Service Center

Mortgages and Financing

        Understanding home mortgages is often the most confusing and challenging aspect of the home buying process. The vast majority of Americans obtain home mortgages to finance their homes. A mortgage is an agreement between
buyers and lenders in which lenders grant home loans to buyers, and securitize the loan with the property as collatoral against default. Mortgages come in many forms, but they are most commonly granted by private lenders such as banks, credit unions and mortgage companies. Their durations vary, with 15, 20, 25 and 30 year (by far the most popular) commitments. FHA and VA mortgage loans are insured or guarenteed against default by the federal government, while conventional loans have no federal guarantees. Buyers start the process when they apply for a mortgage loan to demonstrate their credit-worthiness. They are commonly asked to provide documentation such as tax records, bank statements and pay stubs to verify their ability to make mortgage payments, while still maintaining sufficient financial resources for life’s other obligations. Lenders evaluate applicants’ capabilty and stability by looking at credit scores, work history, credit ratios and other criteria. While this may seem like a lot of information to digest, we work with an excellent team of lenders who are experts in working with first time home buyers. They offer a full menu of FHA, VA, Conventional loans, as well as “no down payment” programs with competitive interest rates. Furthermore, they have several years of experience in working with buyers with challenging credit issues and have a strong track record of helping buyers realize their dreams of home ownership.


       Here is a short summary of the types of loans, as well their strong points and drawbacks by Holden Lewis of
  1.  Conventional Loans
Who they're for: Conventional mortgages are ideal for borrowers with good or excellent credit.
How they work: Conventional mortgages are "plain vanilla" home loans. They follow fairly conservative guidelines for:
Borrower credit scores.

Minimum down payments.
Debt-to-income ratios.
Cost: Lender fees, third-party fees, down payments, mortgage insurance and points can mean the borrower has to show up at closing with a sizable sum of money out of pocket.
What's good: Conventional mortgages generally pose fewer hurdles than Federal Housing Administration or Veterans Affairs mortgages, which may take longer to process.
What's not as good: You'll need excellent credit to qualify for the best interest rates.
2. FHA Loans
Who they're for: Federal Housing Administration mortgages have flexible lending standards to benefit: People whose house payments will be a big chunk of take-home pay. Borrowers with low credit scores. Homebuyers with small down payments and refinancers with little equity.
How they work: The Federal Housing Administration does not lend money. It insures mortgages.
The FHA allows borrowers to spend up to 56 percent or 57 percent of their income on monthly debt obligations, such as mortgage, credit cards, student loans and car loans. In contrast, conventional mortgage guidelines tend to cap debt-to-income ratios at around 43 percent.
For many FHA borrowers, the minimum down payment is 3.5 percent. Borrowers can qualify for FHA loans with credit scores of 580 and even lower.
Cost: Each FHA loan has 2 mortgage insurance premiums: An upfront premium of 1.75 percent of the loan amount, paid at closing. An annual premium that varies. Most FHA homebuyers get 30-year mortgages with down payments of less than 5 percent. Their premium is 0.6 percent of the loan amount per year, or $50 a month for a $100,000 loan.
What's good: FHA loans are often the only option for borrowers with high debt-to-income ratios and low credit scores.
What's not as good: To get rid of FHA premiums, you must refinance the loan.
3. VA Loans
Who they're for: Most active-duty military and veterans qualify for Veterans Affairs mortgages. Many reservists and National Guard members are eligible. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.
How they work: No down payment is required from qualified borrowers buying primary residences. The VA does not lend money but guarantees loans made by private lenders.
Cost: The VA charges an upfront VA funding fee, which can be rolled into the loan or paid by the seller. The funding fee varies from 1.25% to 3.3% of the loan amount.
The VA allows sellers to pay closing costs but doesn't require them to. So the buyer might need money for closing costs. Borrowers may also need money for the earnest-money deposit.
What's good: VA borrowers can qualify for 100% financing. Veterans do not have to be first-time buyers and may reuse their benefit.
What's not as good: According to the VA, there isn't a cap on the amount you can borrow. "However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county, since the value of a house depends in part on its location."


Ruth Guevara

NMLS ID: 218050
4242 Hondo Pass Suite 105
El Paso, TX 79904
Bus Phone: 915-791-4171
Fax: 915-356-1811
      As a native El Pasoan and a resident of our great community, I look forward to helping you purchase your new home, re-finance your existing home, or pre-qualify for a future home. I am proud to be a Mortgage Loan Officer with 12 years of experience including five with Rocky Mountain.

      At Rocky Mountain Mortgage Company we have many programs for all walks of life; from first time entry level buyers to experienced home buyers looking to purchase their dream home. My objective will always be to provide you with excellent customer service, the best rates available, and an on-time closing. Excellent customer service is my #1 objective!

      Each year Texas State Affordable Housing Corporation recognizes the three top loan officers in the state of Texas. With over 500 loan officers originating at least one loan, this is a tremendous designation. I have been recognized as one of the Texas Affordable Housing Corporation’s top 3 originating Loan Officers in the state of Texas as well as the region for 2015. It is an honor to receive this award and to be able to work with TSAHC each year to help more El Pasoans start the dream of home ownership.

     TSAHC was created in 1994 as a self-sustaining nonprofit housing organization. TSAHC believes that every Texan deserves the opportunity to live in safe, decent and affordable housing. TSAHC programs target the housing needs of low-income families and other underserved populations in Texas who do not have acceptable housing options through conventional financial channels. All TSAHC programs are offered statewide, with special attention given to rural areas and other select target areas.

I look forward to helping you with all your mortgage needs. Please contact me at your convenience.

Buying a Home

      The purchase of a home signifies one of the most important decisions for any buyer.  In addition to the financial commitment, buying a home represents the aspirations of a promising future and is an important backdrop to your future goals.  At Bachmann Luthi, we will leave no stone unturned in searching for your ideal home, in a desirable neighborhood.  Additionally, we will navigate you through the (often) confusing home buying process, from the initial negotiations, mortgage (financing) application, home inspection and ultimately to closing. 
Upon request, Bachmann Luthi will send a current list of homes to your email, that match your search criteria. We will also send you immediate updates for new homes matching your criteria, as well as status changes for current listings.
      Additionally, we are experts at home financing and can find the best form of financing for you.  Bachmann Luthi has established relationships with some of the city's most reputable and capable lenders, with a complete menu of VA, FHA, and Conventional mortgages, as well as various income and property based bond programs.
      Since 1998, we have been blessed to be involved in the home purchase for hundreds of buyers, we would be honored to use our experience and professionalism to represent you in the purchase of your next home.


Contact us to find your dream home now!

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Selling a Home

      Selling your home represents a significant financial, and often emotional, decision.  At Bachmann Luthi, we understand the magnitude of the decision and pledge to represent you with the highest degree of honesty, professionalism and loyalty.  We will provide a customized, comparative market analysis (CMA) to evaluate current market conditions, develop a marketing strategy based on your considerations and priorities, and price your home accordingly.  Our marketing plan is to aggressively promote your home to realtors and buyers on the internet, social media, and neighborhood distributions.  At Bachmann Luthi, the commitment to our clients is to squeeze the maximum equity from your home, translating into the highest net sales price, with effective marketing and aggressive negotiation.

      The home selling process can often be confusing and riddled with questions.  We would be happy to answer any questions about the process, or provide a free, "no strings" commitment evaluation of your home's market value.

Address of home to be sold