Commercial Mortgage Refresher Course

Mortgage loans can be confusing, but that’s why we created a free online course to help you get clear on the loan process and make your decision. Our in-depth course covers all the basics, including what's involved in getting a mortgage, choosing the right loan for your needs and income, qualifying for a mortgage, understanding rates and fees and calculating costs.

This Mortgage Refresher course is great for existing borrowers who need help understanding their options or who want to brush up on their skills before applying for new loans.

The course also covers closing costs, prepaying a loan, Reverse Mortgages and refinancing. For seasoned borrowers who have questions about the mortgage process or want to refresh their knowledge before the next time they apply for a loan.

You’ll learn about the different types of mortgages including:

1. Conventional Loans – The most common type of mortgage, available to borrowers with good credit and a steady source of income. Conventional loans are the most widely used loan program in the United States.

2. FHA Loans – A low downpayment option for borrowers with less than perfect credit scores. This loan is backed by the Federal Housing Administration and designed for low to moderate income families and individuals as well as first time home buyers. The interest rate is typically lower than a conventional loan and there are no private mortgage insurance (PMI) premiums required if you put less than 20% down on your property.

3. VA Loans – are offered to borrowers with a satisfactory credit score and can be used by veterans with disabilities.

4. USDA Loans – A low downpayment option for borrowers with less than perfect credit scores. This loan is backed by the U.S. Department of Agriculture and designed for low-income families, as well as first time home buyers and certain military personnel (e.g., certain members of the military who have received a discharge other than dishonorable).

5. Fannie Mae Loans – Fannie Mae, a company created by the U.S. government's Federal National Mortgage Association (Fannie Mae) and the Government National Mortgage Association (Ginnie Mae), is dedicated to increasing homeownership for Americans. Fannie Mae provides guarantees for loans made by banks and other approved lenders and sellers of mortgages.

6. Freddie Mac Loans – Freddie Mac, the Federal Home Loan Mortgage Corporation, is a private company that was chartered in 1970 under the Federal Home Loan Bank Act to provide liquidity to the nation's residential housing market by purchasing mortgage loans on the secondary market in order to provide funds for lenders and other holders of home mortgages so they would be able to make more home loan loans available.

7. FHA Streamlined Refinance Program – This program allows home buyers to refinance mortgage loans with the FHA in order to reduce the total interest paid or principal balance, or for those with adjustable rate mortgages (ARM) you can make your monthly payments more affordable. It’s a streamlined process without the need for appraisal and tax documents when buying a new home.

8. Jumbo Loans – These loans have higher amounts than Fannie Mae Homepath Loans, as well as larger loan gap values, which are higher than 30%. They may not be eligible for the FHA Streamline Refinance Program while they are subject to HUD rules and regulations.

9. HUD Loans – HUD (the United States Department of Housing and Urban Development) is a government department under the U.S. Federal Government’s Executive Branch. HUD provides mortgage loans at below market interest rates to eligible income families so they can purchase homes that have less than a 30% loan-to-value ratio.

10. Purchase Money Mortgages – This type of mortgage is used to buy your home when you don’t have any equity in the home. As a borrower you are 100% guaranteed to receive a loan. This is also a good option for situations where you have cash on hand to put towards the down payment, closing costs, and prepaid items.

11. Construction Loans – A loan that is not used to purchase but is instead used to build your home upon purchase, which then becomes your primary residence once completed. This type of loan can be used with conventional as well as alternative financing options (e.g., FHA 203(k)) construction loans are usually for single-family homes or condominiums and may include combination loans or financing for both land and repairs/rehabilitation if needed.

12. Manufactured Homes – These are non-permanent structures built in a factory. These homes are purchased on wheels or trailers and placed on a permanent foundation. You may need to go through a financial lender to get the loan, but you can also finance this type of home with a mortgage broker or conventional lender (mortgage lenders who require an appraisal as well as proof that it sits on its own property).

13. Reverse Mortgages – Also called Home Equity Conversion Mortgages (HECMs), this is a type of loan that allows senior citizens over 62 years old to tap into their home equity for retirement income by using the equity in their home as collateral for the loan. This can be accessed through the U.S. Government's Veterans Administration, the Internal Revenue Service (on IRS Form 8282) and through private investment banks.

14. Refinancing – Refinancing is the process of taking out a new mortgage on top of your old mortgage to pay off the existing loan or make new payments to replace past due amounts. There are two types of refinancing: A refinance is a replacement of your existing loan with an additional new loan. A cash-out refinance is used to replace your current, existing loan with cash that you are able to put towards another home or investment property.

15.

Conclusion

Canada Mortgage and Housing Corporation (CMHC) is an independent crown corporation, established in 1970 to build, maintain and liquidate Canada's social housing. CMHC's mandate is to contribute to Canada’s economic development by building and maintaining adequate affordable housing for Canadians.

"The Acquisition of Mortgage Loans"

Mortgage loan acquisition is the process of purchasing a mortgage loan from a financial institution or "originator" with the intention of repurchasing it at a future date at a profit. In some cases, this may also be used as a process for disposing of unwanted mortgage loans for various reasons or strategies; however, this can be quite risky since the proceeds from attempting this are unknown.