You’ve been doing everything right. You’ve saved what you can. You’ve checked your credit. You’ve scrolled through listings and pictured yourself in that kitchen, in that backyard, hosting friends in that living room.
But every time you start to get serious about buying, you hit the same wall: the down payment.
It’s not that you can’t afford a monthly mortgage payment—you’re already paying rent, after all. It’s the upfront cash that stops you in your tracks. Five percent down on a $300,000 home is $15,000. Add in closing costs and you may be looking at $20,000+ just to get through the door.
For many first-time buyers, that’s the difference between owning a home and renting for another few years.
Here’s the good news: there may be a solution, and it’s only available through Security National Mortgage Company.
What Is SNclose™?
SNclose™ is a down payment assistance program designed to help address one of the biggest barriers to homeownership. For those who qualify, it may provide up to 5% of your home’s purchase price to use toward your down payment, closing costs, and prepaid expenses.
Depending on which option you choose and whether you meet all program requirements, you may not have to repay the assistance.
Two Options to Fit Your Situation
SNclose™ offers two paths for eligible borrowers. Both are designed to help make homeownership more accessible.
Option 1: Forgivable Assistance (3.5%)
This is the option many first-time buyers explore.
Eligible borrowers may receive 3.5% of the home’s purchase price as assistance. There’s no interest charged on the second lien. There’s no monthly payment on that amount. If the borrower meets all program requirements including making on-time payments on the first mortgage for the first three or five years and maintaining the property as a primary residence, the second lien may be fully forgiven.
Requirements may include:
- Minimum credit score of 640
- Paired with FHA or USDA financing
- Subject to additional underwriting requirements
Example: On a $300,000 home, eligible borrowers may receive $10,500 in assistance that could be forgiven if all program terms are met.
Option 2: Repayable Assistance (Up to 5%)
If you need additional assistance upfront, this option may provide up to 5% assistance with a 10-year repayment term. This option is not available for high-balance loans.
Requirements may include:
- Minimum credit score of 660
- Paired with FHA or USDA financing
- Subject to additional underwriting requirements
Example: On a $300,000 home, eligible borrowers may receive up to $15,000 in assistance, subject to qualification.
What If My Partner’s Credit Isn’t Great?
This is one of the most common questions we hear, and SNclose™ has a feature that may help.
Many first-time buyers are purchasing with a spouse or partner, and sometimes one person’s credit score is stronger than the other’s. With most programs, the lower score may disqualify you. SNclose™ offers a blended credit score feature that may help in certain situations.
The blended credit score feature may allow you to average both borrowers’ scores together if:
- The person with the higher income also has the higher credit score
- That person represents at least 60% of total household income
- Your blended score averages to 660 or higher
- All other program requirements are met
Example:
- Borrower 1: Credit score 760, earns $75,000/year
- Borrower 2: Credit score 603, earns $35,000/year
- Blended score: (760 + 603) ÷ 2 = 681
This may allow qualification where the lower individual score might otherwise present a challenge. Pricing is still based on the lower individual score. This feature is subject to automated underwriting system approval and all other program requirements.
Why SNclose™ Only Exists at SecurityNational Mortgage Company
This isn’t a government program. It’s not offered by other lenders. SNclose™ is a proprietary program exclusive to SecurityNational Mortgage Company, designed to help address the down payment challenge many qualified buyers face.
We’re also delegated to underwrite these loans in-house, which may help provide faster decisions and a smoother process for eligible borrowers.
What You May Be Able to Use SNclose™ For
For those who qualify, the funds from SNclose™ may be applied to:
- Your down payment
- Closing costs
- Prepaid items (like property taxes, homeowners insurance, and escrow setup)
These are the upfront costs that can make homeownership challenging to achieve.
How Does the Forgivable Option Work?
With the forgivable option, if you meet all program terms, the second lien may be forgiven. This means:
- You must maintain the property as your primary residence for the forgiveness period
- You must make all first mortgage payments on time (no payments 90+ days late during the first 36 0r 60 months)
- All other program requirements must be satisfied
If you refinance, sell the property, or fail to meet program requirements before the forgiveness period ends, the second lien becomes due and payable.
What Are the Program Requirements?
SNclose™ works with FHA and USDA loans. Eligibility requirements may include but are not limited to:
- Meeting minimum credit score thresholds
- Meeting FHA or USDA program guidelines
- Automated underwriting system approval (manual underwriting may be available for the forgivable option only)
- Property must be owner-occupied as primary residence
- Property types limited to 1-2 unit single-family homes, condos, and PUDs (subject to eligibility)
Requirements may change without notice. Not all applicants will qualify.
How to Learn More
If you’ve been working toward homeownership but the down payment has been a challenge, SNclose™ may be worth exploring.
Here’s what to do next:
- Contact a loan officer at SecurityNational Mortgage Company to discuss your specific situation and determine if you may qualify.
- Get pre-qualified. Understanding your potential eligibility can help you plan your home search.
- Ask questions. Make sure you understand all program terms, conditions, and requirements before proceeding.
Homeownership may be more accessible than you thin, and sometimes the right program can make the difference.
SNclose™ may be that program.
Ready to learn if you may qualify? Contact your loan officer today and ask about SNclose™, the down payment assistance program that’s only available with SNMC. Don’t have a loan officer yet? Find one
here.
The holiday season is a time for celebration, reflection, and planning ahead—but it’s also one of the most expensive times of the year. Between travel, gifts, entertaining, and preparing for a fresh start in the new year, many households feel the financial strain. That’s why now is the perfect moment for a mortgage checkup. By reviewing your loan and exploring your home’s equity before the holidays, you can uncover opportunities to lower payments, access cash for upcoming expenses, and step into the new year with greater financial peace of mind.
1. Holiday Expenses Add Up
From airfare and hotel stays to hosting large family dinners, the holidays are often the most expensive time of the year. Instead of relying on high-interest credit cards, tapping into your home equity could give you a lower-cost way to cover those expenses.
2. Record Levels of Home Equity
According to the June 2025 ICE Mortgage Monitor, U.S. homeowners have over $11.5 trillion in tappable equity—the highest on record. That means your home is likely worth more today than when you bought it, and you may be able to access cash without significantly changing your monthly payment.
3. Set Yourself Up for the New Year
The holidays are also about looking ahead. A mortgage checkup now ensures you start 2026 prepared—whether your goals are to remodel, pay for education, or consolidate debt. Knowing your options today means you can make smarter financial decisions tomorrow.
Real-Life Scenarios: How Homeowners Use Their Equity
- The Holiday Remodel
- A family wants to update their kitchen before hosting Christmas dinner. Using a cash-out refinance, they access $30,000 of their equity to complete the renovation—making the home more enjoyable now and more valuable long-term.
- Debt-Free in the New Year
- Another homeowner carries $20,000 in credit card balances at 22% interest. With a HELOC (Home Equity Line of Credit), they consolidate that debt at 7%, reducing their monthly payments and saving thousands in interest.
- College Tuition Paid
- Parents preparing for spring tuition bills use equity to cover education costs. Because a HELOC works like a revolving credit line, they only borrow what’s needed when it’s needed, rather than taking out a large lump-sum loan.
- Peace of Mind for Emergencies
- A couple sets up a HELOC before the holidays—not because they have an immediate need, but because they want the reassurance of a financial cushion in case unexpected expenses arise.
Ways to Access Your Home’s Equity
- Cash-Out Refinance: Replace your existing mortgage with a new one, taking out extra cash from your equity. This can also allow you to adjust your loan term or interest rate.
- HELOC (Home Equity Line of Credit): Works like a credit card secured by your home—borrow, repay, and borrow again as needed. Great for ongoing expenses or projects.
- Home Equity Loan: A lump-sum loan with fixed payments, ideal for one-time expenses like major renovations.
HELOC vs. Credit Cards: A Smarter Way to Pay
One of the biggest advantages of using your equity is cost. Credit card interest rates are averaging 20%+, while HELOCs often fall below 8%. That means you can fund big expenses—like holiday travel or debt consolidation—without paying sky-high interest.
FAQs: Your Mortgage Checkup & Equity
Q: What if I’m not ready to refinance?
A: That’s okay. A checkup is about knowing your options now so you’re prepared for the future.
Q: How much equity can I access?
A: Lenders typically allow you to borrow up to 80–85% of your home’s value, minus your current mortgage balance.
Q: Is it expensive to refinance or open a HELOC?
A: Costs vary, but in many cases the long-term savings or benefits outweigh the fees. Your loan officer can provide an exact breakdown.
Q: Is HELOC interest tax-deductible?
A: In many cases, yes—especially if the funds are used for home improvements. Always consult a tax professional.
The Bottom Line
The holidays are about family, joy, and new beginnings. But they’re also a season when expenses grow and financial planning matters most. A quick mortgage checkup before the holidays can help you:
- Lower your monthly payments
- Access cash from your equity
- Consolidate debt at a lower rate
- Plan ahead for 2026 with confidence
Don’t just refi, SmartRefi with SNMC and let us help you save thousands.
Your mortgage is one of the most significant financial commitments you’ll make in your lifetime. As your life circumstances change, it’s essential to evaluate whether your current mortgage still aligns with your financial goals and needs. Here are some key considerations and options for updating your loan to ensure it works for you.
Why Evaluate Your Mortgage?
Life is full of changes—new jobs, growing families, or even shifts in financial goals. These changes can impact your ability to manage your mortgage effectively. Regularly assessing your mortgage can help you:
- Save Money: You might find opportunities to lower your monthly payments or eliminate unnecessary costs.
- Align with Goals: As your financial situation evolves, your mortgage should reflect your current objectives, whether that’s paying off your home faster or freeing up cash for other investments.
- Enhance Flexibility: Adjusting your loan can provide more flexibility in your budget, allowing you to adapt to life’s unexpected events.
Options for Updating Your Mortgage
- Switch from an ARM to a Fixed-Rate Mortgage (or Vice Versa):
- If you currently have an Adjustable Rate Mortgage (ARM), switching to a fixed-rate mortgage can provide stability in your monthly payments, protecting you from potential rate increases. Conversely, if interest rates are low, an ARM might offer lower initial payments that could be beneficial.
- Lower Your Monthly Payments:
- Refinancing to a lower interest rate can significantly reduce your monthly mortgage payments. This can free up cash for other expenses or savings, making it easier to manage your budget.
- Eliminate Private Mortgage Insurance (PMI):
- If your home has appreciated in value and you now have at least 20% equity, refinancing can help you eliminate PMI, which can save you hundreds of dollars each month.
- Change Your Loan Term:
- Adjusting the length of your loan can help you pay off your mortgage faster or extend the term for lower monthly payments. A shorter term typically means higher payments but less interest paid over the life of the loan, while a longer term can provide more flexibility in your budget.
- Change Your Loan Type:
- If your financial goals have shifted, consider changing your loan type. For example, if you’re looking to invest in property or need a loan for a second home, a different mortgage product may better suit your needs.
When to Consider Updating Your Mortgage
- Life Changes: Major life events such as marriage, divorce, or the birth of a child can impact your financial situation and necessitate a mortgage review.
- Interest Rate Changes: If interest rates have dropped since you took out your mortgage, it may be worth exploring refinancing options.
- Financial Goals: If your financial goals have changed—such as planning for retirement or funding a child’s education—your mortgage should reflect those priorities.
Conclusion
Your mortgage should work for you, not the other way around. Regularly evaluating your mortgage can help you identify opportunities to save money, align with your financial goals, and enhance your overall financial flexibility.
If you’re ready to explore how you can update your loan to fit your current needs,
find a loan pro or apply now to get started.
Don’t just refi, SmartRefi with SNMC and let us help you save thousands!
Are you looking for a way to access the equity in your home to fund important projects or expenses? A cash-out refinance might be the perfect solution for you. This financial strategy allows homeowners to tap into their home’s equity, providing the flexibility to use the funds for what matters most—whether it’s home improvements, education, or even expenses that may be tax-deductible.
What is a Cash-Out Refinance?
A cash-out refinance involves replacing your existing mortgage with a new one that has a higher loan amount. The difference between the new mortgage and the amount you owe on your current mortgage is given to you in cash. This means you can access a portion of your home’s equity while potentially securing a lower interest rate on your mortgage.
Why Consider a Cash-Out Refinance?
- Flexibility in Fund Usage: Unlike some loans that come with strict rules on how the funds can be used, a cash-out refinance gives you the freedom to spend the money on your terms. Whether you want to renovate your kitchen, pay for your child’s education, or consolidate high-interest debt, the choice is yours.
- Potentially Lower Interest Rates: With interest rates fluctuating, many homeowners find that refinancing can lead to a lower rate on their mortgage. This can result in lower monthly payments, making it easier to manage your finances while accessing the cash you need.
- Access to Significant Equity: In the second quarter of 2025, cash-out refinances accounted for 59% of all refinance transactions, with homeowners accessing an average of USD 94,000 in equity. This substantial amount can make a significant difference in funding your goals.
How Does It Work?
- Determine Your Home’s Equity: To start, you’ll need to know how much equity you have in your home. This is calculated by subtracting your current mortgage balance from your home’s market value.
- Apply for a Cash-Out Refinance: Once you’ve determined your equity, you can apply for a cash-out refinance. Your lender will assess your financial situation, including your credit score, income, and debt-to-income ratio.
- Receive Your Cash: After approval, you’ll receive the cash difference between your new mortgage and your existing mortgage balance. You can then use these funds as you see fit.
Is a Cash-Out Refinance Right for You?
While a cash-out refinance can be a great way to access funds, it’s essential to consider your financial situation and long-term goals. Here are a few questions to ask yourself:
- Do you have a specific project or expense in mind that requires funding?
- Are you comfortable with the idea of increasing your mortgage balance?
- Will the potential savings from a lower interest rate outweigh any costs associated with refinancing?
Conclusion
A cash-out refinance can be a powerful tool for homeowners looking to unlock their home’s value. Whether you want to make improvements, invest in education, or consolidate debt, this option provides the flexibility and potential savings you need.
If you’re interested in exploring how a cash-out refinance could help you reach your goals,
find a loan pro today or apply now to get started.
Don’t just refi, SmartRefi with SNMC and let us help you save thousands!
Understanding Fannie Mae’s New Update on Accessory Dwelling Units (ADUs)
Fannie Mae has recently made an important update that could benefit many borrowers looking to enhance their qualifying income. Effective immediately, rental income generated from Accessory Dwelling Units (ADUs) can now be included in a borrower’s qualifying income for purchase money mortgages and limited cash-out refinances.
What is an ADU?
An Accessory Dwelling Unit (ADU) is a secondary housing unit located on the same property as a primary residence. These units are designed to provide independent living spaces, complete with sleeping, cooking, and bathroom facilities. ADUs can be interior, attached, detached, or even manufactured homes, but they cannot serve as the primary residence if the main home is a manufactured home.
Key Updates to Note:
Income Inclusion: Borrowers can now count rental income from one ADU toward their qualifying income.
Limitations: The rental income from the ADU is capped at 30% of the borrower’s total qualifying income.
Eligibility: This update applies only to one-unit principal residences. Properties with multiple ADUs or those with two to four units are not eligible.
Underwriting: Manual underwriting can implement this new rule immediately, while standard rental documentation requirements will still apply.
This change opens up new opportunities for homeowners with ADUs to leverage their rental income, making it easier to qualify for loans. If you have an ADU or are considering adding one, this update could be a significant advantage in your borrowing journey.
Ready to explore how the new ADU income rules can benefit you? We’re here to help you navigate your borrowing options and make the most of your investment.
Life is full of surprises—some delightful, like a new puppy, and some, well, let’s just say less than ideal. Whether it’s a toddler’s latest “experiment” with the toilet, a dog that thinks the freshly cleaned glass door is an invisible barrier, or discovering that the previous owner treated the drains like a bacon grease disposal, unexpected repairs can hit your wallet hard. But fear not! Your home equity is here to save the day.
What is Home Equity?
Home equity is the difference between your home’s current market value and the amount you owe on your mortgage. For example, if your home is worth USD 300,000 and you owe USD 200,000, your equity is USD 100,000. This equity can be a powerful financial tool, especially when life throws you a curveball.
Why Tap into Your Home Equity?
1. Cover Unexpected Repairs:
Life happens, and sometimes it happens in the form of a leaky roof or a broken furnace. These repairs can be costly, but with a Home Equity Line of Credit (HELOC) or a home equity loan, you can access the funds you need without draining your savings.
2. Fund Home Improvements:
Maybe you’ve been dreaming of a kitchen that doesn’t resemble a 1970s time capsule or a bathroom that feels more like a spa than a science experiment. Using your home equity can help you finance these improvements, increasing both your home’s value and your enjoyment of the space.
3. Consolidate Debt:
If you have high-interest debt, such as credit card balances, using your home equity to consolidate that debt can save you money in the long run. By paying off high-interest loans with a lower-interest home equity loan, you can reduce your monthly payments and free up cash for other expenses.
4. Invest in Your Future:
Whether it’s funding your child’s education or investing in a rental property, your home equity can provide the financial flexibility you need to make those important life decisions.
How to Access Your Home Equity
There are two primary ways to access your home equity:
– Home Equity Line of Credit (HELOC): This is a revolving line of credit that allows you to borrow against your home’s equity as needed. It’s similar to a credit card, where you can withdraw funds, pay them back, and borrow again. HELOCs typically have variable interest rates, so it’s essential to consider how that might affect your payments over time.
– Home Equity Loan: This is a lump-sum loan that you repay over a fixed term, usually at a fixed interest rate. It’s ideal for larger projects where you know the total cost upfront, such as a major renovation.
The Benefits of Using Home Equity
– Lower Interest Rates: Home equity loans and HELOCs often have lower interest rates compared to personal loans or credit cards, making them a cost-effective option for financing repairs or improvements.
– Tax Benefits: In some cases, the interest paid on home equity loans may be tax-deductible, especially if the funds are used for home improvements. Always consult with a tax professional to understand your specific situation.
– Increased Home Value: Investing in your home can lead to increased property value, which can be beneficial if you decide to sell in the future.
When to Consider Tapping into Your Home Equity
While home equity can be a valuable resource, it’s essential to use it wisely. Consider tapping into your equity when:
– You have a specific project in mind that will increase your home’s value.
– You’re facing unexpected repairs that need immediate attention.
– You want to consolidate high-interest debt to save money.
Conclusion
So, the next time life throws a curveball, remember: your home equity can help you hit it out of the park! It’s a powerful financial tool that can provide the funds you need for repairs, renovations, and more.
If you’re ready to explore your options,
find your loan pro today to discuss how you can tap into your home’s value.
Don’t just refi, SmartRefi with SNMC and let me help you save thousands.
