FREQUENTLY ASKED QUESTIONS
Questions Are a Good Place to Start
Mortgages can get complicated quickly. You don't need to understand every loan program, underwriting guideline or industry term before asking for help. Here are answers to some of the questions we hear most often.
Don't see your question?
That's okay. Tell us what you're trying to accomplish. A conversation doesn't require an application, and our Rapid Qualifier doesn't ask for sensitive information such as your Social Security number or date of birth.
Common Questions
Click any question to see the answer.
No. Unlike many other companies, we're happy to answer questions without requiring an application.
Just tell us what you're trying to accomplish. We'll explain your options in clear terms so you can evaluate what's best for your situation before filling out an application.
The Rapid Qualifier is a simple way to give us a basic picture of what you're trying to accomplish without the need to complete a full mortgage application.
The Rapid Qualifier only asks for general information such as the type of transaction, approximate property value or loan amount, estimated credit range and other basic details. Our Rapid Qualifier does not ask for Social Security number or date of birth information.
No. Completing the Rapid Qualifier is intended only to give us basic information so we may more accurately discuss your options. It does not authorize any sort of credit inquiry and does not affect your credit score.
If you later decide to proceed with a formal loan application, any required credit report will only be obtained with your authorization.
A decline from one lender is often due to their limitations, not yours. We have access to programs many people have never heard of, and we specialize in helping people with unusual situations.
Different mortgage programs use a variety of underwriting standards. Depending on the circumstances, alternatives to traditional approval requirements may be available. Whether you have self-employed income that's difficult to verify using typical income documentation, higher debt ratios, credit issues, or need flexible ways of financing investment properties, let us explain your options.
Call us. We'll treat you with respect and provide clear answers.
Yes. Self-employed borrowers can sometimes have difficulty fitting traditional mortgage underwriting even when their overall financial position is strong.
Depending on the program and circumstances, alternatives such as bank statements, assets, property cash flow or other acceptable forms of income documentation may be available.
For many programs, tax returns aren't required. Documentation requirements depend on the loan program and the borrower's circumstances.
Some programs may permit qualified borrowers to document their ability to repay through alternatives to traditional tax returns. These can include bank-statement, asset-based and certain investment-property programs.
Yes! With sufficient equity, a traditional home equity loan or HELOC (Home Equity Line of Credit) may allow a homeowner to access equity while leaving an existing lower-rate first mortgage in place.
Eligibility and the amount available depend on factors including property value, existing liens, program guidelines and borrower qualifications. Ask us, and we'll give you direct answers.
A home equity loan generally provides a specific amount of money at closing, often with a fixed rate and scheduled payments.
A HELOC is a revolving line of credit. Subject to the terms of the program, you can draw funds as needed during the applicable draw period, and interest is generally based on the amount actually borrowed rather than the entire available credit line.
Yes. Reverse mortgages can be an excellent option for qualified homeowners who want to eliminate the required monthly principal-and-interest mortgage payment and use their accumulated home equity as part of a broader financial or retirement strategy.
Options include the federally insured Home Equity Conversion Mortgage (HECM), as well as proprietary or jumbo reverse-mortgage programs. For a HECM, borrowers must be at least 62 years old. A spouse under 62 may qualify as a non-borrowing spouse, subject to program requirements. Other reverse-mortgage programs may have different age and eligibility requirements.
Reverse mortgages work differently from traditional mortgages, so understanding the features, costs, homeowner responsibilities and alternatives is particularly important. For the right homeowner—especially someone who wants to remain in their home while reducing monthly housing expenses—a reverse mortgage can be an important financial tool.
Yes. Depending on the property and transaction, investors may have access to traditional financing as well as specialized programs.
Some investment-property programs, including certain DSCR programs, may place greater emphasis on the property's rental income and cash flow rather than traditional personal-income calculations.
Colonial Credit provides mortgage information, guidance and consultation. Mortgage loan applications, disclosures and loan origination activities are provided through ResCom Financial Services.
Once you've discussed the situation with us and decide you would like to pursue a mortgage, the next step is easy. Just complete a ResCom Financial Services loan application through the link provided.
You'll then provide the more detailed information required for the formal loan application, authorize a credit report, and receive instructions for uploading any necessary documentation.
Still Have Questions?
Good. Questions are how smart mortgage decisions begin. Tell us what you're considering, what you're trying to accomplish, or even what's confusing you. We'll start there.