithm to figure out if you are credit-worthy enough to be granted a loan. Most of the standards used by lenders are set by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Many lenders want to resell the mortgages they make to these GSEs, so they have to play by their rules. This includes making loans under certain dollar limits and only to borrowers with credit scores above certain thresholds. Mortgages that meet all the GSE criteria are called “conforming” loans because they conform to the prescribed requirements. Thanks to their government backing, these loans often come with lower interest rates and other preferred terms.

However, there may be times when a “non-conforming” loan, or non-qualified mortgage, may fit your situation better. They may not receive government guarantees, but here are five reasons why a non-conforming mortgage could be helpful to you.

Flexibility

Because it is non-conforming, this type of loan can be tailored to fit the needs of the borrower with fewer rules.

Credit Leeway

Conforming loans require a minimum credit score of 620 for most mortgages, but there is no credit score requirement for non-conforming. Credit score will be just one factor considered as part of the entire financial picture.

More Home-type Options

Conforming loans are not available for all types of homes. Non-conforming mortgages can cover everything, as long as the lender feels it make good fiscal sense. This could include non-warrantable condos and co-ops, multi-unit condos, timeshares, assisted living units, manufactured homes that have been moved from their original location. In fact, for many of these situations, non-conforming loans are the only option.

Alternate Ways to Prove your Income

With conforming loans, income verification is essential, especially because it factors into the debt-to-income ratio. Both of these factors determine whether you’ll qualify for a mortgage. With a non-conforming loan, however, the lender can verify your income in a non-traditional way like bank statements, or the income verification can be waived altogether in some cases. Instead of relying on your income as a decided factor, non-conforming loans can consider your current home equity, your cash flow, and assets. This often works better for self-employed buyers and those with seasonal commissions.

Lower Down Payments

Some government-backed loans are actually considered non-conforming, including VA, USDA, and FHA mortgages. These cater to first-time and lower-income buyers and have minimal or even no-down payment requirements. However, if you are applying for a jumbo loan, one with a loan amount above the conforming limit, you will likely be required to make a down payment of at least 10% to 15%.

You may have to pay higher interest rates or contribute to private mortgage insurance with many of these non-conforming loans, but they might be the easiest way for you to qualify for homeownership. And if your financial picture looks more traditional down the road, you can always refinance into a lower-cost conforming mortgage.

Call us today and we can help you understand all of the options that we offer.

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How To Avoid Closing Costs When Buying A Home

You finally saved up enough for a down payment and you can almost taste being a homeowner, but then you hear about closing costs. Coming up with a few extra thousand dollars sounds impossible. Before you give up on the dream of buying a home, here are a few creative ways to pay for your closing costs without waiting and saving even more.

What are Closing Costs?

Closing costs are all the fees associated with the mortgage process. For example, part of the closing costs go to the lender for their work in researching and setting up your loan. The fees also cover things like title insurance, appraisal costs, property taxes, and escrow accounts. The exact charges vary by area and by lender. They can range anywhere from 2% - 5% of the loan total. So, if you take out a loan for $250,000, you could expect to pay between $5,000 and $12,500 in closing costs.

How To Avoid Paying Out of Pocket

Roll Closing Costs into the Loan

One of the most common ways to save on upfront cash is to have your lender tack the closing costs on to the balance of the loan. This will increase your monthly mortgage payment a little, but it might be much easier to afford than a huge lump sum.

One of the most common ways to save on upfront cash is to have your lender tack the closing costs on to the balance of the loan. This will increase your monthly mortgage payment a little, but it might be much easier to afford than a huge lump sum.

Exchange Closing Costs for a Higher Interest Rate

Some lenders will pay all or part of the closing costs for you if you agree to a higher interest rate (which translates to a higher monthly mortgage.) These are often called low-cost or zero-closing costs loans.

Ask the Seller to Pay

If you have a motivated seller, you may be able to negotiate to have them pay the closing costs. They do this in the form of a closing-cost credit from the proceeds of the sale. Most loans allow sellers to give up to 6% of the sales price to buyer closing costs. Of course, in a hot sellers’ market, this is an unlikely option.

Look for Work-Related Benefits

If you are in the military, there are plenty of programs that can help with closing costs even if you’re not doing a VA loan.

If you’re in a union, you might also qualify for closing cost discounts and rebates. You can contact your union representative to see if your union offers this benefit.

Choose an FHA loan

Federal Housing Administration loans are geared toward first-time home buyers and lower-income buyers. Through these mortgages, agents, sellers, and lending brokers, can all contribute to closing costs.

Use Gift Money

Many loans allow family members to gift you funds for your down payment and closing costs. If one of your loved ones is willing to subsidize your home buying costs, talk to your lender about which loans allow for that option.

With a little creativity and some legwork, it is possible to avoid paying an additional chunk of cash for closing costs and jump into the homeownership now. Call us today and we can help.

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Questions Unmarried Couples Should Ask before Buying a Home

Roughly 9% of all U.S. homebuyers in 2020 were unmarried couples. If you and your partner are considering a house purchase before tying the knot, there are some important questions you should ask yourself to see if it makes sense.

How does the law see our purchase?

In a few states, you are considered to be in a common law marriage by living together, but in the majority of the country, you are simply viewed as individuals when it comes to your assets.  That means you’ll need to decide together what clauses and protections to put into your property agreement.

Should we both be on the mortgage?

If one of you can qualify on your own for the mortgage, you do not have to put both names on it. This might be more helpful if one of you has poor credit that might make it harder to be approved or would increase the interest rate on the loan. However, if there are disputes down the road, the partner not on the mortgage would lose all claim on the house, even if they have been contributing to the monthly payments all along. It is possible to put just one partner on the mortgage, but both names on the title. The risk is greater to the one on the mortgage though, as in a dispute they will have to legally split the home’s value with the partner who has had no technical financial responsibility for the home loan.

What happens if we break up?

Of course, you never plan to break up, but things change. If there is no property agreement when you two split, the home must either be sold or one of you can buy the other out. It is much better to specify the details of such a situation while you are both amicable; otherwise, it could end up being a disastrous financial battle.

If you break up and one of you wants to keep the house, you’ll have to refinance the mortgage to get the other person’s name off the loan. If you have to buy the other person out, you might be able to use a cash-out refinance to pay them their portion from the saved-up equity.

What happens if one of us dies?

If you were married and without children, the house would legally pass to the surviving partner, but that will not necessarily apply to you if you have not left a will or specified such circumstances in the original purchase agreement. Before you sign on to the mortgage, you’ll need to decide the type of ownership you’ll have on the property deed. It can be “joint tenancy with rights of survivorship,” which means the survivor inherits the deceased person’s share of the home. The other option is tenancy in common, where each person owns a percentage of the house and when they die their share goes to their estate or trust.

Who gets the tax benefits?

If there are any mortgage interest deductions available for your house, only one of you will be able to claim them on your taxes as you are filing separately. You should decide who gets to take advantage of this and put it in writing to prevent any future disputes.

Buying a home with an unmarried partner can require extra caution and steps, so be sure you understand the implications before making your purchase. Call us today if you have any questions.

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Do you have First-Time Home Buyer Anxiety? | Key One Financial Inc.

Buying a home is a major financial purchase. In fact, it is often the largest investment many people will make over the course of their lives. So, no pressure, right? The fact that it is a weighty decision with real consequences can cause a lot of anxiety for many potential homebuyers, sometimes even paralyzing them from pulling the trigger on a home purchase. If you worry about the size of your down payment, and what happens if you can’t make your mortgage payments, you are among the millions who face the same fears every year. While buying a house can be daunting, it can also be smart and rewarding. Here are some tips for helping to get past those first-time home buyer anxieties and to feel like you are truly ready to jump into the market.

Manage Your Debt

Having too much debt can put a strain on your resources when you’re trying to buy a house. With the average U.S. household carrying several hundred dollars’ worth of student loans, auto loans, and credit card debt each month, it can feel overwhelming to take on a new, larger payment as well. Learning to budget so that you have money left over after all your current debt requirements is essential to being ready for homeownership. Debt consolidation is one step that can help you start on that path. Just remember, it is still possible to carry debt and successfully manage a home loan as well. Most lenders like to see a debt-to-income ratio of 36% or lower, so if you are there or close to it, you can put that anxiety away.

Improve Your Credit Score

Having a decent credit score is important for being approved for mortgage financing as well as for getting good interest rates and terms. While most loans require a FICO credit score of 620 or higher, there are some types (i.e., VA loans) that will accept lower numbers. If your score is too low right now, you can lay this anxiety to rest by building it up over the next several months. The fastest and most effective way to raise your credit is by paying all your bills on time. It is also important to keep your credit card balances low and not apply for any new credit as much as possible until your home loan process is complete.

Come Up with a Down Payment

The way house prices are rising today, it may feel impossible for first-time buyers to ever save enough for a down payment. While this is a valid concern, potential buyers should know that there are plenty of mortgage options that do not require a full 20% down. FHA loans for example only require as little as 3.5% and VA loans often require nothing. You can calm this anxiety by speaking with a mortgage lender about the various choices available for your financial situation.

Calculate How Much You Can Afford

Another anxiety many first-timers worry about is whether they can afford the mortgage payment. There are calculators online that can help you figure out how much you can reasonably add to your budget, but sometimes they do not include all the added costs, like property taxes and homeowners’ insurance. Again, talking with a mortgage lender will help you get an accurate picture of what a mortgage payment in your area and your price range would look like. Most lenders prefer that your housing expenses add up to no more than 30% of your gross monthly income. If a proposed home purchase would allow you to stick to that kind of budget, you can check off that worry as well.

If you fulfill all the requirements for buying a home, there still may be worries even after the purchase. Home maintenance and a mortgage contract are serious responsibilities, but owning your own home can also bring freedom and peace of mind when you are ready to take the plunge.

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Should I Do a Cash-Out Refinance on My Rental Property?

Mortgage interest rates have been near record lows for the past several years. At the same time property values have jumped dramatically, giving homeowners plenty of equity. Those two factors combine to make right now an excellent time to get a cash out refinance loan.

But what if you own rental properties or investment homes? Could you take out a cash out loan on them? And should you? Here are some reasons you might consider using that type of mortgage on your rental properties.

Improving Your Rental Units

If your investment home or apartments have been in need of some significant repairs or renovations, pulling cash out of your equity could be a cost-effective way to pay for it. Once you update or fix the properties, the value will increase, bumping up your equity and allowing you to charge more in rent.  Refinance loans always come with closing costs and fees though (even if it's at the back-end) so be sure to make sure the numbers pencil out.

Expanding Your Rental Business

If your rental business is running smoothly, a cash out refinance might be a way to get a down payment for another investment property to your portfolio. Depending on how much you have in equity, you may even be able to pay outright for your next rental unit.

Lowering Your Interest Rates

Since rates are still low for now, if you took out mortgages at a higher cost several years ago, this may be a good time to get a cash out refinance. You’ll reduce your overall mortgage costs and still be able to pull out some equity for projects.

Personal Financial Help

Life is unpredictable and you might need the cash for your own life needs. It could be medical expenses, sending a kid to college, or even to pay for your retirement expenses. Cash out refinance mortgages are great because even though the loan is tied to your property, you can use the money for any purpose whatsoever.

Requirements for an Investment Property Cash-Out Refinance

Lenders will want to see that you have a significant amount of equity in your rental unit. That means having a nice low loan-to-value ratio. You will also need to have a decent credit profile for approval and the higher your score, the lower the interest rate you’ll pay. In addition, the mortgage lender will look for a low debt-to-income ratio. This does not mean that you can’t have any debt, but simply that even with all the money you owe on your rental property, the income being brought in by it provides plenty of cushion to make the payments.

So the answer is yes, you can take out a cash out refinance on your investment properties, but whether you should depends on your individual situation and finances. Call us today, we can help you run the numbers.

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7 Tips for Second-Time Home Buyers

Buying a home for the first time is often exciting, scary, and overwhelming all at the same time. When you’re ready to move on from your starter home, you will be familiar with the home buying process, but there are still a few things you might want to consider as a second-time buyer.

Interest Rates

Depending on how long ago you bought your first home, conditions in the housing market may have changed dramatically and could affect second purchase. For example, long-term mortgage interest rates are current near historic lows, having stayed around or under 3% for over a year, whereas they were reaching around 5% three years ago. That amount of interest can make a big difference in how much house you can afford the second time around. If rates are significantly higher than when you bought your first place, you might need to save up a bigger down payment or consider paying more mortgage points to buy down your new interest rate.

Inventory

You may be pickier the second time you buy a home; you’ve had time to figure out which features you do and don’t like in a house as well as ones you wish you had. Your selection of homes may be smaller just by virtue of your preferences, but you should also pay attention to house much inventory is available in general. In today’s market, demand is far outstripping available housing supply, limiting buyers’ ability to move up in homes. Your real estate agent can give you a good idea of current inventory conditions.

Home Prices

How quickly home prices are rising may be a big factor in which next house you buy. Today, high demand, ultra-low interest rates, and anemic inventory have pushed prices to all-time records. Wages have not been keeping up with home value increases though, making it harder for Americans to afford a new home. General inflation levels are climbing faster than salaries as well. All these factors play into whether you can reasonably buy your next home now.

Available Mortgage Credit

Mortgage lending standards vary from time to time and you may need to improve your credit profile this time around to qualify. For example, before the finance crisis in 2008, lenders were very liberal with funding, making plenty of riskier loans like interest-only and no-documentation mortgages. Today, however, standards are higher, with better credit scores and more proof of income and assets required. You should also take a look at your debt-to-income ratio; if you’ve taken on a significant amount of debt since buying your first home, it may change how much you can borrow or at what rate.

Selling Your Current Home While Buying

This is one of the most nerve-wracking aspects of buying your next home. Typically, buyers can put in an offer with a contingency that they can back out if their own home does not sell in time. In competitive markets though, sellers may only accept contingency-free offers. In this case, one option is to try to sell your home first and then hope something is available when it goes under contract. Another option is to sell your home to one of the companies that buy homes with cash but let you stay in your place until you find that right one.

Changes to House Construction

Housing codes are always being updated. You may want to familiarize yourself with what is being required in new homes in terms of safety to see if those changes are important to you in a second house. You may also want to consider finding a place with more energy efficiency upgrades to reduce your utility costs going forward.

Length of Stay

Finally, consider how long you plan to live in this second purchase. If it’s a substantial amount of time, you may be more concerned with the longevity and quality of the roof and HVAC systems and other large structures and features that could cost you a lot to replace down the line. And if your family will be growing or shrinking during the time you live in this next place, its good to find a home that can adapt to those needs.

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4 Things to Know Before Getting a Reverse Mortgage

Many Americans bank on being able to sell their homes in retirement to help pay for their living expenses. However, many seniors get to that stage and realize they do not want to leave their homes. Or there can be unexpected costs that crop up in retirement. One way for homeowners over age 62 to harness their equity for any type of expense is with a reverse mortgage. However, it is not a traditional home loan. Here are the four most important things borrowers need to know before signing up for a reverse mortgage:

Financial Counseling is Required

To make sure that seniors understand the ramifications of a reverse mortgage, all borrowers are required to participate in financial counseling classes through a government-approved agency. These sessions can be completed in-person or over the phone and are meant to fully explain all the payment options, tax implications, and costs of a reverse mortgage.

The Fees Can Add Up

There are plenty of up-front costs associated with these loans: fees for the counseling class, fees for loan origination, mortgage insurance premiums and closing costs. These are often rolled into the total loan amount, but they can add up to 3-4% of the loan total.

Payments Are Available in 3 Options

The amount of money you can borrow will depend on how much equity you have in your home. Once that amount is determined, you can choose to receive the money in one of three ways: as a one-time lump sum, in equal monthly payments, or as a home equity line of credit that can be drawn down as needed. A lump sum is great if you need the cash for a large specific project or debt, and monthly payments are more appropriate if you are using the money as retirement income. The line of credit would be helpful if you only need the funds for emergencies.

The Loan Must be Repaid

While you do not have to make monthly payments on a reverse mortgage, eventually the loan balance must be repaid. It will come due when you move from the house or after you die. If you pass away, the bank will then take possession of your home as repayment. If you sell your house, however, you must repay the loan from the proceeds of that sale. So, you’ll need to make sure you can get a high enough price to cover the reverse mortgage cost. And if you are planning to leave your house to your children, they will have to repay the loan from their own funds in order to keep the property.

There are many situations in which a reverse mortgage could be a good fit for a senior homeowner. However, there may be other options like refinancing with a cash-out mortgage, selling the home to one’s children, or selling to downsize and keep the extra equity. Whatever the choice, borrowers should make sure they understand all the terms of a reverse mortgage or refinance before making a decision.

Let us know if you or anyone you know is interested in finding out more about a Reverse Mortgage.