FAQs.
If you have questions, we have answers! This section is dedicated to some common questions you may have about the mortgage process. To learn more, contact your local DRMC Loan Expert today!
If you have questions, we have answers! This section is dedicated to some common questions you may have about the mortgage process. To learn more, contact your local DRMC Loan Expert today!
The REALTOR you work with could be one of your most valuable resources. Unlike many real estate agents who are simply licensed by their state to do business, REALTORS have taken additional steps to become members of the local board of REALTORS and have agreed to act under and adhere to a strict Code of Ethics. Plus...
Source: REALTOR.com
A renovation loan is a first lien mortgage that allows you to purchase or refinance a home and finance repairs. One loan, one monthly payment.
Learn moreDon’t let non-traditional income prevent you from owning a home. Diamond Residential Mortgage Corporation is your trusted lender when it comes to alternative methods for income qualification. We can work with borrowers who often times have multiple streams of income, paid in lump sums, or are self-employed and absorb business expenses onto their personal tax returns.
Refinancing is like hitting the reset button on your mortgage. It means replacing your current loan with a new one—often to get better terms, lower your monthly payment, or pay off your loan faster. It can also be a way to tap into your home’s equity for big expenses, like consolidating debt or funding home improvements. Whether you're planning a remodel or just want to save money long-term, refinancing helps realign your mortgage with your financial goals.
With a fixed-rate mortgage, the interest rate stays the same throughout the life of the loan. With an adjustable-rate mortgage (ARM), the interest rate changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan are likely to change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
FHA requires a minimum of 3.5% down. On an FHA 203(k) loan, the minimum down payment required would be 3.5% of the purchase price plus total renovation costs.
Fannie Mae requires a minimum of 5% down in most cases. If you are a first-time homebuyer, you may be able to put down as little as 3%. For more information, contact a Diamond Residential Mortgage Corporation licensed Mortgage Loan Officer. The minimum required down payment would be 3-5% of the purchase price plus total renovation costs.
USDA offers 0% down financing options for home buyers of properties located within a USDA Eligible Area. In cases where the appraised value of the property exceeds the purchase price, USDA offer the unique ability to roll closing costs and pre-paids into the loan
Did you know that experiencing a short sale or foreclosure on your property could prevent you from purchasing a new home for up to 7 years? Diamond understands that being a homeowner today rather than years from now is important to you, your family, and your future. We can offer financing much sooner than you think. Speak with one of our experienced loan specialists and see how we can help you achieve homeownership today.
Think about your financial goals. Are you looking to reduce your monthly payments, pay off your mortgage sooner, or access cash for home improvements? If so, refinancing could be a smart move. Let’s chat about your situation, and we’ll see if it’s a good fit for you.
An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
Yes, as long as they are eligible repairs allowed by HUD on FHA 203(k) loans, Fannie Mae or Freddie Mac on conventional renovation loans, or USDA on USDA renovation loans.
ITIN mortgages are home loans available for individuals who do not have a Social Security number but have an Individual Taxpayer Identification Number (ITIN), allowing them to purchase a home and build equity in the United States.
There’s a whole menu of options! You can choose a rate-and-term refinance to adjust your interest rate or loan term, or a cash-out refinance to borrow against your home’s equity. There are also specialized options like the FHA Streamline Refinance, VA IRRRL, USDA Rural Refinance, and Renovation Loans. Each has its perks, depending on what you’re looking to achieve.
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Diamond Residential Mortgage Corporation can help you evaluate your choices and assist you in making the most appropriate decision.
Foreign National loans are a type of mortgage designed for non-US citizens who want to purchase or refinance a property in the United States.
With a cash-out refinance, you’re borrowing more than what you currently owe on your mortgage and taking the difference in cash. It’s a great way to fund big expenses like home renovations, college tuition, or debt consolidation. Just remember, you’re increasing your loan amount, so the key is to use that cash wisely.
For most homeowners, a monthly mortgage payment consists of three parts:
Most 1-4 unit properties are eligible for renovation financing, as long as the owner intends to reside in one of the units. Historical homes, modular homes, homes in a Planned Unit Development (PUD), townhomes are all eligible. Some condos may be eligible. For more information, contact a Diamond Residential Mortgage Corporation licensed Mortgage Loan Officer.
On conventional renovation loans, unfinished new construction homes may be allowed as long as they are at least 90% completed.
Second homes are allowed on conventional renovation loans.
Multi-unit homes are not allowed on USDA renovation loans
Manufactured homes are not allowed.
We can help when a not-so-perfect credit history prevents you from getting a mortgage. If you’ve been turned away by others for reasons such as lack of credit, low credit score, or history of late payments, speak with our experienced loan specialists and see if our alternative loan programs are right for you.
A fixed-rate mortgage keeps the same interest rate for the life of the loan, giving you consistent payments. An ARM, on the other hand, starts with a lower rate that can change over time. Refinancing lets you switch between the two based on what works best for you now and in the future.
The amount of cash that is necessary depends on a number of items. Generally speaking, you will need to supply:
It generally takes about 60 days to close a renovation loan. Oftentimes, the most lengthy task centers around your ability to find a contractor and obtain a bid.
Diamond believes in the power of real estate as part of a diverse investment strategy. We have loan programs that can make it easier to buy and sell investment properties so that you can focus on building your portfolios. That’s why real estate investors love working with us. Contact one of our knowledgeable loan specialists who can help guide you through our suite of investment solutions.
Absolutely! If you have an FHA loan, you might consider an FHA Streamline Refinance. It’s designed to make the process quicker and easier, with less paperwork and potentially lower costs. Plus, it’s a great way to lower your interest rate or adjust your loan term.
Whether you're buying a home or refinancing, you'll need to provide documents that verify your income, assets, debts, and property details.
Commonly required items include: Income Verification: Recent pay stubs, W-2s, and tax returns. If you're self-employed, profit and loss statements may be needed.
Asset Documentation: Bank and investment account statements (last two months, all pages).
Credit Information: Authorization for a credit report to assess your credit history.
Property Details: For purchases, a signed purchase agreement; for refinances, your current mortgage statement and homeowner's insurance policy.
Additional Documents: Depending on your situation, items like a divorce decree, bankruptcy papers, or proof of additional income sources may be required. For a detailed checklist tailored to your specific loan type, visit our Mortgage Loan Application Checklist.
You are responsible for selecting the contractor you wish to hire, but the contractor must meet all local and state requirements to perform the work. We will confirm they carry the proper liability insurance coverage and Worker’s Compensation coverage (if applicable). We will also confirm they hold any licenses or certifications required. We will check your contractor’s past customer, supplier, and trade references.
On FHA 203(k) loans, you may not be related to the contractor and the contractor may not be related to any other party to the transaction.
If you have a high debt-to-income ratio that does not qualify for a standard loan, if you want special loan features such as interest-only payments, or if you are looking to borrow above the conforming limit of $726,000 ($1,089,300 for one unit in High-Cost Areas) with limited down-payment funds, Diamond Residential Mortgage Corporation is here to help. Speak with one of our trusted loan specialists about our specialty products, and we will help guide you through the loan process.
The VA IRRRL, also known as the VA Streamline Refinance, is for veterans, active-duty service members, and eligible spouses. It’s a simplified process that lets you lower your interest rate or switch from an adjustable-rate to a fixed-rate mortgage. It’s all about making your mortgage more manageable.
Some self-help is allowed such as minor demo work, interior painting, installation of appliances, and clean-up. Speak with your Diamond Residential Mortgage Corporation licensed Mortgage Loan Officer for confirmation you can do some of the work.
Self-help or Do-It-Yourself (DIY) repair work is not allowed on USDA renovation loans.
The savings can be substantial! By lowering your interest rate, you could save thousands over the life of your loan. Let’s look at your current mortgage details and see how much you could save with a refinance.
On FHA 203(k) or USDA renovation loans, this is generally not allowed. The work as outlined in the bid needs to be performed after closing by the contractor who provided the bid during the loan process. If a health or safety issue arises during renovation, discuss the situation with Diamond Residential Mortgage Corporation.
On conventional renovation loans, you may be able to make minor changes to the scope of work. Clear any changes to the scope of work with Diamond Residential Mortgage Corporation first, otherwise, you may not be reimbursed for the extra costs
While there’s no strict timeline, it’s often recommended to wait at least six months and up to 12 months for certain cash out refinance options. This gives you time to build some equity and allows lenders to see a consistent payment history. However, if rates drop significantly, it might be worth exploring your options sooner.
You may terminate your contract with the contractor under certain circumstances. Before you do so, discuss the situation with Diamond Residential Mortgage Corporation. We will walk you through any steps you are required to take which may include giving the contractor advance notice and time to remedy any deficiencies.
Refinancing comes with costs like closing fees, appraisal fees, reestablishing tax and insurance escrow, and sometimes points to buy down your rate. But don’t worry—we’ll go over all the details upfront so you can weigh the costs against the potential savings.
Yes! If your home’s value has increased and you have enough equity (typically 20% or more), refinancing can help you eliminate PMI. That means lower monthly payments and more money in your pocket.
On average, refinancing takes about 30 to 45 days, but it can vary depending on your situation. We’ll keep you updated every step of the way, so there are no surprises.
Yes, you can! While a higher credit score may get you better rates, there are refinancing options available for those with lower scores. Let’s review your credit situation and find the best solution for you.
If you’re planning to move in the near future, refinancing might not be the best option due to the costs involved. However, if you’re planning to stay put for a while, refinancing could still save you money. We’ll help you weigh the pros and cons.
A no-closing-cost refinance rolls the closing costs into your loan amount or offers a slightly higher interest rate in exchange for no upfront fees. It’s a way to refinance without paying out of pocket, though it might mean a higher monthly payment.
Definitely! There’s no limit to how many times you can refinance, as long as it makes financial sense and there is a tangible net benefit to the refinance. Whether rates have dropped again or your financial situation has changed, it’s worth revisiting your options.
A rate-and-term refinance is all about adjusting your interest rate or loan term without taking out extra cash. A cash-out refinance, on the other hand, allows you to borrow against your home’s equity. We’ll help you decide which one aligns with your goals.
Even with a low loan balance, refinancing could be worth it if it lowers your interest rate, reduces your monthly payment, or helps you reach other financial goals. Let’s crunch the numbers together to see if it’s the right move.
An appraisal is an evaluation of your home’s value by a licensed professional. Most refinances require one, especially if you’re looking to tap into your home’s equity. It’s a key part of the refinancing process to ensure your loan is based on your home’s current value.
If you owe more than your home is worth, refinancing can be challenging but not impossible. Programs like HARP (Home Affordable Refinance Program) have helped homeowners in this situation in the past. Let’s explore your options together.
It’s simple—reach out to us! We’ll start with a conversation about your goals and review your current mortgage situation. From there, we’ll guide you through the steps to find the best refinancing option for you.
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