We understand the option to rent or buy a home depends on your unique situation, and your decision requires careful consideration.  While renting may make more sense for some, buying a home can be less expensive on average than renting long-term.¹

When deciding which option is right for you, we recommend asking some basic questions:

• Is it important that your home can be used as an investment?
• How long do you plan to stay in your home?
• How fast do rent and home prices rise in your area?

Buying may be the right option if you:

• Want the opportunity to build equity in your home as a long-term investment and take advantage of homeowner tax credits and incentives.
• Are planning to stay in your home long-term (typically 4 years or more).
• Would like to create a home that is unique to your own style.
• Are experiencing rising rent payments.

Renting may be the right option if you:

• Prefer a monthly budget that does not include costs for home maintenance or improvements.
• Plan to move again within the next few years (typically less than 4 years)
• Enjoy the amenities that are often available within rental communities.
• Have financial obstacles or credit issues that may preclude homeownership.

Buying or renting can be different for everyone based on your individual situation.  Contact a local mortgage consultant to answer any questions you may have about buying a home!

BY THE NUMBERS:
Rent vs. Buy calculations often differ by real estate market. Use our rent vs. buy calculator tool to help you decide if renting or buying is right for you!

1. Contact a mortgage consultant to compare the cost of renting versus buying to determine the right option for you.
All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

Buying your first home doesn't need to be overwhelming, and the more prepared you are, the better. Here are a few tips and tools to make first-time home-buying a little easier.

Take a class. Katie Ross, a community education and marketing manager for American Consumer Credit Counseling, says you shouldn’t be at all ashamed to take a first-time homebuyer education course, many of which are offered online. They provide potential homebuyers with detailed information, advice and budgeting tips on how to purchase a home. With a homebuyer certificate, consumers may qualify for loan products that might otherwise be out of their grasp.

Save, save, save. Prospective homebuyers are smart to save as much as possible toward the purchase price of the house and closing costs. Though low down payments programs are available, a greater down payment can open the door for more favorable borrowing terms.

Put more down. If you can purchase a home with at least 20 percent down, you probably will save even more because you won't need to buy private mortgage insurance (PMI).

Find an agent. First-timers may also be wise to find a trusted real estate agent. They say an agent's job is to know how much properties are worth, facilitate the sale process and bring an offer to the seller's agent.

Emily Starbuck Crone at nerdwallet.com reminds first-time prospects that there are a lot of mortgage options out there, each with their own combination of pros and cons. If you’re struggling to come up with a down payment, Crone says check out:

• Conventional mortgages that conform to standards set by the government-sponsored entities Fannie Mae and Freddie Mac, which require as little as 3 percent down.
• Federal Housing Administration loans, which permit down payments as low as 3.5 percent.
• Veterans Affairs loans, which sometimes require no down payment at all.

Finally, the Consumer Financial Protection Bureau (consumerfinance.gov) says shopping around for a mortgage can lead to real savings. Saving even a quarter of a point in interest saves thousands of dollars over the life of a loan.

If you have questions regarding your home financing options, we are here to help. Contact a mortgage consultant near you!

Reprinted with permission from RISMedia. ©2018. All rights reserved.

Low down payment options may not be the best option for all borrowers. Consult your mortgage consultant to review potential loan scenarios and financing options to determine the home loan that is right for you.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.  NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)  ©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

$6.2 Million in Fees Waived for Active Military and Veterans

Since launching its VA Home Loan Advantage program in 2014, our company has saved active-duty military members and veterans over $6.2 million in origination fees and appraisal credits. As a full-service mortgage banker, we have funded over $1.4 billion and closed 4,198 VA home loans since November 11, 2014, when the program first began.

The VA Home Loan Advantage program continues to be offered to all FM Lending Services clients purchasing or refinancing a home using a VA loan.  The program waives the company’s standard origination fee and provides eligible clients with a lender credit to pay for the cost of a home appraisal.¹

“We believe in supporting the brave men and women who serve our country in the military,” said Tim Wilson, president and CEO of Prosperity Home Mortgage, parent company of FM Lending Services. “That’s why we are delighted to help lower the upfront cost of buying or refinancing a home for service members and veterans using a VA home loan.”

Additionally, FM Lending Services is pleased to share that Jonathan Haug, a senior mortgage consultant based in Virginia Beach, Virginia, has been recognized as the company’s top producer for VA home loans for the second year in a row. Haug closed 120 VA home loans with associated volumes over $33 million in 2017 and 2018.

“It’s fantastic that Jonathan has once again earned this recognition, and we are thrilled to have funded over $1.4 billion in VA loan volume as a company since the program’s inception,” said Randy Krout, national sales manager of of Prosperity Home Mortgage, parent company of FM Lending Services. “We are very proud of the hard work that each of our mortgage consultants has put forth to make homeownership a reality for military service members and veterans, and it’s because of that ongoing commitment that we remain among the top lenders in the nation.”

Wilson added to Krout’s thoughts.  “We are in the business of financing homeownership and the American Dream, and our VA clients are a very important part of our business,” Wilson said. “We have employees who have friends and family in the military, and it is imperative to us that we support those who have served our nation.”

Contact your local mortgage consultant to learn more about a Veterans Affairs (VA) home loan.

Prosperity Home Mortgage, LLC dba FM Lending Services is not affiliated with any government agencies.

1. Borrowers are eligible for a lender credit toward closing costs on the Closing Disclosure on a new purchase, secured by a first mortgage or deed of trust (New Loan), subject to qualification, approval and closing with Prosperity Home Mortgage, LLC dba FM Lending Services. Loan must close within 90 days from the date of loan application. Lender credit may not exceed $525.00 for appraisal. Credit coupon must be presented at time of application and all eligibility requirements met no later than 2 days prior to the New Loan closing date. This lender credit is void where prohibited and is non-transferable, subject to the terms herein, and valid on all complete applications received on or before 12/31/2018.

All Incentive offers valid on complete VA home loan applications received between 10/01/2018 and 12/31/2018. Loan must close within 90 days from the date of loan application. Only one discount permitted per New Loan.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

For many people, buying a home may be the biggest purchase they will make in their lifetime, and the right time to buy is different for everyone.  Before making the decision to buy a home, consider the following questions:

How do lenders determine who qualifies for a mortgage?

Lenders take many things into consideration: credit score, the cash you have available for a down payment and closing costs, your income, and your existing debt and financial obligations are just a few.  Two housing ratios are used:

• The housing expense-to-income ratio compares your anticipated monthly mortgage payment (principal, interest, taxes and insurance), to the total gross monthly income (pre-tax) for your household.
• The debt-to-income ratio compares total monthly expense, including the anticipated monthly mortgage payment to the total gross (pre-tax) monthly income for your household. 

How do I know how much money I can borrow to buy a home?

Your mortgage consultant will help you get a preliminary approval that lets you know the maximum loan amount you might be able to borrow.¹  With that information in hand, you can then determine a price range with which you are comfortable.

What is a credit score?

The three credit reporting agencies — Experian, TransUnion and Equifax — serve as a clearinghouse for credit information.  “Credit score” is a term often used to refer to credit bureau risk scores. It broadly refers to a number generated by a statistical model which is used to objectively evaluate information that pertains to making a credit decision (i.e. credit cards, car loans, student loans, etc) that includes:

• Your payment history
• The total amount you owe
• The amount of time you’ve had available credit
• Whether you have any judgments entered against you
• Whether you filed bankruptcy
• The number of times potential lenders have reviewed your credit

Information in the agencies’ reports is evaluated and interpreted into a “credit score,” which help lenders make loan decisions. Credit scores range from 300 to 850, and yours may determine whether you are approved for a loan, the terms of the loan, and the interest rate.

Note: Making large purchases with a consumer loan or credit card just before applying for a mortgage may impact your ability to qualify. So consider your needs and priorities carefully.

If you still have questions about the home buying process, don't worry.  We are committed to providing information that will help you make well-informed decisions about the financing process.  Our mortgage consultants will pay attention to your goals, help you understand your options, and clearly explain how different loan programs work.  So, you can take an informed, hands-on approach to achieving your goal of owning a home.

Contact your local mortgage consultant today!

1. A preliminary approval is based on our preliminary review of credit information only and is not a commitment to lend. We will be able to offer a loan commitment upon verification of application information, satisfying all underwriting requirements and conditions, and providing an acceptable property, appraisal, and title report. Preliminary approvals are subject to change or cancellation if a requested loan no longer meets applicable regulatory requirements. Preliminary approvals are not available on all products. See a mortgage consultant for details.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

House-to-Home Renovation Loans Offer Options for Agents and Home Buyers

If you’ve been house hunting—or if you’re an agent with a listing that needs work—you’ve probably been there: A home has great bones or offers a lot of space for the money, but some aspects of its condition are likely to frighten most buyers away.  With a unique financing option available for homes in need of renovation, however, the property might actually be more desirable than you think.

Our House-to-Home renovation program is designed to make mortgage financing for properties in disrepair more accessible by combining the estimated costs of repairs and the home's purchase price into a single loan.  Renovation financing can help home buyers turn a house they like into a home they love, and our loan options may help real estate agents present possibilities in a property, leading to a sale.

The House-to-Home renovation program offers a number of advantages:

• The program offers a 30-year mortgage with a fixed interest rate that will remain the same for the life of the loan.
• Purchase and rate-term refinancing options are available.
• Unsafe homes can be made habitable, which can help improve the neighborhood.
• Buyers may be able to get more house for the money and cover improvement costs.
• The square footage of homes can be increased at a lower cost.
• Agents can offer a greater inventory and close more sales.

There are two types of renovation loans: The FHA 203(k) loan programs for properties that won't need structural repairs, and a conventional loan program for properties that do need structural work.  Most types of home improvements are covered with the exception of "luxury" features such as swimming pools or landscaping.

If you choose to purchase, refinance, or market a home that may be eligible for 203k financing, having knowledgeable mortgage professionals to assist you is important.  Whether you are a first-time home buyer or an experienced real estate professional, our renovation specialists can help you find the right renovation loan program for your needs.

Reprinted with permission from RISMedia. ©2017. All rights reserved.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.