There is heaps of misinformation regarding U.S. citizen?s qualifications for homeownership but nothing holds truer than with undocumented immigrants. Acuity is here to disclose the facts and dismiss the myths.

Without documentation, immigrants don?t have acceptable forms of ID such as a SSN card, unexpired US passport, or US birth certificate required for a mortgage loan. Because of this, most mortgage lenders will claim there is no chance an undocumented immigrant can obtain a mortgage.

However, those lenders are wrong. It is possible for undocumented immigrants to qualify for a mortgage. Not all lending companies grant loans to undocumented immigrants, but it is possible and legal. It depends on the mortgage agency.

The identity of the immigrant is determined by using their taxpayer identification number, which is given out by the Internal Revenue Service to allow immigrants to pay US taxes without a Social Security Number or US citizenship. The next step is a credit check. The standard way of doing this would make things very difficult for someone without citizenship, which is why mortgage firms that lend to undocumented immigrants will often evaluate different areas. Banks inspect insurance, phone bills, and rent payments.

This method appears troublesome, so one might be asking why bother. The answer to that question is simply the amount of undocumented immigrants currently living in the United States. There are over 11,000,000, and many are dreaming of home ownership just like many Americans. Undocumented immigrants are a large untapped market with lots of potential earnings for bank lenders while allowing the opportunity to fulfill the American dream.

The interest rates on loans for undocumented immigrants are often higher than conventional loans due to the lax competition between choices. It?s often 7% rather than the current 3-4%, but many lenders offer a stable 30 year fixed rate.

While it?s true that there aren?t many mortgage lenders offering service to undocumented immigrants, the fact is changing swiftly as more and more lenders are starting to see the vast potential in this often overlooked population.

Acuity National Real Estate Solutions, LLC provides old-fashioned professional excellence with cutting edge technology necessary for optimized processes and smooth, speedy transactions. In today?s market, you need an agile title and closing partner that delivers with honesty and integrity. To learn more about Acuity?s services, contact us at (502) 238-7500.

At the recent American Mortgage Conference held this past September, a new, yet classic, type of mortgage was introduced. Referred to as the wealth building home loan (WBHL), many elements of the structure of this loan hearken back to an older time when lenders and borrowers were open and transparent and only agreed to loan terms they could understand and actually manage.

One of the key features of a WBHL is that, as opposed to a traditional home mortgage, a WBHL is repaid in 15 years, rather than 30 years. Thus, home equity is built faster, and actual home ownership is achieved in half the time.

WBHL allows many people, including first-time homebuyers and minorities, the ability to obtain an affordable loan that allows them to gain home equity faster, and unlike so many people, to truly own their home.

WBHL enables a higher percentage of monthly payments towards paying down the principal costs of the home. In the beginning, some 68% of a monthly mortgage payment goes towards paying interest on a traditional, 30-year home loan. Consequently, it takes much longer to pay down the debt, and even longer to see the proverbial fruits of one’s labors.

One drawback is that WBHL have stricter terms; however, they are still available to those with a wide range of credit scores. These loans also do not require incredibly large down payments, which can make home ownership prohibitive to some. However, nobody will be extended unreasonable sums of money with terms they cannot afford and barely understand.

One of the biggest reasons this is referred to as a “wealth building” loan is that when people actually own their home outright, they have more expendable income, assets, and overall wealth. With WBHL, homeownership is possible in just 15 years. For many, a 30-year loan means continuing to pay on the home even beyond retirement, taxing what can be very tight budgets in what are supposed to be the golden years. A paid-off mortgage allows for retirement to be golden indeed.

Acuity National Real Estate Solutions, LLC provides old-fashioned professional excellence with cutting-edge technology necessary for optimized processes and smooth, speedy transactions. In today?s market, you need an agile title and a closing partner who delivers with honesty and integrity. To learn more about Acuity?s services, contact us at www.ftgclosings.com/support.

Maintaining best practices for title insurance and settlement services ensures business manners remain in good standing with the state. The American Land Title Association (ALTA) regulations improve quality and professionalism but also have hefty implications. Acuity breaks down some of the new rules.

Obtain Appropriate License(s)

Maintain good standing with the state and comply with the regulatory department’s latest registrations and licenses required for your title insurance business. Establish applicable business licenses and maintain appropriate compliance with the requirements of ALTA?s Policy Forms Licensing.

Maintain Required Procedures and Controls in Writing

Escrow and trust accounts require written controls and procedures for electronic reconciliation and verification purposes. Appropriate escrow controls will help improve accuracy and meet the legal and consumer regulations required, eliminating the risk of losing client funds. Title and settlement companies may request the services of contractors to segregate trust accounting responsibilities.

The following procedures will help you fulfill this best practice:

• • Separating the maintenance of companies’, managers’, or employees’ operating accounts and escrow funds maintained as part of your fiduciary responsibility.

• • Documenting all outstanding file balances.

• • Ensuring that only authorized employees conduct relevant transactions. The company should set different authorization levels and annually update them. Employees who leave the company for any reason must be immediately removed as bank account signatories.
    Using federally insured financial institutions to maintain all escrow trust accounts, unless the beneficial owner directs otherwise.

• • Conducting background checks not only on potential employees but also on existing ones who have access to customer funds, every three years.

• • Conducting ongoing training for the employees who manage escrow accounting and funds.

ALTA’s best practices hoist the quality and professionalism of the title industry, protects consumers, and provides ongoing employee education. The benefits outweigh the consequences, but as to what extent, only time will tell. Acuity National Real Estate Solutions, LLC, provides old-fashioned professional excellence with the cutting-edge technology necessary for optimized processes and smooth, speedy transactions. In today?s market, you need an agile title and closing partner that delivers with honesty and integrity. To learn more about Acuity?s services, contact us at https://ftgclosings1.wpengine.com/support.