Derek Hill

NMLS# 50183

Branch Manager, Producing

Derek Hill
Branch Manager, Producing

NMLS# 50183
State Lic: OR # 50183; WA # MLO-50183 ; MT # 50183 ; ID # MLO-15879; CA # CA-DOC50183;
265 SW 1st Ave
Canby, OR 97013
Branch: (503) 266-5800
Mobile: (503) 358-4317
Fax: (503) 266-5801
Rotary Club of Canby, Past President
derek.hill@academymortgage.com

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Welcome!

It’s all about service at Academy Mortgage, and our company has been meeting the needs of homebuyers across the United States since 1988. I joined Academy because of its strong reputation for integrity-based mortgage lending, its unwavering commitment to responsible lending practices, and for its broad portfolio of mortgage solutions and tools.

Since joining Academy, I have helped many individuals and families attain the dream of homeownership. Whether you want to buy a new home or refinance an existing mortgage, I will provide a customized solution for you at competitive rates. No brokering, no middleman, no hassle, no surprises.

Academy is a direct lender, which means that my Branch and Regional Offices are equipped to complete the entire loan process in-house—all loan processing, underwriting, closings, and funding are handled locally. As a result, we have a proven track record of closing loans as quickly and efficiently as possible.

I will be in control of your loan file from start to finish, and I will be up-to-date on the status of your loan at all times. I understand the importance of maintaining continuous communication throughout the loan process and commit to providing you accurate, timely, and honest mortgage advice.

I invite you to put us to the test. Let me show you how simple and easy securing a mortgage can be.

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We are proud to be one of the top independent purchase lenders in the country. We achieved this distinction by continually providing exceptional customer service and by following responsible lending practices, especially in today’s rapidly changing economy.Adam Kessler, CEO, Academy Mortgage

NMLS# 50183

State Lic: OR: 50183; WA: MLO-50183 ; MT: 50183 ; ID: MLO-15879; CA: CA-DOC50183;

Corp Lic: OR: ML-2421; WA: CL-3113; MT: 3113; ID: MBL-671; CA: 4170013;

Licensed by the Department of Business Oversight Under the California Residential Mortgage Lending Act;

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No, you don't need a 20% down payment to buy a house

Lack of inventory has made for a highly competitive housing market this year, which in turn has pushed home prices up.

According to the U.S. Census Bureau, the average home price in February 2017 was $390,400. This compares to $355,300 in January 2017 and $349,400 in February 2016. Rising home prices makes it difficult for homebuyers to make a sizeable down payment and encourages bidding wars that increase the price tag even more.

It's generally said that a 20% down payment is typical or at least wanted by most sellers and real estate agents. According to a recent Redfin survey, 35.7% of real estate agent respondents said a 20% down payment is generally associated with a successful bid on a home.

With the average price at $390,400, a 20% down payment would be $78,080 - more than many homebuyers have saved up. As such, many are forced to make smaller down payments.

However, Redfin's study found that this might not be as big a detriment as one might think. Nearly one-fourth of respondents said down payments of between 3% and 5% seem to have a good chance at success. In fact, there are many ways to seal the deal on a home without putting up your entire life savings.

Make a connection

Many successful bids come from people who have established a connection with the seller. This doesn't mean they're best friends or even that they know each other. One Chicago area agent, Rano Khudayberdieva, told Redfin that writing a cover letter can greatly improve a prospective buyer's chances of getting a bid accepted.

"Writing a cover letter can improve a buyer's chances of getting a bid accepted."

"You'd rather have a committed buyer who put a little less down than a buyer with 20% down who may back out," Khudayberdieva explained.

Another Chicago area agent, Tim Zielonka, said a buyer who bonded with a seller over a common interest was able to beat out his competitors who made larger down-payment offers.

"I recently had an FHA-backed offer with 3.5% down beat out four other offers, each of which had conventional 20% down loans," Zielonka said. "The sellers were at the showing. I introduced them to the buyers and pointed out that both were huge enthusiasts of both vintage bicycles and classic cars, which put them at ease with one another and enabled them to form a natural connection. Had they not discovered this shared interest, my clients may not have gotten the property."

Explore other loan options

A conventional mortgage requires the buyer either make a 20% down payment or purchase private mortgage insurance, which could potentially add thousands to a home loan. There are, however, other loan products that allow for a smaller down payment without a PMI obligation - as long as you qualify.

VA loan
If you or your spouse has served in the armed forces, you may qualify for a VA loan. These loans offer very low rates, plus don't require a down payment at all, as long as the sales price of the home is less than the appraised value, according to the U.S. Department of Veteran Affairs.

FHA loan
The Federal Housing Authority has a loan program to encourage first-time homebuyers find a house they can afford while also reducing risks for lenders. Under the FHA program, a buyer can put as little as 3.5% down - as long as their credit score is 580 or higher. But if you've got a not-so-impressive score, don't worry. You can still put as low as 10% down on a home under the FHA program.

USDA loan
In an effort to aid low- and moderate-income families living outside major metropolises obtain adequate housing, the U.S. Department of Agriculture offers a loan program in rural areas. Though it's often called a "rural home loan," it's actually available in the majority of the U.S., though not in very large cities. Like the VA loan, a down payment isn't required for USDA loans.

Seek out down payment assistance

Down payment assistance programs are available to many homebuyers, regardless of whether they've purchased a home before or not. According to research conducted by Urban Institute, these programs have aided in the purchase of many homes across the U.S., largely without risk to the lender or increased fees to the borrower. Every program is different, but many offer to pay a portion of your down payment or closing costs for you.

Pay PMI

Though paying PMI can add to the cost of the mortgage, there are situations where purchasing this insurance product is actually your most cost-effective option. For example, if you have an excellent credit score, your lender may give you a generously low PMI rate. Additionally, you'll be able to cancel your PMI once you've paid off 22% of the home price or more. If you know you can reach this goal fairly quickly, it might be worth paying the PMI for a few months and cancelling it as soon as you can.

Coming up with the funds for a down payment is often one of the most difficult hurdles of making a home purchase. Luckily, consumers have myriad options for clearing this obstacle and carrying on with their homebuying journey.

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How to beat the competition this homebuying season

The housing market is a competitive one, requiring prospective buyers to be on top of their finances and paperwork. Indecision or a failure to present certain documentation can mean the difference between getting the house of their dreams or having to continue their search elsewhere. Here are five ways people can beat the competition this season:

1. Get pre-approved

Unless you're a member of the small population of Americans who own their homes outright, you'll need a conventional mortgage. Once you find the home you want, things will move fairly fast. To lean into this process and improve your chances of closing on your desired property, potential homeowners should get pre-approved for a loan, Time magazine recommended. This, along with other necessary paperwork, will demonstrate that you are able to repay the money you're borrowing and will make sellers feel more comfortable choosing your bid.

2. Be present

It's common for prospective homebuyers to send in their offers via email or over the phone. While these are sometimes the only routes possible for certain people, presenting your bid in person could be beneficial to your success, according to Inman. The ability to see the buyer in the flesh and learn a little more about him or her could convince seller or agents that you're the right fit.

3. Introduce an escalation clause

Nervous other prospective buyers will outbid you? Others could be just as hungry for the same property, but you may not be able to meet their price - or they may not be able to match yours. An escalation clause enables you to play this cat-and-mouse game while also ensuring you don't push past your final limit. This effort will increase your bid incrementally above others on the table to a certain, pre-established ceiling. Just don't forget to set your budget and stick to it, Realtor.com warned.

An escalation clause will raise your bid incrementally.An escalation clause will raise your bid incrementally.

4. Find the right team

No matter whether you're a first-time homebuyer or have completed the process in the past, you're going to need all the help you can get. It's important to complete your own research and determine which housing factors are must-haves, but working with savvy professionals in the housing market can help answer all of your most particular questions along the way. An agent or a mortgage broker can make the bidding and homebuying process that much easier and can work their magic with the seller's team as well, according to Business Insider.

5. Don't let pending contracts scare you

It happens more often than you would think. A prospective buyer's bid on a home is accepted and a contract is being drawn up, only to have the person back out before he or she signs on the dotted line. If your dream home is already in the near-final stages for someone else, don't let that deter you. Place a backup offer anyway, according to U.S. News and World Report. It could work out in your favor and place you in the top spot if the initial bidder makes a different choice. 

Academy Mortgage is one of the top independent purchase lenders in the country as ranked in the 2015 CoreLogic Marketrac Report. Visit www.academymortgage.com to find a loan, get a rate, or calculate your payment today.

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Fannie Mae just made getting a mortgage easier for some student loan borrowers

In an effort to reach out to homebuyers and owners juggling student loan and mortgage payments, Fannie Mae announced several new policies that ease some of the challenges these people face.

There are three major changes that are expected to make obtaining a residential mortgage easier for borrowers with student debt.

Three new rule changes

The first is the student loan cash-out refinance. This allows borrowers to refinance a current mortgage to use the funds to pay down the remainder of their student loans. They could also potentially get a lower mortgage rate in the process.

"44.2 million Americans are paying down student debt."

The second change applies to borrowers who have some debt that's paid by others, such as a borrower whose parents pay down the monthly credit card, auto loan or student loan payments.

Under the old rule, these balances would be included in a borrower's debt-to-income ratio - a measure lenders look at as one way to determine the risk associated with a potential borrower. The new rules state that they can be excluded from the DTI calculation, as long as they meet two requirements:

The third new rule allows lenders to look at student loan debt and the actual payments being made as part of the DTI calculation. Previously, lenders were required to factor in 1% of the total student loan debt. The problem with this practice is that many students paid less than 1% on a monthly basis.

According to Student Loan Hero, 44.2 million Americans are paying down student debt, and the typical graduate is leaving college with around $30,000 in debt; 1% of this amount would be $300. While the average monthly student loan payment is higher than this - $351 - the median monthly student loan payment is just $203.

Many times, factoring in an amount that was different than borrowers' actual loan payments artificially increased their DTI calculation and disqualified them from getting an affordable home loan with many lenders.

Addressing a growing trend

Fannie Mae announced these rules in response to an obstacle many prospective homebuyers have encountered in recent years. While there are many ways people can balance student loan debt and mortgage payments, it isn't easy. The National Association of Realtors found that 13 percent of homebuyers in 2016 said saving for a down payment was the hardest part of the homebuying process. Nearly half of these respondents said it was student loans that held them back.

"We understand the significant role that a monthly student loan payment plays in a potential home buyer's consideration to take on a mortgage, and we want to be a part of the solution," Jonathan Lawless, Fannie Mae's vice president of customer solutions, explained in a statement. "These new policies provide three flexible payment solutions to future and current homeowners and, in turn, allow lenders to serve more borrowers."

While these new rules are designed to aid borrowers, there is always a risk associated with new programs such as these. Some worry that, by changing the DTI formula, lenders won't get as accurate a picture of a borrower's actual ability to pay down their mortgage, The Washington Post reported. In reality, these rules will likely be a wonderful help for some borrowers, but not quite the right solution for others. To determine whether any of them are a good option for you, reach out to Academy Mortgage.

Academy Mortgage is one of the top independent purchase lenders in the country as ranked in the 2015 CoreLogic Marketrac Report. Visit www.academymortgage.com to find a loan, get a rate, or calculate your payment today.

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