NE Franklin News

Brian Flaherty, the owner of Ohio Capital Mortgage, recently shared insights into the mortgage industry, the challenges faced by homebuyers and the unique approach his company takes to assist clients.

With almost 26 years of experience in the business, first as an employee and now as a broker, Flaherty emphasized the commitment by Ohio Capital Mortgage to providing personalized service and navigating the diverse landscape of mortgage options.

Westerville-based Ohio Capital Mortgage has been assisting individuals in purchasing homes or refinancing existing mortgages since its inception in Nov. 2004 when he and his wife Emily, who serves a President of the firm, started the business.

While the company primarily operates in Ohio, it is also licensed in Florida and Michigan, actively serving clients in these states.

Flaherty expressed pride in Ohio Capital Mortgage's local, family-owned status and emphasized the company's dedication to delivering the best terms and conditions for clients.

As a mortgage broker, Ohio Capital Mortgage competes with larger banks, and Flaherty explained that their advantage lies in offering competitive rates and a wider range of programs.

“I think we can always provide them a little lower rate or lower cost or a combination of both. Other than that, I think we have a ton of programs that the big banks maybe can't offer,” Flaherty told NE Franklin News.

Flaherty said owning a home versus renting provides several benefits.

“If you are renting compared to owning a home, the benefits of owning a home, not only you have the pride of home ownership and you get to write off the interest on your mortgage,” Flaherty said.

“Those are benefits, for sure. But the main thing right now is that you're seeing the appreciation of homes over time where maybe somebody bought a starter home at $250,000 five years ago, and now they're looking to refinance or sell and that house could be worth, you know, $400,000 to $500,000 at this point.”

Flaherty noted that a significant portion of their clientele comprises first-time homebuyers who, despite conducting extensive online research, often require guidance through the complex mortgage process.

“Basically everything starts with a loan application. So it's either the online application or a phone application, we do occasionally do applications in person,” he said.

Flaherty said once the application is in, Ohio Capital Mortgage can begin matching clients with loan programs. He discussed the factors considered during the mortgage application process, including credit scores, down payments and the importance of building equity.

“Really one thing I've always told people is that the three things we look for is ICE – income, credit and equity,” he said.

Flaherty highlighted the benefits and considerations of various loan programs, including government loans like FHA and Veterans Administration (VA), conventional loans, and the newer non-QM programs.

Flaherty explained the company has embraced non-qualified mortgage (non-QM) programs aimed at small business owners, allowing a more flexible approach by considering personal or business bank statements to assess borrowers' financial capacity.

While non-QM loans offer flexibility, Flaherty acknowledged the higher associated rates and fees.

He emphasized that non-QM programs are not suitable for everyone but can be a valuable option for those with income not accurately reflected in traditional documentation.

“(Non-QM) has been a pretty good loan program for us the last couple of years,” Flaherty said. “It's not for everybody, but it's definitely for the person that makes a lot more money than their income documents may show. It's been a good program for us and a lot of our buyers. The downside is, even though it sounds like a pretty good program, it is for sure, that a lot of times that means that the rates are considerably higher and the fees can be higher as well.”

One of the challenges faced by self-employed individuals, especially during the COVID-19 pandemic, is the verification of income for mortgage qualification.

“Do they make enough money to qualify and the other caveat there is, do they show enough money or claim enough money on their tax returns to qualify?” Flaherty said.

“Giving self-employed people a loan sometimes can be tricky, especially since Covid has kind of beat up business owners more than if someone has a W-2 and it pays to open a salary. if they've been on the same job for ten years it makes things pretty easy. But if they're business owners then you're looking at their personal returns, the business returns and there's a lot of creases there.”

Flaherty offered up VA loan programs provided by Ohio Capital Mortgage as some of the best.

“If you're a veteran and you earn that entitlement, which we have a ton of respect for veterans, that's one of our things we try to focus on,” he said. “If you get a loan with no money down. If you bought a house for $350,000, you could actually walk in with no money out of pocket and get a great interest rate with no PMI. That's a good loan program and we love to help veterans. And it is a great program for those that qualify and that's for sure.”

Flaherty emphasized the continued importance of trust, organization and efficiency in providing quality service and noted Ohio Capital Mortgage's small, family-owned structure fosters a close-knit environment, focusing on strong relationships with clients.

As the mortgage industry continues to evolve, Ohio Capital Mortgage remains a player that combines experience, flexibility and personal attention to meet the diverse needs of homebuyers.