Is It Getting Any Easier To Get A Mortgage Loan?

Northern VA Mortgages

One of the great things about working with seasoned, top producing Realtors is that they have their hands not just on the pulse of the real estate market, but on the mortgage market as well. Otherwise, you may just be rolling the dice!

Here at The Belt Team, we have several top notch lenders we work with – some of whom we have worked with for almost 30 years. (That’s like eternity in the loan business!) This is a win-win not just for our current buyer clients, but also for our past clients who may be looking to refinance with today’s favorable interest rates! (Call us at 703-242-3975 if you need a referral.)

Last week we met with one of our trusted partners (John Clark Jr with New Penn Financial) and he provided us with some great news. His company has made enhancements to some of their mortgage products that may just benefit YOU. Here are the highlights:

A non QM loan!

  • Debt-to-Income (DTI) Offering up to 55%
  • Interest Only Available
  • Non-Warrantable Condos
  • Expanded Timeline for Use of Projected Income
  • Open to First Time Homebuyers

JUMBO Advantage:

The maximum LTV/CLTV/HCLTV for Cash‐out Refinances from $1,000,001
to $1,500,000 has been increased to 75% (from 70%).

80‐10‐10 Loan Option: These used to be very popular, but are much harder to find in today’s market.

INVESTOR Loan Limit: We have increased the number of properties to be able to finance to 10,with Fannie Mae approval and unlimited number of properties financed, if we are financing a primary residence.

Qualified Assets as Income: We will now accept any qualified/retirement asset as potential
passive income, even 401k accounts. We also follow Fannie’s revised rule that permits us to divide the asset by the actual term of the new loan to determine income available. (This is great news for our high net worth clients!)

Contact John Clark directly for details and more information!

Not only is all of this great news for certain clients who will take advantage of these programs, but we see it as a positive sign in the market that the stronger institutions are loosening up their guidelines and taking somewhat of a more common sense approach. Kudos to New Penn Financial!

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Mortgage Minute for HomeBuyers: “What’s A Qualified Mortgage?”

New mortgage guidlelines

If you’re buying a home in Northern Virginia, you may have heard talk of new mortgage guidelines & regulations, but aren’t sure what that means for you. So we asked our Partner Paul Diaz, Senior Loan Officer with New Penn Financial, to explain.

Northern VA Mortgage Financing
Paul Diaz


What Is A “Qualified Mortgage”?

Lenders that follow underwriting guidelines and product guidelines exactly when they write a loan will be considered to be making a ‘qualified mortgage”. “Qualified mortgages” will provide lenders and borrowers certain legal protections in the event the borrower should default.

Lenders will more than likely still write mortgage loans that are not considered to be qualified mortgages, but because they will lose some protection should the borrower default on a mortgage loan, most other lenders might just stick to the new definition and stay within the guidelines. This may mean less flexibility in the marketplace for some buyers.

Parameters for a qualified mortgage are as follows:

  • Have a loan term of 30 years or less.
  • Not have negative amortization (monthly payment must cover all the interest due).
  • Not be an “interest only” loan.
  • Not be a “balloon payment” loan where a large lump sum of the principal is due back at one time (exception made for small lenders).
  • Upfront points and fees must not exceed 3 percent of the total loan amount. Note: This cap on points and fees may make lenders less likely to offer smaller loans (less than $100,000).
  • Debt-to-income ratio may not exceed 43 percent. *Note: This can be superseded if the loan is originated and kept in portfolio by a qualified small lender, or if the loan is approved by FHA, VA, USDA, RHS, Fannie Mae or Freddie Mac. But it may become harder for people with higher debt loads to get approved for a new home if they cannot stay below the 43 percent debt-to-income ratio.

This last guideline is likely to affect many Buyers in Northern Virginia.


If you’re wondering how much of a mortgage you can qualify for, contact our partner Paul Diaz at New Penn Financial. He can help you analyze the loan product that works best for your needs and help you get pre-approved for a mortgage. This gives you the power of a CASH buyer!

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