1. Can you briefly describe the “Home Pursuit” adjustable-rate mortgage program and its benefits?
Our Home Pursuit program was designed to help people who do not have the required down payment, or have a lower credit score due to higher balances or have a high debt-to-income ratio. The program offers higher loan-to-value LTV, higher debt to income ratios, and lower credit scores as described below:
- Higher loan-to-value LTV (95% LTV for a 1st and 2nd mortgage combined)
- Lower credit score parameters (at least 680 with no delinquency)
- Higher debt-to-income (DTI) ratios (up to 50% DTI)
- Up to $2,500 in lender credit towards closing costs
2. What makes John Marshall Bank’s “adjustable-rate mortgage” distinctive?
JMB’s adjustable-rate mortgage product is a 30-year mortgage where the rate will change during the life of the loan. Our 6/5 ARM has a fixed rate for the initial six years, with the rate changing every five years.
3. Can you explain the 95% loan-to-value?
When applying for a mortgage real estate loan, one area of consideration a lender looks at is the loan amount vs. the value of the collateral or loan-to-value. Typically, the average loan-to-value is 80%, which means the loan can be up to 80% of the value. Our Home Pursuit program allows up to a 95% loan-to-value on a first and second mortgage combination.
4. Who is an ideal candidate for the Home Pursuit program?
We designed our Home Pursuit program to help people that might be starting out and may not meet the underwriting guidelines for a standard mortgage and whose household income does not exceed $80,000. The Home Pursuit product was designed to permit higher loan-to-value, higher debt-to-income ratios, and a lower credit score. Additionally, we offer a $2,500 closing cost credit.
5. What are some “financial obstacles” an ideal “Home Pursuit” candidate might be facing?
The biggest financial obstacles are not having enough savings to cover the required down payment, closing costs, and reserves that standard mortgages require. Our Home Pursuit program is an excellent option for those issues with up to 95% LTV and no reserve requirement. This is in addition to our $2,500 closing cost credit that lowers the amount of money they will need to have at closing.