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.
As summer winds down and the back-to-school season kicks in, many families are thinking about education, new beginnings, and financial planning. Whether you’re a parent preparing to send your child off to college, an empty nester looking to downsize, or a college student planning for the future, this time of year presents unique opportunities in the mortgage market. Let’s explore how mortgages can play a vital role in your back-to-school plans.
1. Cash-Out Refinancing for College Tuition
For parents of college-bound students, financing education can be a significant concern. One option to consider is a cash-out refinance. By tapping into your home’s equity, you can access funds to cover college tuition and related expenses. This approach often comes with lower interest rates compared to student loans, making it a financially savvy choice. Plus, you can consolidate your debt into one manageable monthly payment.
2. Buying a Home in a Good School District
If you’re considering a move, back-to-school season is an excellent time to buy a home, especially in a neighborhood with a reputable school district. Investing in a home in a good school area not only benefits your children’s education but can also enhance your property’s value over time. Families often prioritize homes in desirable school districts, making them a smart investment for your future.
3. Empty Nesters: Downsizing and Investing
As children head off to college, many empty nesters find themselves with extra space. This is a perfect opportunity to downsize to a more manageable home. The proceeds from selling your larger home can be used for various purposes, such as funding your child’s tuition or purchasing an investment property. An investment home near the college can provide your child with a place to live while also generating rental income.
4. College Students: Start Saving for Your Future Home
For college students, now is the time to start thinking about your financial future. As you focus on your studies, consider setting aside a portion of your income or financial aid for a future home purchase. By saving early, you’ll be better prepared to enter the housing market after graduation. Understanding the mortgage process and saving for a down payment can set you up for success in homeownership.
5. Refinancing for Better Financial Health
Back-to-school season is also a great time to evaluate your current mortgage. If you haven’t refinanced in a while, you may be able to secure a lower interest rate, reduce your monthly payments, or shorten your loan term. This can free up funds for school supplies, extracurricular activities, or even a family vacation.
6. Home Equity Lines of Credit (HELOCs)
If you’re not ready for a cash-out refinance, consider a Home Equity Line of Credit (HELOC). This flexible option allows you to borrow against your home’s equity as needed, making it a great way to cover unexpected expenses during the school year, such as tuition increases or additional fees.
Conclusion
As the back-to-school season approaches, it’s essential to consider how mortgages can fit into your financial plans. Whether you’re looking to finance your child’s education, buy a new home in a great school district, downsize as an empty nester, or prepare for future homeownership as a college student, there are numerous opportunities to explore.
If you have questions about your mortgage options or need assistance navigating the process, don’t hesitate to
find a loan officer near you!
It’s Better Here™
If you’ve found your dream home but haven’t sold your current one, you might have heard about bridge loans. Let’s demystify this financing option and explore why newer alternatives might better serve your needs.
Understanding Bridge Loans
A bridge loan is a short-term financing solution that helps homeowners purchase a new home before selling their existing one. Typically lasting 6-12 months, these loans literally “bridge” the gap between two transactions.
How Traditional Bridge Loans Work
• They’re short-term loans with higher interest rates
• Usually require excellent credit and significant equity
• Often come with substantial closing costs
• Typically involve complex approval processes
• Usually require payments on both properties
The Hidden Challenges
While bridge loans can provide a solution, they often come with drawbacks:
Higher Costs: Interest rates are typically several points above standard mortgage rates
Double Payments: You’re often required to make payments on both the bridge loan and your existing mortgage
Time Pressure: The short-term nature can create stress to sell quickly
Strict Requirements: Many lenders have stopped offering bridge loans due to their complexity
A Better Solution:
The SN Cross Collateral Loan* exclusive to SecurityNational Mortgage was developed as an innovative alternative that addresses these common pain points. Our exclusive Cross Collateral Loan offers several distinct advantages. Instead of juggling two mortgages or rushing to sell, you can access the equity from your current home to purchase your next one.
Unlike a bridge loan, this program excludes the mortgage payment on your departing residence, and removes the home sale contingency when buying your next home. You’ll have 6 months to sell your existing home and eliminate the stress of timing two transactions perfectly, giving you the confidence to move forward when the right opportunity comes along.
Making your move in today’s competitive real estate market, timing is everything. While bridge loans were once the only option for buyers in transition, our Cross Collateral Loan offers a more modern, flexible approach. You can make strong, non-contingent offers on your next home while selling your current one on your own timeline.
Ready to learn more about how our Cross Collateral program can help you make your next move with confidence? Contact your loan officer today to explore your options. It’s Better Here™.
Find a Loan Officer.
*Only available in certain states.
As a mortgage lender, we’ve helped countless families achieve their dreams of homeownership. We understand that owning a home isn’t always a walk in the park, but the benefits far outweigh the challenges. Let’s talk about why homeownership remains one of the most powerful ways to build long-term wealth and stability.
Building Equity, Not Someone Else’s Wealth
Every mortgage payment you make is like paying yourself instead of your landlord. While renters help their landlords build wealth, homeowners gradually increase their own net worth through equity. It’s like having a automatic savings account that grows over time.
Tax Benefits That Make a Difference
Homeownership comes with significant tax advantages, including the opportunities to deduct mortgage interest and property taxes. These deductions can lead to substantial savings come tax season, putting more money back in your pocket.
Freedom to Create Your Space
Want to paint your walls hot pink? Plant a garden? Finally get that dog you’ve always wanted? As a homeowner, you don’t need to ask for permission. Your home truly becomes your castle, allowing you to customize your space to match your lifestyle and preferences.
Protection from Rising Housing Costs
While renters face annual increases in their monthly payments, homeowners with fixed-rate mortgages enjoy more stable housing costs. In today’s inflationary environment, this predictability is more valuable than ever.
Let’s Be Real: It’s Not Always Easy
Homeownership comes with its own share of challenges. From unexpected repairs to property maintenance, being a homeowner means being responsible for everything that goes wrong. That leaky faucet? It’s on you now. The AC that decides to quit in August? Another problem to solve.
But here’s the truth: these challenges are temporary, while the benefits of homeownership are long-lasting. Every obstacle you overcome as a homeowner is an investment in your future and your family’s stability.
The Long-Term Perspective
When you’re writing that monthly mortgage check or dealing with a home repair, remember that you’re playing the long game. Homeownership is about building generational wealth, creating stability for your family, and investing in your future.
While the path to homeownership might not always be easy, it remains one of the most reliable ways to build wealth and create the life you want. As a company who’s helped many people and families navigate this journey, we can tell you that most homeowners look back and say, “It was all worth it.”
Ready to start your homeownership journey? Reach out to your loan officer to talk about your options and create a plan that works for you. Don’t have a loan officer yet? Find one
here.Remember, the best investment in your future might be the roof over your head.
As spring arrives, the housing market comes alive with activity! With the vibrant season of renewal upon us, it’s the perfect time to consider the joys of homeownership with pet-friendly homebuying. In celebration of National Pet Month, let’s delve into the unique benefits of owning a home this season, particularly for our beloved furry (and some scaly) companions.
Busy New Beginnings
Did you know that historically, spring is one of the busiest times for real estate? According to the National Association of Realtors, homes listed in spring often sell faster and for higher prices than those listed at other times of the year. So, if you’re considering buying a home, now is the time to jump in!
More Options for You and Your Pets
With warmer weather, more homes become available, giving you a wider selection. Look for features like fenced yards and nearby parks. Imagine your dog playing in a spacious backyard or your cat enjoying a sunny window!
The Benefits of Owning for Your Pets
Owning a home can significantly enhance your pets’ quality of life. Here are a few benefits to consider:
- Space to Roam: Unlike apartments, owning a home often means more space for your pets to explore and play. A backyard can be a pet paradise, providing a safe area for them to run and enjoy the outdoors.
- Stability and Security: Pets thrive on routine and stability. Owning a home means you won’t have to worry about moving frequently, which can be stressful for your furry companions.
- Personalized Spaces: As a homeowner, you can create pet-friendly spaces tailored to your pets’ needs. From cozy nooks for your cats to a dog wash station in the mudroom, the possibilities are endless!
Spring Cleaning and Pet Preparation
Spring is also the perfect time for a good old-fashioned spring cleaning! As you prepare to move, consider how to make your new home pet-friendly. Here are some tips:
- Pet-Proofing: Ensure your new home is safe for your pets by securing loose wires, removing toxic plants, and installing baby gates if needed.
- Designate Pet Areas: Create specific areas for your pets, such as a feeding station or a cozy corner with their bed and toys. This will help them feel at home in their new environment.
- Explore the Neighborhood: Take your pets on walks around your new neighborhood to help them acclimate. Look for nearby parks, pet-friendly cafes, and other amenities that will make your new home even more enjoyable.
Ready for the Move?
Spring is a fantastic time to buy, especially for pet owners. With more options and the chance to create a pet-friendly environment, it’s the perfect season to make your move. Happy house hunting, and give your pets an extra scratch behind the ears from us! 🐾🏡
There are at least 3 things more important than the home loan interest rate you get. Shopping for a lender based only on rate will mean likely missing them.
Home buyers often mistake interest rate as the only important part of a home loan. It’s not. There are many factors to consider when buying a home that might be more important than the interest rate.
Everybody thinks they can shop around for the best rate, and they’ll get the best home loan. This is like shopping for the best tires to find the best car. The interest rate is only part of the picture. Let’s look at four other really important parts of your home loan.
Total monthly payment
Your total monthly payment is more important than your home loan interest rate. See, interest is just a part of what you’ll pay each month. Consider principle, taxes, insurance, and any homeowners association dues. Also consider the length of your loan, and whether you roll closing costs into it. The total amount that comes out of your living expenses each month is what matters most. Since a home is likely the biggest purchase of your life, it’s important that it fits into your monthly cash flow. This bigger perspective, and a strategy to make your monthly payments fit your life, is more important than just the interest rate.
Down payment
The amount of down payment you choose is a really important consideration. More down payment can lower your interest rate, but there may be more important things to do with your money than just lower your rate.
Important things like an Emergency fund.
Having some money saved for emergencies is more important than a lower interest rate. What if, in trying to lower your interest rate, you deplete your savings to make a bigger down payment. With your savings empty, you’re now without an emergency fund, which could really come back to bite you. In this way, simply chasing the lower rate isn’t the smartest path. It’s a smarter move to leave yourself enough savings in case something breaks in the house, or your car breaks down, or you have unexpected medical bills. Don’t sacrifice your emergency fund to lower your interest rate. Put less down and take a higher interest rate, if it means keeping something in savings.
Investments
If you’ve got enough saved, you might be tempted to make a very large down payment to get a lower interest rate. But there are other ways to invest your money that might be better. What if you instead invested in the stock market and earned the historical average 10% return? Or what if you made smaller down payments on 2 properties instead of a large down payment on one? Sure, your interest rates on the 2 homes would be higher, but now you’d have a second home to rent out as an investment property, creating passive income and positive cash flow.
What else matters more than your home loan interest rate? The quality of your lender. But aren’t all lenders pretty much the same? No. Not at all. The proficiency and reputation of lenders varies widely, and matter a lot. How well they do their job, and their reputation for doing it, can mean the difference between getting your dream home and losing it. Picture this, you make an offer on a home in a hot market, and the seller’s real estate agent notices you’re using a lender that often can’t fund loans on time, or lacks the loan types to fit many borrowers. So the agent advices the seller to accept someone else’s offer. You’ve just lost your chance at that home. Or what if they did accept your offer, only to have you miss your deadlines because your low rate lender couldn’t deliver? Definitely consider the quality of your lender, not just the rate they’re offering.
Your home purchase means a lot. We’re here to make that purchase as smooth as possible.
Disclaimer: SecurityNational Mortgage Company, and its loan officers, unless individually licensed and specifically denoted in their credentials, are not qualified to, and are prohibited from representing themselves as accountants, attorneys, certified financial planners, estate planners, investment specialists or tax experts, and will not advise you in those matters. Always seek the advice of a licensed professional. By submitting your contact information you agree to our Terms of Use and our Privacy Policy. You also expressly consent to having SecurityNational Mortgage Company contact you about your inquiry. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Contact loan officer listed for an accurate, personalized quote. Interest rates and program guidelines are subject to change without notice. SecurityNational Mortgage Company is an Equal Housing Lender. Company NMLS# 3116
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