Home Purchase Guide
Brought to you by New Capital Finance
About New Capital Finance
New Capital Finance is a full service mortgage brokerage licensed in Colorado.
We specialize in quick closings and unparalleled customer service for borrowers with strong income, little debts, solid employment history, sizeable assets and good credit.
Purchase Programs
Table of Contents
Quick close conventional
Close in 21 days or less
3% minimum down payment for first-time homebuyers (Must be your own money or gift from blood relative; seller can pay up to 3% toward closing costs which are separate), 5% minimum down payment for existing homeowners
Tax returns, W2s, pay stubs, bank statements required with no issues (e.g. no overdrafts/NSFs)
$75k minimum loan amount
Strong income and assets required
Strong employment history required (e.g. no job gaps and must be working at least 40 hours/wk)
620 FICO required with no credit issues
FHA
Close in 30 days or less
3.5% down payment if credit score 580+ (Must be your own money or gift from blood relative; seller can pay up to 3% toward closing costs which are separate)
Tax returns, W2s, pay stubs, bank statements required with no issues (e.g. no overdrafts/NSFs)
Proof of 12 months’ rental history required
Strong income and assets required
Strong employment history required (e.g. no job gaps and must be working at least 40 hours/wk; OT only counted with 2 year history)
We work with credit scores down to 500! 10% minimum down payment required for FICO scores between 500-579
VA
Close in 30 days or less
0% down payment (Seller can pay up to 4% toward closing costs which are separate)
Tax returns, W2s, pay stubs, bank statements required with no issues (e.g. no overdrafts/NSFs)
Certificate of Eligibility required from VA
Proof of 12 months’ rental history required
Strong employment history required (e.g. no job gaps and must be working at least 40 hours/wk with stable income)
We work with credit scores as low as 500!
USDA
Close in 30-45 days
0% down payment (Seller can pay up to 6% toward closing costs which are separate)
Tax returns, W2s, pay stubs, bank statements required with no issues (e.g. no overdrafts/NSFs)
Rural Properties only; no urban areas permitted
Proof of 12 months’ rental history required
Strong employment history required (e.g. no job gaps and must be working at least 40 hours/wk with stable income)
640+ FICO required with few credit issues
Bank Statement
(Owner Occupied)
Close in 30-45 days (Higher rates & fees)
Business owners only with 2-year history
No Tax Returns, W2s, or 1099s required
12 months’ business bank statements required
Alternative documentation programs available (6 month or 3 month bank statement, P&L only, asset based, etc.)
640+ FICO required
DSCR Investor
(Non Owner Occupied Only)
Close in 21-30 days (Higher rates & fees)
Must have some sort of job title to list on the application (But we do not verify employment)
No Tax Returns, W2s, or 1099s required
Non-owner-occupied rental properties only
620+ FICO + 20% down + 6 months’ reserves
$200,000 minimum purchase price
Monthly rental income must be 25% higher than mortgage payment (including tax/ins/HOA fees)
Why Use Us?
Top 5 reasons to use New Capital Finance
We can close clean files in 21 days or less
Our rates and fees are lower than most competitors on the market
You will receive top-notch customer service
You can reach our staff 24/7 around the clock
We make the purchase and refinance process fun
First Time Homebuyer FAQ
How do I know if I’m ready to own a home?
While there is no single indicator that will confirm a person is ready for home ownership, there are a couple cues that will signal it could be your time. If you love the area that you’re living in and you’re planning to stay for a while, you may be ready to settle down and buy a home. If you’ve got a savings plan in order that is allowing you to pay down debt and save a little nest egg, you could be ready for the financial side of home ownership. Finally, if you’ve gotten to be pretty handy around the house, you could be ready for the maintenance that accompanies owning a home.
Why should I buy a home instead of renting one?
The real estate market is constantly changing, but the vast majority of the time it is more cost-efficient to buy a home rather than rent one. Think about it. When you buy, you are building equity through appreciation and paying down principal, which is investing in your own future. When you rent, you are paying someone else’s mortgage! There also are additional financial perks like tax deductions come along with owning a home.
How do I know how much home I can afford?
It is a good idea to start your home search by meeting with a mortgage broker, who can help you determine a range of home prices that you may be approved to buy in and issue a preapproval. Lenders will consider how much a buyer makes, how much debt they have, any assets they own and their credit history before issuing a preapproval letter, which details the maximum purchase price, provided the client’s financial picture does not drastically change during the home-buying process.
How do I find the right lender?
When it comes to financing a home, it is a good idea to shop around for the best mortgage that fits your needs. As a mortgage broker, New Capital Finance has access to over 50 different wholesale lenders and we take care of this process of shopping for the best pricing and loan product for your individual scenario. No two mortgage applications are the same and this critical service that we provide will save you time, money, and headaches and ensure that you get the both get the best deal and have the most enjoyable experience possible in purchasing your home!
Am I able to buy a home with average credit and little or no money down?
This question is one reason that it is always a good idea to speak with a mortgage broker. In most cases, there are loan programs for nearly every homebuyer who is looking to get into the real estate market. A buyer’s credit score and down payment may impact the amount they are approved to buy or their financing rate, but we typically have mortgage options to meet most financial situations.
How much money do I need for a down payment?
The amount of money you’ll need to put down on a new home depends on the price of the home you select, along with the mortgage terms that you’re approved for. Different lenders offer different loan options that may allow a buyer to put as little as 3-5% down or even less. However, you may be subject to mortgage insurance during part or all of of your loan, which will add on to your monthly mortgage payment.
What is MI?
MI or mortgage insurance is something that lenders use to protect themselves against a buyer who defaults on their home loan. MI is money a buyer pays along with their principal and interest to reimburse a lender in case they default. For a more detailed explanation of mortgage insurance, please contact one of our brokers so we can give you specifics about the mortgage insurance on different types of loans and how this will affect your individual scenario.
What does a monthly mortgage payment cover?
When a first-time homebuyer is looking to purchase a home, it is important to realize that a monthly mortgage payment does not cover all of the monthly expenses that go along with home ownership. When we quote a monthly mortgage payment it covers the principal amount borrowed, homeowners insurance, property taxes, interest fees and mortgage insurance, if applicable. Monthly mortgage payments do not cover things like utilities, cable and internet service or homeowners association fees.
Do I need a real estate agent?
Technically, it is possible to buy a home without a professional real estate agent but it is not a good idea. As a buyer, enlisting the services of a real estate agent costs you nothing- the seller of the property you are purchasing is responsible for paying the agent’s commission. Not only have professional real estate agents received extensive training to help buyers, but they’re also up-to-date on current market conditions, real estate procedures and the closing process. A professional real estate agent has the expertise to represent a buyer while making an initial offer, negotiating on price and at any other time during the home-buying process. Due to the legal and financial ramifications of a real estate transaction it is always in a buyer’s best interest to seek the help of a reputable licensed realtor. If you are needing a referral for a great agent in your area, we are happy to connect you with one of our agent partners.
What happens during the closing process?
After buyers and sellers agree on a home’s price, the closing process begins and it typically lasts 30 days or less when you work with us. During this time, the purchase contract is drawn up and signed, financial documents are finalized, home inspections and appraisals are completed and all legal components of the transaction are squared away. On closing day, both buying and selling parties meet (often for the very first time!) to sign final documents and hand over the keys!
If you have other questions that were not answered here, please reach out to us! We would love to get you the information you are seeking and provide you with additional resources so you can make an informed decision regarding the purchase of your first home.
TFE Finance & Marketing
DBA New Capital Finance
NMLS# 1901157
DISCLOSURES
This document is strictly intended for informational purposes. This is not a commitment to lend nor is it an exhaustive list of guidelines.
Not all consumers will qualify for the lending products listed in this pamphlet. A full
application must be reviewed and underwritten to determine if a loan can be approved.
This information does not guarantee a loan for any specific consumer and this is not a commitment to lend funds.
Interest rates on some programs (I.E. down payment assistance, alt doc self-employed, no doc rental, etc.) are higher than traditional conforming loans.
TFE Finance & Marketing DBA New Capital Finance is licensed in Colorado (NMLS# 1901157).