October 5, 2017
September 28, 2017
SecurityNational Mortgage has been awarded as one of the 50 best mortgage companies to work for by Mortgage executive Magazine. This is the second straight year SecurityNational has been included on the list. SNMC will be featured in the September/October issue of the magazine.
The award recognizes Security National in part for its company culture which extends a positive work-life balance for employees and loan officers. SNMC Leadership strives to provide world-class services to its clients, but also top-tier support, compensation, and benefits to its employees.
Each year, Mortgage Executive Magazine compiles a list of the nation’s top mortgage companies. The award is based on a survey conducted by Mortgage Executive Magazine. Over 200 mortgage companies and banks participated and more than 10,000 loan officers were surveyed. The online surveys are limited to licensed Mortgage Loan Officers who are presently employed by the companies they are rating. The survey is limited to companies with at least 30 eligible loan officers. Winners are selected based on a combination of total MLO votes and average rating score.
Learn more about how you could join our award-winning team.
Security National celebrated the completion of the first of six buildings that will make up the new corporate campus located in Murray, Utah. The development will be known as 53rd Center. Scott Quist, CEO of SNFC, help the honor of cutting the ribbon.
The center will be a key part of the development project marketing campaign as it is located right in the middle of the Salt Lake metro area. The center will feature six buildings with total leasable space exceeding 1 million square feet. While leasing demand continues to pick up for the first building at 53rd Center, SecurityNational Mortgage will be a major tenant.
Until now, production management and operations management have been scattered throughout the Salt Lake Valley. Bringing the Security National companies together under one roof will give us an opportunity to continue improving the speed and efficiency of our operations. We are all looking forward to the move, scheduled to be sometime in late fall of 2017.
SecurityNational Mortgage Company made a significant donation of $15,000 to the non-profit group Family Promise of Salt Lake.
Family Promise of Salt Lake is an interfaith alliance that helps homeless families achieve self-sufficiency. Family promise helps provide shelter and housing services for the homeless. In addition, Family Promise strives to facilitate lasting income and environmental stability for the families they serve.
Paul Christensen, Vice President of SecurityNational presented a check of $15,000 on Thursday to support the non-profit organization in their mission to serve and support the homeless and announced a corporate sponsorship with the non-profit organization.
“Family Promise is a great organization and it really gives back to the community. I think it will be great for [our] employees to have a hand in that and be able to do something for others in need,” said Christensen.
SNMC is looking forward to working with Family Promise on increasing their donations through employee participation.
Since 2015, Family Promise of Salt Lake has helped hundreds of families find safer and more habitable shelter and learn lasting, valuable life-skills to help them transition away from homelessness. The mission of Family Promise is achieved through thousands of hours from volunteers throughout the community and from various religious congregations, as well as generous donations from community supporters and organizations.
Learn more about how you can get involved with Family Promise of Salt Lake by visiting FPSL.ORG.
For first-time home buyers, the challenge of coming up with a 20% mortgage down payment is often difficult enough to keep them out of the market. But the fact is, the 20% down payment is all but dead — and has been for quite some time, especially for first-time buyers.
“It’s been my experience that about half of my clients know that there are loans and/or programs that require less than 20% down,” says Kris Lindahl, a real estate agent in Blaine, Minnesota. “The other half still think that they must have at least 20% down in order to qualify for a home mortgage.”
But most people don’t put 20% down on a home, even though it’s the benchmark most often quoted by lenders and mortgage experts. More than 70% of non-cash, first-time home buyers — and 54% of all buyers — made down payments of less than 20% over at least the past five years, according to the National Association of Realtors.
Michael Facchini of Chicago was 23 years old when he bought a multi-family building in 2003 as his primary residence. He put only 5% down, even back then.
“I own it still today and it has proven to be a fantastic investment, even through the crash of 2008,” says Facchini, now a branch manager at Fairway Mortgage.
The typical down payment for 60% of first-time home buyers is 6% or less, according to NAR’s latest data. But NAR’s research finds few adults 34 and younger (just 13%) realize they can buy a house with a down payment of 5% or less.
These low-down-payment programs aren’t new. The FHA has backed home loans with 5% down or less since the 1980s. Conventional loans, mortgages that aren’t directly backed by the government, have had them since the 1990s.
“Many financial advisors, including much of the popular media, speak of the ‘traditional conventional loan’ that assumes 20% down,” Lindahl says. “This type of loan is considered the gold standard and is most often used to quote mortgage rates. Another reason is simply that many banks and lending institutions only deal with 20% conventional loans, as they are considered ‘safer’ and less risky than other lower down-payment mortgages.”
Consider the typical down payments for different types of loans for the 12 months ending May 2017, according to mortgage lender systems provider Ellie Mae. This information represents an 80% sample of all of the mortgage applications the company processes — about 30% of total loan volume in the U.S. — and is for for all purchase loans, not just to first-time buyers.
Conventional loans, the mortgages lenders prefer to make, can have down payments as low as 3% for qualified buyers. Some lenders offer grants to allow even lower money down. But for the past 12 months, most buyers seeking conventional financing put down 20%, according to Ellie Mae.
FHA loans, often the go-to solution for first-time buyers of modest means, require a minimum of 3.5% down, and sure enough, loan-to-values for the period averaged 96%, probably due to rounding.
VA loans are famous for offering mortgages that require no down payment at all. Still, LTVs averaged 98% over the past year, likely due to borrowers financing their closing costs.
The fact is, 20% down payments aren’t strictly required, but they may be a good idea. Good reasons to put down at least 20% include:
One thing’s for sure: you don’t want to drain all of your savings account, regardless of how much you put down. You’ll want to have some money on hand for the variety of expenses, including closing costs, homeowners insurance and property taxes, that come up as you buy and move in.
And you should be prepared to spend even more on the water heater or other appliance that fails, a lawn mower for that new lawn, or furniture for that guest room you always wanted.
The “traditional” 20% down payment may become obsolete, even among big lenders. Brian Moynihan, CEO of Bank of America, told CNBC in May that lowering the down payment requirement from 20% to 10% “wouldn’t introduce that much risk but would help a lot of mortgages get done.”
There are strong arguments to be made for and against 20% down payments. It’s a decision that depends on your particular financial situation, how long you plan on being in a home, and the housing market in your area.
Fannie Mae and California State University-Fullerton research into what U.S. households know about qualifying for a mortgage came to this conclusion:
“Correcting consumer misconceptions may be a more efficient approach to expanding homeownership opportunities by encouraging households who may already be qualified to own homes.”
The article The 20% Mortgage Down Payment Is Dead originally appeared on NerdWallet.
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
No really, ask us for directions. Our mortgage professionals are waiting to help answer any questions or concerns you have as you begin your journey home.
When exploring mortgage options, it’s likely you’ll hear about Federal Housing Administration and conventional loans. Let’s see, FHA loans are for first-time home buyers and conventional mortgages are for more established buyers — is that it?
Not necessarily.
Actually, the differences between FHA loans and conventional mortgages have narrowed in the past few years. Since 1934, loans guaranteed by the FHAn have been a go-to option for first-time home buyers because they feature low down payments and relaxed credit requirements.
But conventional loans — which are not insured by a government agency like the FHA, the Department of Veterans Affairs or the U.S. Department of Agriculture — have gotten more competitive lately.
Both types of loans have their advantages. Here are the factors to consider when deciding between an FHA and a conventional mortgage.
What kind of property are you buying? You can use a conventional loan to buy a vacation home or an investment property, as well as a primary residence.
The same can’t be said about FHA loans.
An FHA loan must be for a property that is occupied by at least one owner, as a primary residence, within 60 days of closing. Investment properties and homes that are being flipped (sold within 90 days of a prior sale) aren’t eligible for FHA loans.
FHA appraisals are more stringent, as well. Not only is the property assessed for value, it is thoroughly vetted for safety, soundness of construction and adherence to local code restrictions.
Where you’re planning to buy your home can play a role in what kind of loan is best for you. FHA and conventional loan guidelines allow wide latitude for borrowers in expensive areas, but in some cases you may end up needing a jumbo loan, which is bigger than FHA or conventional limits.
FHA loans are subject to county-level limits based on a percentage of a county’s median home price. In certain high-cost areas, the limit in 2017 can be as high as $636,150 — and in Alaska, Guam, Hawaii and the Virgin Islands, limits can be much higher than that.
For loans guaranteed by Fannie Mae and Freddie Mac, the government-sponsored companies that help fund the conventional mortgage industry, single-family home loan limits are $424,100 in most of the country. Again, higher loan ceilings are available in pricier counties.
You can find your county’s loan limits for FHA (shown at the link as “FHA forward”) and conventional mortgages (“Fannie/Freddie”) on the Department of Housing and Urban Development website.
This is where conventional loans have really improved. FHA loans used to be the low-down-payment leader, requiring just 3.5% down. But now, Fannie Mae and Freddie Mac both offer 97% loan-to-value products; that means a 3% down payment option — even lower than FHA — for qualified buyers.
From time to time, you can find lenders offering down payment options that are even lower on conventional loans. Quicken Loans, for instance, has offered a 1% down loan.
Another instance where FHA and conventional standards have converged: how bad credit is accounted for. Over the past few years there have been numerous changes to the policies regarding bad-credit issues and how they are treated for FHA and conventional loans, with new standards implemented — and then expiring.
However, as it stands now, for a buyer to qualify for either an FHA or conventional loan, it typically must be two years since a bankruptcy was discharged and three years since a foreclosure or short sale.
There will definitely be hurdles to clear to prove to a lender that you have re-established your creditworthiness:
With a down payment of less than 20%, both FHA and conventional loans require borrowers to pay mortgage insurance premiums. This insurance helps defray the lender’s costs if a loan defaults.
There are some differences between the two insurance programs.
With an FHA loan, if you put less than 10% down, you’ll pay 1.75% of the loan amount upfront and make monthly mortgage insurance payments for the life of the loan. With a down payment of 10% or more (that is, a loan-to-value of 90% or better), the premiums will end after 11 years.
Conventional loans with less than 20% down charge private mortgage insurance. It can be charged as an upfront expense payable at closing, or built into your monthly payment — or both. It all depends on the insurer the lender uses.
“The rates for PMI vary according to two factors: credit score and loan-to-value ratio,” Joe Parsons, a senior loan officer with PFS Funding in Dublin, California, says. He provides the following examples:
PMI generally can be canceled once your loan is paid down (and/or your property’s value appreciates) to 78% of your home’s value.
| Mortgage insurance | FHA | Conventional |
|---|---|---|
| Upfront premium cost | 1.75% | Depending on the insurer, there may or may not be an upfront premium. You can also opt to make a single-premium payment instead of monthly payments. |
| Monthly premium cost | Cost varies. Based on loan term, amount and down payment. For purchase loans, the premium ranges from 0.45% to 1.05%, according to the FHA. | Cost varies. Based on credit score and loan-to-value. For purchase loans, fees can range from 0.55% to 2.25%, according to Genworth and the Urban Institute. |
| Duration | With down payments less than 10%, you’ll pay mortgage insurance for the life of the loan. With a loan-to-value equal to or greater than 90%, you’ll pay the premiums for 11 years. | Usually can be canceled once your loan balance reaches 78% of your home’s value. |
Here is the primary distinction between the two types of loans: FHA loans are easier to qualify for. As far as a credit score, FHA sets a low bar: a FICO of 500 or above. Lenders can set “overlays” on top of that credit score requirement, hiking the minimum much higher.
But to qualify for the lowest FHA down payment of 3.5%, you’ll need a credit score of 580 or more, says Brian Sullivan, HUD public affairs specialist. With a credit score between 500 and 579, you’ll need to put down 10% on an FHA loan, he adds.
The average FICO score for FHA purchase loans closed in 2016 was 686, according to mortgage industry software provider Ellie Mae.
Conventional loans typically require a FICO credit score of 620 or better, Parsons says.
“A borrower with that score who can document income and assets will, in all likelihood, receive a loan approval,” he says. “They will pay a higher price for that loan because of ‘risk-based pricing’ from Fannie Mae and Freddie Mac, but it is unlikely that they will be declined because of their credit score.”
Risk-based pricing means compensating the lender for taking the additional risk on a borrower with a lower credit score (the average FICO score for a conventional loan was 753 in 2016, according to Ellie Mae). In other words, the lower your credit score, the higher your mortgage interest rate.
HUD’s Sullivan says your debt-to-income ratio — including the new mortgage, credit cards, student loans or any other monthly obligations — must be 50% or less for an FHA loan. Ellie Mae reports the average debt ratio for borrowers closing FHA purchase loans in 2016 was 42%.
Conventional loans usually require a debt-to-income ratio no higher than 45%, Parsons says. In 2016, borrowers with conventional purchase loans averaged a 34% debt ratio, according to Ellie Mae.
Another distinction for FHA loans: generally lower mortgage interest rates. However, the difference between the two was incremental last year. The 30-year fixed rate for FHA purchase loans closed in 2016 averaged 3.95%, compared with a conventional mortgage rate on the same term of 4.06%, according to Ellie Mae.
As far as mortgage refinancing goes, the edge goes to FHA “streamline” refinancing. With no credit check, no income verification and likely no home appraisal, it’s about as easy a refi as you can get. But there are five requirements for an FHA streamline refinance.
Your decision may initially be based on your credit score. If it’s well below 620, an FHA loan may be your only choice. Above 620 and you’ll want to run the numbers on both to see what works best for you.
However, if you are serving in the military or are a veteran, a loan backed by the VA may be the way to go. VA loans usually require no down payment. And if you live in a suburban or rural area, a USDA loan could be a smart option, too.
| FHA | Conventional | |
|---|---|---|
| Property type | Financing for a primary residence only | Financing for a primary residence, second home or investment property |
| Down payment | Down payments as low as 3.5% | Some programs offer down payments as low as 3% or even lower |
| Mortgage insurance | Mortgage insurance premiums required: 1.75% upfront and monthly premiums that vary with your loan term, loan amount and down payment, from 0.45% to 1.05% | With a down payment lower than 20%, private mortgage insurance is usually required. Monthly fees vary according to credit score, loan-to-value and insurer, and range from 0.55% to 2.25%. |
| Credit score | Credit score of 500 or better is usually required, though this depends on the lender. Average FICO score in 2016: 686. | Credit score of 620 or higher is usually required, though this depends on the lender. Average FICO score in 2016: 753, according to Ellie Mae. |
| Debt ratio | Average 2016 debt ratio: 42% | Average 2016 debt ratio: 34% |
| Interest rates | Interest rates for FHA loans tend to be slightly lower than for conventional loans | Interest rates for conventional loans tend to be slightly higher than for FHA loans |
Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: hal@nerdwallet.com. Twitter: @halmbundrick.
The article FHA Loan vs. Conventional Mortgage: Which Is Right for You? originally appeared on NerdWallet.
HARRISBURG, N.C. (April 24, 2017) — In anticipation of the Pirelli World Challenge’s SprintX championship kicking off this weekend at Virginia International Raceway, CRP Racing has signed Canadian racer Daniel Morad to join Ryan Dalziel in the No. 2 Devilbiss Mercedes AMG GT3. As a five race championship within the existing 2017 calendar, the SprintX format will expand both races in the events from 50 minutes to 60 minutes, requiring each driver to complete no more than 35 minutes of racing.
While only 27 years old, Morad’s 10 year racing resume boats strong results. In 2007, the Toronto native won the Formula BMW USA Championship, setting a record of six race wins in one championship. In 2015, Morad’s career in sports car racing began to blossom when he finished second in the Porsche GT3 Cup Challenge Canada with nine podiums in ten races. The following year, he returned to the series to clinch the championship, earning four wins and ten podiums in twelve races. Morad closed out the 2016 race season with another championship title, winning the inaugural season of the IMSA Porsche GT3 North American Cup. His 2017 race season got off to the best kind of start, with a GTD class win at the Rolex 24 Hours At Daytona with Alegra Motorsports. Morad’s first laps in the No. 2 Mercedes AMG GT3 will occur on Wednesday at the promoter test day at Virginia International Raceway.
“I am really happy to join CRP for the 2017 SprintX Championship,” said Morad. “There were a lot of top drivers in the mix for the seat so it is a real honor to have been chosen to pursue this exciting challenge. The past 12 months have been career changing, and I really appreciate the opportunity from Nick Short and the whole team.”
Morad will join full time driver Ryan Dalziel in the No. 2 Mercedes AMG GT3, who has already completed three races with the team. Dalziel holds two second place finishes at the 3.27 mile, 17 turn road course in Alton, Virginia.
“I’m really looking forward to Virginia International Raceway,” said Dalziel. “I haven’t been there since the resurfacing, but we’ve heard it is perfect now. I am excited about the first SprintX race of this season, and hoping Daniel and I can get a win.”
The two will be up against strong competition in the already highly competitive series, as the SprintX events have attracted professional drivers from around the world.
Competitors will have just under four and a half hours of testing and practice before Saturday’s qualifying session. The current driver rankings hold Dalziel at a Gold, and Morad as a Silver, meaning their Pro/Pro lineup will not require a minimum amount of time spent in pit lane during the mandatory pit stop. Both drivers will have to complete a minimum of 25 minutes of racing, but no more than 35 minutes.
Race one of the Pirelli World Challenge SprintX Championship will begin Saturday, April 29 at 3:30PM ET, followed by Race 2 on Sunday the 30th at 1:15PM. The events of the weekend will air on CBS Sports Network, Sunday, May 7 at 6:00PM ET, but fans can find live timing and stream information at world-challenge.com/streamvideo.
About SecurityNational Mortgage Company (SNMC)
SecurityNational Mortgage Company (SNMC) is one of the fastest growing subsidiaries of the Security National family. Security National Financial Corporation is a publicly traded company (SNFCA – NASDAQ). Founded in 1993, SNMC is the home to nearly a thousand licensed loan professionals and currently operates more than 130 branch offices across the United States, with headquarters in Salt Lake City, Utah. SNMC provides a wide range of residential, rural, business and commercial mortgage loans. For more information, visit www.SNMC.com.
About CRP Racing
CRP Racing is a leading edge race car engineering company with a winning pedigree that offers full service race car prep, full track set-up, restoration and custom fabrication, and shock, dyno and design services. Owner Nicholas Short has made a career out of motorsports with experience in IndyCar, NASCAR, Trans-Am, Group C Endurance Racing, Baja desert racing, Vintage SVRA and HSR and the World Challenge series.
SecurityNational Mortgage Company (SNMC), a national leader in home mortgage loans, today announced it has established an associate sponsorship agreement with the Pirelli World Challenge (PWC) sports car series for 2017.
In addition to SNMC’s robust activation program with the series, they will be promoting several innovative marketing campaigns directed toward the public as well as all of the PWC racing teams, sponsors, and fans of the 11-weekend racing series.
Pirelli World Challenge, North America’s leading GT Production-based sports car series, is entering its 28th year of competition featuring a wide variety of racing machines in seven divisions from the half million dollar GT3 sports cars such as McLaren, Porsche, Bentley, Audi, Acura and Ferrari to the small TCB sedans such as Honda Fit, Mazda 2, Chevy Sonic and Mini-Cooper. PWC opens its 2017 racing season on March 10-12 in the streets of St. Petersburg.
SNMC is the home to several hundred licensed loan professionals and currently operates more than 130 branch offices across the United States, with headquarters in Salt Lake City, Utah. SNMC provides a wide range of residential, rural, business and commercial mortgage loans. For more information, visit www.SNMC.com.
“We, at the Pirelli World Challenge, are excited to welcome SecurityNational Mortgage Company as a partner in 2017,” said Greg Gill, President and CEO of WC Vision, producers of the Pirelli World Challenge. “SNMC is a national leader in the mortgage industry and fits in perfectly with the PWC racing community and fan base. SNMC has been involved in motorsports for several years and the company is a performance-based corporation that can help everyone with their mortgage needs.”
“We are thrilled to be involved in the sport of racing for the third consecutive year,” said Michael Shehan, SNMC’s Chief Marketing Officer. “The experiences and relationships established throughout the years serve us in a multitude of ways, and strengthens the culture of our company. We are fortunate to be associated with such incredibly talented professionals succeeding at the pinnacle of performance.”
SecurityNational Mortgage has served as the title sponsor of No. 20 True Speed Autosport Porsche GT Cup entry with young driver Sloan Urry of Salt Lake City. Urry placed second in the 2016 GT Cup point standings and recorded five race wins.
Ranked as a ‘Top 50 Mortgage Lender,’ SecurityNational Mortgage uses key elements of its marketing strategy around the motorsports program.
“SecurityNational’s corporate culture has driven our performance, and has created an environment where our employees truly excel. The amazing people that make up our business, including our employees, customers, and partners, all contribute to that story.” said Steve Johnson, President at SecurityNational Mortgage Company. “Our tagline, ‘Turning Houses Into Homes’, defines our daily mission. We are honored to help thousands of families across the nation achieve homeownership.”
RENO, Nev., Jan. 13, 2017 /PRNewswire/ — SecurityNational Mortgage Company (SNMC) with over 23 years of service and more than $3 billion annually in closed loans, is pleased to announce the expansion of a new branch office in Reno, NV.