• We now offer a 40-year loan with the first 10 years as interest only, enjoy a low monthly mortgage payment!!!
(800) 535-0270
Select Page
How do basic and bonus entitlement work?

How do basic and bonus entitlement work?

If you are seeking out a VA Loan, it is important to know that each eligible veteran has a basic and bonus entitlement. However it is important to learn what an entitlement is and how it affects your VA loan amount. The simple definition reads as follows, “Each veteran is entitled to a certain amount of money that the VA will guarantee.” So, here is a breakdown of basic and bonus entitlement work in action:

  1. A basic entitlement guarantees that the VA will cover up to $36,000 of a loan while the bonus entitlement covers $68,250. What this means is the VA will guarantee that $104,250 of any loan under $417,000 will be paid in case of default.
  2. The $417,000 figure represents the amount of loan funding available from Fannie Mae and Freddie Mac. These two institutions guarantee securitization on private loans, VA loans and FHA loans. However, in most states throughout the country, the maximum loan amount remains at $417,000. Fannie and Freddie will not buy any loan that is over that benchmark loan amount.
  3. Any loan amount over $417,000 is considered a jumbo loan, and the only way to obtain this amount of financing is through private lenders who use guidelines outside of the VA and FHA.

Important Facts to Keep in Mind

Most private lenders will loan up to four times the amount of basic and bonus entitlement amounts. The only barrier is the $417,000 benchmark loan amount. However, the guaranteed fund coverage provided by the VA ensures you will receive a quality loan that is quite affordable.

How MortgageDepot can Help

We are a leading mortgage finance company based in New York. We have a quality staff that specializes in VA Loans. Since basic and bonus entitlements are tricky, it is wise to seek out the advice of our specialists. We guide you through the entire process and guarantee we will place you in a loan that works in every way.

Contact us today at 800-535-0270 for more information or email us here.

Are trigger leads a good thing? It depends

Are trigger leads a good thing? It depends

Those annoying, unsolicited calls from companies selling products or services may not be random. As mortgage brokers, we hear stories from our clients who submitted loan applications through us about an increase in calls from telemarketers offer deals on mortgages. It turns out that the three major credit reporting bureaus collect and sell information about consumers that can be used to target them for offers by providers of similar products and services. The marketing tool is referred to as a trigger lead and is not limited to the mortgage industry. Car dealerships, insurance companies and other businesses offering products or services to consumers can benefit from targeting someone who they know from the trigger lead is in the market for what the business has to offer.

What benefit does a consumer receive from being targeted through trigger leads?

MortgageDepot is a mortgage broker company, so we understand the benefit of shopping around for a mortgage loan instead of relying upon only a single lender. We take our client’s loan application and look for the best mortgage terms available among all of the lenders we work with in the marketplace.

Smart consumers know the value of shopping around to get the best deal for the products and services they need, so the argument that targeting someone in the market for a mortgage actually helps the person by giving them additional options from which to choose may appear to have some validity. However, the challenge when receiving a call generated by a trigger lead is that a consumer has no way of distinguishing between a legitimately better offer and a deceptive one designed merely to lure the consumer into changing lenders.

How does a trigger lead work?

When someone shopping for a mortgage loan, a car or any product or service requiring information about the person’s credit from Equifax, Experian or TransUnion, one or more of the credit bureaus creates a trigger lead. The trigger lead contains information about the consumer including the fact the individual is seeking a particular type of financing. The lead is quickly sold and used by another lender to contact the consumer in an effort to persuade the person to change lenders.

The practice of selling and buying trigger leads is not illegal as of right now, but the unsolicited calls generated through trigger leads do more harm than merely being annoying. Telemarketers may use them as an opportunity to mislead a consumer. Callers have been known to contact consumers and pretend to be working on the consumer’s loan application. This could result in the consumer giving out personal identifying information that may be used to engage in identity theft.

Protection from harm caused by trigger leads

MortgageDepot recommends that our borrowers protect themselves from unsolicited calls generated by trigger leads by taking the following steps:

  • Register with the National Do Not Call Registry operated by the Federal Trade Commission.
  • Register with OptOutPrescreen.com to prevent having their names sold by credit bureaus.
  • Register with the Direct Marketing Association to stop junk mail, including unsolicited offers sent through the mail.

MortgageDepot values the safety of its borrowers

MortgageDepot borrowers who receive unsolicited offers of financing after submitting an application through us should and speak to one of our loan officers.

We want to help, so contact us now at (800) 535-0720 or email us here.

How long do I have to wait after bankruptcy to get a VA Loan?

How long do I have to wait after bankruptcy to get a VA Loan?

Many borrowers often wonder how long they have to wait in order to obtain VA Financing after bankruptcy. Many people who file for bankruptcy are under the impression that they are no longer eligible for any type of VA Loan. Bankruptcy and your ability to qualify for a conventional loan are damaged, but not your ability to qualify for a VA Loan.

Chapter 7 Bankruptcy

If you file for this form of bankruptcy in order to liquidate your assets, you must wait at least two years before you can reapply for VA Financing. Keep in mind that the two years begins upon discharge of the bankruptcy, and not the date of actually filing for bankruptcy protection.

Chapter 13 Bankruptcy

If you file for this form of bankruptcy, you are actually consolidating all your debt into one affordable monthly payment. The waiting period for this type of loan repayment plan is one year, and again, is contingent on the actual discharge date. Remember to obtain permission from your trustee if you plan on applying for VA Financing. One other thing to keep in mind; although you have filed for bankruptcy but did not meet your payment obligation, then you are ineligible for any type of VA Loan Financing. A proven track record is the key to obtaining a loan after bankruptcy has been discharged.

Looking to MortgageDepot for Help

We are a leading mortgage institution in the state of New York. We help you find a way to qualify for VA Loans even if you are struggling with meeting your repayment obligation. Our network of lenders are willing to help with providing you a Veterans Administration loan that works within the guidelines of your bankruptcy. Seek out the guidance from our loan professionals.

Contact us today at 800-535-0270 for more information or email us here.

Refinance Loans

Refinance Loans

Most people forget about their mortgage except for when they write a check each month to make a payment. At MortgageDepot.com, we know that a mortgage refinance prove to be a money-saving measure for some borrowers.

When should a borrower refinance a loan?

It is a good idea for owners of residential, commercial, and other types of property to periodically review the mortgages on those properties to determine if a loan refinance could save them money. Our loan officers suggest refinancing an existing mortgage loan if one or more of the following situations exist:

  • Adjustable-rate mortgage: Borrowers with an adjustable-rate mortgage are at the mercy economic conditions in the country and policy decisions by the Federal Reserve. An increase in interest rates in general eventually results in an increase in what borrowers with adjustable-rate mortgages pay each month. Refinancing an adjustable rate mortgage with a fixed-rate loan offers borrowers the peace of mind of knowing their interest rates will not change for the life of the loan.
  • Ability to make larger monthly payments: For many people in the market to purchase a home, the only way to afford the monthly payments on a mortgage is by spreading them out over 30 years. A raise or a new and better-paying position at work could offer a borrower the opportunity to save money by refinancing a 30-year mortgage with a loan offering a shorter term. A 15- or 20-year mortgage provides a significant savings in the amount of interest a borrower pays over the life of the loan as compared to a 30-year mortgage.
  • Improved credit: A borrower’s credit score affects the interest rate charged by a lender. Making monthly mortgage payments on time may result in a borrower’s credit score improving to the point that refinancing the mortgage loan could result in a lower interest rate and a decrease in the monthly payment. If the improved credit score allows a borrower to refinance at a lower rate of interest and for a shorter term, such as 15 years instead of 30, the interest saved could be significant.

Lowering a borrower’s interest rate is only one reason a person might consider refinancing a loan.

Reasons to refinance loans

Refinancing mortgage loans offer borrowers the opportunity to obtain money to use for other purposes, including the following:

  • Paying off high-interest rate credit cards
  • Consolidating personal debt
  • Making repairs and improvements on a home
  • Paying college tuition

A loan refinance gives borrowers the ability to access the equity in their homes to be used for whatever purposes they wish to use them.

Contact MortgageDepot

Speak to one of our loan officers at MortgageDepot for more information about loan refinances.

Contact us today at 800-535-0270 for more information or email us here.

Who sets the VA Loan guidelines, the VA or my lender?

Who sets the VA Loan guidelines, the VA or my lender?

Many new borrowers who inquire about a VA Loan often wonder who sets the guidelines, the lender or the VA. It may seem confusing at first, but the truth of the matter lies in the fact that the guidelines set forth are administered by the VA, and the lender must follow a strict set of guidelines. A VA Loan is designed and developed by the Veterans Administration and the lender must comply with the VA in order to sell the loans.

Why the VA Does not Offer Loans Directly

In simple terms, the VA does not have time to administer a loan from application to final closing. That is why the VA builds the loan program from scratch including all the loan guidelines and leaves the administering of the loan to private lenders. However, private lenders are not free to pick and choose who qualifies and who does not qualify. They must follow a strict set of guidelines laid out by the Veterans Administration or face losing their ability to offer a VA Loan. This could cost the lender millions of dollars in business if they are no longer able to offer any type of VA Financing.

Contact us today at 800-535-0270 for more information or email us here.

MortgageDepot strengthens its relationship with Partner Maspeth Federal Savings

MortgageDepot strengthens its relationship with Partner Maspeth Federal Savings

MortgageDepot recognizes the power of building community. We are committed to communities and local neighborhoods. We always endeavor to align ourselves with others who share that mandate. And we actively seek like-minded businesses that consider themselves an invaluable resource to the people of the communities that they serve.

Maspeth Federal Savings is one of our newest community partners. Under the leadership of Richard T. Maher, Senior Vice President, and Chief Lending Officer, Maspeth Federal brings 70 years of continuous positive community engagement to their banking customers. Maspeth Federal has as its stated mission, “to provide their customers with positive banking experience and to remain committed to being a partner with other small businesses and organizations within the community.” As a real estate banking professional, Richard T. Maher has conducted real estate valuations and appraisals since 1984, and he joined Maspeth Federal Savings seven years ago ascending to the position of Senior Vice President in 2015.

Considered a “mutual thrift” as defined by banking regulations, Maspeth Federal Savings is a financially sound, well-capitalized community bank that has never “gone public” and is a partnership between its board of directors and its depositors. To that end, in 2018, Maspeth Federal launched a first time buyers initiative and expanded its community events calendar to include educational workshops for the first time home buyer.

Maspeth Federal Savings is the “neighborhood bank” you can trust. As our partner, MortgageDepot is pleased to offer our clients the opportunity to obtain home mortgage financing for residential no income check loans, multi-family, or commercial property via Maspeth Federal Savings.

Contact us today at MortgageDepot to refinance or finance a new rental or commercial property. 

You can reach us at 800-535-0270 for more information or email us here.

© 2019 www.mortgagedepot.com. All Rights Reserved.
Licensed By The Following State Regulatory Agencies:
New York State Department Of Financial Services
Florida Office Of Financial Regulation.
Website Authorization By The New York State Department Of Financial Services Is Approved.
*Registered Mortgage Broker — New York State Department Of Financial Services – All Mortgage Loans Are Arranged Through Third (3rd) Party Providers’ NMLS # 1133788