Tag: Credit & Budgeting

FHA Loan Changes for Non-Permanent Residents

Written by Nathan Jennison on April 1, 2025. Posted in Video.

If you’re a non-permanent resident dreaming of owning a home, or if you’re considering refinancing your current FHA loan, big changes are coming your way. As of May 25th, the Federal Housing Administration (FHA) will stop insuring loans for non-permanent residents. This shift, aligned with prior Trump-era immigration policies, could drastically alter your home financing options—unless you act now.

In this article, we’ll break down what’s happening, why it’s changing, and most importantly—what you can do to stay on track with your homeownership goals.

What’s Changing With FHA Loans?

Starting May 25th, non-permanent residents will no longer be eligible for FHA loans. While you can still close on an FHA loan after that date, your loan must be under contract and have an FHA case number assigned before May 25th to qualify under the current guidelines.

This is not a permanent ban on all loans for non-permanent residents—but it does significantly reduce accessible options, especially for those who rely on FHA’s flexible credit and income requirements.

Why Is the FHA Making This Change?

The FHA insures home loans through the U.S. government. Because of this backing, it’s seen as a federal benefit. With concerns around the risk of loan default tied to deportation, the FHA is tightening its eligibility guidelines.

This change reflects a more restrictive approach to immigration-related benefits and is seen as a risk management move by the federal government.

Who Will Be Most Affected?

Approximately 10 million non-permanent residents in the U.S. may feel the impact of this change. FHA loans are often the go-to option for:

Buyers with credit scores below 700
Borrowers with higher debt-to-income ratios
First-time homebuyers using down payment assistance programs (DPAs)

With FHA loans off the table, many buyers will need to shift to conventional loan options, which often have stricter qualification criteria.

What Are the Alternatives to FHA Loans?

Good news: FHA loans aren’t the only game in town.

✅ Conventional Loans

Fannie Mae and Freddie Mac have not (yet) followed the FHA’s lead on non-permanent resident eligibility. This means:

First-time homebuyers may qualify with as little as 3% down—if they have a credit score of 700+
There are conventional DPA programs still available, like Colorado’s CHFA

✅ Non-Agency Lenders

Some non-agency lenders (private institutions) are not making any changes. These lenders may still offer financing for non-permanent residents, but expect:

Higher down payments (typically 10–15% minimum)
Possibly higher interest rates

These lenders can be a solid option if you don’t meet conventional guidelines but need to move quickly.

What Should You Do Next?

🏡 If You’re Buying a Home:

Get pre-approved ASAP if you’re a non-permanent resident planning to use an FHA loan.
You must be under contract and have a case number issued before May 25th to qualify.
Act now to lock in lower down payment options and access to FHA’s more lenient requirements.

🔄 If You’re Refinancing:

Already have an FHA loan but credit below 700?
Now may be the time to refinance, before you’re no longer eligible.
Reach out to your loan officer to discuss whether this is the right move.

Credit Score Is Key to Lower Down Payments

If you’re a non-permanent resident and your credit score is close to 700, now is the time to focus on boosting it.

With a score in the 700s, you can access 3% down options through conventional loans.
Improving your credit could mean thousands saved in upfront costs.

Don’t Panic—Plan Instead

This policy change is significant, but it doesn’t have to derail your homeownership journey. What matters most is planning ahead and knowing your options.

Key Takeaways:

FHA loans will not be available to non-permanent residents after May 25th
You must be under contract with an assigned case number by that date to qualify
Alternatives include conventional loans and private lenders
Boost your credit score to access better options
Refinance now if you already have an FHA loan and won’t qualify for other options soon

Final Thoughts

“There’s a lot of fear out there. This isn’t the end of the road,” says Nathan Jennison, Managing Broker and Owner of Mortgage Architects. “It’s about making intelligent, informed plans so you can still achieve your homeownership goals.”

Whether you’re buying or refinancing, time is of the essence. Connect with your real estate agent and mortgage professional today to map out your strategy.

Frequently Asked Questions: FHA Loan Changes for Non-Permanent Residents

1. What exactly is changing with FHA loans?

As of May 25, 2025, non-permanent residents will no longer be eligible for FHA-insured loans. This includes new home purchases and refinances. To qualify under current guidelines, borrowers must have an FHA case number assigned before May 25th.

2. Can I still close on my FHA loan after May 25th?

Yes—as long as your loan is under contract and your FHA case number has been assigned prior to May 25th, you can still proceed with closing after that date.

3. Why is this policy change happening?

The FHA is aligning with federal immigration policies, aiming to reduce risk associated with loan defaults due to potential deportations. Since FHA loans are backed by the U.S. government, they are viewed as a form of public benefit.

4. Are conventional loans still available for non-permanent residents?

Yes—for now. Fannie Mae and Freddie Mac have not announced similar restrictions, so conventional loans remain an option, especially for borrowers with credit scores of 700 or higher.

5. What other loan options do I have if I’m a non-permanent resident?

Beyond FHA and conventional loans, private or non-agency lenders still offer mortgage products. These typically require:

10–15% down payment
Higher credit scores
Possibly higher interest rates

6. I already have an FHA loan—should I refinance now?

If you are a non-permanent resident with an FHA loan and don’t anticipate your credit score reaching 700+, it may be wise to refinance now before the policy change takes effect.

7. What if I need down payment assistance?

Most down payment assistance (DPA) programs are tied to FHA loans, but some states (like Colorado’s CHFA) offer conventional-based DPAs that remain available.

8. How do I boost my credit to qualify for a conventional loan?

To reach the 700+ credit score range:

Pay down high credit card balances
Make on-time payments
Avoid opening new credit lines
Work with a credit advisor if needed

9. I’m not sure which loan type I qualify for—what should I do?

Start by getting pre-approved. A mortgage professional can assess your unique situation and help you identify the best loan type for your goals.

10. Who should I contact to get started before May 25th?

Contact Nathan Jennison and the team at Mortgage Architects as soon as possible. Timing is critical to preserve your FHA eligibility.

The Complete Home-Buying Process: A Step-by-Step Guide

Written by Nathan Jennison on March 10, 2025. Posted in Resources, Video.

The home buying process brings with it one of the biggest financial decisions you’ll ever make. It can be an exciting journey, but also one filled with uncertainty and anxiety if you’re not prepared. Understanding the process can help reduce stress and ensure that you make the best choices for your future.

In this guide, we’ll walk through the essential steps of buying a home, from selecting the right team to celebrating your new purchase. Let’s dive in!

Step 1: Select Your Real Estate Team

Your home-buying journey starts with choosing the right real estate agent and lender. This is crucial because these professionals will guide you through every step of the process.

How to Choose the Right Real Estate Agent and Lender:

Do Your Research: Read reviews and ask for recommendations.
Avoid Choosing Based on Familiarity: Don’t select a lender or agent just because they are a friend or family member.
Look for Experience: Choose professionals who have a strong track record in your desired location.
Ensure They Work for Your Best Interest: A good agent will negotiate well for you, while a trustworthy lender will provide honest and transparent information.

🔑 Pro Tip: Many lenders are predatory, meaning they may not disclose all details upfront. Choose someone who educates you throughout the process and aligns with your financial goals.

Step 2: Get Pre-Approved (Not Just Pre-Qualified!)

Pre-approval is a critical step before you start house hunting. It shows sellers that you’re a serious buyer and strengthens your offer.

Pre-Approval vs. Pre-Qualification:

Pre-Qualification: A lender pulls your credit and takes your word on income and debts—NOT very reliable.
Pre-Approval: A lender verifies your documents, runs financial algorithms, and provides a more accurate borrowing limit.

💡 Why It Matters: Sellers take offers with pre-approvals more seriously because they know the buyer is financially ready.

Allow at least one week for pre-approval to ensure all necessary verifications are completed.

Step 3: House Hunting & Making an Offer

Once you have your pre-approval, the fun part begins—house hunting!

Tips for a Successful Home Search:

Create a must-have list (location, size, amenities).
Be open to compromises but stay within your budget.
Rely on your agent’s expertise to navigate the market.

Once you find the right home, your agent will help negotiate the best price and terms.

Step 4: Get Under Contract & Lock in Your Interest Rate

After your offer is accepted, it’s time to:

Get under contract – The seller agrees to your terms.
Lock in your interest rate – This ensures that the rate you qualify for won’t change before closing.

Choosing the Right Interest Rate:

Ask if you’ll need to pay points (an upfront cost to lower your rate).
Make sure your lender explains all rate options to you.
Consider how long you’ll stay in the home before paying points.

🏡 Your Goal: Secure a rate that fits your financial plans, not just what benefits the lender.

Step 5: Review Loan Disclosures

Once under contract, your lender will send you disclosures outlining the terms of your loan.

Key Points to Know:

These disclosures are not a final obligation to take the loan.
They allow you to review and understand the terms.
If something looks off, ask questions!

📝 Action Item: Review the disclosures carefully and clarify anything unclear with your lender.

Step 6: Home Inspection & Renegotiation

A third-party home inspector will examine the property and identify any issues.

Why This Matters:

Inspections reveal potential problems (plumbing, roofing, electrical).
You can renegotiate with the seller for repairs or a lower price.
If serious issues arise, you may have the option to exit the contract without losing your deposit.

🛠️ Pro Tip: Never skip a home inspection! It’s your best chance to avoid expensive surprises later.

Step 7: Home Appraisal (If Required)

The lender usually requires an appraisal to ensure the home is worth what you’re paying.

What Happens During an Appraisal?

A licensed appraiser evaluates the property.
They compare it to recent sales of similar homes.
The lender bases the loan on the lower of the purchase price or appraised value.

If the home appraises lower than your offer, you may need to:

Negotiate a lower purchase price.
Pay the difference out of pocket.
Challenge the appraisal if it seems inaccurate.

📊 Why It’s Important: The appraisal protects both you and the lender from overpaying.

Step 8: Loan Underwriting & Conditional Approval

The lender’s underwriter will review all documents to ensure the loan meets requirements.

Possible Conditions the Lender May Ask For:

Additional income verification.
Proof of funds for closing.
Clarifications on credit history.

📌 Action Item: Respond quickly to any lender requests to avoid closing delays.

Step 9: Clear to Close & Final Preparations

Once your loan is fully approved, you receive a clear to close—this means everything is in place for your final signing!

Key Final Steps:

The lender finalizes the loan documents.
The title company balances the final figures.
You receive final closing costs and payment instructions.

🚨 Beware of Wire Fraud: Only send your down payment and closing costs after verifying wire instructions directly with the title company over the phone.

Step 10: Closing Day – Sign & Celebrate!

Closing day is here! 🏡🎉

What to Expect at Closing:

You’ll sign multiple documents related to your mortgage.
The seller transfers ownership.
Your lender funds the loan.
You receive keys to your new home!

Before signing, do a final walkthrough to ensure the property is in the expected condition.

📌 Pro Tip: Stretch your wrist beforehand—you’ll be signing a lot of papers!

Final Step: Celebrate Your New Home! 🎉

Congratulations! You are now a homeowner. Before jumping into moving and unpacking, take a moment to celebrate your achievement.

Ways to Celebrate:

✅ Host a small gathering.
✅ Pop some champagne! 🍾
✅ Take a photo in front of your new home.
✅ Share the news with family & friends.

You worked hard for this—don’t skip the celebration!

Final Thoughts: Make Your Home Buying Experience Smooth

By following these steps, you can reduce stress and avoid surprises during the home buying process.

Key Takeaways:

Choose experienced professionals for your team.
Always get pre-approved, not just pre-qualified.
Understand all your loan terms and interest rates.
Use the inspection and appraisal to protect your investment.
Be aware of potential scams, especially wire fraud.
Enjoy and celebrate your success!

If you have more questions about the home-buying process, feel free to reach out. Happy house hunting! 🏡🔑

Home Buying Process Frequently Asked Questions

1. What is the first step in buying a home?

The first step is selecting your real estate team, including a knowledgeable real estate agent and a trustworthy lender. These professionals will guide you through the process and help you make informed decisions.

2. What is the difference between pre-qualification and pre-approval?

Pre-qualification is a basic review of your credit and self-reported finances.
Pre-approval involves submitting financial documents and getting verified, making you a stronger buyer in the eyes of sellers.

3. Why is pre-approval important?

It gives sellers confidence that you can secure financing, making your offer more competitive. It also helps you understand your budget.

4. When should I lock in my interest rate?

Once you are under contract, work with your lender to determine the best time to lock your rate, ensuring you get a favorable and predictable mortgage payment.

5. What is a home inspection, and why is it necessary?

A home inspection is a professional evaluation of the property’s condition, helping you identify potential issues before finalizing your purchase.

6. Can I negotiate after the home inspection?

Yes! If significant issues are found, you can negotiate repairs, request a price reduction, or even walk away from the contract.

7. What is a home appraisal, and how does it impact my loan?

A home appraisal determines the market value of the property. If the appraisal is lower than the purchase price, you may need to renegotiate the price or cover the difference.

8. What happens during the underwriting process?

The lender reviews all financial documents and conditions before giving the final loan approval. Be prepared to submit additional paperwork if requested.

9. What does “clear to close” mean?

It means your loan has been fully approved, and you’re ready to move forward with signing the closing documents.

10. How do I protect myself from wire fraud when making my down payment?

Always call the title company directly to verify wire instructions before sending any funds. Do not rely on email instructions alone.

11. What happens on closing day?

You’ll sign multiple documents, pay any required closing costs, and officially take ownership of your new home. A final walkthrough is also recommended before signing.

12. When can I move into my new home?

Typically, you can move in once the transaction is recorded, which is usually the same day or shortly after closing.

Nathan Jennison - Home Title Theft - Protect Yourself

Home Title Theft: What It Is and How to Protect Yourself

Written by Nathan Jennison on March 4, 2025. Posted in Video.

Home title theft is a rare but serious crime that is gaining more attention. While you shouldn’t be overly worried, being aware of how it happens and how to protect yourself is essential. Scammers are finding new ways to steal property ownership, which can lead to financial and legal headaches.

Let’s break down what home title theft is, how scammers pull it off, and the steps you can take to safeguard your home.

What Is Home Title Theft?

Home title theft occurs when fraudsters obtain your personal information and forge documents to transfer ownership of your home into their name. Once they appear as the “new owner,” they can:

Take out loans using your home’s equity
Access cash through a home equity line of credit (HELOC)
Sell the property to an unsuspecting buyer

While this crime is still relatively rare, the increasing number of online data breaches and sophisticated fraud tactics make it a growing concern.

How Does Home Title Theft Happen?

Scammers use various tactics to steal your home title, often relying on stolen personal information. Here’s how they do it:

Step 1: Stealing Your Personal Information

Fraudsters need details like your Social Security number, birthdate, and other sensitive data. They obtain this information through:

Phishing emails pretending to be from banks or government agencies
Data breaches that expose your private information
Stealing mail from your mailbox that contains sensitive documents

Step 2: Forging Property Documents

Once they have your information, scammers create fake documents such as:

A forged warranty deed or quitclaim deed to transfer ownership
Faked notarization by either forging a notary’s signature or bribing a legitimate notary

Step 3: Recording the Fake Documents

After forging the documents, the scammer files them with the county recorder’s office, making it appear as if they are the rightful owner.

Step 4: Accessing Your Home’s Equity

Now that they have control of the title, fraudsters can:

Take out a cash-out refinance or HELOC using your home’s value
Attempt to sell the property to an unsuspecting buyer

While they don’t legally own your home, the fraud can cause legal trouble and financial losses for the true owner.

Warning Signs of Home Title Theft

Since home title theft happens quietly, it’s important to recognize red flags that could indicate something is wrong:

✅ Receiving new loan statements in the mail – If you get a notice for a mortgage or home loan you didn’t take out, investigate immediately.

✅ Unexpected credit notifications – If you receive a notification about new credit accounts in your name, scammers may be using your identity.

✅ Missing mail – If your mail suddenly stops arriving, scammers may have changed your mailing address to prevent you from receiving warnings.

✅ Notice from the county clerk – If you get a notification about a change in property ownership, take it seriously and verify it.

✅ Strange calls or letters – Be cautious of calls or letters regarding financial matters related to your property that you didn’t initiate.

How to Protect Yourself from Home Title Theft

While this crime is rare, taking proactive steps can reduce your risk significantly. Here’s how you can protect yourself:

1. Freeze Your Credit

A credit freeze prevents scammers from opening fraudulent accounts in your name. You can request a credit freeze from the three major credit bureaus:

TransUnion
Equifax
Experian

Once your credit is frozen, lenders cannot approve new loans using your identity.

2. Get Homeowner’s Title Insurance

Homeowner’s title insurance is a one-time purchase that protects you from fraudulent claims on your property title.

If someone claims ownership of your home before you purchased it, title insurance covers the cost of legal defense.
If you’re buying a home, always ensure the title is clean and clear before closing the deal.

3. Monitor Your Credit and Property Records

Regularly check your credit reports and property title records to ensure there are no unexpected changes.

Check your credit report annually – You are entitled to one free credit report per year from each bureau.
Monitor your county recorder’s office – Some counties allow homeowners to sign up for alerts when their property title is changed.

4. Be Careful with Your Mail

Mail theft is one of the easiest ways for scammers to steal your information. Protect yourself by:

Using a locked mailbox to prevent theft
Opting for paperless statements from banks and lenders
Shredding documents containing sensitive personal information before disposing of them

5. Verify Any Suspicious Communications

If you receive a letter, email, or phone call about your home’s title or finances:

Never call numbers listed in emails or letters – Instead, contact banks and county offices directly using official numbers from their websites.
Be wary of phishing scams – Avoid clicking links in emails claiming to be from financial institutions.

What to Do If You’re a Victim of Home Title Theft

If you suspect your home title has been stolen, take immediate action:

1️⃣ Contact your county recorder’s office – Inform them about the fraudulent documents and request an investigation.
2️⃣ Report identity theft – File a report with the Federal Trade Commission (FTC) at www.IdentityTheft.gov.
3️⃣ Freeze your credit – Contact Experian, TransUnion, and Equifax to lock your credit.
4️⃣ Hire a real estate attorney – A legal expert can help you regain control of your property title.
5️⃣ Alert your mortgage lender – Notify your bank or mortgage company to prevent unauthorized transactions.

Final Thoughts: Stay Vigilant, Stay Protected

Home title theft is rare but serious. The good news is that you can take steps to protect yourself. Freezing your credit, monitoring your records, and securing title insurance are some of the best ways to prevent fraud.

If you ever suspect suspicious activity related to your home, act quickly to limit the damage. Your home is one of your biggest assets—keeping it safe should always be a priority.

If you have any questions or need guidance, feel free to reach out—we’re here to help!

Would you like another version of this article? Also, should I create social media posts for platforms like Facebook, Instagram, LinkedIn, and TikTok? Let me know if you’d like an email written to notify your database about this article! 😊

You said:

Please write an FAQ and a YouTube title and description

ChatGPT said:

FAQ: Home Title Theft – What You Need to Know

1. What is home title theft?

Home title theft occurs when fraudsters use stolen personal information to forge documents and transfer the ownership of your home to themselves. They can then take out loans, access equity, or even attempt to sell the property without your knowledge.

2. How common is home title theft?

While it is still relatively rare compared to other types of fraud, the rise in data breaches and online scams has made it more of a concern. Awareness and proactive protection are key to avoiding it.

3. How do scammers steal a home title?

Scammers typically:

Obtain your personal information through phishing, data breaches, or stolen mail
Forge property transfer documents
Fake a notary’s signature or bribe a notary
File fraudulent documents with the county recorder’s office

4. How can I tell if I’m a victim of home title theft?

Warning signs include:

Receiving loan statements or credit notices for accounts you didn’t open
No longer receiving mail at your home
Notifications from the county clerk about a change in ownership
Suspicious letters or calls regarding your home

5. How can I protect myself from home title theft?

You can reduce your risk by:

Freezing your credit to prevent unauthorized loans
Getting homeowner’s title insurance to protect against fraudulent claims
Regularly checking your credit report for suspicious activity
Monitoring property records for unauthorized title changes
Securing your mail to prevent identity theft

6. What should I do if I suspect home title fraud?

If you believe you are a victim of home title theft:

Contact your county recorder’s office to dispute the fraudulent title change.
Report the fraud to the Federal Trade Commission (FTC) at www.IdentityTheft.gov.
Freeze your credit with Experian, TransUnion, and Equifax.
Hire a real estate attorney to help restore ownership of your property.
Alert your mortgage lender to prevent unauthorized transactions.

7. Does homeowner’s insurance cover home title theft?

No, standard homeowner’s insurance does not cover title fraud. However, homeowner’s title insurance provides protection in case of fraudulent claims on your property’s ownership.

8. Can someone really sell my house without me knowing?

It is rare, but possible. If a scammer forges documents and manages to deceive an unsuspecting buyer, they could attempt to sell your home. However, if the buyer has title insurance, they will be protected, and legal action will be taken to correct the fraud.

9. Is home title monitoring necessary?

While not essential for everyone, title monitoring services can notify you of unauthorized title changes. If you have significant home equity or concerns about identity theft, these services may provide added peace of mind.