This is an archive of common and uncommon questions addressed by our department. You can Ask a VA Loan Question, or you can call 1 (866) 825-6261. Browse the topics below to view answers to questions that have been submitted by borrowers and prospective borrowers.
- Q. What is a VA Loan?
A. In 1944 the GI Bill of Rights was signed into law by President Franklin D. Roosevelt. The bill was intended to provide housing assistance for veterans and their families and make the “american dream” of home ownership a reality for veterans. The GI Bill has been one of the most successful programs in history providing great value to the welfare of veterans and their families.
VA guaranteed mortgages are originated through private lenders and brokers. The loan guaranty reduces the risk to the lender and protects them against losses. Due to less risk there is an advantage and lower rates associated with the home loans. If you qualify for a VA Loan then this is very likely the best mortgage program available to you.
- Q. What is the VA Loan Limits?
A. Qualifying veterans are able to get a VA Loan with zero down and 100 percent financing. Loan limits vary by state and county. Simply call to find out what the loan limits are in your area toll free (866) 825-6261. You may also click on the applicable state below:(includes VA limits in Florence, Sheffield, Fort Payne, Hamilton, Jasper, Birmingham, Northport, Tuscaloosa, Selma, Montgomery, Eufaula, Monroeville, Dothan, Mobile, Daphne…)(includes VA limits in Barrow, Nome, Fairbanks, Bethel, Anchorage, Homer, Seward, Kodiak, Unalaska, Juneau, Sitka, Petersburg…)(includes VA limits in Bullhead City, Tuba City, Flagstaff, Winslow, Prescott, Phoenix, Scottsdale, Mesa, Tempe, Florence, Casa Grande, Yuma, Flowing Wells, Tucson, Green Valley, Douglas…)(includes VA limits in Springdale, Pocohontas, Fayetteville, Van Buren, Mountain View, Fort Smith, Russellville, Searcy, Little Rock, West Helena, Hot Springs, Arkadelphia, Pine Bluff, Camden, Magnolia, El Dorado…)(includes VA limits in Arcala, Eureka, Redding, Chico North, Paradise, Ukiah, Linda, Santa rosa, Sacraento, Napa, Lodi, San Francisco, San Jose, Turlock, Los Banos, Santa Cruz, Fresno, Visalia, Porterville, Atascadero, Ridgecrest, Bakersfield, Santa Maria, Barstow, Santa Barbara, Thousand Oaks, Los Angeles, Santa Ana, Laguna Beach, San Diego, El Centro…)(includes VA limits in Craig, Rangely, Fort Collins, Greeley, Sterling, Yuma, Boulder, Westminster, Denver, Castle Rock, Glenwood Springs, Black Forest, Buena Vista, Colorado Springs, Lincoln Park, Pueblo, Montrose, La Junta, Walsenburg, Monte Vista, Cortez, Durango, Alamosa, Trinidad…)(includes VA limits in Winsled, Windsor Locks, Bristol, Hartford, Danielson, Norwich, Groton, New Milford, Danbury, Starford, Norwalk, Stamford…)(includes VA limits in Newark, Claymont, Brookside, Middletown, Dover, Harrington, Lewes, Seaford, Laurel…)(Washington, D.C.)(includes VA limits in Pensacola, Fort Walton Beach, Panama City, Tallahassee, Jacksonville Beach, Lakeside, St. Augustine, Palatka, Gainesville, Ocala, Daytona Beach, Deltona, Leesburg, Orlando, Merritt Island, Cocoa Beach, Melbourne, Vero Beach, Fort Pierce, Port St. Lucie, Riviera Beach, West Palm Beach, Boca Raton, Pompano Beach, Fort Lauderdale, Miami Beach, Belle Glade, Hialeah, Miami, Cutler Ridge, Homestead, Key West, East Naples, Fort Myers, Englewood, Venice, Sarasota Springs, St. Petersburg, Largo Tampa, Clearwater, Kissimmee, New Port Richey…)(includes VA limits in Dalton, Rome, Atlanta, East Point, La Grange, Columbus, Americus, Albany, Tifton, Moultrie, Valdosta, Brunswick, Hinesville, Savannah, Statesboro, Macon, Augusta, Covington, Athens, Gainesville…)(includes VA limits in Lihue, Honolulu, Kaunakakai, Wailuka, Hawi, Hilo, Captain Cook…)(includes VA limits in Sandpoint, Post Falls, Osburn, Moscow, Lewiston, Grangeville, Salmon, Weisner, Boise City, Ketchum, St. Anthony, Idaho Falls, Blackfoot, Mountain Home, Soda Springs, Buhl, Twin Falls, Montpelier…)(includes VA limits in Rockford, Sterling, Rock Island, Kewanee, Monmouth, Macomb, Lincoln, Springfirld, Quincy, Jacksonville, Waukegan, Oak Lawn, Joliet, Kankakee, Normal, Decatur, Charlston, Effingham, Alton, East St. Louis, Centralia, Mount Vernon, Harrisburg, Carbondale…)(includes VA limits in East Chicago, Gary, Logansport, Kokomo, Crawfordsville, Indianapolis, Terre Haute, Vincennes, Evansville, New Albany, Madison, Bloomington, Shelbyville, Anderson, Muncie, Grant, Wabash, Fort Wayne, South Bend…)(includes VA limits in Spencer, Sioux City, Council Bluffs, Fort Dodge, Boone, Ames, Urbandale, Des Moines, Oskaloosa, Burlington, Keokuk, Davenport, Cedar Rapids, Dubuque, Wateloo, Cedar Falls, Mason City…)(includes VA limits in Norton, Colby, Garden City, Liberal, Hays, Great Bend, Hutchinson, Dodge City, Minneapolis, Salina, McPherson, Newton, El Dorado, Arkansas City, Wichita, Atchinson, Kansas City, Topeka, Ottowa, Emporia, Chanute, Pittsburg…)(includes VA limits in Fort Thomas, Erlanger, Florence, Ashland, Frankfort, Lexington, Richmond, Somerset, Middlesborough, Elizabethtown, Louisville, Owensboro, Hopkinsville, Fort Campbell North, Mayfield, Paducah, Madisonville, Henderson…)(includes VA limits in Minden, Bastrop, Monroe, Bossier city, Tallulah, Natchitoches, Alexandria, Pinieville, Fort Polk South, De Ridder, Lafayette, Abbeville, New Iperia, Morgan City, Bayou Cane, New Orleans, Baton Rouge, Bogalusa…)(includes VA limits in Madawaska, Fort Fairfield, Presque Isle, Houlton, East Millinocket, Dover-Foxcroft, Calais, Bangor, Bar Harbor, Waterville, Madison, Romford, Augusta, Lewiston, Auburn, Brunswick, Portland, Biddeford, Sanford, Kittery…)(includes VA limits in Lexington Park, Salisbury, Cambridge, St. Charles, Annapolis, Balrimore, Townson, Bethesda, Columbia, Frederick, Hagerstown, Cumberland, Oakland…)(includes VA limits in North Adams, Pittsfield, Springfield, Gardner, Worcester, Newburyport, Salem, Boston, Taunton, Fall River, New Bedford, Nantucket…)(includes VA limits in Ontonagon, Iron Mountain, Marquette, Sault Ste. Marie, Crystal Falls, Escanaba, Menominee, Alpena, Traverse City, Cadillac, Bay City, Saginaw, Port Huron, Pontiac, Detroit, Dearborn, Adrian, Ann Arbor, Farmington Hills, Lansing, Niles, Kalamazoo, Holland, Grand Rapids, Muskegon, Big Rapids…)(includes VA limits in Hallock, Big Falls, Grand Marais, Bemidji, Hibbing, Virginia, Duluth, Moorhead, Fergus Falls, Brainerd, St. Cloud, Willmar, Minneapolis, St. Paul, Northfield, Faribault, New Ulm, Marshall, Owatonna, Rochester, Fairmont, Worthington…)(includes VA limits in Gulfport, Picayune, McComb, Brookhaven, Laurel, Hattiesburg, Vicksburg, Jackson, Canton, De Kalb, Yazoo City, Greenwood, Columbus, Grenada, Clarksdale, Tupelo, Southaven, Corinth…)(includes VA limits in Maryville, Milan, Kirksville, St. Joseph, Brookfield, Hannibal, Moberly, Liberty, Kansas City, Warrensburg, Columbia, Mexico, St. Charles, St. Louis, Jefferson City, Arnold, Rolla, Perryville, Cape Girardeau, Sikeston, Poplar, Kennett, Joplin, Springfield, Carthage, Fort Leonard Wood…)(includes VA limits in Libby, Cut Bank, Kalispell, Poison, Missoula, Deer Lodge, Butte Silver Bow, Helena, Great Falls, Conrad, Havre, Malta, Lewistown, Roundup, Billings, Hardin, Forsyth, Jordan, Glasgow, Plentywood, Wolf Point, Glendive, Miles City…)(includes VA limits in Chadron, Scottsbluff, Kimball, Gordon, Valentine, Ainsworth, O’Neill, South Sioux City Norfolk, Mullen, Broken Bow, Columbus, Ord, Fremont, Omaha, Bellevue, Lincoln, Beatrice, Superior, Hastings, Grand Island, North Platte, Broken Bow, Kearney, Imperial, McCook…)(includes VA limits in Winnemucca, Elko, Battle Mountain, Sparks, Fallon, Reno, Carson City, Gardnerville Ranchos, Hawthorne, Tonopah, Caliente, Ely, Las Vegas, Paradise, Boulder City…)(includes VA limits in Berlin, Lancaster, Littleton, North Conway, Plymouth, Levanon, Claremont, Concord, Manchester, Derry, Nashua, Keene…)(includes VA limits in Newton, Paterson, Newark, Edison, Stanton, Trenton, Camden, Cherry Hill, Salem, Vineland…)(includes VA limits in Shiprek, Farmington, Taos, Raton, Clayton, Los Alamos, Santa Fe, Las Vegas, Tucumcare, Santa Rosa, Clovis, Roswell, Artesia, Carlsbad, Las Cruces, Deming, Lordsburg, Alamogordo, Truth Or Consequences, Socorro, South Valley, North Valley Gallup, Albuquerque…)(includes VA limits in Massena, Potsdam, Plattsburgh, Ogdensburg, North Ebs, Watertown, Fulton, Syracuse, Cortland, Binghamton, Monticello, Newburgh, New City, Yonkers, New York City, Peekskill, White Plains, Hampton Bays, Elmira, Ithaca, Corning, Rochester, Lockport, Niagara Falos, Buffalo, Jamestown, Thurman, Glens Falls, Saratoga Springs, Albany, Chatham, Catskill, Kingston, Poughkeepsie, Oneonta, Schenectady, Utica, Rome…)(includes VA limits in Murphy, Asheville, Morganton, Boone, Lenoir, Salisbury, Charlotte, Monroe, Albemarie, High Point, Greensboro, Eden, Henderson, Durham, Raleigh, Cary, Fayetteville, Lumberton, Wilmington, Camp Lejeune, Havelock, Kinston, Greenville, Elizabeth City…)(includes VA limits in Crosby, Williston, Watford City, Hazen, Beach, Dickenson, Bowman, Mandan, Bismarck, Ashley, Oakes, Lisbon, Fargo, Jamestown, Carrington, Mayville, Grand Forks, Harvey, Devils Lake, Grafton, Langdon, Bottineau, Rugby, Minot…)(includes VA limits in Boise City, Guyman, Woodward, Ponca City, Enid Stillwater, Elk City, Olkahoma City, Edmond, Norman, Chickasha, Ada, Altus, Lawton, Ardmore, Durant, McAlester, Okmulgee, Broken Arrow, Tulsa, Claremore, Bartlesville…)(includes VA limits in Astoria, Portland, Oregon City, woodburn, Salem, Albany, Lebanon, Springfield, Eugene, Coos Bay, Roseburg, Grants Pass, Medford, Ashland, Klamath Falls, Altamont, Bend, City Of The Dalles, Pendleton, Enterprise, La Grande, John Day, Ontario, Burns, Hines…)(includes VA limits in Erie, Meadville, Oil City, New Castle, Butler, Penn Hills, Pitsburgh, Uniontown, Bradford, Williamsport, Sunbury, Towanda, Altoona, Harrisvurg, Bedford, Chambersburg, Montrose, Scranton, Willkes-Barre, Easton, Bethlemem, Allentown, Levitown, Philadelphia…)(includes VA limits in Woonsocket, Glocester, Providence, Coventry, Newport, Westerly…)(includes VA limits in Easley, Greenville, Laurens, Greenwood, Columbia, Cayce, Aiken, Barnwell, Rock Hill, Bennettsville, Florence, Conway, Myrtle Beach, Georgetown, Goose Creek, Charleston, Hilton Head Island…)(includes VA limits in Buffalo, Bison, Belle Fourche, Sturgis, Lead, Rapid City, Hot Springs, Pine Ridge, Winner, Chamberlain, Pierre, Cherry Creek, Mobridge, Yankton, Canton, Sioux Falls, Mitchell, Madison, Brookngs, Huron, Redfield, Watertown, Milbank, Aberdeen, Sisseton…)(includes VA limits in Memphis, Bolivar, Jackson, Hujboldt, Union City, Paris, Clarksville, Nashville, Franklin, Columbia, Shelvybille, Chattanooga, Athens, Maryville, Knoxville, Oneida, Greeneville, Elizabethton…)(includes VA limits in Dalhart, Amarillo, Canyon, Wichita Falls, Lubbock, Denton, Arlington, Dallas, Fort Worth, Abilene, Snyder, Texarkana, El Paso, Pecos, Van Horn, Fort Stockton, Ozona, San Angelo, Odessa, Mdland, Del Rio, Eagle Pass, Carrizo Springs, Laredo, Rio Grande City, Brownsville, Corpus Christi, Portland, Port Lavaca, San Antonio, Galvestion, Houston, Beaumont, Austin, College Station, Lufkin, Nacogdoches, Waco…)(includes VA limits in Logan, Brigham City, Ogden, Salt Lake City, Megna, Murray, Sandy, Orem Provo, Maeser, Roosevelt, Helper, Nephi, Mount Pleasant, Fillmore, richfield, Moab, Loa, Milford, Panguitch, Monticello, Hurricane, Kanab, Mexican Hat…)(includes VA limits in Newport, Swanton, Island Pond, Burlington, Montpelier, Middlebury, Rutland, Woodstock, Springfield, Arlington, Brattleboro…)(includes VA limits in Briston, Marion, Blacksburg, Martinsville, Danville, Roakoak, Lynchburg, Richmond, Newport News, Chesapeake, Virginia Beach, Exmore, Onancock, Charlottesville, Fredericksburg, Staunton, Harrisburg, Front Royal Winchester, Arlington, Alexandria, Manassas…)(includes VA limits in Bellingham, Mount Vernon, Oak Harvor, Port Angeles, North Marysville, Everett, Bremerton, Seattle, Tacoma, Olympia, Aberdeen, Centralia, Longview, Vancouver, Goldendale, Yakima, Ellensburg, Richland, Kennewick, Walla Walla, Pullman, Moses Lake, East Wenatchee Bench, Spokane, Newport, Omak, Kettle Falls…)(includes VA limits in Weirton, Wheeling, Moundsville, Fairmont, Parkersburt, Clarksburg, Martinsburg, Charles Town, Moorefield, Elkins, Glenville, Poin Pleasant, Huntington, Charleston, South Charleston, Madison, Beckley, Lewisburg, Marlinton, Beckley, Welch, Bluefield…)(includes VA limits in Superior, Ashland, Mercer, Shell Lake, Rhinelander, Crandon, Marinette, Wausau, Menomonie, Eau Claire, Marshfield, Green Bay, Wisconsin Rapids, Appleton, Menasha, Oshkosh, Two Rivers, Fond Du Lac, La Crosse, Beaver Dam, Sheboygan, Menoonee Falls, Madison, Richland Center, Madison, Milwaukee, Lancaster, Racine, Kenosha, Monroe…)
Wyoming VA Loan Limits
(includes VA limits in Evanston, Kemmerer, Green River, Rock Springs, Rawins, Saratoga, Cheyenne, Torrington, Douglas, Paradise Valley, Casper, Lender, Riverton, Jackson, Thermopolis, Worland, Powell, Cody, Lovell, Sheridan, Greybull, Buffalo, Gullette, Newcastle…)
- Q. What are VA Closing Costs?
A. The Veterans Administration protects Borrower(s) with specific restrictions to all VA Approved lenders. “The veteran can pay a maximum of all reasonable and customary amounts for any and all of the itemized fees and charges designated by the VA.”
Save yourself money with every mortgage transaction with the help of the VA and the VA Mortgage Leader.
- Q. What is Debt to Income Ratio?
A. Often referred to as DTI, is the percentage of a consumer’s monthly Gross Income that goes toward paying debts.
- Q. How much can I borrow?
A. There are many variables used to calculate the maximum loan amount you will qualify for. The easiest way to know what you can qualify for is to contact a mortgage professional (866) 825-6261.
- Q. Who is Flagship Financial Group?
A. Flagship Financial Group (FFG) has been in existence since 1999. FFG was founded by individuals with over 25 years of combined experience in the mortgage industry. FFG has grown to become one of the largest brokerages in the state of Utah and has divisions specializing in just about every aspect of the mortgage business; including FHA and VA products, Conventional Mortgages (both conforming and non-conforming), Partnership opportunities, and more. Each FFG owner also operates a FFG Branch. It is this involvement and expertise that has made FFG the desired place to work for mortgage professionals nationwide. From this tremendous growth the FFG Partners Division evolved. The FFG Partners Division was designed solely to insure the success of all of FFG’s Partners as the company continues to expand across the nation.
- Q. What is FFG Partners Division about?
A. The FFG Partners Division provides a turn-key solution for operating your own office. FFG Partners is designed to allow you to run your business with as much or as little help from our home office as you need. What sets FFG apart from all the rest is that the FFG’s partnering model is built from a Branch Partner’s perspective, allow you to run your own business the way you want it run, but with the added ability to 1) originate nationwide and 2) receive benefits reserved for large company – you can truly have the best of both worlds.
- Q. Why should I choose to become a FFG Partner?
A. As mentioned above, the greatest aspect of the FFG partnering model is that it is built from a Branch Partner perspective, NOT from a corporate perspective. Because FFG owners are in the trenches with its Partners they are more aware of the issues that are being faced on a daily basis, in a market that is constantly changing. As a result, they established the FFG Partners Division to insure that FFG Partners don’t just survive but thrive in today’s market.
In order to help our Partners accomplish this goal of success, FFG’s Partners Division is built on two key principles: 1) FFG provides its Partners with the right tools for success and 2) FFG provides its Partners with the right situation for success.
FFG provides its Partners with the right tools for success:
- FFG is currently licensed in 39 states. Nationwide licensing allows you to move to the hottest markets, increasing your production. It also allows you to narrow your niche of expertise, if desired, given that you will have a larger market to advertise to.
- FFG provides the ability to originate FHA and VA loans. With the best products available you can adapt as the market changes. It also allows you to offer your clients, not only the best products and services available, but the right products. By offering the right products your business will thrive on referrals.
- FFG is constantly negotiating preferred pricing with top lenders and vendors, allowing you to increase your profit margins. And because lenders and vendors know the FFG brand you can require the best pricing, service, and products they offer. Currently we see lender rebates of as much as .500%, we have the absolute best pricing with companies like Credit Plus, Verizon, and Training Pro.
- FFG will take on those tasks that keep you from originating and training originators. FFG will handle:
- Branch Payroll – without taking money management and bookkeeping out of your control.
- Human Resources – we can help you with all the cumbersome paperwork that comes with hiring and firing employees.
- State Licensing and Compliance – 39 states. You can spend your capital on marketing to these states rather then applying for licenses.
- Lender Approvals – we already have great relationships with the best lenders, if you don’t see someone on our list, that’s an important part of your business model, let us know.
- And More…
- FFG Partner wants you to broker 100% of your loans which means lenders are competing for your business and, again, you can require top of the line pricing, service, and products from them.
FFG provides its Partners with the right situation for success:
- FFG allows you to run your business the way you want to run it. With this freedom you can focus on the niche of your choice. You can move at the speed of a small business with the ability to offer products and services of a large company. You can grow your business without the headaches of a business manager.
- FFG assigns a Business Development Manager to each Partner as your liaison with the home office. Your BDM is your source for quick answers to any difficulty you may face.
- FFG offers you outstanding support from just a handful of quality people – no frustrating automated systems or constantly changing personnel. Your support staff is a quick phone call or email away. They will help you with state licensing questions, lender issues, pay-roll and other accounting matters, and any Human Resource issues. You also have 24 hour access to great resources and tools found on FFG’s intranet.
- FFG provide benefits packages for each of their employees. Benefits packages are a rarity in the mortgage industry. With the ability to offer benefits you have a negotiating tool when hiring new employees. Your employees will also benefit from better health and feel more loyal to you because you offer something most others do not.
- FFG provides regular support and training. Our monthly Round-tables are in place to provide training and marketing ideas. They are designed to address issues we are facing in the industry and to motivate and encourage all our Partners. The monthly Newsletter recognizes those who are achieving their goals. It also typically has an article from the top lender’s rep of the month with suggestions and advice. Both are in place to keep you connected with the company as a whole.
- FFG is building a team environment. We recognize that the company as a whole benefits when even one member is successful. We all benefit from the volume discounts given by lenders, we benefit from a positive national presence, and we benefit when we can learn from other’s success stories. At FFG we encourage an open line of communication because we recognize it builds a team.
- Q. What is FFG looking for?
A. FFG doesn’t want to be just another “Branching” opportunity. FFG is exceptional and as a result we are only looking for exceptional mortgage companies and professional to join our team. Some of the basic requirements are:
- Loan Production: Although we don’t have a quota, per say, we believe it will only benefit you to join our team if you are originating at least 10 loans a month. The optimal production is 15+ loans a month.
- Commercial Office: FFG is not offering “Corporate Licensing for Rent”. We all know how renters treat rental property. We are really looking for Partners. We want established companies with commercial office space. Most states and credit services won’t approve home offices as branch location. Having commercial space also shows a commitment to success and longevity.
- Honesty and Integrity: Our goal is to grow FFG into the premier mortgage brokerage in the nation. We want those that carry the FFG name to be an extension of the home office. We want borrowers to associate FFG with excellence and integrity. We want lenders to always work their hardest at getting FFG loans closed because they know they are the highest quality.
- Team Players: FFG wants you to run your business the way you want it run but we also want you to participate in the team experience. It will ultimately benefit all involved. If this is you then we want you to join the FFG team today!
- Q. How do I become an FFG Partner?
A. Because the FFG Partnership opportunity is exclusive our application process is a little more unique then your average “Branching” process. That said the approval process should still only take 5-10 business days from start to originating and is as easy as counting to 4.
- Step One – Apply: Initially FFG needs a complete application package which includes:
- A complete FFG Branch Application (Your BDM can provide you with an application)
- A copy of all valid professional licenses (i.e. broker license, business license, etc…)
- Resumes for Owners, Principals, and Key Employees
- A Business Plan (Your BDM can provide you with a outline)
- 12 Months Previous Production (Include back-up documentation)
- Signed Authorizations to Release Information and Pull Credit (Your BDM can provide you with these authorization forms)
- Step Two – Review: Upon receipt of ALL items listed above the FFG review committee will evaluate your application package and then submit qualified candidates applications to a third party for a back ground check. The back ground check typically takes 3-5 business days. Although approval with FFG is not credit driven we still use the back ground check to tell us what questions we may further need to ask.
- Step Three – Approval: Once the FFG review committee has reviewed the application and results of the back ground check they will approve qualified candidates and issue an Employment package. Upon completion of the Employment Package you are ready to start originating under the FFG name! An invitation is simultaneously extended to come out and meet the Owner, the FFG Partners Division support team and see the home office.
- Step Four – Orientation: While meeting with the FFG Partners Division support team our qualified staff will go through orientation and the owner will share his vision of the companies future along with his marketing ideas.
- Step One – Apply: Initially FFG needs a complete application package which includes:
- Q. What should I know once I am a FFG Partner?
- FFG Pays All Employees including Branch Managers a W-2 Wage: Please consult your legal adviser and/or tax professional before acting on this matter.
- Why a W-2: The National Office of the IRS considered Internal Revenue Code section 3508 which provides that a qualified real estate agent is a statutory non-employee for purposes of FUTA (unemployment taxes), FICA (social security), and federal income tax withholding. The IRS concluded that the placing of loans for residential real estate sales or refinancing existing loans are not activities customarily performed by a real estate agent, as explained in its Proposed Regulations section 31.3508-1(a) (2). This means that Mortgage Agents are not independent contractors but are, instead, employees. Therefore mortgage brokers have potential liability for their failure to withhold payroll taxes, including FUTA, FICA, and federal income taxes for each of their Mortgage Agents (http://www.wwlaw.com/tamik.htm).
- The W-2 Stigma: FFG allow its Partners and their employees to expense as many legitimate business-related expenses as possible prior to taking a W-2 wage. The resulting difference between receiving a W-2 wage and a 1099 wage is negligible. The primary difference is one is legal the other is not.
- Branch Manager’s Obligation: As a Mortgage Agent and an employee of FFG we require that you take a reasonable W-2 wage each month. This wage is determined by you as the Branch Manager and has to be sensible when considering your responsibilities in managing a Branch.
- Advantages of a W-2: If, with the deductions, the difference is negligible then there are a number of advantages to being a W-2 employee. At the top of the list of advantages are the eligibility to receive benefits, your end of the year books will be much simpler, and you can receive your paycheck via direct deposit making funds immediately available.
- You Manage Your Money:
- Service Contracts and Agreements: This will allow them to quickly and easily arrange these services at their discretion.
- Profits and Loss Statement: At the end of each month FFG will compile a profits and loss statement for your Branch. Your profit and loss statement will be provided by the 10th of each month for the previous month.
- FFG Partners Division Provides Support: As an FFG Partner you will have the benefit of having a responsive support staff at your finger-tips. Some of the items they will help you with include:
- Compliance: All marketing must be approved by compliance before using. You simply submit your marketing piece(s) to compliance and they will respond back typically within 2 business days.
- Processing Training: Initially we will review each loan with you upfront. This is typically done for the first 60-90 days. We do this to make sure we are comfortable with your process Flagship Financial Group Partners Division Page 4 of 6 and that you are comfortable with ours. Once we have a feel for each other we will then move the review to the back.
- FHA Processing: All FHA loans have to be processed through the home office. There is a processing fee of $395 for full FHA loans and $250 for streamlines. The FFG processing team is made up of qualified employees with experience in originating and contract processing.
- Human Resources: As a new FFG employee the FFG Partners Division will help you complete all employment packages and assist you with all of your HR needs. A FFG Partner may only begin originating loans once HR has notified them that the required packages and agreements have been received
- Payroll and Disbursements: All disbursements are completed online. You will be trained on this and other items during your orientation once you have been approved as a FFG Partner. You can also contact your BDM for further assistance.
- FFG Only Charges $500/File: As a FFG Partner you will keep 100% of your commissions. The only cost is a nominal, per loan fee of $500, regardless of loan amount. Combination loans count as one loan. The increased time originating loans and growing your business, on top of the support staff you no longer have to employ and the deep discounts you receive from lenders and others will put you way ahead of this minimal cost.Example #1: We spend over a quarter of a million dollars on licensing last year, if you averaged 15 loans a month at $500/loan you would pay less then $90K for the same licensing. The other $200K can be applied toward marketing, growth, training, etc…Example #2: Many of our preferred lenders offer a .375% volume rebate to FFG Partners. On a $200K loan you could make an additional $750, after you pay FFG’s nominal fee you’ve made $250 more then if you would have done the loan under another brokers license. If you close 15 loans a month that is $3750 in increased profits.Example #3: A broker/owner may spend upwards of 80% of their time handling issues like broker packages, state licensing, Human Resources, and compliance issues. If a broker/owner is spending a mere 50% their time on these time consuming issues and they are originating 5 loans a month then by joining FFG’s team they could easily jump from only 5 loans a month to 10. If they are making 2 pts on every loan and their average loan size is $200K then the broker has made approximately $15,000 more in one month ($4000 in fees * 5 more loans – $5000 to FFG).NOTE: All three of these examples could hold true in one single scenario. Think of the increase in revenue you will experience.
- FFG Pays All Employees including Branch Managers a W-2 Wage: Please consult your legal adviser and/or tax professional before acting on this matter.
- Q. Is FFG a banker or a broker?
A. FFG has the ability to bank loans, but has found since the industry has changed there is no real advantage with regards to price and risk. Each Partner is allowed to broker 100% of their loans and benefit from the lenders with which we have preferred pricing.
- Q: What start-up costs should I expect when I sign up as a FFG Partner?
A: There is a fee for the initial background check, fees vary ask your BDM for the amount that applies to your application.
- Q: Do all employees have to be W-2 employees?
A: Due to the licensing regulations in many states and per HUD guidelines, FFG will require that all employees be paid as W-2 employees and the Branch Manager must take a reasonable W-2 wage for managing the branch.
- Q: What benefits will be available to employees?
A: All fulltime FFG W-2 employees (working 30 hours or more each week) must be offered our benefit package. FFG offers a comprehensive health plan including full health, dental, and vision insurance. For coverage and costs to both the employee and the branch see our intranet for detailed information.
- Q: What lenders are FFG currently approved with?
A: FFG is currently approved to broker loans with over 75 lenders. We have found our successful branches use the same five lenders. This allows them to build strong relationships that help them in their success. We will consider adding new lenders on an as needed basis, this is determined by market areas and the affect on your overall business.
- Q: Where can a Partner find a current list of approved lenders and their contact information?
A: On the FFG intranet there will be a current list of all approved lenders. This is updated as we receive lender approvals, and will show which lenders have given FFG preferred status.
- Q: What are the benefits to brokering a loan with a preferred lender?
A: FFG has negotiated preferred lender status with some of the most aggressive lenders in the country, including MetLife, Countrywide, Wells Fargo, Freedom Mortgage and more. As a preferred lender they have agreed to give FFG Partners anywhere from .125% to .500% reduction in program pricing or other added benefits only available to preferred customers.
- Q: Can Partners originate FHA loans?
A: FFG is an FHA approved lender, and has an FHA authorized agent relationship with several lenders. All FHA loans must be processed from the home office for a fee and additional requirements to meet HUD guidelines are required. There are specific Lenders that will accept our FHA loans, they can be identified on our intranet under the lender section.
- Q: Can Partners originate VA loans?
A: FFG allows all the Partners to originate VA loans. It is as easy as contacting the home office for a login and password to the VA’s site. There are specific Lenders that will accept our VA loans, they can be identified on our intranet under the Lender section.
- Q: Will each Partner be individually licensed?
A: Each Partner will have the ability to be licensed in the states of their choice, provided that FFG is currently licensed in that state. The cost to add a Partner in each state varies. These answers can be found on the intranet under state licensing. Direct all questions regarding specific costs, time frames to get Partners approved, and any other questions about Partner licensing to our Licensing Manager.
- Q: What states can each Partner market loans in?
A: FFG is currently licensed in 39 states. Every state has specific requirements for licensing when it comes to Partners and loan officers. The availability of each Partner and every loan officer to do business in each state will be looked at on an individual basis. Refer to the intranet state licensing section for details and remember all marketing must be approved by Compliance prior to using.
- Q: Is a monetary reserve required for each Partner?
A: FFG does require a monetary reserve this is built into your profit and loss through funded loans. The amounts vary based on the volume a branch produces, see BDM for specifics. FFG will require Partners that have W-2 employees with a base salary and benefits, to maintain a balance for the purpose of paying the salary and benefit premiums for a 30 day period.
- Q: Does FFG offer marketing for individual Partners?
A: FFG has several sources for marketing. The home office will be more than happy to share ideas with each Partner regarding marketing campaigns. If you plan on using your own sources for marketing (i.e. radio, direct mail, television, etc.) each piece of advertising must be pre-approved by our compliance department before the marketing campaign can begin. Any Partner using telemarketing must submit a detailed plan for approval prior to any calls being made.
- Q: What quality control does FFG have in place?
A: FFG does not tolerate fraud of any kind. It is a zero tolerance policy. Partners will be required to use our Point Data Server for all loans originated. When starting with FFG, we have Quality Control train and educate your team by reviewing loans prior to closing. Eventually, this will be moved to the backend.
- Q: Will the Partners have to purchase any specific software?
A: FFG requires all employees have a Calyx Point license to the data server, this fee is minimal.
- Q. What are FFG Partners and FFG Lenders saying about FFG?
“I just wanted to share my gratitude with Will Farrar and the entire staff at FFG Corp. I have been a part of literally 3 different mortgage operations in the last 10 years and have seen what it is like to be a Lender/Banker, a small time broker just in a few states, and also part of this industry’s best branching arm and I must say that my experience at FFG has been amazing. As a very “power hungry” individual, I often times thought that sooner or later I would need to start my own company and get my own licensing, etc. and that there was no way I could accomplish all that I needed to via a branching experience. I have had concerns about PNL, accounting problems and even perhaps the inability to secure relationships with important lenders.
I am here to say THANK YOU to FFG CORP for erasing all these concerns and going over and beyond my expectations (which are always super high). As I got my PNL check two days ago, RIGHT ON TIME and looked at it (yes it was a lot) I couldn’t help but grin and think how fortunate I was to be affiliated with a company that pays on time, clears checks in a time when most companies are failing, and even more so a company that is always looking out for me. I appreciate the phone calls and visits from Annette Lowder weekly just to see how things are going and to see if I need anything.
Will and Annette (among many others), I really am grateful for your vision, your dedication and perhaps most importantly your TRUST in me and my team. We look forward to many more fruitful years, and months that make my 180 loan months look like child’s play. We work in a very crazy industry these days and I am grateful for the original vision years ago to focus on government sponsored loan programs.” If anyone is considering a move to FFG, I would strongly recommend talking to me, I will tell you from a branch viewpoint all that you can expect to encounter.
Eric Kandell, Branch Manager FFG #403
If you are looking for a company interested in your success you have found it. Flagship Financial Group has taken branching to a new level. Not only are you seen as an asset to their company and approved lenders but as a family member. The support system they have created will never allow you to be in the dark. With the continuous changes in the market place you need to know as a professional that you have support. Flagship Financial provides continuous personal support to their branches. Your success is their success and it is not taken lightly.I have been working with Flagship for several years and had the opportunity to watch them grow with brilliance. They have worked very hard with the individual state approvals, FHA and VA approvals as well as their reputation.
Met Life Wholesale has been a preferred Lender for Flagship since 2003. The relationship has allowed branches to take advantage of the preferred pricing as well as preferred treatment. This is a relationship that has been created by Flagship Financial group and is well earned with the pristine files, QC measures and excellent staff.
If you are a broker looking for positive change, you cannot go wrong with Flagship. I have worked in the industry 17 years and witnessed many levels of branching. I know Flagship takes the time with a prospective branch to insure being part of the family works on both sides. Your career is important enough to place it in hands that you trust, with hard work, dedication and the help of a good company you will succeed. I have seen many branches of Flagship prosper from the dedication of branch managers and the support of the company.