Frequently Asked Questions:
All About Morty

Morty is an online mortgage broker and marketplace. We help you find and secure home financing and work with you throughout every step of the process, from exploring your loan options, to closing on a home.

Morty is not a direct lender. We have a marketplace model, which means we provide access to thousands of loan options from a wide network of lenders. We source the loan options from our network, making it easier to compare different options and get a competitive price. Our model also means that our incentives are aligned with you, so we can act as an unbiased partner to help you get the loan that’s right for you.

The Morty platform currently supports homebuyers purchasing a primary residence, second home, or an investment home. To learn about the credit, employment and income requirements for buying a home and working with Morty visit Borrower Requirements.

We support a wide range of loan types directly on our platform. If we can’t support your loan directly, we have partners in our marketplace who can. Visit our Affordability Tools or Alternative Financing pages to learn more or contact our team of mortgage experts.

Morty is a licensed and operational mortgage broker in 45 states and Washington, D.C.

Each state has unique, specific licensing requirements for mortgage brokers. Therefore, clearing regulatory requirements takes longer in some states than it takes in others. We’re also focused on providing a seamless online experience that is more transparent and hassle-free than the traditional mortgage process, which many states have based their requirements on.

Morty directly supports loans for home purchases, refinances, HELOCs, and home equity loans. For other transaction types, such as renovation loans and bank statement loans, our team can help assist with matching you to the right lender and program.

Morty supports loans for primary residences, second homes and investment homes. This includes the following property types:

• Single-family homes
  • unattached (stand-alone houses that don’t share walls with a neighbor)
  • attached (a home that shares at least one wall with a neighboring property, such as a townhouse or row house)
  • homes in a planned unit development (PUD)
• Multi-family homes with two to four units, provided at least one unit is used as the borrower's primary residence
  • These are sometimes called a duplex, triplex, or quad/four-plex.
• Condos (primary residence only)
• Newly-constructed homes (as long as they will be fully completed before closing)

The Morty platform does not currently offer mortgages for co-ops, multi-family buildings with five or more units, manufactured homes, mobile homes, vacant land, hobby farms or commercial/mixed-use properties. If we can’t support your loan directly, we have partners in our marketplace who can. Contact us to learn more.

The Morty platform supports conventional 15-year, 20-year and 30-year fixed-rate mortgages and 10/6, 7/6, and 5/6 adjustable-rate (ARM) mortgages for homebuyers purchasing or refinancing a primary residence, second home or investment home. We also offer FHA loans, a government-backed mortgage that requires a lower credit score and downpayment.

While our platform does not directly support mortgage loans issued through the VA or USDA, we can connect you with partners who are experts in these programs. We do directly support conventional loan programs designed to serve low-to-moderate income borrowers with good credit, such as HomeReady.

Check out the What We Offer pages on our site for a full overview of the programs we offer.

Yes, Morty currently offers jumbo loans for loan amounts up to $2M for the purchase of a primary or second residence. Certain other eligibility restrictions apply for jumbo loans, which we can advise you on. Contact us to learn more.

If you want to recast your loan, we work with lenders that allow you to do so. Recasting (as opposed to refinancing) does not require you to qualify for a new loan with a different interest rate, but rather will lower your monthly payment amount and the interest you will pay over the life of the loan. The requirements to do so vary from lender to lender. Recasting requires a lump sum upfront from the buyer (around $10,000 is common) and typically there is a one-time processing fee that ranges from about $200 to $400. Things to note: 2 monthly payments in addition to a down payment with a minimum principal amount are required, and your interest rate will not change.

A primary residence is the home you live in for most or all of the year. Typically, it functions as an official address where you get your mail and are registered to vote.

A secondary residence is a single family, one-unit dwelling occupied by you for some period of time each year. While you must occupy it for some period of the year, you can also rent it for weeks, weekends or holidays when you are not there. The home cannot be a full-year rental property or timeshare and cannot have a management company controlling the occupancy of the home.

An investment home is a property that is primarily used to generate income, whether that be through fixed, monthly payments from a longer-term tenant or variable payments (like a vacation or short-term rental).

To use Morty, borrowers need a FICO credit score of 580 or greater.

All accounts on your credit report must be current. Only one 30-day past due payment is permitted in the last 12-months. And if you have any outstanding non-medical collection or charge-offs, the balances cannot be more than $2,000. Non-traditional credit is not supported.

We'll use the information on the credit reports we pull to determine your mortgage eligibility. When you're ready, we'll actually pull credit reports from all three of the major credit reporting bureaus: Equifax, Experian, and TransUnion. If the scores differ, we'll use the middle score for eligibility and pricing.

If you think there may be negative data on your credit reports that should be addressed before you officially apply for your mortgage, it might be wise to check your credit on your own before completing your Morty profile.

If your credit report shows a significant derogatory event, like a bankruptcy or foreclosure, you may still be eligible for a mortgage if sufficient time has passed. Morty follows Fannie Mae guidelines regarding waiting period requirements after significant derogatory credit events. Non-Agency & Government Programs have different waiting periods if you don't meet Fannie Mae's requirements.

For more information or for help understanding your options, we recommend speaking to a HUD-Approved Housing Counselor in your area.

Borrowers need to be able to show steady and predictable income to qualify for a mortgage.

All income will be verified appropriately through documentation and directly with employers. Any income used to qualify should be continuing into the future. Morty currently accepts the following types of income when applying:

• Base salary or hourly wages
• Bonus, Commission, or Overtime (see Variable Income)
• Social security
• Retirement
• Self Employed or 1099 income
• Income from a leased rental property

Morty borrowers need to be able to demonstrate that they've been employed in the same line of work or a similar field for at least two years prior to mortgage application date.

If you've held more than one job in the last two years, you'll need to be prepared to demonstrate that you are still working in the same profession. Any gap in your employment must to be less than 60 days.

For example:

A job change from Cheesemonger at Company A to Head Cheesemonger at Company B shows consistent employment. No problem there.

A job change from Accountant at Company Y to Circus Acrobat at Company Z does not show consistent employment. In this case, Morty would be unable to serve this mortgage seeker until she'd been working as an acrobat for at least two years.

If you've recently made a dramatic career change, if you've been unemployed for more than a couple of months in the last two years, or if you're running a thriving small business, we salute your hustle! Morty won't be able to serve you as homebuyer at this time, but that may change in the future.

Mortgage lenders are required to verify assets that borrowers will use to pay the down payment and closing costs on their mortgages.

The Morty platform supports the following sources of funds:

• Checking accounts
• Savings accounts
• Cash balances from non-depository asset accounts, such as investment accounts
• Gift funds (with appropriate documentation)
• Seller credits, as verified in an executed purchase contract
• Earnest money already paid

All funds must be held with accredited and recognized U.S. financial institutions. (If possible, we’d recommend keeping assets you’ll use for your home purchase in a separate, low-activity account.)

When calculating a borrower’s available assets, Morty requires that ownership of such assets be verifiable. Cryptocurrencies, physical cash, and large deposits for which the source cannot be verified are not supported.

Debt-to-income, or DTI, is a ratio that expresses the percentage of your gross income that is required to cover your minimum debt obligations each month.

So, let's say you make $5,000 each month before taxes. You've got a car payment of $250 a month, a student loan that requires $200 a month, and a few credit cards with minimum payments that add up to $150 each month.

$250 car payment + $200 student loan + $150 credit cards = $600 each month in debt payments.

$600 monthly debt payments / $5,000 per month in income = current DTI ratio of 12%. In this example, a borrower with $600 in monthly debt payments and $5,000 a month in income could potentially qualify for a mortgage with a monthly payment up to $1,550 each month. That payment amount would need to cover the principal and interest on the mortgage, as well as homeowners insurance and property taxes.

Morty's maximum allowed DTI ratio is 45%, which is the federally-defined limit for a qualifying mortgage.

While Morty does not offer mortgages for buyers with DTI ratios higher than 45%, special mortgage programs that allow for higher DTI with otherwise exceptional credit and finances do exist.Your Morty loan officer can point you in the right direction.

For Morty, the minimum down payment is 3% down for first-time homebuyers purchasing single-unit homes. For repeat buyers purchasing single-unit homes, the minimum down payment is 3%. Two-unit properties require 15% down, and three- or four-unit properties require 20%.

Technically, when we talk about down payment requirements, what we actually mean are maximum allowed loan-to-value ratios, or LTVs. The loan-to-value ratio of your mortgage is the ratio between what you borrow from the lender to buy the home, and what your home is worth. If you put down $25,000 and borrow $225,000 to buy a $250,000 home, then your LTV is $225,000/$250,000, or 90%

LTV can be also affected by appraisal issues or other factors. But practically speaking, the down payment is the biggest consideration. With our current lending partners, Morty offers loans up to 97% LTV for single-unit homes.

There are lenders and programs which are not currently supported by Morty that allow for lower down payments, or higher LTVs. For example, VA and USDA loans offer as little as 0% down.

You can add a co-borrower such as a spouse, partner, relative or friend. Co-borrowers apply for the mortgage alongside you, are on the title of the property, and are legally responsible for repayment of the mortgage. Co-applicants, on the other hand, are not on the title of the property but are legally responsible for repayment of the mortgage, similar to a co-signer or a guarantor in a lease transaction.

We’re always expanding our platform to better serve more homebuyers and continue our mission to increase access to home financing.

If we don’t have the right loan options for your needs at this time, we can connect you with partners through our marketplace that offer additional solutions you won’t find on our platform. If you decide that buying now is not the right decision for you, we also have solutions that can help you prepare to buy in the future.

We’re always there to help along the way. Feel free to get in touch with us, utilize the Morty Home School, and check out the below resources:

• Consumer Financial Protection Bureau Mortgages

• HUD Approved Housing Counseling Agencies