The REALTOR you work with could be one of your most valuable resources. Unlike many real estate agents who are simply licensed by their state to do business, REALTORS have taken additional steps to become members of the local board of REALTORS and have agreed to act under and adhere to a strict Code of Ethics. Plus...

• A REALTOR can help you determine how much home you can afford. Often a REALTOR can suggest ways to accrue the down payment and explain alternative financing methods.
• A REALTOR, in addition to knowing the local money market, also can tell you what personal and financial data to bring with you when you apply for a loan.
• A REALTOR is already familiar with current real estate values, taxes, utility costs, municipal services and facilities, and may be aware of local zoning changes that could affect your decision to buy.
• A REALTOR can usually research your housing needs in advance through a Multiple Listing Service--even if you are relocating from another city.
• A REALTOR can show you only those homes best suited to your needs--size, style, features, location, accessibility to schools, transportation, shopping and other personal preferences.
• A REALTOR often can suggest simple, imaginative changes that make a home more suitable for you and improve its utility and value.
• A REALTOR is sensitive to the importance you place on this major commitment you are about to make. Look for a real estate professional to facilitate negotiation of a win-win agreement that will satisfy both you and the seller.

Source: REALTOR.com

A renovation loan is a first lien mortgage that allows you to purchase or refinance a home and finance repairs. One loan, one monthly payment.

Don’t let non-traditional income prevent you from owning a home. Diamond Residential Mortgage Corporation is your trusted lender when it comes to alternative methods for income qualification. We can work with borrowers who often times have multiple streams of income, paid in lump sums, or are self-employed and absorb business expenses onto their personal tax returns. 

• Bank Statement Loans
• Asset Depletion Loans
• One-Year Tax Return Loans
• Flexible Income Jumbo Loans

With a fixed-rate mortgage, the interest rate stays the same throughout the life of the loan. With an adjustable-rate mortgage (ARM), the interest rate changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan are likely to change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

FHA requires a minimum of 3.5% down. On an FHA 203(k) loan, the minimum down payment required would be 3.5% of the purchase price plus total renovation costs.

Fannie Mae requires a minimum of 5% down in most cases. If you are a first-time homebuyer, you may be able to put down as little as 3%. For more information, contact a Diamond Residential Mortgage Corporation licensed Mortgage Loan Officer. The minimum required down payment would be 3-5% of the purchase price plus total renovation costs.

USDA offers 0% down financing options for home buyers of properties located within a USDA Eligible Area. In cases where the appraised value of the property exceeds the purchase price, USDA offer the unique ability to roll closing costs and pre-paids into the loan

Did you know that experiencing a short sale or foreclosure on your property could prevent you from purchasing a new home for up to 7 years? Diamond understands that being a homeowner today rather than years from now is important to you, your family, and your future. We can offer financing much sooner than you think. Speak with one of our experienced loan specialists and see how we can help you achieve homeownership today.

An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Yes, as long as they are eligible repairs allowed by HUD on FHA 203(k) loans, Fannie Mae on conventional renovation loans, or USDA on USDA renovation loans.

ITIN mortgages are home loans available for individuals who do not have a Social Security number but have an Individual Taxpayer Identification Number (ITIN), allowing them to purchase a home and build equity in the United States.

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Diamond Residential Mortgage Corporation can help you evaluate your choices and assist you in making the most appropriate decision.

Foreign National loans are a type of mortgage designed for non-US citizens who want to purchase or refinance a property in the United States.

For most homeowners, a monthly mortgage payment consists of three  parts:

• Principal: Repayment on the amount borrowed
• Interest: Payment to the lender for the amount borrowed
• Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

Most 1-4 unit properties are eligible for renovation financing, as long as the owner intends to reside in one of the units. Historical homes, modular homes, homes in a Planned Unit Development (PUD), townhomes are all eligible. Some condos may be eligible. For more information, contact a Diamond Residential Mortgage Corporation licensed Mortgage Loan Officer.

On conventional renovation loans, unfinished new construction homes may be allowed as long as they are at least 90% completed.

Second homes are allowed on conventional renovation loans.

Multi-unit homes are not allowed on USDA renovation loans

Manufactured homes are not allowed.

We can help when a not-so-perfect credit history prevents you from getting a mortgage.  If you’ve been turned away by others for reasons such as lack of credit, low credit score, or history of late payments, speak with our experienced loan specialists and see if our alternative loan programs are right for you. 

The amount of cash that is necessary depends on a number of items. Generally speaking, you will need to supply:

• Earnest Money: The deposit that is supplied when you make an offer on the house
• Down Payment: A percentage of the cost of the home that is due at settlement
• Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

It generally takes about 60 days to close a renovation loan. Oftentimes, the most lengthy task centers around your ability to find a contractor and obtain a bid.

Diamond believes in the power of real estate as part of a diverse investment strategy.  We have loan programs that can make it easier to buy and sell investment properties so that you can focus on building your portfolios.  That’s why real estate investors love working with us.  Contact one of our knowledgeable loan specialists who can help guide you through our suite of investment solutions.   

• Finance multiple properties 
• No Income Investor Loans (DSCR)
• Fix and flip loans 
• Small balance commercial loans 
• SBA Lending 

• All Borrowers
  • Last 2 years tax returns, all pages
  • Last 2 years W2’s and 1099’s if applicable
  • Paystubs for the last 30 days
  • Most recent 2 months of bank statements
  • Employment history for the last two years
  • Asset/ Investment statements: Checking, Savings, 401k, Stocks, Mutual Funds, etc.
  • Residency history over the last two years
  • Photo identification (valid Driver’s License or Passport)
  • Check or credit card information for appraisal fee
• SELF-EMPLOYED BORROWERS
  • Copies of most recent 2 years 1040s or business tax returns (with all schedules)
  • Year to date profit & loss statement and balance sheet
  • Copy of business license
• VETERAN BORROWERS
  • Veteran DD214 or Veteran Reservists DD256.
• COMMON DOCUMENTS WHICH MAY BE REQUIRED IF APPLICABLE
  • For Refinances: Copy of Note, Deed of Trust or Mortgage, and Homeowner’s Insurance information
  • Previous Bankruptcy: Copies of Petition and Discharge, including supporting schedules A—K
  • Divorce Decree and Property Settlement if applicable
  • Relocation Agreement: If relocation move is financed by employer, i.e. buyout agreement plus documentation outlining company paid closing costs benefits

You are responsible for selecting the contractor you wish to hire, but the contractor must meet all local and state requirements to perform the work. We will confirm they carry the proper liability insurance coverage and Worker’s Compensation coverage (if applicable). We will also confirm they hold any licenses or certifications required. We will check your contractor’s past customer, supplier, and trade references.

On FHA 203(k) loans, you may not be related to the contractor and the contractor may not be related to any other party to the transaction.

If you have a high debt-to-income ratio that does not qualify for a standard loan, if you want special loan features such as interest-only payments, or if you are looking to borrow above the conforming limit of $726,000 ($1,089,300 for one unit in High-Cost Areas) with limited down-payment funds, Diamond Residential Mortgage Corporation is here to help. Speak with one of our trusted loan specialists about our specialty products, and we will help guide you through the loan process.  

• DON’T APPLY FOR NEW CREDIT OF ANY KIND
  If you apply for a credit card, your credit report will be pulled, and this will have an adverse effect on your credit score. Co-signing a loan will also lower your credit score.
   
• DON’T PAY OFF COLLECTIONS OR CHARGE-OFFS
  Don’t pay off collections unless it is required by the lender to secure the loan.
   
• DON’T CLOSE CREDIT CARD ACCOUNTS
  If you close a credit card account, it can affect your ratio of debt to available credit. This ratio can hurt your credit score. Consult your Diamond Residential Mortgage Consultant for more details about this issue.
   
• DON’T MAX OUT OR OVERCHARGE CREDIT CARDS
  Overcharging your credit cards can have a negative impact on your credit score. Once you are engaged in the loan process, try to keep your credit cards well below the available limit.
   
• DON’T CONSOLIDATE DEBT TO ONE OR TWO CARDS
  Changing your ratio of debt to available credit will complicate your loan process.
   
• DON’T RAISE RED FLAGS TO THE UNDERWRITER
  When applying for a loan, drastic measures such as changing your name, address, or occupation are discouraged. These are important underwriting considerations.
   
• DON’T FALL BEHIND ON EXISTING ACCOUNTS
  One 30-day late payment on any existing loan can negatively impact your credit score.

Some self-help is allowed such as minor demo work, interior painting, installation of appliances, and clean-up. Speak with your Diamond Residential Mortgage Corporation licensed Mortgage Loan Officer for confirmation you can do some of the work.

Self-help or Do-It-Yourself (DIY) repair work is not allowed on USDA renovation loans.

On FHA 203(k) or USDA renovation loans, this is generally not allowed. The work as outlined in the bid needs to be performed after closing by the contractor who provided the bid during the loan process. If a health or safety issue arises during renovation, discuss the situation with Diamond Residential Mortgage Corporation.

On HomeStyle® Renovation loans, you may be able to make minor changes to the scope of work. Clear any changes to the scope of work with Diamond Residential Mortgage Corporation first, otherwise, you may not be reimbursed for the extra costs.

You may terminate your contract with the contractor under certain circumstances. Before you do so, discuss the situation with Diamond Residential Mortgage Corporation. We will walk you through any steps you are required to take which may include giving the contractor advance notice and time to remedy any deficiencies.