Tag: #homeloans

Chris Shumate – Fairway Home Mortgage Voted Best of Gwinnett 2025

Chris Shumate – Fairway Home Mortgage Voted Best of Gwinnett 2025

We are honored and excited to announce that Chris Shumate – Fairway Home Mortgage has been officially Voted Best of Gwinnett 2025 in the Financial Services category!

This recognition is especially meaningful because Best of Gwinnett is determined by community votes and customer support throughout Gwinnett County, Georgia. We are incredibly grateful to the families, homeowners, referral partners, and local supporters who made this possible.

👉 View the official winners list here:
https://www.guidetogwinnett.com/best-of/winners/2025/financial-services

What “Best of Gwinnett” Means

Each year, Best of Gwinnett, presented by Gwinnett Magazine, highlights outstanding businesses and professionals across Gwinnett, Georgia. The process includes:

  • Community nominations
  • Online voting by local residents
  • Verification and review by the Best of Gwinnett team

Being named among the best in Financial Services in Gwinnett County reflects not only professional excellence, but also consistent community trust and client satisfaction.

Serving Gwinnett County with Excellence

As a trusted mortgage lender in Gwinnett, Georgia, Chris Shumate has built a reputation for integrity, communication, and results. Through The Shumate Team at Fairway Home Mortgage, clients receive personalized guidance whether they are:

  • First-time homebuyers in Gwinnett County
  • Moving up to their next home
  • Refinancing in Georgia
  • Investing in real estate
  • Relocating to the Gwinnett area

Chris Shumate – Fairway Home Mortgage is committed to making the home loan process clear, smooth, and stress-free. Our mission is simple: help families confidently achieve homeownership in Gwinnett, GA and beyond.

Why Homebuyers in Gwinnett Choose The Shumate Team

The Shumate Team is proud to serve communities throughout:

  • Lawrenceville
  • Buford
  • Suwanee
  • Duluth
  • Dacula
  • Snellville
  • Peachtree Corners
  • And surrounding Gwinnett County areas

With years of experience in the Gwinnett real estate and mortgage market, Chris Shumate understands local trends, competitive financing strategies, and how to position buyers for success in today’s market.

Being voted Best Mortgage Company in Gwinnett 2025 reinforces our commitment to delivering five-star service every step of the way.

Thank You, Gwinnett!

To our clients, referral partners, real estate agents, friends, and family — thank you for voting and supporting Chris Shumate – Fairway Home Mortgage.

We do not take your trust lightly. This award belongs to our entire community.

If you’re buying, refinancing, or simply exploring your options in Gwinnett County, Georgia, we would love to help.

📞 Chris Shumate – Fairway Home Mortgage

📱 Phone: (404) 791-3155
📧 Email: chriss@fairwaymc.com
🌐 Website: http://www.chrisshumatefairway.com/

Let The Shumate Team show you why we were voted Best of Gwinnett 2025.

Your home journey starts here.

Using Your Tax Refund for a Down Payment on a Home

Tax season often brings a welcome financial boost. For many buyers, a tax refund can be the extra push needed to move from “thinking about buying” to actually becoming a homeowner. If you’re planning to buy a home in Georgia or anywhere in the Southeast, your tax refund may be a smart way to help cover your down payment or other upfront costs.

For many thoughtful, research-driven buyers, understanding how to use existing funds wisely is what turns uncertainty into confidence. When used strategically, your tax refund can move you from planning to purchasing much faster than you might expect.

Can You Use a Tax Refund for a Down Payment?

Yes—you absolutely can. A tax refund is considered an acceptable source of funds for a down payment and closing costs. Because the money is yours and easy to document through your tax return and bank deposit, it’s typically straightforward for lenders to verify.

Many of the first-time homebuyers I work with prefer clarity and transparency in the process. Using a tax refund checks both boxes—it’s simple, documented, and predictable. Buyers often apply their refund toward a down payment, closing costs, prepaid expenses like homeowners insurance, or even to reduce the loan amount.

How Much Do You Really Need for a Down Payment?

One of the most common misconceptions I hear—especially from first-time buyers who have spent years researching the market—is that you need 20% down to buy a home. That’s not true.

There are several loan programs designed to make homeownership more accessible:

Conventional loans may allow as little as 3% down for qualified buyers. FHA loans typically require 3.5% down. VA loans offer 0% down for eligible veterans and active-duty service members. USDA loans may also offer 0% down in eligible rural areas.

Understanding these options is key for buyers who value informed decision-making. When paired with a tax refund, many buyers find that the financial barrier to entry is much lower than they expected.

How Your Tax Refund Can Strengthen Your Buying Power

Even if your tax refund doesn’t fully cover your down payment, it can still play an important role in your overall strategy. Applying your refund thoughtfully can reduce the amount of money you need at closing, improve monthly affordability, or create a stronger financial profile for loan approval.

Some buyers choose to use part of their refund to pay down credit card balances. This can improve debt-to-income ratios and help create a more stable, confident mortgage application—something especially important for buyers who want proof and predictability before moving forward.

Important Tips Before Using Your Refund

Planning matters. I always recommend depositing your tax refund directly into your bank account so it’s easy to track and verify. Avoid large unexplained cash deposits, and hold off on major purchases—such as buying a car, furniture, or appliances—until after you’ve closed on your home.

For buyers who value structure and clarity, the best first step is a conversation. Talking with a mortgage professional early allows us to map out exactly how your refund should be used based on your loan options and long-term goals.

Buying a Home in Georgia and the Southeast

Homebuying isn’t one-size-fits-all. Loan programs, home prices, and assistance options vary by location. Buyers across Georgia, Alabama, Tennessee, Florida, South Carolina, and North Carolina may also qualify for state or local down payment assistance programs that can be combined with personal funds like a tax refund.

Working with a local mortgage expert who understands regional guidelines, documentation requirements, and market nuances can make the process feel far more manageable—especially for buyers who want facts, not pressure.

Turn Your Tax Refund Into a Long-Term Investment

For many first-time homebuyers, the decision to buy isn’t about rushing—it’s about feeling confident, informed, and prepared. Instead of spending your tax refund on short-term expenses, consider using it as an investment in long-term stability and equity through homeownership.

A well-planned purchase creates clarity, builds wealth over time, and replaces uncertainty with confidence.

Ready to Explore Your Options?

If you’re thinking about buying a home and want clear answers—not hype—I’m here to help. I’ll walk you through your loan options, review how your tax refund can be used, and help you understand the numbers so you can move forward with confidence.

Whether you’re early in your research or ready to take the next step, a simple conversation can bring a lot of clarity. When you’re ready, let’s talk and see how your tax refund can help make homeownership a reality.

— Chris Shumate
Senior Mortgage Loan Officer | Fairway Home Mortgage

📞 (404) 791-3155
📧 chriss@fairwaymc.com
🌐 http://www.chrisshumatefairway.com

Follow for mortgage tips and updates:
📱 Instagram | Team Instagram | Facebook | 🎥 YouTube

What Happens After You’re Pre-Approved for a Mortgage

Pre-Approval Is a Big Milestone — Here’s What Comes Next

Getting pre-approved for a mortgage is a huge milestone—and one I love celebrating with my clients. It means we’ve reviewed your financial information and confirmed what you can comfortably afford, whether you’re buying a home in Georgia, Metro Atlanta, or anywhere across the Southeast. That said, pre-approval isn’t the finish line. It’s the starting point of the homebuying journey. Knowing what happens next can help you feel confident, prepared, and in control as you move toward closing day.

Start Your Home Search with Confidence

Once you’re pre-approved, you can confidently begin your home search within a clear price range. This is where having the right real estate agent makes a big difference. Across Georgia and the Southeast, markets can move quickly, and your pre-approval shows sellers that you’re serious, qualified, and ready to move forward. In competitive areas like Metro Atlanta, Gwinnett County, and North Georgia, this can give you a real advantage when submitting an offer.

Make an Offer and Negotiate

When you find the right home, your real estate agent will help you submit an offer that reflects current market conditions. This may include negotiations around purchase price, closing timelines, inspections, or seller concessions. Once your offer is accepted, the home officially goes under contract. At that point, my team and I move your loan from pre-approval into full underwriting to keep everything on track for closing.

Be sure to watch my short video below, where I walk you through this mortgage process milestone step by step and explain what to expect after you’re pre-approved and under contract on a home.

Under Contract On A Home? What Happens Next In the Mortgage Process

Complete the Loan Application

After you’re under contract, you’ll complete a formal mortgage application. We’ll request updated documentation to verify income, assets, and employment, which is a normal and important part of the process. It’s best to keep your finances steady during this time. Avoid opening new credit accounts, making large purchases, or changing jobs without checking with me first, as even small changes can impact your loan approval.

Home Inspection and Appraisal

Most contracts include a home inspection period, which allows you to identify potential issues and negotiate repairs if needed. Your lender will also order a home appraisal to confirm the property’s value supports the purchase price. This step protects you and helps ensure the loan aligns with current market value, which is especially important in fast-moving Georgia and Southeast housing markets.

Underwriting and Final Approval

Underwriting is where everything comes together. The underwriter reviews your loan file to ensure it meets lending guidelines. You may be asked for additional documentation during this stage, which is completely normal. Responding promptly helps keep the process moving smoothly toward final approval.

Clear to Close and Closing Day

Once underwriting is complete, you’ll receive the words every buyer wants to hear: clear to close. On closing day, you’ll sign your final loan documents, take care of any remaining closing costs, and receive the keys to your new home. Whether you’re buying your first home in Georgia or purchasing somewhere else in the Southeast, this is the moment it all becomes real.

Final Thoughts from Chris

Pre-approval gives you a strong foundation, but the key to a smooth home purchase is communication, preparation, and having the right mortgage team guiding you along the way. My goal is always to make the mortgage process clear, predictable, and stress-free so you can focus on finding the right home and enjoying the journey. If you’re pre-approved or thinking about getting started anywhere in Georgia or the Southeast, my team and I are here to help from the first conversation all the way to closing day.

📞 (404) 791-3155
📧 chriss@fairwaymc.com
🌐 http://www.chrisshumatefairway.com

Follow for mortgage tips and updates:
📱 Instagram | Team Instagram | Facebook | 🎥 YouTube

Georgia Homestead Exemption: What Homeowners Need to Know for 2026

If you’ve recently purchased a home in Georgia—or you currently own and live in your home as your primary residence—there’s an important tax benefit you should know about: the Georgia Homestead Exemption.

A large number of Georgia homeowners qualify for a homestead exemption but never apply. Even fewer understand how much this exemption can reduce their property tax bill each year. The good news? Applying is straightforward, and once you’re approved, the savings can continue year after year.

Below, I’ll walk you through what the Georgia Homestead Exemption is, who qualifies, how to apply, and key deadlines to know for 2026.

What Is the Georgia Homestead Exemption?

The Georgia Homestead Exemption is a property tax exemption that reduces the assessed value of your primary residence. When your taxable value goes down, so does the amount of property taxes you owe.

This exemption applies only to your legal residence, meaning the home you occupy as your primary home—not a rental or investment property.

For many Georgia homeowners, this is one of the simplest ways to create ongoing savings while building long-term home equity.

Where and When Do You Apply?

You must apply for the homestead exemption in the county (or city) where your home is located. Each county tax assessor’s office may require slightly different documentation and application forms.

Important Deadline

For the 2026 tax year, you must file your application no later than April 1, 2026.

If you miss this deadline, the exemption will not take effect until the following year—so timing matters.

Are You Eligible for the Georgia Homestead Exemption?

To qualify, you must meet the following requirements:

  • You owned the property as of January 1 of the year you are applying
  • The home is your primary legal residence
  • You occupy the property (it cannot be a rental or investment property)
  • You are not claiming a homestead exemption on another property, in Georgia or any other state

What If You’re Temporarily Not Living in the Home?

If you are temporarily away due to medical or health reasons, you may still qualify. In those situations, a family member or friend can contact the county tax commissioner on your behalf to assist with the exemption.

Get Your Documentation Ready

Once you confirm eligibility, gather the documents required by your county. While requirements vary, most counties request:

  • Property address
  • Homeowner’s name(s)
  • Parcel ID number
  • Proof of residency (such as a Georgia driver’s license)
  • Recorded deed (especially for new homeowners)

Always check with your local county tax assessor to ensure you have everything needed before submitting your application.

Filing the Application

Applications are filed directly with your county tax assessor or tax commissioner’s office. Some counties allow online filing, while others require in-person or mailed applications.

Here’s the good news:
Once your homestead exemption is approved, it typically automatically renews each year, as long as:

  • You continue living in the home
  • Ownership doesn’t change
  • The property remains your primary residence

If the home becomes a rental or your primary residence changes, the exemption no longer applies.

Types of Georgia Homestead Exemptions

Georgia offers several types of homestead exemptions depending on age, income, military service, or survivor status. Below are some of the most common options.

Standard Georgia Homestead Exemption

This is the most widely used exemption and applies to many homeowners across Georgia, including first-time buyers and long-term homeowners.

Exemption for Homeowners Age 65 and Older

If you or your spouse are 65 or older and your income was $10,000 or less in the prior year, you may qualify for a $4,000 exemption from all county ad valorem taxes. Certain retirement and Social Security income may be excluded when determining eligibility.

Disabled Veteran or Surviving Spouse Exemption

Disabled veterans may qualify for an exemption of $60,000 plus an additional indexed amount set annually by the U.S. Department of Veterans Affairs. Eligible surviving spouses may also qualify.

Surviving Spouse of a U.S. Service Member

An unmarried surviving spouse of a service member who died due to armed conflict or war may receive a homestead exemption from county, municipal, and school ad valorem taxes, subject to VA-determined amounts.

Surviving Spouse of a Peace Officer or Firefighter

An unmarried surviving spouse of a peace officer or firefighter killed in the line of duty may qualify for a full homestead exemption on the value of the home, as long as the home remains their primary residence.

For most homeowners, the standard homestead exemption will apply—but it’s always worth checking all options to ensure you’re receiving the maximum benefit available.

Final Thoughts

Owning a home is one of the most powerful wealth-building tools available—and the Georgia Homestead Exemption is a smart way to protect that investment and reduce annual housing costs.

If you’ve purchased a home recently or think you may qualify, I strongly encourage you to apply before April 1, 2026.

For the most up-to-date details and official guidance, visit the Georgia Department of Revenue here:
👉 https://dor.georgia.gov/property-tax-homestead-exemptions

Ready for the Next Step?

If you have questions about homeownership, refinancing, or how your home fits into your overall financial picture, my team and I are here to help.

Want to stay on top of your home’s value and equity?
Subscribe to our Homebot and receive a free monthly reports designed to help you build and manage your wealth with confidence:
👉 https://hmbt.co/2mt7k4

If you’re buying, refinancing, or just want clarity around your options as a Georgia homeowner, reach out anytime. Education and confidence always come first.

— Chris Shumate
Senior Mortgage Loan Officer | Fairway Home Mortgage

Fairway Changes Name to Fairway Home Mortgage

After 29 Years as Fairway Independent Mortgage Corporation, A New Era Begins…
I’m ecstatic to share that Fairway Independent Mortgage Corporation is now Fairway Home Mortgage. Same trusted team, with a bold new name! We’re still your go-to mortgage experts, just with a fresh look that reflects our commitment to helping our clients feel right at home.

Fairway’s founder and CEO Steve Jacobson remarked, “Changing our name to Fairway Home Mortgage reflects a fresh look, a renewed perspective, and a future-forward vision. The change is more than cosmetic – it represents our evolution, and our commitment to innovation, all while staying rooted in the values that have always defined Fairway.”

Read all about this new update in our press release.

So, whether it’s a first house or a forever home, let me show you how Fairway puts the “home” in home mortgage.

Chris Shumate

Loan Officer

404.791.3155

Chriss@home.com

Apply Online: http://www.chrisshumatefairway.com

Smart Strategies for Homebuyers in Today’s Market

Rate Buydowns Help with Affordability, but a Wide Portfolio of Mortgage Options Is the Ultimate Tool

Potential homebuyers today face more hurdles than in recent years. Many don’t have a large amount of cash to bring to the closing table, while others are focused on achieving a manageable monthly mortgage payment.

In an environment where mortgage rates have settled in the mid-to-high 6% range and inventory remains a concern in some markets, buying that first home or moving up with a growing family requires careful planning — and strategy. While this isn’t a one-size-fits-all process, The Shumate Mortgage Team at Fairway offers a wide variety of loan programs that are helping many buyers make homeownership happen.

It takes a savvy loan officer with a strong toolkit and market insight. At The Shumate Mortgage Team at Fairway, we understand that not every homebuyer is a “nail,” and not every mortgage is a “hammer.” Getting families into the homes they deserve requires a personalized approach, not a sales script.

One effective tool that’s gaining traction again is the interest rate buydown — a strategy that can help homebuyers ease into their mortgage payments in today’s higher-rate environment.

What Can an Interest Rate Buydown Do for a Homebuyer?

An interest rate buydown allows a homebuyer to temporarily lower their mortgage interest rate for one, two, or even three years. On average, a 1% drop in rate can save buyers anywhere from $200 to $300 per month. For example, on a $400,000 home, a 1/0 buydown could result in first-year monthly savings of $200–$300 — helping the buyer transition into their full monthly payment more gradually.

For buyers whose goal payment is $2,000 but who qualify at $2,200 or $2,400, using a 1/1 or 2/1 buydown can provide breathing room during the initial years of the mortgage.

Who Pays for the Buydown?

The buydown cost can be covered in several ways:

  • Paid by the buyer at closing
  • Negotiated into the contract and paid by the seller
  • Covered through a lender-paid promotional offer
  • Or a combination of the above

For example, if a 2/1 buydown costs $12,000, that amount could be requested in seller concessions to make the offer more affordable for the buyer.

When Is a Lender-Paid Buydown an Option?

Lender-paid buydown options may be available during promotional periods. For example, during National Homebuyer Month, The Shumate Mortgage Team at Fairway may offer a 1/0 buydown covered by the lender, helping clients ease into homeownership without additional upfront costs. These offerings vary by location, so it’s important to ask your Shumate Mortgage Team at Fairway mortgage advisor about any current programs.

Educating Real Estate Agents and Homebuyers

Buydowns have become more popular post-COVID, especially as mortgage rates climbed. While they were more common in the 1990s and early 2000s, today’s market volatility has brought them back into the conversation.

For many buyers, buydowns open the door to important affordability conversations. They help prospective homeowners better understand what kind of home they can afford and which financing strategies can help them get there. Qualification is always based on the full monthly payment, not the reduced initial payment.

What Kind of Buyers Benefit Most?

Buyers focused on a specific monthly payment often find buydowns beneficial. If cash to close is a bigger concern, other tools like down-payment assistance may be explored instead — or in combination with a buydown. With more inventory available and homes staying on the market longer, sellers may also be more open to negotiations, creating opportunities for concessions that help with affordability.

How Do You Know Which Option Is Right?

The Shumate Mortgage Team at Fairway offers a wide array of mortgage products to meet our clients’ needs. With many buyers today having limited cash reserves, the key is to find the right mix of tools to make the purchase possible — whether that means a seller-paid buydown, down-payment assistance, or a combination of both.

We work closely with each buyer to understand their needs and craft a custom plan that fits. By coupling seller concessions, loan program flexibility, and buyer education, we help more families reach the finish line of homeownership.

Which Buydown Options Are Most Popular?

From a cost and practicality standpoint, the 1/0, 1/1, and 2/1 buydowns tend to be the most commonly used. While a 3/2/1 buydown offers deeper initial savings, it can come with a steep cost — sometimes $20,000–$40,000 — which may be more than sellers are willing to contribute.

Final Thoughts

Today’s homebuyers deserve a loan originator who’s willing to put in the time and strategy to match them with the right tools. At The Shumate Mortgage Team at Fairway, we don’t take a one-size-fits-all approach. We’re solution-oriented, responsive to the market, and committed to helping our clients become homeowners — even in a challenging environment.

Whether it’s reducing your interest rate, minimizing your cash to close, or finding the right combination of both, we’re here to help make homeownership possible.

Contact us today.

Chris Shumate

Loan Officer /NMLS #627360

Direct: 404-791-3155

Email: chriss@fairwaymc.com

Apply Online: http://www.chrisshumatefairway.com

*Not all temporary buydown options are available for every product or scenario. Talk to your Fairway loan officer for more details. A 3 year (3/2/1) temporary rate buydown will reduce the note rate by 3% for the first year of the term, followed by a 2% reduction of the note rate for the second year of the term, followed by a 1% reduction of the note rate for the third year of the term, after which the rate will then revert back to the original note rate for the remainder of the term. A 2/1 temporary rate buydown will reduce the note rate by 2% for the first year of the term, followed by a 1% reduction of the note rate for the second year of the term, after which the rate will then revert back to the original note rate for the remainder of the term. A 1/0 temporary rate buydown will reduce the note rate by 1% for the first year of the term, after which the rate will revert back to the original note rate for the remainder of the term. **Eligibility subject to program stipulations, qualifying factors, applicable income and debt-to-income (DTI) restrictions, and property limits. Copyright©2025 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations may apply.

USDA Financing for Manufactured Homes Available Nationwide in March 2025!

Great news for homebuyers! Starting in March 2025, USDA financing will be available nationwide for manufactured homes, making homeownership more accessible and affordable. This expansion opens doors for buyers looking for quality, cost-effective housing with zero down payment options and competitive interest rates.

The Shumate Team at Fairway Independent Mortgage, is licensed in Georgia, Alabama, Tennessee, North Carolina, South Carolina, and Florida, and we’re ready to help you navigate the process. Whether you’re a first-time homebuyer or looking for an affordable housing option, a USDA loan could be the perfect fit.

Why Choose a USDA Loan for a Manufactured Home?
✅ Zero Down Payment – No need for a hefty upfront investment
✅ Low Interest Rates – Enjoy competitive financing options
✅ Flexible Credit Requirements – Making homeownership more attainable
✅ Available in Eligible Rural Areas – Many locations qualify under USDA guidelines

If you’re considering a manufactured home, now is the time to start preparing! Our team is here to guide you through the process and help you take advantage of this fantastic opportunity.

📞 Contact us today at 404-791-3155 to learn more and see if a USDA loan is right for you!

Chris Shumate

Sales Manager/ Loan Officer

678.541.5581   Office

404.791.3155   Mobile

chriss@fairwaymc.com

Apply Online: www.chrisshumatefairway.com

Download my app: https://mtgpro.co/fr1l0

3453 Lawrenceville-Suwanee Rd, Suite D | Suwanee, GA.  30024

NMLS #627360 | FIMC #2289

*Licensed in GA, FL, AL, TN, SC, NC

Financing for Self-Employed and Investors Made Easy

We have flexible loan options for buyers with a wide variety of income sources. Two loan products we are highlighting are Bank Statement loans and DSCR loans.

Bank statement loans for self-employed buyers. This program allows the use of deposit history to determine income. 12-24 month bank statements loans available.

DSCR (Debt Service Coverage Ratio) loans for investors buying or refinancing. This program allows for income qualification based on potential cash flow of the investment property. 1-4 units eligible.

Watch this short video for more information on these loan programs.

Contact us to learn more about these programs.

Chris Shumate

Loan Officer

NMLS# 627360

Direct: 404-791-3155

Email: chriss@fairwaymc.com

Apply Online: http://www.chrisshumatefairway.com

3453 Lawrenceville Suwanee Road

Suite D Suwanee, GA 30024

Refinancing Your Mortgage: Timing is Key to Maximize Savings

Watch this important message before refinancing your mortgage. Reach out to discuss your options and know when the time is right.

Refinancing Your Mortgage

Assumable Mortgage Loans

With the recent rise in mortgage rates some buyers might be interested in an assumable mortgage loan. Here is a little bit of info regarding the FHA and VA assumption requirements/guidelines:

The FHA assumption process follows the same format as a simple assumption of a creditworthiness assumption, this is a process that would be reviewed and facilitated by the current servicer of the loan.

Two assumption programs exist for FHA mortgages:
• The Simple Assumption – for mortgage insured by the FHA before December 1, 1986
• Creditworthiness Assumption– for mortgage insured by the FHA after December 1, 1986
A simple assumption is the simpler method between the two. There is almost no legalities involved when assuming an FHA loan insured prior to December 1, 1986. Basically, you only need to inform the FHA of the buyer’s intent to assume the mortgage. No credit checks necessary.

Contrary to the leniency on FHA loans insured prior to December 1, 1986, assuming an FHA mortgage insured after the said date can be a bit more stringent. To qualify, a buyer must meet the standards set by the HUD or the Department of Housing and Urban Development. The buyer is still required to pass the qualifying requirements for a mortgage. In addition, the lender must give consent to the process by stamping his or her approval on the assumption.
The credit review shall be completed within 45 days after the lender receives all the necessary documents. The review may consist of the following requirements:
• credit review– a review of the borrower’s credit and if the current mortgage is serviced by a Direct Endorsement (DE) approved lender
• secondary financing– a secondary form of financing may be allowed, provided that the repayment terms of the loan is clearly defined and included in the underwriting analysis
• seller contributions– cash contributions from the seller for the assumption is not allowed, although they can contribute to some of the costs of closing without reducing said amount in the mortgage

With regard to VA assumptions, if a loan is transferred to another qualified VA loan beneficiary, their entitlement takes over provided a Substitution of Entitlement (SOE) is obtained. The Substitution of Entitlement also referred to as Statement of Veteran Assuming GI Loan, is a form (VA Form 26-8106) that the qualified veteran buyer signs permitting substitution of entitlement for that of the veteran-seller. Without this certification, the entitlement utilized to purchase the home will remain tied up there until the loan is fully repaid. A Substitution of Entitlement is normally possible after the borrower who had the original VA loan assumed can present a Release Of Liability form from the original VA loan.

The new buyer would have to meet all VA eligibility requirements:
• The existing loan must be current. If not, any past due amounts must be paid at or before closing.
• The buyer must qualify based on VA credit and income standards.
• The buyer must assume all mortgage obligations, including repayment to the VA if the loan goes into default.
• The original owner or new owner must pay a funding fee of 0.5 percent of the existing principal loan balance.
• A processing fee must be paid in advance, including a reasonable estimate for the cost of the credit report.

The current servicer will be able to advise if the loan is assumable and then if so, provide the required documentation needed in order to proceed.

Approval from the VA may be required as well, however, the servicer will be able to advise of such.

We hope this is helpful and if we can assist, please let us know.