The Money Source Mortgagee Clause

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We are happy to announce the completion of our servicing system conversion. An overview of new features and functions can be found here.

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2. Frequently Asked Questions

Frequently Asked Questions

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New Customer

Your account number can be found in your Welcome letter and the first page of your monthly mortgage statement.

Once you've completed your My Account registration, you can:

• Make online payments
• Set up automatic, recurring loan payments free of charge
• Review your loan statements and payment history
• View and download PDF files of your monthly statements
• Cancel your mailed statements and switch to eStatements
• Schedule Account Alert emails

No. Your terms will not change from being transferred from another Lender.

Your payment may change if it includes amortized ancillary fees or optional insurance products, such as life or disability insurance payments. Ancillary amortized fees may be placed into non-amortizing fees and any optional insurance will not be transferred to Caliber. For optional insurance, you will need to contact your insurance company or agent to set up new payment arrangements.

Caliber is committed to ensuring that sensitive customer information is protected and secure.

1. Select the hyperlink in your Email to get started
2. Enter your Email address and click next
3. Type your temporary password from the second Email you received
4. Set your permanent password
5. CHLSecureMessaging@CaliberHomeLoans.com with issues

Please include your loan number on all correspondence.

Note: See the Secure Email Steps doc for more detailed instructions.

Payments

Delays can occur depending on the way your bank sends your online bill payment to us. There are three ways that your bank may do this.

1. The funds are immediately withdrawn from your bank account and a check is mailed to Caliber. Caliber will post the funds to your loan within 24 hours of receipt. However, since the check was mailed, there is a delay due to mail time between when the funds were withdrawn from your bank account and when they post to your loan.
2. A check is mailed by your bank to Caliber and funds are withdrawn from your bank account after it is deposited by Caliber. Again, mail time can delay the receipt of the check by Caliber.
3. An ACH is sent (which means no check is sent) and funds are sent to Caliber electronically and posted to your account upon receipt.

Watch the video that explains the process of how your online bill pay payment works:https://vimeo.com/250651249

Caliber Home Loans  PO Box 650856  Dallas, TX 75265-0856

Watch the video that explains the process of how your online bill pay payment works: https://vimeo.com/250651249

You have several options for making your next loan payment, which will not affect the recurring payments you've scheduled. You can:

• make a single online payment
• mail in your next payment
• pay by phone via our automated phone system
• pay by phone with one of our friendly customer service agents

Credit cards are not accepted by Caliber. We accept payments from your bank account or debit card, or a mailed money order or cashier's check.

You can set up free recurring payments online through your preferred bank account.

You have three options for making monthly loan payments:

• Log in and pay online using your bank account or debit card
• Mail a check or money order to Caliber Home Loans, PO Box 650856, Dallas, TX 75265-0856
• Call Customer Service at 800-401-6587

You can choose from several convenient payment options, including:

One-Time Monthly Payments from your bank account or debit card:

• Your payment will be automatically withdrawn and will post to your account on the date you specify. One time bank account drafts can be transacted as a same day posting and can be scheduled up to one week in advance.

Recurring payments from your bank account:

• Monthly Payments:
  You must be current in order to enroll in this draft frequency. Select one date each month that your payment will be drafted. With this option, you may include an additional principal amount to draft with your payment each month. In order to ensure a late fee is not assessed to your account, your monthly draft dates cannot exceed your contractual due date plus the number of grace period days allowed on your account. For Example: If the due date is the 1st and your account has a 15-day grace period, the draft date may be any date between the 1st and the 16th of the month. If no draft date is chosen, Caliber will set the draft date to be your contractual due date.

Yes! Write your Caliber account number on a check, cashier's check or money order payable to Caliber Home Loans and send it to the address below. Please allow seven to ten days  for your payment to arrive.

Caliber Home Loans, Inc. P. O. Box 650856 Dallas, TX 75265-0856

Yes, Caliber offers two pay by phone options:

1. Our Automated Payment Line is available 24/7 at 800-401-6587 . Please be sure to have your account number available when calling. Please note that payments made after 9:00PM CST will post the next business day.
2. Call and speak to one of our friendly Customer Service Agents at  800-401-6587 during our business hours. Please note that payments made after 9:00 PM CST will post the next business day.

Caliber does not charge a fee for making a payment. You can pay in your preferred method, online, through our automated system or with a Customer Service Representative with no charge.

Here are details of each portion of a typical loan payment:

Principal:  This is the portion of your payment that gradually reduces the balance that you borrowed.

Interest:  The interest you pay is the cost of borrowing money. If you have a fixed-rate loan, this will not change unless you refinance. If you have an Adjustable-Rate Mortgage (ARM), your loan's rate will adjust up or down at scheduled times – in accordance to the terms of your note.

Taxes:  Most loans require an escrow account and will collect one-twelfth of your annual property tax amount in this account with each mortgage payment.

Insurance:  Since your annual homeowner's or hazard insurance premiums are only paid once a year, they're considerably larger than most monthly bills. An escrow account that's attached to your loan makes your tax and insurance premiums easier to manage as you pay 1/12th of each bill every month.

Mortgage Insurance:  This is different than homeowner's insurance, and is usually due if you bought your home with a small down payment. This is because most loans with less than 20% equity require Mortgage Insurance, or MI to protect your lender in case of default.

Depending on your loan, you may have up to 15 calendar days to make a monthly payment without incurring a late charge. Refer to your loan's Closing Disclosure for details of your loan's grace period, and how late fees are calculated.

Online Payments:

• M-F before 10 PM CST: Same Day
• Sat/Sun or after 10 PM CST: Next Business Day

Mailed Payments:

• Delivered before 12 PM (noon) CST: Same Day
• Delivered Sat/Sun or after 12 PM (noon) CST: Next Business Day

Phone Payments (IVR or CSR):
Please note that payments made after 9:00 PM CST will post the next business day.

• M-F Before 9 PM CST: Same Day
• Sat/Sun or after 9 PM CST: Next Business Day

Escrow

Escrow is an odd term, but it's easy to understand. At Caliber Home Loans, we use escrow accounts to make your life simpler and to protect you from sudden, unexpected large expenses. Here's how it works.

Your mortgage loan finances the actual purchase of your home. However, as the homeowner, you must cover other costs in addition to the mortgage itself. That's why almost every mortgage loan comes with an escrow account. Think of it as a sort of savings account to make sure you can cover those additional costs.

What are those other costs? There are two:

• Property taxes as required at the state and/or federal level.
• Insurance, including homeowner's insurance and/or mortgage insurance.

Your monthly Caliber Home Loan payment consists of payment on the principal of your loan and interest charges, plus, in most cases, payment into your escrow account. The escrow portion of your monthly payment is calculated to include the funds needed to pay for taxes and insurance when they come due. These tax and insurance payments happen automatically. You do not have to keep track of these items. All you do is make your monthly mortgage payment and everything is taken care of. When the tax and insurance bills come due, your lender pays them on your behalf from the escrow account.

We establish your escrow account at the time you close your loan. Your escrow account does not require any costs that you would not otherwise have to cover as the homeowner. The escrow account makes sure you do not miss critical tax or insurance payments. In fact, the escrow account will protect you from late fees, liens on your property, or even foreclosure. And by paying into your escrow account a little each month, you avoid having to produce one big lump sum at the time the bills are due.

Sometimes, the escrow portion of your monthly payment will change. This occurs when property tax rates or insurance premiums fluctuate from one year to the next. We will conduct an analysis each year to make sure that you are paying in enough to cover the bills. Any surplus at the end of the year is applied to the next year's expenses.

Your escrow account begins with an upfront balance when you close your loan. Part of your closing will likely be depositing money to cover the first year of taxes as well as the first six month of insurance premiums. Years later, you may have the option to remove your escrow account when your loan balance has dropped to below 80% of the home's value.

To summarize, an "escrow account" is a protection for your peace of mind. With expenses for taxes and insurance covered, all you have to focus on is that one monthly payment.

At Caliber Home Loans, we strive to make everything about your mortgage experience as simple and clear as possible. We always look for ways to streamline the process, eliminate paperwork wherever possible, and require as little of your time as possible. Our passion is for the homebuyer. We're here to navigate you to the best loan that works best for you so that you can savor the joy of home ownership.

In general, the short answer is yes.

Your escrow account is essentially a savings account set up to cover taxes and insurance costs related to the home you're buying.

There are two times you'll set up an escrow account:

• When making an offer on a home. This is a temporary account.
• When closing on the loan. This is a permanent account.

Escrow Account When You Make an Offer

When you make an offer, you will deposit earnest money into an escrow account. This is considered a "good faith" gesture that you are serious about your offer. This deposit is typically to between 1% and 5% of the purchase price. The deposit is intended to protect both you and the seller. After all, things can happen to throw the sale into question. For example, the home may not pass inspection or may not appraise for the asking amount. Or you may not be approved for financing or you have second thoughts and back out of the deal.

If the sale breaks down on your end, the deposit goes to the seller. If the sale breaks down on the seller's end, the deposit will be refunded to you. Usually, the sale goes through and the deposit money is applied toward your closing costs.

Escrow Account When You Close the Loan

When you close on your loan, the ongoing escrow account is set up to collect the funds needed each year to pay for property taxes and home insurance. Your monthly payment includes money dedicated to the escrow account and is calculated to save enough to cover the year's expenses.

You may not have an escrow account for the whole life of the loan, however. FHA and USDA loans require an escrow account for the life of the loan. Some loans give the homeowner the option of removing the escrow account once the mortgage loan balance has dropped below 80% of the home's market value. In that case, the monthly payment would be reduced as the funds would no longer be collected for taxes and insurance. However, the homeowner becomes responsible for paying those expenses in full and on time. In this scenario, the homeowner would need to make sure funds were on hand, including the large annual property taxes.

Although most conventional loans not federally insured do not require an escrow account, the lender may be allowed to require one. At Caliber Home Loans, we highly recommend one, as it makes managing expenses easier for you and protects you from having to cope with large annual bills.

If you made a down payment of less than 20%, you may be required to take private mortgage insurance (PMI). This protects you from certain late fees, liens against your property, and even foreclosure if you miss these specific payments. The account helps ensure the bills are paid on time and that you have sufficient funds to do so. Your escrow account may also gather funds during the year from your monthly payments to cover this additional insurance.

If You Don't Have an Escrow Account At Closing

If you do have an escrow account set up at closing, you will have to prepay the first year of property taxes plus six months' worth of home insurance premiums.

Whatever type of home loan you choose, we are here to help you understand all the steps involved and to navigate you through the process. All the jargon of the financial world can be confusing, but we will make it clear and help you make sound, responsible decisions.

An escrow account is an account that's set up to collect funds for paying your annual property taxes and/or homeowner's insurance premiums. Other items like mortgage and flood insurance may also be included.

Confused by escrow? Watch our videos to learn more about what your escrow account is for, and how often we review it. ESCROW EXPLAINED:https://vimeo.com/231872654

Many loans require an escrow account to help guarantee your taxes and insurance payments are always made on time. Escrow accounts also enable us to offer you competitive rates and reduce the possibility of your home's taxes or insurance from becoming delinquent.

• You won't have to pay your annual property taxes or Insurance premiums yourself! Caliber will take care of this for you.
• Easier, month-to-month payments toward your annual property taxes and insurance premiums. Instead of having to produce the entire payment when due, an escrow account only requires you to pay 1/12 of these costs each month, plus any cushion amount required on your loan.

Typically, the funds in an escrow account pay for:

• Property taxes
• Homeowners/Hazard insurance premiums
• Mortgage insurance premiums if required
• Flood insurance premiums if required
• Condo unit owners' insurance if required

An escrow account doesn't pay:

• Interim tax bills, supplemental tax assessments, or any other fees that are not included in your property tax bill
• Homeowners' Association (HOA) fees
• Premiums for coverage such as personal property insurance
• Utility bills

Your escrow payment is calculated based on the most recent tax and insurance payment information available on your loan. The annual tax and insurance amounts are added together and then divided by 12 to determine the monthly escrow payment. If your escrow account does not have sufficient funds available, a monthly shortage payment may also be added to the escrow payment.

If your property tax payment or insurance premiums change then your escrow payment will also change.

An escrow cushion is money collected to cover any unanticipated disbursements or payment increases. Federal and State guidelines may determine the amount of the cushion which is usually equal to 2 months of escrow payments.

Caliber reviews your account annually to make sure you can cover your property taxes and insurance premiums along with the escrow cushion. This review goes over the deposits and expenses for the previous year and projected activity for next year.

A shortage is any time your projected escrow balance is less than the allowable escrow cushion.

If you have a shortage, it will automatically be spread over 12 months and added to your new monthly escrow payment. You can also pay the shortage in full. Please note: Your payment may still increase due to a change in either taxes or insurance premiums even if the shortage is paid in full.

An escrow surplus is any time your projected escrow balance is more than the allowable cushion.

A surplus less than $50 will remain in your escrow account.

A surplus greater than $50 will be mailed to you in the form of a check if your loan is current in status when the escrow analysis is completed.

Yes. Deposit your escrow surplus check into your own account first. When making your next monthly payment, add the surplus funds for your escrow.

**For your security, please do not endorse the check to return it. This incurs risk if the check is lost or stolen before it is delivered to Caliber Home Loans.

If you are set up on recurring draft with Caliber Home Loans, no action is needed on your part! The new amount will automatically be taken from your account.

Because your bank isn't aware of the change, you will need to adjust future payments within the bill pay service.

To request that we cancel your escrow account, print and complete theEscrow Removal Authorization Form.

1. Submit online by logging into your online account and upload the completed form through your Account Management/Message Center.
2. Mail us at Caliber Home Loans, Inc., Att: Escrow Department, P.O. Box 268, Springfield, Ohio 45501

Remember to include your account number and the signatures of all borrowers on your loan. Please allow 30 days from the date of our receipt to receive a response letter.

To request an escrow account, you can:

Print and complete the Escrow Agreement Form

• Submit online by logging into your online account and upload the completed form through your Account Management/Message Center.
• Mail the completed form to us at Caliber Home Loans, Inc., Att: Escrow Department, P.O. Box 268, Springfield, Ohio 45501

Please allow approximately 45 days to process. Once approved, Caliber will inform you of your monthly escrow payments by mailing you an Escrow Analysis Statement.

Caliber reviews your escrow account at least once a year, although additional out of cycle analyses may be completed.

If you have surplus funds in your escrow account, Caliber will issue a check for your escrow balance within 30 days of the loan paying off.

Your escrow payment is calculated based on the most recent tax and insurance payment information available on your loan. The annual tax and insurance amounts are added together and then divided by 12 to determine the monthly escrow payment. If your escrow account does not have sufficient funds available, a monthly shortage payment may also be added to the escrow payment.

If your property tax payment or insurance premiums change then your escrow payment will also change.

No. Caliber is required to set up a new escrow account for your new loan.

No. Caliber is required to set up a new escrow account for your new loan.

Your loan can be analyzed more than once on an annual basis. Below are several examples of reasons why this may occur:

1. Caliber recently acquired your loan
2. Anniversary analysis
3. State analysis
4. Change in your annual tax and/or insurance amounts or due dates
5. Shortage spread extension request
6. Escrow was added to your loan
7. A tax or insurance refund was received
8. Completion of a loan modification
9. Your loan was reinstated

Home Buying Fees

If you're a first-time homebuyer, closing costs may take you buy surprise. These are additional out-of-pocket expenses that cover of a number of fees involved in the mortgage loan process. Closing costs generally amount to from 2% to 7% of the home's purchase price. These expenses are on top of the sale price you negotiated with the seller.

Closing costs can include:

• Attorney fees
• Title search to determine if there are any liens against the property
• Title insurance to protect you and the lender if there are any lien claims
• Transfer taxes
• Appraisal for ensuring the home matches current market value and loan amount
• Home inspection, as required for loan approval
• Prepaid interest
• Prepaid private mortgage insurance (PMI) for down payments of less than 20%
• Cost of underwriting.
• Obtaining a credit report.
• Application and origination fees to cover time and paperwork in processing the loan
• Discount or mortgage points fees in exchange for a lower interest rate

Some of these costs are upfront, before the property is officially sold, while others are paid at the time when you close on the sale and the loan. You will also probably have to establish an escrow account to fund your tax and insurance payments. Usually, you will need to prepay the first year of property taxes and home insurance premiums at closing.

The seller also covers some closing costs, including:

• Sales taxes
• Title transfer fees
• Attorney fees
• Certain closing fees
• Realtor commissions

How to estimate what your closing costs will be.

There's no one-size-fits-all formula for estimating your closing costs. That's because the costs are set by state, county, and municipal authorities. These legal requirements can vary greatly. You can't assume the closing costs in one locale will be similar to those in a different community. Fortunately, you can get a good idea what yours will be by using an online closing cost calculator. Better yet, consult with a real estate agent or lender familiar with the area. Their local expertise can be very important.

Federal law requires lenders submit a closing disclosure at least three days before your closing. This disclosure will state the exact amount of the closing costs you are required to pay.

How to reduce your closing costs.

Most closing costs are unavoidable, but there are steps you can take to reduce them.

• Shop for title services, if possible. Title related fees, such as title searches and title insurance, can account for almost 70% of your total closing costs. Just as you shopped for the best lender, you can also shop for the best title company. Do some research and compare several title companies. It's possible you may save hundreds of dollars.
• Ask for the seller to pay some of your closing costs. In your negotiation with the seller, you could ask the seller to pay some your costs on closing day in exchange for adding those costs into the total purchase price. In other words, you pay less at closing but will pay a little higher monthly payment.
• Ask the lender to pay closing costs. Sometimes the lender will agree to pay some of your closing costs in exchange for a higher interest rate on your mortgage. You'll pay more interest, but you won't have to pay as much cash up front.

Just don't make the mistake of cutting corners. For example, don't skimp on owner's title insurance just to save money. This insurance protects you in case there is an undisclosed lien on the property or if the previous owners failed to pay the property taxes.

There's one other resource to help you plan for closing – your Caliber Loan Consultant. Our goal is to make buying a home as painless and uncomplicated as possible. We are committed to helping you navigate the process by providing transparent, honest, and straightforward service. Use our branch locator to find your nearest consultant.

No. If you have an escrow account, Caliber will pay your property taxes for you with the funds you've already deposited in your escrow account.

If your loan does not have an escrow account, you will need to arrange payment directly with your county or parish tax office/assessor.

Watch our video to learn more about property taxes. PROPERTY TAXES EXPLAINED:https://vimeo.com/268821373

Sometimes it will take several weeks for your tax assessor to inform Caliber that you've paid your taxes. If this happens, you can send us proof of your recent tax payment. This can be a copy of the receipt from your tax office, or a copy of both sides of your cancelled check.

Please write your account number on each copy before mailing it to:

Caliber Tax Department
P.O. Box 9203
Coppell, TX 75019-9210

You may also fax your proof of payment to 817-826-1258.

If you have received a tax sale notice, please contact the Caliber Tax Department at 844-815-6406. The department is open Monday through Friday from 8:00 AM to 7:00 PM CST.

Supplemental tax bills may be issued during your first year in your new home. These are issued when your property's new assessed value is higher than its previous value. These are not included in escrow accounts as they are not issued every year, so you will need to make arrangements to pay it.

If you can't pay your supplemental tax bill by its due date, please do one of the following:

1. Contact Caliber's Tax Department at 844-815-6406
2. Write your loan number on the supplemental tax bill and mail it to Caliber at: Caliber Tax Department P.O. Box 9209 Coppell, TX 75019-9218
3. Write your loan number on the supplemental tax bill and Fax it to us at 509-797-8974.

Login to your account and select the Payment History menu option to view online, or you can review your monthly statement for the disbursement. Tax payments generally take two to four weeks to post to your account after Caliber sends payment to your tax authority.

Mail:
Caliber's Tax Department
P.O. Box 9209
Coppell, TX 75019-9218
Fax: 509-797-8974

Please be sure to write your Caliber loan number on the exemption before sending it to us. If your exemption has lowered your tax bill by more than $500, we may send you a revised escrow analysis. Otherwise, your account will be analyzed annually according to our state schedule.

Call 844-815-6406 or fax correspondence to 509-797-8974.

Learn more about all fees and their descriptions here

HOA

Homeowners associations (HOAs) are organizations which deal with the upkeep of common areas and establish standards of acceptable behavior for the building or community. For example, HOAs may issue guidelines for lawn and garden upkeep, visitors, and pets.

Opting out is not an option. All homeowners must pay HOA dues and follow its guidelines and rules. If you're considering purchasing a property with an HOA, it's always a good idea to talk to other property owners if possible, so you'll know if you'll be comfortable living within its HOA.

Your HOA payments are not part of your escrow account. If you're having difficulties and would like a one-time disbursement for the delinquent HOA payments, send the delinquency letter with an explanation of your financial difficulties to:

HOA.Statements@caliberhomeloans.com

You may also mail these to:

Caliber Home Loans, Inc.
Escrow/HOA
1525 South Belt Line Rd
Coppell, TX 75019

Insurance

Contact our Loss Draft Department at 1-866-940-2335 to discuss details of your claim with one of our insurance specialists. They will be able to tell you how to handle the claim funds. You can also upload all of the required claim documents or track the progress of your claim by accessingwww.insuranceclaimcheck.com/calib.

Watch a short video about the Loss Draft Processhere!

Please contact the Caliber Insurance Department at 1-866-825-9268 Monday through Friday between 8:00 am to 7:00 pm Central Time, excluding federal holidays for assistance.

Once a bill is received from your insurance company, payment will be issued within 21 days of the due date. This time frame allows for mailing and posting by your insurance company for the new term. To view recent insurance payments made on your loan, follow the steps below:

To view recent insurance payments made on your loan, login to your account and select Payment History from the menu.

Write your loan number on your new insurance policy's declarations page and send it to Caliber Home Loans, P.O. Box 7731, Springfield, OH 45501-7731. You may also fax it to 937-525-4120 or update your insurance information online at:www.MyCoverageInfo.com/Caliber

This will depend on the payee on the check.

If the check is made out to Caliber Home Loans  and you have an escrow account, send it to Caliber Home Loans Escrow Dept., P.O. Box 650856, Dallas, TX 75265-0856. This will prevent a future escrow shortage and also informs us that you've switched insurance companies.

If the check is made out to you,  you may deposit it to your account. We recommend that you transfer these funds to your Caliber escrow account when making your next monthly payment to prevent a future shortage.

If you do NOT have an escrow account,  keep the refund! It's yours.

Your insurance company must provide you with a reason why your coverage was cancelled. You may contact your current insurer and ask that they reinstate coverage, or shop for new coverage from another insurer.

It's important that you renew your homeowner's insurance as soon as possible, as your home loan requires it. If your home becomes uninsured, Caliber will have to purchase insurance for you and bill you for it. Insurance purchased by a lender may be more expensive than your previous coverage, and may not provide you with your preferred level of coverage.

If you did not pay your insurance premium because you're having financial difficulties, please call Customer Service at 800-401-6587 to discuss your options.

Lender Placed Insurance (LPI) is insurance coverage obtained by Caliber on your property when your retail policy has canceled or non-renewed and Caliber has not received proof of insurance from your retail carrier. If you received a lender placed insurance notice from Caliber but have your own policy, please forward proof of insurance to Caliber. Write your loan number on your insurance policy's declarations page and send it to Caliber Home Loans, P.O. Box 7731, Springfield, OH 45501-7731. You may also fax it to 937-525-4120 or update your insurance information online at:www.mycoverageinfo.com/Caliber.

Watch a short video about the Lender Placed Insurance here!

This is a clause in an insurance contract that entitles an IDD mortgagee (Caliber Home Loans) to be reimbursed for damage or loss to the property. This protects your lender (Caliber Home Loans) so we can ensure the damage is completely repaired and the property is brought back to its original state. An insurance claim check will have two payees - Caliber Home Loans and the borrower - on the check.

Please use the following Mortgagee Clause for Caliber Home Loans:

Caliber Home Loans, Inc.
ISAOA/ATIMA
PO BOX 7731
Springfield, Ohio 45501-7731

Mortgage insurance is NOT the same as homeowner's insurance. Mortgage insurance makes it possible for lenders to offer financing with low down payments, as it protects them against non-payment. Your mortgage insurance costs may be added to your monthly loan payments, or you may pay it at closing.

If you have a conventional loan, you may be required to have private mortgage insurance (PMI), while FHA loans may require you to pay Mortgage Insurance Premiums (MIP). PMI and FHA MIP are paid monthly. USDA fee is paid annually.

PMI

If your mortgage is a single family, primary residence when the balance of your mortgage is first scheduled to reach 78% of the original value of the secured property (based solely on your initial amortization schedule), your monthly PMI costs will be removed from your loan. PMI also terminates automatically at midpoint of your contract terms as long as your loan is current.

Want to learn more about why you have Private Mortgage Insurance on your loan? View our PMI video for more. PMI EXPLAINED: https://vimeo.com/231872640

If you have a loan with private mortgage insurance, we follow HPA guidelines and will auto-terminate when your loan to value reaches 78% based on your original amortization schedule. However, you have the right to request PMI removal at any time.

If you have questions or would like to appeal your eligibility, please contact Caliber Home Loans at 1-800-401-6587 or send a written request to Caliber Home Loans Inc. PMI Department, P.O. Box 272556, Oklahoma City, OK 73137-2556. Please allow 30 days for us to complete our review.

The Homeowners Protection Act of 1998 requires Caliber Home Loans to send customers with PMI an annual written statement informing you of your right to cancel or terminate PMI.

USDA & FHA

The USDA Single Housing Guaranteed Loan Program is a type of mortgage loan created by the U.S. Department of Agriculture (USDA) to provide zero-down-payment and low interest guaranteed mortgage grants to low- and moderate-income home buyers in rural areas. This type of loan is also often referred to as a USDA rural development loan.

Background

The USDA launched the Single-Family Housing Guaranteed Loan Program in 1991 to extend affordable mortgage financing access to millions of low- and moderate-income families in rural areas. Over the years, the look, feel, and population growth rates of rural areas have changed. As a result, so have the requirements for borrowers to be eligible for the program.

Defining eligible rural areas

Eligibility for the USDA Single Family Housing Guaranteed Loan Program depends on what areas the USDA deems to be "rural." While the USDA originally created this program to provide low-interest homeownership opportunities to families in remote areas in the countryside as opposed to crowded cities and towns, the landscape has changed over time.

Population densities have shifted. People from highly-populated urban areas have expanded into what were once underpopulated outlying rural areas – blurring the line between what is defined as "urban" versus what is defined as "rural."

The USDA's qualifications for a "rural area" include at least one or a combination of the following characteristics:

• A population of no more than 12,000 people
• A population of 20,000 or less but not located in a metropolitan statistical area (MSA)*
• An area that may have lost its rural designation in the last U.S. Census, but the population still doesn't exceed 35,000 people, remains rural in character, and lacks mortgage credit for low- to moderate-income families

*A metropolitan statistical area (MSA) is classified by the U.S. Office of Management and Budget (OMB) as a region with at least one urban area with a population of 50,000 or more. It's also defined as a region with a city and additional surrounding communities linked by social and economic factors.

Mapping it

Location is key when checking your eligibility for a USDA single family housing guaranteed loan.

For example, imagine you want a loan to build a home in the small town of Azle, Texas. In the 2010 U.S. census, Azle recorded a population of only 12,000 people. This (along with other factors) made it small enough to meet the USDA's definition of "rural."

However, anyone familiar with the community knows it's been absorbed by the rapidly-expanding metropolis of Dallas/Fort Worth. After all, Azle is also only 33 miles from downtown Fort Worth. Commuters are increasingly flocking there because they find it an attractive and affordable real estate alternative. It's close enough to the urban hotspots but is still considered rural.

How can you find out if the property you're looking at is in an area that meets the USDA's criteria for this loan? Check the USDA map of eligible properties here.

Additional eligibility requirements

Location and population aren't the only eligibility factors for this loan program. Other main requirements include:

• Household income cannot exceed 115% of the median household income in the area
• Borrower must personally occupy the home as his or her principal residence (cannot be a second home or an investment property)
• Borrower must be a citizen, non-citizen national, or qualified alien

No down payment or credit score required

You read that right. There is no credit score requirement to secure this loan. You simply need to demonstrate readiness to take on a mortgage debt and the ability to manage it. In fact, you don't even need to make a down payment. This loan is so flexible, it can be structured to work with or without a down payment. It's designed to accommodate your financial situation.

Get the essentials

This loan can be used for essential household equipment including ovens, ranges, refrigerators, washers, dryers, a/c systems, and more. There is also allowance for repair work or site preparation costs such as driveways and fences. Luxury items, vanity projects, and unnecessary additions and projects are not covered in this loan program.

How we can help

You could qualify for all the benefits of a USDA single family housing loan and not even know it. Your Caliber Loan Consultant can help you discover if and where you qualify.

We offer one of the most extensive portfolios of mortgage products and services, including a treasure trove of expert experience, insider market knowledge, and up-to-date data to help every client find their best option.

Think you're eligible? Contact a Caliber Loan Consultant now to find out.

Your FHA MIP payments are included in your monthly loan payment.

UFMIP stands for Up-Front Mortgage Insurance Premium. This must be paid when your loan closes, although it can be added to your loan amount.

Our ability to cancel your MIP depends on several factors, including when it was originated, the amount of your down payment, your loan term, and your loan's current loan-to-value (LTV) ratio. In addition to the information stated below, there are more requirements that are needed for MIP termination.

If your loan was originated between January 1, 2001 – June 2, 2013  and

• if your loan term is greater than 15 years, then your monthly insurance payments will be cancelled when the LTV reaches 78%. This is calculated based on the original value of your FHA home loan and only if you have paid the annual MIP amounts for at least 5 years, or;
• if your loan term is 15 years or less, then your monthly insurance payments will be cancelled when the LTV reaches 78%. This is also calculated based on the original value of your FHA home loan.

If your loan was originated on or after June 3, 2013  and

• if your loan term is greater than 15 years and if your original down-payment was less than 10%, then MIP will be required for the life of the loan, or;
• if your loan term is greater than 15 years and if your original down-payment was more than 10%, then MIP will be cancelled after 11 years, or;
• if your loan term is 15 years or less and your original down-payment was less than 10%, then MIP will be required for the life of the loan, or;
• if your loan term is 15 years or less and your original down-payment was more than 10%, then MIP will be cancelled after 11 years.

Credit

We understand that you may be concerned about the impact of a late payment. Because the information we report to the major credit bureaus is required to be complete and accurate we are unable to make goodwill or courtesy adjustments.

A payment can be reported as 30 days past due if it is not received within the calendar month in which the payment is due. Although February only has 28 days, or 29 days in a leap year, if you do not pay February within the month, you can still be reported as 30 days past due.

Always be careful when making mortgage payments as the end of the month nears, especially on weekends. Be sure to allow time for your payment to post.

To get your free credit report or for more information, go to annualcreditreport.com. You are entitled to a free credit report every 12 months from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion)

You may dispute information that Caliber furnished by submitting a dispute directly to Caliber by one of the following:

• Call us: 800-401-6587
• Mail to: Caliber Home Loans, Inc
  P.O. Box 270415
  Oklahoma City, OK 73137
• Fax us: 405-608-2003

A payment can be reported as past due if it's received 30 or more days after your due date, even if you're paying off your mortgage. It's a good idea to make your payment as usual and we'll send you a refund check if you overpay.

Your closing date may not be the day we receive your payoff. It may take additional time for your closing or title agent to send us your payoff funds.

The good through date on your payoff quote is the expiration date on the amount indicated to completely pay off your loan. It doesn't provide an extended grace period to make your normal payment.

When your credit score is low, the dream of home ownership can seem like an impossible one. You're not alone. More than 30% of Americans have credit scores below 670, which is often the minimum score required to qualify. Loans with the most competitive rates require at least a 675.

However, there are things you can do to improve your chances of making your dream come true, even with less-than-perfect credit. If you follow the advice below, you'll step into the mortgage lender's office with more confidence and better odds of success.

Take actions to improve your chances of loan approval.

• Maintain steady employment
• Pay your bills on time
• Paying off existing debt
• Avoiding taking on new debt
• Save money and build a cushion for emergency situations

Do your homework. Knowledge is your friend.

Bad credit doesn't exclude you from all mortgages, but some types of mortgage loans will be harder for you to qualify. On the other hand, two federally funded programs, FHA and USDA home loans, are friendlier to people with poor credit and have easier minimum requirements. But watch – often loans with lower qualifications come with stricter limits or other stipulations such as requiring mortgage insurance for the life of the loan.

FHA Loans and bad credit.

You may qualify for a 3.5% down payment with a credit score of 580.

VA Loans and bad credit.

VA loans have a minimum 580 credit score requirement. They offer several advantages for borrowers with bad credit:

Conventional Loans and bad credit.

What are called conventional loans are loans not insured by the federal government. They require a minimum credit score of 620. Conventional loans that also conform to the criteria set by Fannie Mae and Freddie Mac will have additional requirements. USDA loans also require a credit score of at least 620.

Know where to look for your loan.

Private lenders, credit unions, and community banks will have more flexibility in what they can offer to a borrower with poor credit. Regulated institutions, such as large banks, must follow a stricter guideline and so may not have as many loan options to offer you. Remember, though, that the leniency of a private lender usually comes with a cost, such as higher interest rates or a higher minimum down payment.

Save up for a larger down payment.

This may take longer than you'd like, but it's the smart way to go. The worse your credit, the higher the payment you'll have to make anyway. Plus, anything less than a 20% down payment will require the expense of private mortgage insurance. Having more cash in hand tells lenders that you're serious and improves your chances of being offered a better rate.

Get good advice.

Reach out to a Caliber Loan Consultant. At Caliber Home Loans, our passionate goal is to bring the dream of homeownership to as many people as possible. And that includes people with bad credit. Mortgages is all we do. Let Caliber put you on the path to home ownership, no matter what your credit score is.

Your income is one of the primary factors mortgage companies to determine if you qualify for a loan. For every mortgage loan, there are minimum income requirements and maximum debt limits that must be met in order to qualify. No question about it, for people with low income, this presents a difficult barrier to homeownership.

But it can be done. In fact, there are some mortgages designed to work for you.

Low income qualification varies by location, so there is no hard and fast income amount that determines eligibility. Typically, the minimum requirement is based on your income in relation to your other financial obligations. Most lending companies require your housing costs take up less than 28% of your pretax income and your debt payments take up less than 36%. They have limits on how much of your monthly income goes toward debt (this is called your debt-to-income ratio, or, DTI). A DTI of 45% or less is a pretty standard threshold. Higher ratios may be allowed for people with higher credit scores and for loans carrying private mortgage insurance (PMI).

Low income status does not have to exclude you from owning your home, and it shouldn't force you into a less than ideal mortgage.

Before you search for a home, do research on your loan.

• Get an idea of what money you'll need. Make this your first step. Look online to find out what an average home in your area costs. Taking that as baseline, use the online mortgage calculator from Caliber Home Loans to see what a mortgage might look like for you. Remember this is an estimate and mortgage rates can change at any time.
• Figure out where you stand. Gather all of your financial information, including your current pretax income, all of your current expenses, and everything you have in savings, investments, or other assets. While you're at it, calculate your DTI by dividing the total of all debts your owe by your pretax income. Finally, get your credit report. Low income does not automatically mean a low credit score. Most mortgages require a credit score between 580 and 670. The higher the credit score, the better your interest rate will probably be.
• Find out if you qualify for assistance. There's a chance you qualify for down payment assistance, home buying grants, or seller-paid closing costs.
• Find out what options are available. Not all mortgages have the same requirements. Non-conventional loans (those backed by the federal government) are designed to benefit low income borrowers and usually allow smaller down payments and higher DTIs. Most conventional loans (those not backed by the government) do not have income limits, and some have extra benefits such as no credit score requirement, alternative down payment sources, or greater flexibility in income qualification.

Common mortgage programs best suited low-income homebuyers.

• FHA loans. Government-backed loans that allow a 3.5% down payment, higher DTI ratio limits, and credit scores as low as 580.
• USDA loans. Federally-insured loans specifically for low-to-medium income borrowers. Income must be below a certain threshold (115% of the average area median income). The PMI fee is only 0.35%, and certain home repairs can be included in the loan amount.
• VA loans. For qualifying active, retired, or honorably discharged military personnel and their spouses. They do not require a minimum down payment.
• HomeReady Mortgage. A conventional mortgage from Fannie Mae, one of the largest investors in mortgages. The income of every person living in the house is included, increases your DTI, and requires as little as a 3% down payment.

Get good advice.

Make sure all your homework is on the right track. Reach out to a Caliber Loan Consultant for a fuller picture of what the possibilities are for you. At Caliber Home Loans, we're passionate about bringing homeownership to as many people as possible. We know low income borrowers face plenty of challenges, but we go above and beyond to help everyone realize their dream with a workable, financially responsible loan. We offer many mortgage loan options. We likely have one that's right or you.

Going through a foreclosure is a brutal, depressing experience. It damages your credit and your confidence. With patience and effort, you can recover, overcome the past, and own a home again. It will take time. It will take work and discipline. If you take the right steps, you will demonstrate you are ready to take on a mortgage loan.

Steps toward owning a home again:

• Be patient. It will take time for your credit and your financial health to recover after a foreclosure. Expect it to take three to seven years for your credit to improve, barring any additional financial setbacks. Seven years is also the average waiting period required for borrowers to regain eligibility.
• Practice healthy financial habits. Everything you do to improve your credit and financial status will get you that much closer to borrowing eligibility again. Maintain steady employment and pay down as much debt as possible. Avoid taking on new debt and refrain from making large purchases. Keep up with your bills and pay them on time.
• Save your money. Use this time to build up your savings, both for emergency expenses and for your future home. Start with saving three to six months' worth of living expenses to provide a cushion to avoid further debt. Then start saving for your future down payment. You'll need at least a 10% down payment.
• Monitor your credit. Request credit reports from several reporting bureaus. Make sure all of the information is correct. Look for errors that can hurt your rating, such as payments applied to the wrong account, duplicate account information, or a former spouse's debt showing up on your report.

When you're ready to purchase a home again, look at all the options.

Different types of mortgage loans have different requirements for people who went through a foreclosure. They also have different waiting periods from the time of the foreclosure. Here are the main types of loans and their waiting periods.

FHA Loans.

These loans require a three-year waiting period that begins when the foreclosure case has ended. Typically, that would be from the date your home was sold. If your foreclosed loan was through the FHA or the VA, you will be ineligible for another federally insured loan until you have repaid the government.

Conventional Loans from Fannie Mae or Freddie Mac.

These loans require a seven-year waiting period. The longer wait is because they are not backed by the federal government. However, the wait period can be shortened to just three years if you meet the following requirements:

• Prove in writing that the foreclosure was caused by extenuating circumstances
• Use the new mortgage for either a limited cash-out refinance or for the purchase of a primary residence (not for a second home or investment property)
• Demonstrate that the loan-to-value (LTV) ratio of the new loan is 90%

Conventional Loan from Private Lenders.

Because private lenders set their own terms, there is no set waiting period. They vary. But usually shorter waits require a larger down payment and higher interest rate.

Be Pre-Approved Before You House Hunt.

We recommend you secure pre-approval for a loan before you begin your search for your new home. The pre-approval process will demonstrate that you have come through the foreclosure setback and are now ready to be a homeowner again.

Tax Statement

The 1098 statement details all interest, taxes, and insurance paid on a mortgage for a given year. Caliber is required to send the customer this statement by January 31 of each year.

The IRS only requires the social security number of the primary borrower on the 1098. Please note that we are unable to change the social security number on 1098 statements.

Your 1098 may show that no taxes were disbursed for one of the following reasons:

• The taxes were paid at closing.
• The taxes were not paid from the escrow account in the year the 1098 is reporting on.
• The loan was paid off before the taxes were due.

A 1099-INT is an income form that provides interest earned on funds held in an escrow account.

State law requires Caliber to pay you interest for funds being held for escrow, loss draft, renovation or 203K purposes. Because these funds are taxable interest paid to you by Caliber, we are required to report that information to the IRS.

A 1099-C is an income form that reports when the full or partial amount of the debt is cancelled.

Caliber is required to disclose to the IRS if/when we cancelled in full or a partial amount of the debt. This could have been due to one of the following:

• Short Sale
• Deed in Lieu
• REO liquidation
• Third party sale
• Loan Modification

SCRA

Servicemembers on "active duty" or "active service," or a spouse or dependent of such a servicemember may be entitled to certain legal protections and debt relief pursuant to the Servicemembers Civil Relief Act.

• Regular members of the U.S. Armed Forces (Army, Navy, Air Force, Marine Corps, and Coast Guard).
• Reserve and National Guard personnel who have been activated and are on Federal active duty or who have received orders to report on a future date.
• National Guard personnel under a call or order to active duty for more than 30 consecutive days under section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by Federal funds.
• Active servicemembers of the commissioned corps of the Public Health Service and the National Oceanic and Atmospheric Administration.
• Certain United States citizens serving with the armed forces of a nation with which the United States is allied in the prosecution of a war or military action.

• The SCRA states that a debt incurred by a servicemember, or servicemember and spouse jointly, prior to entering military service shall not bear interest at a rate above 6 % during the period of military service and one year thereafter, in the case of an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage, or during the period of military service in the case of any other obligation or liability.
• The SCRA states that in a legal action to enforce a debt against real estate that is filed during or within one year after the servicemember's military service, a court may stop the proceedings for a period of time or adjust the debt. In addition, the sale, foreclosure, or seizure of real estate shall not be valid if it occurs during or within one year after the servicemember's military service unless the creditor has obtained a valid court order approving the sale, foreclosure, or seizure of the real estate.
• The SCRA contains many other protections besides those applicable to home loans.

To request relief under the SCRA, a servicemember or spouse must provide us a written request with a copy of the servicemember's military orders by one of the following:

• Login and submit a SCRA Protection Request through your Account Management/Message Center.
• Mail to: Caliber Home Loans Attn: Special Loans Dept. 13801 Wireless Way Oklahoma City, OK 73134
• E-Mail us:Special.Loans@caliberhomeloans.com

There is no requirement under the SCRA, however, for a servicemember to provide a written notice or a copy of a servicemember's military orders to Caliber in connection with a foreclosure or other debt enforcement action against real estate. Although there is no requirement for servicemembers to alert Caliber of their military status in these situations, it still is a good idea for the servicemember to do so.

• Servicemembers and dependents with questions about the SCRA should contact their unit's Judge Advocate, or their installation's Legal Assistance Officer. A military legal assistance office locator for all branches of the Armed Forces is available athttps://legalassistance.law.af.mil/
• "Military OneSource" is the U. S. Department of Defense's information resource. If you are listed as entitled to legal protections under the SCRA (see above), please go tohttps://www.militaryonesource.mil/legal or call 1-800-342-9647 to find out more information. Dialing instructions for areas outside the United States are provided on the website.

Refinance

A mortgage refinance is when a homeowner replaces their existing mortgage with a new one. Your original loan covered the purchase price of your home. A refinance loan is a new loan that pays off the balance on that original loan. The refinance loan is almost always a smaller loan. You'll no longer make payments on the original loan and begin new payments on the smaller refinance loan.

Several reasons refinance can be a good move.

Refinancing your mortgage is way of taking full advantage of your greatest asset, your home. Refinance can make it possible for you to reduce your expenses or to put the equity you've built up in your home to good use. Depending on circumstances, it can be a great move.

Here's how refinance can be a positive move:

1. Lower your interest rate. If you are paying a higher interest rate on your current loan than what's available now, or if your credit has improved, you may be able to qualify for lower interest rates if you refinance. You could save hundreds in monthly interest payments.
2. Access funds for home improvements. You can refinance in order to cash in on the equity in your home. When the refinance loan is for more than the remaining principal on the old loan, you receive the difference in a cash payment. If you use the money for home repairs or improvements, you may be able to deduct the interest expense from your taxes . Plus, home improvements usually increase your home's appraisal value.
3. Lock in a better interest rate. If you are in an adjustable rate mortgage (ARM) and current interest rates are low, you might want to refinance to a fixed rate mortgage at a lower rate. By the fixed rate structure, you never have to worry about the rates going up. In fact, you have the security of knowing your rates will never go higher.
4. Eliminate private mortgage insurance (PMI). The duration of PMI is determined by the loan to value. If LTV is 90% or greater at closing, PMI is required for the life of the loan. Otherwise, it may be canceled after 11 years.
5. Change to a shorter loan. You can refinance to a loan with a shorter life. For instance, instead of 30 years, your refinance loan may be for 15 years. This enables you to own the home outright sooner. And with fewer monthly payments, you'll pay less interest over the life of the loan. However, the shorter loan may come with an increase in your monthly payment.
6. Change to a longer loan. If you refinance to a longer loan, you can reduce your monthly payment. The loan will be longer, but your monthly expense will shrink.

When is it right to refinance?

It's a matter of timing. If you answer yes to any of these questions, the time might be right.

• Do you have substantial equity in your home? (Equity is the difference between what you owe to the mortgage company and the home's value).
• Would refinancing make a reasonable reduction (between 1% and 2%) in your interest payments?
• Do you plan to stay in your house for the next several years?
• Are current interest rates significantly lower than the rate of your current mortgage?

Some factors to remember.

Most lenders will require that you have maintained your current loan for at least one full year before you can apply to refinance.

A refinance loan requires almost all the same costs, fees, and paperwork as your original mortgage. It's basically the same process and with the same requirements, like credit scores and financial history. You can expect it to cost between 3% and 6% of the remaining principal, and you will probably pay up to 2% or more in closing costs. These fees can include:

• Application fees
• Title insurance and title search
• Attorney review fees
• Points and fees incurred in the loan origination

Don't make the refinance decision alone. Reach out to your Caliber Loan Consultant and let them guide you through the numbers so you can make a smart decision.

If you want to reduce your interest rate, lower your monthly payment, turn some of your equity into cash in hand, or go from an adjustable rate to a fixed one, refinancing your current loan with a new on makes great sense. In fact, some homeowners refinance more than once over their time in their home. (Most lenders require a six-month "seasoning" period between refinances.) But refinance is the right move for everybody.

Consider these points before refinancing your home:

• You must have equity in your home in order to take out cash against it. Most lenders approve refinances for 80%-90% of the loan's value.
• Every time you take out equity in your home, you increase the amount of your home loan. So, any cash-out refinances you have taken in the past will reduce the equity available.
• Every refinance carries closing costs, including application, appraisal, and inspection fees, as well as title search and insurance costs. Expect these costs to total between 2% and 3% of your loan amount.
• You will have to meet lender requirements each time you refinance. This includes your credit score, equity, and debt-to-income ratio.
• There may be prepayment penalties for paying off your loan before the end of the term.

Sometimes the numbers don't add up in your favor.

Be sure and do the math before you pull the trigger on a refinance. Consider these scenarios and, if they apply to your situation, work out the numbers before you opt to refinance.

• Reducing the monthly payments seemed like a good idea….

  …but thanks to the additional closing costs and fees of a refinance, the money you may save on your payments might be eaten up in the process. Be sure closing costs are part of your financial calculations.

• Cashing out equity for investment money…

  …is only a good idea if you can be sure that the cash you are taking out will earn more than what you'll spend in refinance costs and mortgage payments.

• Saving money for a new home…

  if you plan to move within the next two to five years, refinancing may not save you anything. Because of closing costs and fees, it will take you several years to realize any potential savings. If you move within that time, that's simply money lost.

• Extend the terms of your loan at a lower interest rate…

  This sounds like a no-brainer but the numbers may not add up. Yes, you'll pay a lower interest rate each month, but you may actually pay more interest overall over a longer period of time with a longer loan. Calculate the total cost of the loan with those added interest payments.

• Consolidate credit card debt into my mortgage….

  Hmm. It's certainly tempting to get out from under high-interest debts with a low-interest mortgage. But here's the rub: if you can't make the payments on this new loan, you will lose your home.

You can get many of the benefits of refinance without refinancing.

Consider these options below. If they work for your situation, then you can realize the upside of a refinance without incurring the closing costs or extending the life of your mortgage.

• To own your home sooner, put more toward your loan principal each month. By pre-paying against the principal, you continually move up the day you own your home outright.
• To save for a new home, put more money each month into a savings account. Trim other expenses so you can save even more.
• To reduce other debt, pay off each debt individually, starting with the lowest. Some forms of debt may have payment forgiveness or delay options that may impact your credit, but won't risk foreclosure.

Make a calculated decision to refinance or not.

Use the Caliber Home Loans refinance calculator to estimate what a refinance would save or cost you. Be sure to look at all your options. Calculate your break-even point to see when the costs you incur equal the savings. Divide your mortgage closing costs by the monthly savings of your new mortgage payment; this is the number of months you'll need to recoup any expenses.

Refinance loans happen years after the home purchase. They exist to help homeowners like you reduce your monthly costs, shorten the length of your mortgage, tap into cash for important life events, and fund home repairs and improvements. Most refinance loans are shaped by the equity you've built in your home – but some require no home equity at all! Let's take a look at how home equity effects what's possible in a refinance.

Home equity starts with an appraisal.

The size of your home equity often determines what your refinance loan looks like. Your equity directly impacts how low the new monthly payment can be or determine how much cash you can take out of your home. To determine just how much home equity you really have, you need an appraisal on your home.

Why an appraisal? Because home equity is the appraised value of your home minus the balance remaining on your mortgage. Let's say your home's current appraisal is $250,000 and you have $200,000 left to pay on your mortgage. Take the appraised value, subtract the mortgage balance, and the remainder is your home equity. In this example, that would be $50,000.

Notice that the appraised value may change after you purchase your home. If the real estate market has been strong, your home may appraise for significantly more than what you bought it for. All that extra value is additional equity you have in your home. On the other hand, if the market has been weak, your home may appraise for less than you bought it for. In that case, you would have less equity. In the worst cases, you might be "underwater," which means your home's appraised value is less than what you owe. But even in those painful situations, a refinance may still be possible.

Home equity makes a difference.

The most standard refinance is with a conventional loan. For these loans, if your equity has reached 20% of the appraised value, you may not be required to carry private mortgage insurance (PMI). If that's your situation, then you've just lowered your monthly expense even more.

There are two other ways home equity impacts your refinance. The more equity you have, the lower your interest rate. The more equity you have, the more money you can take in a cash-out refinance loan. With those loans, your cash-out is directly limited by how much equity you have in your home. The cash amount often cannot exceed 80% or 90% of your home equity.

You may still refinance with little to no home equity.

Fannie Mae and Freddie Mac offer loans for people with minimal home equity. If you qualify, you may be able to secure refinancing with as little as 3% equity. The Veterans Administration also offers refinancing with a VA loan, which requires zero home equity.

There are other factors that will impact your ability to refinance, and these vary by the type of loan and by the lender involved. Your credit score is almost always a consideration. Plus, lenders may look at the percentage of your pre-tax income that goes to paying off debt including mortgage loans, personal loans, credit cards, etc.

Find the loan that works for you.

It always makes sense to have your Caliber Home Loans, Inc. Loan Consultant review your situation. With their knowledge of the constantly evolving market and experience with thousands of homeowners like you, they can bring you all the options you qualify for, present the pros and cons, and guide you every step of the way. They'll make it simpler, clearer, and easier to navigate. Let us help you get the greatest benefits possible from refinancing your home!

Purchase

While most home loans require a down payment, the amount varies by lender, loan type, and credit score. A good rule of thumb is to plan for at least 6% down if you're a first-time homebuyer. However, other loan types may require as little as a 3% down payment. Note that down payments of 20% or less on conventional loans will require private mortgage insurance (PMI).

First Time Homebuyers

Buying your first home is huge. It's probably the biggest single purchase you've ever made and coming up with all the funds to make it happen can be daunting. So, if you're wondering if there are ways to make all this a little easier, the answer is, yes.

Caliber Home Loans offers programs designed to help provide homebuyers with less-than-ideal financial circumstances an opportunity to achieve their dream of homeownership.

Possible assistance for first-time homebuyers include:

• Grants for use toward down payments or closing costs.
• Low or no down payment requirements.
• Paying for or subsidizing interest payments.
• Special lower interest rates.
• Partial debt cancellation after a designated time period.
• Deferred payments.
• Reducing closing fees by capping or waiving closing costs.

Not all of these programs may be available in your area, but it is definitely worth your time to find out if you qualify for financial assistance.

Government programs for first-time buyers.

The good news is local, state, and federal governments offer programs to help first-time buyers secure their loans. Often, they offer insurance to the lender because first-time buyers are considered risky. Many programs offer the lender insurance to protect them for taking on that risk. The most common programs include:

• FHA Loan. An FHA loan is insured by the Federal Housing Administration and allows borrowers to qualify with as little as a 3.5% down payment. This loan is best for buyers with low credit scores or those who can only afford a small down payment. A credit score of 580 allows for a 3.5% down payment.
• VA loan. VA loans are insured by the Department of Veterans Affairs. They come with no down payment for military personnel, veterans, and their families, and require a minimum 580 credit score.
• USDA loan. A USDA loan is 100% backed by the Department of Agriculture for low-income borrowers in rural areas. These loans are limited to certain areas and only to borrowers who meet certain income limits.
• Fannie Mae and Freddie Mac. These two government-sponsored enterprises insure qualifying loans, requiring as little as a 3% down payment and allowing a higher debt-to-income ratio. Borrowers need a credit score of at least 620, have good credit, and must pay for private mortgage insurance (PMI) for a down payment less than 20%.
• Home renovation loans. Programs like FHA 203(k), or HomeStyle® help buyers purchase a home to remodel, or renovate. They helping you buy more for your money by covering cost of improvements, extending loan limits, or lowering the down payment.

Caliber Home Loans offers a growing portfolio of financing options designed especially for first-time homebuyers. In fact, we're one of the top-rated private mortgage companies in the country because we offer many unique solutions and deliver a high level of personal support and attention. Our Loan Consultants can walk you through all the options and help you find the best loan for your situation. With Caliber, you can move ahead with confidence.

In terms of interest rates, Caliber Home Loans, Inc. offers two types of mortgage loans: those with fixed rates that never change and those with adjustable rates that can go up or down over time. Both types offer the home buyer benefits. Which kind is right for you? Let's take a deeper look.

A fixed rate is predictable and reliable.

The one thing you can say about a fixed-rate mortgage is that you always know what the principal and interest portion of your monthly payment will be. Whether you have a 15-year loan or a 30-year loan, these costs are virtually the same in the first year, the fifth year, the tenth year, and on and on. The only thing that can change are any escrow amounts to cover insurance and taxes.

Fixed-rate loans are popular because they are unaffected by increases in market interest rates. With a fixed rate, your loan's interest never varies, staying predictable and steady, month after month. If market rates drop, you can always refinance your old fixed-rate loan for a newer one at a lower rate. Both the interest rate and the principal loan about will be lower, so it's a double win. You can also lower your monthly payment by making a special payment against the principal of the loan.

Here's how adjustable rates work.

With an adjustable-rate mortgage (ARM), the interest rate changes annually after an initial period of three to ten years of a fixed interest rate. Usually, these loans begin with lower initial interest rates than fixed-rate loans. The most common ARMs have initial periods of three, five, seven, or 10 years. For example, with a 5/1 ARM, the interest rate remains fixed for the first five years, then adjusts to the market rate each year thereafter. If the market rates change significantly during the initial period, your monthly payment could go up or down when the initial period ends. The market drives the direction of the change. Although there is a cap on how much your interest can increase in any single adjustment, there is a risk that your monthly payment could go up significantly over the life of the loan.

Many first-time homebuyers find ARMs attractive as they offer lower initial interest rates. If you do not expect to live in your first home a long time, then you can take advantage of the lower rate before you move on to your next home. The lower initial interest rates can also help first-time buyers qualify for a larger loan.

There is a loan that's right for you.

Lean on your Caliber Loan Consultant in choosing the type of loan that's best for you. Our Loan Consultants have helped thousands of first-time homebuyers navigate these critical decisions. They know the questions to ask. They know the possibilities and opportunities. Our goal is to help you make the wisest, smartest decision possible in becoming a homeowner.

It's called a monthly mortgage payment, but it includes more than payment on the loan itself. Yes, it will include a portion to help pay off the principal loan amount, but that's just for starters. It will also include interest and will likely include property taxes and homeowner's insurance, as well. It may also include private mortgage insurance (PMI).
Your monthly payment is based on these six things:

1. The initial loan amount

   This is called the principal amount of your loan. It's the purchase price less the down payment. So, if you bought a house for $300,000 and your down payment was $15,000, then your principal is $285,000. That's the amount you are borrowing.

2. Your annual interest rate

   Your interest rate is the percentage of your principal that you are charged each year. For example, if your interest rate is 5%, then you're paying 5% of your principal each year.

3. The life of your loan

   Knowing how many years your loan runs tells you how many monthly payments will be made. Most loans are for 15 years or 30 years. Simply multiply the years by 12 months, and you'll know how many monthly payments you can expect to make over the full life of the loan. For example, a 15-year mortgage equals 180 monthly payments.

4. The annual property taxes on your home.

   Most homebuyers choose to let the lender manage and pay their property taxes. If you choose this, your monthly payment will include an amount set aside to pay your property taxes. This money is actually saved by the lender in an escrow account for you and the lender pays the taxes when they  are due. You don't have to keep up with it. At the end of the year, you may have to pay a bit extra or be given a refund for any escrow dollars left over. Please note that many loans require handling taxes through an escrow account and do not give the homebuyer the option of paying them directly.

5. The cost of homeowner's insurance

   Almost every first-time homebuyer will be required to take homeowner's insurance to cover the cost of repairing damages from storms, water leaks and much more. You will have different policies to choose from. Generally, the lower the deductible, the higher the monthly premium. Whatever you choose, your lender will factor it into your monthly payment. Like taxes, the money is saved in your escrow account and paid to the insurance company as it is due. Some loans give you the option of paying the insurance directly, in which case these costs are not included in your monthly payment.

6. The annual premium for private mortgage insurance (PMI)

   It is not unusual to be required to carry PMI if you made a down payment of less than 20%. As with homeowner's insurance, your PMI costs are added to your monthly payment and placed in escrow. Once you have paid off 20% of your principal loan amount, you may no longer be required to carry PMI.

Let Caliber crunch the numbers.

For the best estimate of what your monthly mortgage payment will be, get with your Caliber Loan Consultant. They can make sure you've got the right numbers and factor in all the details. They can also advise you if you may be exempt from some costs. They do this every day. Use our expertise. You'll have the best answer possible.

The largest payment you'll likely make on your home is the first one. That's the down payment. It's a percentage of the total purchase price. For example, a 5% down payment on a $400,000 home would be $20,000. The larger the down payment, the lower your monthly mortgage payment should be. So how much should you save? There's no single answer. It all depends on the minimum down payment requirement.

What is the minimum down payment?

Most loans require a minimum down payment, but the amount they require varies according to your lender, the type of loan you're applying for and your credit score. In fact, some government-backed loans require no down payment at all!
Let's look at some examples.

• Veteran Affairs (VA) loans usually require no down payment. These are available to active and retired military personnel and their eligible surviving spouses.
• FHA loans require a minimum down payment as low as 3.5%.
• Conventional loans backed by Fannie Mae or Freddie Mac require a minimum down payment as low as 3%. There are other conventional loans not backed by the government but follow the same Fannie Mae and Freddie Mac guidelines for down payments.
• USDA loans have no down payment requirement. Homebuyers must meet certain income limits. These loans are limited to properties in rural and certain suburban areas.

See if paying more than the minimum makes sense for you.
For some buyers, this is the way to go. A larger down payment can:

• Result in a lower monthly payment.
• Qualify you for a lower interest rate.
• Reduce upfront fees.
• Give you more equity in your home from Day One of your mortgage.

Plus, if your loan requires private mortgage insurance, a large down payment may eliminate that requirement.

How much should you save? You decide.

As you can see, there is no single answer that works for every first-time homebuyer. The type of loan you're applying for, the cost of the home, and your credit score will determine the minimum amount required. Beyond that, it's all in your court. You should assess your financial situation and realistically determine what is possible or desirable for you. A larger down payment will lower your monthly payments but that may not work for you right now. It might leave you in a tight a financial bind.
Let Caliber help you calculate.

For starters, use the Caliber Home Loans Mortgage Calculator to see how much the size of the down payment will impact your monthly payment. Then work up a monthly budget using that monthly payment number. Make sure you allocate some funds for things that may come up, like repair work and unexpected expenses .

Make as informed a decision as possible. Connect with your Caliber Loan Consultant. Let them shop around for you and compare different types of loans that you may qualify for. See if there is an especially attractive mortgage rate available. At Caliber, we say we are driven by a passion for helping people realize their dream of homeownership. We mean that sincerely and we walk the walk. Our goal is to put you in the home you dream of with as few problems and expenses as possible. We've got the knowledge. Put it to work for you!

Jumbo

A jumbo loan is a home mortgage for a higher amount.

Choosing this type of loan

One of the most important parts of buying a home is determining the kind of mortgage you need. At the very least, this part can be overwhelming – especially if the amount you need to finance is higher than the average home.

Say you're in the process of buying your dream home, and it's much more expensive than average. You need to find a loan that allows you to finance it without breaking the bank. A regular loan amount might not be an option because the home value exceeds the normal Fannie Mae and Freddie Mac loan-servicing limits. You may find yourself in this position if you're buying a luxury home, a home with expensive amenities that drive up the cost, or a home in a pricier neighborhood. This is when you may need to opt for what's called a jumbo loan.

Jumbo loans, often referred to as jumbo mortgages, are home loans specifically for amounts that exceed the conforming limit set by the Federal Housing Finance Agency (FHFA) and the United States government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

Why use a jumbo loan?

Jumbo loans are a lot like conventional mortgages, but they have more built-in support for the risks that come with making a high-price property purchase. Jumbo loans are not only used to finance primary residences – they are also popular for financing investment properties and vacation homes.

For many people (whether they're first-time homebuyers or experienced investors), housing can be a smart investment. Most borrowers that take out jumbo loans have good credit, and they often leverage the money they get in return and put it back in their investment or business – ultimately growing their wealth and financial health over time.

Preparing to get a jumbo loan: What to expect

If you want to apply for a jumbo loan, make sure that you're prepared to undergo the vetting process by having all your financial documents on-hand.

Qualifying for a jumbo loan

The vetting process for jumbo loan applicants is based on the same formula as other mortgages, but with stricter requirements. Here is a list of what lenders consider and the requirements you must meet:

• A credit score of 700 or higher
• A down payment of 20% or more
• Sufficient cash reserves to cover at least one year of mortgage payments
• More detailed documentation to prove your financial stability
• Higher interest rates
• Higher closing costs and fees

Key takeaways

• Jumbo loans are an option for borrowers who want to finance a property that exceeds the limits set by the FHFA.
• FHFA limits for property value vary by county.
• Jumbo loans cannot be guaranteed or purchased by Fannie Mae or Freddie Mac.
• Jumbo loan applicants will have to meet stricter qualification requirements than conventional loan applicants.
• Jumbo loan applicants will need to have a higher credit score and a lower DTI ratio to be approved.

How to find jumbo loan limits by area

You can access the FHFA map for details about each area's requirements by state here.

Need more help?

At Caliber Home Loans, Inc., we're here to help you make informed decisions when financing a new home. If you need help deciding if a jumbo loan is right for you or want to get started, contact a Caliber Loan Consultant today.

Construction & Renovation Loans

If you want to renovate or remodel your home but don't have the cash to pay for it out of pocket, home renovation loans are a smart way to get your home improvement project funded and on track. Whether you're adding a new room to your home, redoing your kitchen, or replacing your roof, home renovation loans can help you finance the cost of your upgrades.

There are several types of home renovation loans to choose from. Many of them require a minimum credit score and either a minimum amount of home equity in your home or a minimum down payment.

To determine if a home renovation loan is right for you, ask yourself these four questions:

Question 1: Will the remodeling be worth it?

Have a clear picture of what changes you want to make to your home. Do your research and get a good idea of what it will cost. Will the renovation increase your home's value? If so, you may recuperate the renovation loan costs when you sell your home. If it will have little impact on your home's value, then the project – and taking out a loan – may not be worth it.

Question 2: Can you handle another loan payment?

Remember, the renovation loan is not tucked into your monthly mortgage payment. It will become an additional monthly bill on top of your current mortgage payment. Remember that you'll be paying on the loan long after the project is finished. So, you need to be sure that this is what you want and that you're prepared to make the payments.

Question 3: How much will you need to borrow?

When determining how much you need to borrow for your home renovation, make sure your factor in labor costs, inspection fees, permits, and architectural or engineering services. The materials used are just the beginning.

Question 4: Can you qualify for a lower interest rate?

Many times, your interest rate is impacted by your credit score and the amount of equity you have in your home. You can calculate your equity by subtracting how much you still owe on your mortgage from your home's current market value. The higher your credit score and the greater the equity you have often make lower interest rates available to you. Use the Caliber Home Loans Loan Calculator to estimate your down payment amount, interest rate, and payment amounts. This will give you an idea of what to expect before you take out a home renovation loan.

Remember: A home renovation loan is not a home equity loan.

You may be saying to yourself, "this sounds a lot like a home equity loan." Although your home equity plays an important role in a home renovation loan, home equity loans and home renovation loans are not the same. And the difference is important. First, interest rates for a renovation loan are typically higher than interest rates for a home equity loan. Second, the interest paid on a renovation loan can't be claimed as a tax deduction.

Two common renovation loans:

Fannie Mae® HomeStyle® renovation loan The HomeStyle renovation loan offers loan amounts up to 75% of the home plus renovation costs. This loan can be used for improvements on your current home or for repairs on a home you are purchasing. Requirements:

• A credit score of at least 720
• A certified contractor must prepare a cost estimate
• Funds must go into an escrow account rather than directly to you

FHA 203(k) loan

It's easy to see the appeal of the 203(k) loan. You can qualify with a lower credit score, plus it offers a lower minimum down payment and lower interest rate. Like the HomeStyle renovation loan, the funds go into an escrow account. Requirements:

• Property must meet the government energy efficiency and structural standards
• Borrower must use a qualified 203(k) loan consultant
• Borrower must adhere to certain limitations on reselling the home

Other options

Ask your Caliber Loan Consultant about special federal programs for home renovations on Title I loans and on energy efficient mortgages. These may work for you. You can also opt for a cash-out refinance loan on your home and use the cash payout to fund your renovation work.

At Caliber Home Loans, we bring years of experience dealing with every kind of home renovation financing in the market. We know how to navigate all the government programs, plus we have an expansive portfolio of loan options to meet your needs. We apply all that knowledge with one goal: To help you attain the home of your dreams in a way that truly works for your unique situation.

To get started on your home renovation, contact a Caliber Loan Consultant today.

You fell in love with your new home, and then you lived in it. Over time, things have started to look worn and frayed. The kitchen no longer excites you the way it used to. You wake up one day and your bathroom feels cramped and outdated. You keep catching yourself daydreaming about all the ways you could make your home feel new again. You don't want to sell your home, but you want to make some changes. Sound familiar? Fear not. It's completely normal.

Whether you bought and fell in love with your home but feel it needs some updates or you've just purchased a new home that has a ton of potential but needs some work to make it your own, home renovations are the answer. However, they can be costly.

If it's time for you to look into a home renovation but you don't have the cash in hand to pay out of pocket, you can use your home itself to make it happen. There are three popular ways to use the equity you've built in your home to finance a renovation project.

1. Cash-out refinance loan

   A cash-out refinance lets you replace your existing mortgage with a new home loan based on the amount you still owe on your home. In short, you take your original home loan amount, subtract the money you've paid so far against the principal, and then start a new mortgage on the remaining amount. The difference between the original amount and the new amount comes to you as a lump cash payment you can use to fund your renovation, consolidate your debt, or fulfill other financial needs.

   NOTE: You'll have to pay closing costs again and the term of the mortgage starts all over. It could be another 15, 20, or 30 years. Make sure you don't use the cash payment to run up debt you won't be able to pay off.

2. Home equity loan

   If you don't want to start your mortgage term all over again and you can handle an additional monthly loan payment, a home equity loan may be the best option for you.

   A home equity loan is a separate loan based on the equity you have built up on your home. Typically, you can borrow up to 80% of that amount. Home equity loans are sometimes referred to as a "second mortgage," as they become a second monthly payment. You may have up to 15 years to pay this loan off and many lenders cover the closing costs for you.

   NOTE: You'll need to pay closing costs and fees, which can range from 2% to 5% of your loan amount. You'll also have two mortgage payments instead of one, so be prepared for that extra home-related payment.

3. Home equity line of credit loan

   A home equity line of credit (HELOC) gives you the greatest flexibility. Essentially, a HELOC works like a credit card that borrows against the equity of your home. Once you set up your line of credit, you don't have to begin using it right away. You can also use it in whichever way you see fit. Fund a renovation project or pay for a vacation – it's all up to you. Plus, when you pay back charges, the money returns to your equity – making it possible for another even larger line of credit.

   NOTE: Interest rates vary and lines of credit usually come with annual fees.

Ways to plan ahead and include renovation in your first mortgage

Some people purchase a home with specific upgrades or remodeling in already mind. In these cases, you can fold renovation costs into your mortgage at purchase. Here are three of the most common ways to do that.

1. FHA 203(k) loans

   These mortgages are designed for first-time homebuyers. They allow you to add expected renovation costs to your mortgage loan principal. These loans require a down payment as low as 3.5% but give you only six months to get the work done. You're required to use a licensed contractor for renovations, so the money cannot be applied to DIY projects.

2. Fannie Mae® HomeStyle® renovation loan

   The HomeStyle renovation loan is similar to the 203(k) loan but it gives you more freedom with how you spend it. The 203(k) Loan can be used only for non-luxury projects, while the HomeStyle loan can be used to add a pool, a hot tub, or just about anything else. These loans require a minimum 5% down payment.

   Requirements to get this loan:
   • A credit score of at least 720
   • A certified contractor must prepare a cost estimate
   • Funds must go into an escrow account rather than directly to you

Choose the loan that works best for you

Now that you have an overview of how you can finance your home renovation, the next step is to determine which works best for you. Caliber's Loan Consultants are standing by ready to help you make your choice. They'll show you the pros and cons of each option and the cost in dollars and cents. Contact a Loan Consultant now to start turning your home into your dream home.

General

Selling mortgages is a very common practice and allows for more cash in the marketplace, so that Caliber can make loans to more homebuyers.

You will need to refinance your mortgage. To speak to a loan officer about your refinance options, please call 855-808-2124 or visitcaliberhomeloans.com/refinancing

An inspection is necessary to ensure the property is still occupied when the loan is delinquent. The mortgage deed included in your closing package outlines the preservation of the property and responsibility for the associated costs.

We value you as a customer and make it a top priority to ensure your visit to our site is secure and helpful. For more information about what we do to safeguard your personal information, as well as tips on avoiding online scammers, please visit ourSecurity page.

Recast

A mortgage recast is a feature where the remaining payments are recalculated based on a new amortization schedule. During a mortgage recasting, an individual pays a large sum (over $5,000) toward their principal, and their mortgage is then recalculated based on the new balance.

The following loan products are not eligible for a recast:

• Federal Housing Administration (FHA) Loans
• Veterans Affairs (VA) Loans
• Government National Mortgage Association (GNMA) Loans
• Bond Loans
• Jumbo Loans
• Caliber Portfolio Loans originated on or before 7/24/18

• The loan must be paid current.
• The recast process cannot commence within 60 days from the date the loan closes.
• The recast process can only be performed once in a 12 month period.*
• A principal reduction payment of $5,000 or more is required.
• The recast process must be requested within 60 days of the principal reduction payment.
• The first monthly payment following the principal reduction payment must be made at the regularly scheduled amount; thereafter, the reduced principal and interest payment amount will be due.
• A form or application is not required to begin the recast process; however, the signed recast agreement must be received prior to executing the recast.
• A program processing fee must be paid in the amount of $250, where applicable**.

* Caliber Portfolio loans originated after 7/24/18 are limited to one recast during the life of the loan.

** A recast fee is not applicable in all states.

1. Contact Caliber Customer Service to request the mortgage recast.
2. Make a principal only payment in the amount of $5000 or greater.
3. Return signed agreement to Caliber. The signed agreement must be returned via regular mail before the due date on the agreement.
4. The recast fee must be paid prior to the execution of the recast.
5. Once both the signed agreement and recast fee received, the new principal and interest payment will be finalized. A billing statement with the new payment and a copy of the agreement will be mailed to you for your records.

1. Online @myaccount.caliberhomeloans.com
2. By Bank Wire

   **Please reference your id and loan number on the wire instructions.**

   Company id:  Caliber Home Loans, Inc.
   Bank id:  Bank of America
   Bank Address:  2000 Clayton Rd., Concord, CA 94520
   Account Number:  1291063793
   ABA Routing Number:  026009593
3. By Check

   Payment mailing address:
   Caliber Home Loans, Inc.
   Attn: Recast
   P.O. Box 272556
   Oklahoma City, OK 73137-2556

   Overnight payment mailing address:
   Caliber Home Loans, Inc.
   Attn: Recast – Cash Operations
   13801 Wireless Way
   Oklahoma City, OK 73134

4. By Phone @ 1-800-401-6587

Successor in Interest

A successor in interest is someone who acquires an ownership interest in a property secured by a mortgage loan by transfer upon the death of a relative, as a result of a divorce or legal separation, through certain trusts, between spouses, from a parent to a child, or when a borrower who is a joint tenant or tenant by the entirety dies.

Confirmed Successors in Interest are entitled to the same protections and notifications as the original borrower, under Real Estate Settlement Procedures Act, Regulation X and Truth in Lending Act Regulation Z. These regulations can be found atConsumerFinance.gov.

A successor in interest is defined by the Consumer Financial Protection Bureau (CFPB) as a person to whom an ownership interest in a property secured by a mortgage loan has been transferred. As a Successor, you may be entitled to certain rights and protections pursuant to the Real Estate Settlement Procedures Act, Regulation X and Truth in Lending Regulation Z, also known as "Mortgage Servicing Rule 2016" as issued by the Consumer Financial Protection Bureau.

These types of transfers are:

1. A transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;
2. A transfer to a relative resulting from the death of a borrower;
3. A transfer where the spouse or children of the borrower become an owner of the property;
4. A transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; or
5. A transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property.

Login and submit a request through your Account Management/Message Center. You can upload required documentation in PDF format.

• Email us your request at calibermods@caliberhomeloans.com
• Call us at 800-401-6587, Monday - Friday, 8:00AM to 7PM CST
• By Mail: Caliber Home Loans, Inc. Attn: Successor in Interest P.O Box 24610 Oklahoma City, OK 73124
  Note: Documents submitted must have visible and legible legal markings. These include: court stamps, court filing stamps, and notary seals.

Credit will not be impacted for the Successor in Interest unless they assume the loan.

• Death Certificate
• Divorce Decree
• Decree of Legal Separation
• Deed titled to you and the borrower as joint tenants with a right of survivorship
• Deed transferring the real property to you
• Transfer-on-death deed (beneficiary deed)
• Deed titled to you and the borrower as community property
• Spousal agreement to non-probate transfer of community property at death
• Court order, decree, or other document executed or certified by a court
• Recorded and certified copy of an affidavit transferring real property of small value
• Copy of a will and some record that it was admitted to probate
• Affidavit proving that you are the borrower's lawful heir under the laws of intestate succession
• Deed conveying the property to the Junior Lienholder
• Deed or other instrument that conveys the property into the trust
• Copy of Trust document with an Affidavit
• Certification of Trust
• Written acknowledgment potential SII will occupy the property
• Proof of occupancy
• Your photo identification
• Evidence that you are a relative of the borrower
• Evidence that the Borrower is your Parent or Spouse

Please note that required documents may differ based on the state of the property, the transfer type or your specific situation.

Once a Successor request is received, an acknowledgement letter will be sent to the mailing address acquired from the potential Successor. The letter will include the list of documents required to be confirmed on the account. Notice: You can submit the required documentation, which will be used to prove your ownership interest in the property, one of several ways. Please see below.

1. Login and upload your required documents by submitting a message in your Account Management/Message Center. Please include all pertinent contact information with your request so Caliber can reach out to you regarding any questions that may occur. Additionally, please ensure any documents you attach for submission are in either PDF or Word format. These documents will be forwarded to the appropriate department for review.
   Note:  Any documents submitted must have visible and legible legal markings. These include, but are not limited to, court stamps, court filing stamps, and notary seals.
2. Via email to calibermods@caliberhomeloans.com
3. Via Mail:
   Caliber Home Loans, Inc.
   Attn: Successor in Interest
   P.O. Box 24610
   Oklahoma City, OK 73124
4. Via Fax to 405-608-2011.

If the submitted documents are confirmed, the Successor will be added to the loan as a confirmed Successor in Interest and notified as such. This will not, however, impact credit reporting for that individual, unless they wish to assume the loan.

Confirmed Successors in Interest are entitled to the same protections and notifications as the original borrower, under Real Estate Settlement Procedures Act, Regulation X and Truth in Lending Act Regulation Z. These regulations can be found atConsumerFinance.gov.

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Source: https://www.caliberhomeloans.com/faqs

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