Blog - Michael Inkman

What’s Ahead For Mortgage Rates This Week – October 7th, 2024

October 7, 2024 by Michael Inkman

Last week was a fairly light week, with the non-farm payroll data being the most significant release. The data showed that payrolls are growing at a faster rate than historical trends suggest, which could indicate that inflation is still above the Federal Reserve’s target. In contrast, the upcoming week has a busy schedule, with many important economic releases lined up back to back.

Non-Farm Payrolls

Hourly pay for American workers rose a sharp 0.4% in September – above expectations – to put the increase over the past 12 months at 4.0%. That’s up from 3.9% in the prior month. Wages are rising faster compared to the last few years before the pandemic. Wage gains rose just slightly over 3% on average in 2018 and 2019 before the coronavirus exploded.

If wages keep growing at a 4% rate, it could call into question the Fed’s view that labor costs will remain non-inflationary.

Primary Mortgage Market Survey Index

15-Yr FRM rates saw an increase of 0.09% with the current rate at 5.25%
30-Yr FRM rates saw a decrease of 0.04% with the current rate at 6.12%

MND Rate Index

30-Yr FHA rates saw a 0.25% increase for this week. Current rates at 6.04%
30-Yr VA rates saw a 0.26% increase for this week. Current rates at 6.06%

Jobless Claims

Initial Claims were reported to be 225,000 compared to the expected claims of 220,000. The prior week landed at 219,000.

What’s Ahead

Next week will be a heavy week, starting with key inflation reports like the CPI and PPI. These will be followed by the FOMC Minutes, Consumer Credit data, and the University of Michigan Consumer Sentiment report.

How to Get a Mortgage Without a Credit Score

October 4, 2024 by Michael Inkman

Getting a mortgage without a credit score may seem like a tough task, but it is possible. Many assume that a credit score is a must, but if you don’t have one, you can still pursue your dream of homeownership. Here’s how.

What is a Credit Score?

A credit score is a numerical value that shows how well you manage debt. The score is based on factors like your payment history, how long you’ve had credit, and how much credit you’re using. Higher credit scores typically mean better mortgage terms, including lower interest rates.

Loans Without a Credit Score

If you don’t have a credit score, it’s not the end of the road for a mortgage. While many lenders are cautious about lending to people without a credit history, there are still options available. Some government-backed loans, such as FHA, VA, and USDA loans, accept applicants without a credit score. Additionally, certain conventional loans with a large down payment or shorter terms may also be accessible.

The Underwriting Process

Without a traditional credit score, lenders will need to evaluate your creditworthiness using non-traditional credit sources. Lenders typically ask for four forms of alternative credit to show that you can reliably make payments. These could include rent payments, utility bills, phone bills, insurance premiums, and even school tuition.

Once all the documentation is submitted, the underwriting process can take longer than it would for someone with a standard credit history—potentially up to 60 days or more. Since manual evaluation is involved, it’s important not to commit to any home purchase without contingencies for funding approval.

How to Build Credit

If getting a mortgage without a credit score proves challenging, you can start building a credit profile. Opening a credit card and responsibly managing it by paying off balances in full each month is a good start. Keeping your credit usage under 30% of the credit limit can help build a strong credit score over time.

While having no credit score can make the mortgage process more complex, it’s not impossible to secure a home loan. By providing alternative forms of credit or working on building your credit, you can still achieve homeownership.

Do VA Entitlements Ever Expire?

October 3, 2024 by Michael Inkman

The VA home loan program is one of the most valuable benefits offered to those who have served in the U.S. military, providing veterans and active-duty personnel with access to favorable mortgage terms. One common question is whether these VA entitlements ever expire.

What is VA Home Loan Entitlement?

VA home loan entitlement refers to the amount the Department of Veterans Affairs guarantees to a lender if the borrower defaults on the loan. This guarantee significantly reduces the lender’s risk, which allows veterans to access zero down payments and lower interest rates. The VA doesn’t issue the mortgage itself but backs loans made by private lenders.

VA entitlements come in two forms:

Basic Entitlement: In 2023, the basic entitlement is typically around $36,000 or 25% of the loan amount, whichever is less. Veterans can use this entitlement multiple times as long as they meet eligibility requirements.
Bonus Entitlement (Second-Tier Entitlement): For higher-cost homes, veterans can access additional entitlement beyond the basic amount. This helps veterans secure larger loans in areas where housing prices exceed the standard limit.

Does VA Entitlement Expire?

The short answer is no. Once a veteran is eligible for the VA home loan program, they keep that entitlement for life. There is no expiration date for using it, making it a long-term benefit that veterans can tap into at any time during their lives.

Restoring Loan Entitlement

Veterans who have used their VA entitlement in the past but have paid off their loans or sold their home can have their entitlement restored. This gives them the flexibility to use a VA loan again, although certain conditions apply depending on the situation. Veterans should consult the VA or a lender to understand the specific process for restoring their entitlement.

What About Foreclosure?

In the event of a foreclosure, veterans may lose their entitlement. However, the VA allows for entitlement restoration under certain conditions. If a veteran repays the VA for any losses or sets up a repayment plan, they can regain their eligibility.

VA entitlements are an incredible financial resource for veterans and active-duty service members, providing flexibility and long-term benefits with no expiration. Whether you’re buying a home for the first time or looking to use your entitlement again, this benefit is there when you need it.

Lee Vanvolkenburg

15:43 23 Nov 23

Michael and his team were wonderful to deal with. They were excellent with communication and always available to answer questions. Thank you all!

williams lovos

22:54 16 Nov 23

We close on the house tomorrow! Thank you David and Michael for making my first home buying a smooth process. I had several out of the ordinary situations that would had easily not been possible to get the loan in the time that they were able to approve it. My wife and I are forever grateful for the work the team did. Thank you again!

Mario Silvestri III

16:45 16 Nov 23

Rex Perkins

16:56 15 Nov 23

Everything had been going well over the past two years since refinancing an existing mortgage. The application process, approval, servicing website, everything had been very smooth, nothing but the best service. I then had a minor issue arise. We had a wind loss claim on our home and, unfortunately, I had put off getting the check cosigned until the last minute. An issue arose as part of a minor miscommunication in terms of where the check was to be forwarded for endorsement.

To make a long story short, I feared that this miscommunication and misdirected check coupled with my procrastination were going to result in the check expiring and a huge hassle on my part to go through the process again. Mr. Inkman nor his branch were in any way involved with my account or account management, yet, the check inadvertently ended up in their draft loss department and I feared this would further delay things. I was a bit frantic.

One of those that I emailed was Mr. Inkman. In an era when customer service is not as valued as in the past, I was very skeptical I would meet the deadline. But, to my surprise, Mr. Inkman took it on his own to personally get things done and get the issue resolved. It appears that he tracked down the overnighted check personally, directed it for signature, packaged and overnighted the check back to me. All the while remaining professional and pleasant and providing consistent email updates on the status. It doesn't even look like he delegated, rather taking the initiative and seeing it through on his own.

To me, that's not just doing a job, that's going above and beyond in terms of leadership, professionalism, and customer service. We could not be more happy. And, as a further sign of good will, the Fairway CEO actually emailed me personally to follow-up and assure resolution. Been very happy with Fairway since my refinance, Mr. Inkman's efforts only further reinforce that opinion.

Samer Fallouh

15:01 15 Nov 23

Debbie Salas

21:47 03 Oct 23

This transaction probably would not have happened without Michael. Whenever we hit a stumbling block, he found a way around it! He kept us informed and was a positive light all the way through to the end and beyond.
Thanks

Eric Kieffer

22:46 16 Aug 23

Did business with Michael about 20 years ago and he was happy to help us again. He and his team did a great job. See you in another 20.

What’s Ahead For Mortgage Rates This Week – October 7th, 2024

How to Get a Mortgage Without a Credit Score

Do VA Entitlements Ever Expire?

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