Movement Mortgage is the latest of countless mortgage lenders to offer a zero down alternative for prospective home buyers, referred to as the Mortgage Assistance Program, or MAP.
Before we have into the details of that loan program, let’s find out more about this growing mortgage company.
Who Is Movement Mortgage?
- A national direct lender
- That is licensed in 49 states
- With nearly 800 offices nationwide
- And an early NFL player is their CEO
If you haven’t read about Movement Mortgage, know that they’re a rapidly growing direct mortgage lender based out of Fort Mill, South Carolina, founded back in 2008.
What’s interesting with regards to the company is that they were founded during the housing crisis, basically right around the time home prices had begun fall after peaking a year or two earlier.
Their CEO is Casey Crawford, who played tight end to your Carolina Panthers and Tampa Bay Buccaneers, and won an extremely Bowl with the latter. So they’ve had a certain cachet.
They do about $13 billion in annual home finance loan volume and are now licensed in 49 states (the hottest being Hawaii) with 4,300 employees scattered across 778 offices.
What Does Movement Mortgage Offer?
- Fannie, Freddie, FHA, USDA, and VA loans
- High-balance and jumbo loans
- Renovation loans
- Reverse mortgages
- Zero down mortgages
Aside through the typical home loan offerings, including conforming loans and government loans like FHA, USDA, and VA loans, Movement recently launched a zero down loan option called MAP.
Like others before it, the MAP will trust in a 3% grant that doesn\’t ought to be paid back by the borrower.
It combines that 3% grant by using a 97% LTV mortgage backed by Fannie Mae or Freddie Mac, presumably. I recently know it\’s conventional financing, not FHA along with other government stuff.
This is similar to the Quicken Loans 1% down option, though rather than a 2% grant, you get 3%. Seeing that you don\’t have to pay it back, you might as well have the full 3%, eh?
Three other big banks offering zero down financing include BBVA Compass because of their HOME loan program, BancorpSouth with their [email protected] loan program, and Fifth Third using Down Payment Assistance Program.
What\’s increasingly becoming clear is that lenders are accommodating include those with little or nothing set aside for put in, a top concern for would-be buyers.
It\’s a bit of frightening given home prices have ascended returning to old heights, and in some cases, new heights. But a minimum of underwriting is, well, actually being conducted currently.
MAP Available to First-Time Buyers
- Key requirement is being a first-time home buyer
- This generally means no ownership before 3 years
- May allow credit scores as little as 620
- 3% down payment comes in the form of a grant
As chances are you\’ll expect, there are some rules regarding Movement Mortgage\’s MAP, perhaps the most essential that you be a first-time home buyer. That will mean no ownership during the past three years. Sorry investors.
Additionally, Movement notes that you must meet certain income and asset criteria, which can be apparently based on need and median limits in the community you wish to purchase.
Other than that, it appears to be pretty straightforward and even based on Fannie and Freddie\’s flexible 97% LTV underwriting guidelines, which can allow credit scores as low as 620.
As far as property type, you\’re likely considering single-unit principal residences only, including condos.
And as noted, you won\’t need a down payment thanks to that 3% grant. Movement Mortgage says doesn\’t necessarily need to be repaid, nor does it result in a second lien or promissory note.
But I assume there is some requirement to be in the property (or at least the mortgage) for quite a few reasonable period of time to prevent flipping.
It\’s resembles you\’ll also be on the hook for mortgage insurance, because as I\’ve said before, unless you put down 20%, you\’re paying PMI.
In terms of mortgage rates, you might get stuck with a higher-than-market rate a result of the flexible financing terms, though it could still be quite competitive. Technique know for sure is to comparison shop.
There\’s also reference to benefiting from homeownership education, therefore it sounds like you might need to take an application to qualify for the zero down financing at the same time. Of course, there\’s no harm in educating yourself on homeownership.
The program also is included with voluntary job-loss insurance coverage, assuming about to catch self-employed.
This benefit covers as many as six monthly mortgage payments due to involuntary unemployment. Maximum benefit is $1,500 a month, or $9,000 total covering the coverage period.
Movement Mortgage is licensed in 49 states, meaning you will find a good chance you\’ll be able to work with them.
Aside using this new program, they also offer VA, FHA, USDA, home equity, and renovation loans.
Founded in 2008, right after/during the housing crisis, they mustered $7.83 billion home based loan volume in 2015, that is roughly one in every 75 home purchases in the us.
Their goal is to underwrite and process 70% within their loans in just seven trading days with the help of their digital EasyApp experience.
Movement Mortgage MAP Guidelines
- 100% financing
- 3% grant offers you instant equity
- doesn\’t need to be paid back
- conventional financing (likely backed by Fannie or Freddie)
- must turn into a first-time buyer
- must be owner-occupied residence
- home buyer education might be required
- optional job-loss mortgage protection coverage available
Final Exactly what it Movement Mortgage
- Seem to be a young company with fresh ideas
- Plenty of technology like the EasyApp
- Their CEO is big on customers eliminating their loans
- Instead of accumulating more debt
While they’re a rather new player in the mortgage space, they appear to be appealing to the youth because of their technology and energy.
Heck, their CEO Casey Crawford just turned 40, so it’s clear they’re likely to do well with Millennials and Generation Z.
Their EasyApp was designed to let borrowers complete their loan application on just about any device, and they’ve got the technology in place to link bank accounts and other financials, similar to Rocket Mortgage.
Crawford also recently claimed how they take interest in borrowers repaying their home loans, instead of agreeing to more debt.
Apparently they discourage folks from refinancing from your 30-year loan to another 30-year loan, which is known as resetting the clock. But they also advertise spend refis on their website, so take it how we want.
They’ve already done a great deal in a short amount of time, and Movement Mortgage says it’s on pace to advance one in 10 homes purchases nationwide through the year 2025, so it’s clear they\’ve already lofty ambitions and be prepared to be a household name.