Meet Mike Brown: A Candid Conversation About Mortgages, Credit, and Getting the Best Deal

Welcome to an in-depth conversation with Mike Brown, a seasoned mortgage broker, and Sandy Reed from Chartwell Realty! Today, we’re pulling back the curtain on the mortgage process, exploring the various loan products out there, and sharing some straightforward advice about credit. Whether you’re buying your first home or you’ve been around the block a few times, this blog will give you real tips in plain English—no confusing jargon, just the mortgage info you actually need.

Table of Contents

1. Meet Mike Brown: The Broker Advantage
2. Mortgage Broker vs. Mortgage Lender: What You Need to Know
3. Types of Mortgage Products Explained
• Conventional Loans
• Government Loans (FHA, VA, USDA)
• Non-QM Loans: Flexible Options for the Self-Employed
4. Self-Employed Borrowers: Challenges & Creative Solutions
5. Mortgage Lending: Past vs. Present
6. How Credit Scores Impact Your Mortgage
7. Real-World Credit Tips for Homebuyers
• Credit Score Buckets
• How To Raise Your Score, The Real Way
• The Trouble with “Old Debt”
• When to Pay Down Debt (and When Not To)
8. Getting Help: How to Contact Mike Brown
9. Final Thoughts: Your Homebuying Journey Starts Here

Meet Mike Brown: The Broker Advantage

“When I bump into my clients down the road, I always want to know that I gave them the best product available to them.”
— Mike Brown

Let’s start at the very beginning. Sandy Reed from Chartwell Realty sits down with Mike Brown of Alpha Mortgage to discuss one of the most important aspects of buying a home: your mortgage. Mike’s not just any lender—he’s a mortgage broker, which means he has access to all sorts of products and isn’t tied down to pushing one company’s loans.

Mike’s story started after college. Armed with a marketing degree, he wasn’t sure where he’d land, but when his early days in marketing didn’t pan out in the ways he’d hoped, Mike found his way into the lending world. He realized quickly that the variety and challenge of finding the right mortgage fit for each client was rewarding and just plain made sense.

By 2001, after the national tragedy of 9/11 and with a new baby at home, Mike was ready for more time with his family—without cutting corners for his clients.

“I wanted to be able to offer multiple products with multiple lenders to almost ensure that I always get my clients the best deal.”
— Mike Brown

That’s at the heart of what a good broker does.

Mortgage Broker vs. Mortgage Lender: What You Need to Know

Let’s clear up a common confusion:

• Mortgage Broker: Works with many different lenders and products. Their job is to fit the client, not force them into whatever product they happen to offer. Brokers can work with all types of credit, good or bad, and can find unique solutions for tricky situations.
• Mortgage Lender (Captive Setting): Typically represents a smaller set of loan options from their own bank or affiliated institutions. If you’re a “vanilla” borrower with super clean credit and straightforward income, you might not notice, but if you’re self-employed, rebuilding credit, or needing a special loan, a broker has a lot more arrows in the quiver.

Sandy puts it simply: “[Lenders] probably have what, three, four maybe companies that they used routinely and you’ve got a whole arsenal.”

And that’s what makes a broker so powerful—they’re on your team, not just pushing the flavor-of-the-month loan.

Types of Mortgage Products Explained

There’s no “one-size-fits-all” in buying a home. Here’s how Mike breaks down the main types of loans:

Conventional Loans

Think: Classic, stable… what your parents probably had.

• Backed by Fannie Mae or Freddie Mac
• Can be fixed-rate or adjustable-rate
• Usually need solid credit and verifiable income

Government Loans (FHA, VA, USDA)

These loans are meant to expand opportunity, and, yes, they’re run through the government. Here’s the scoop:

• FHA Loans: Lower down payment, lenient on past credit issues, but you’ll pay for mortgage insurance.
• VA Loans: For veterans and active military. No down payment in many cases—huge benefit.
• USDA Loans: If you’re buying in a rural area, USDA might cover 100%, with low rates.

Non-QM Loans: Flexible Options for the Self-Employed

Non-QM (“Non-Qualified Mortgage”): This isn’t subprime, Mike is quick to say, but it IS a way for creative, honest people whose finances are outside-the-box to still qualify for a home.

• Funded by private investors, not government
• Stricter requirements (good credit, more money down)
• Designed for self-employed, gig economy, commission-based income—anyone who doesn’t get a W-2 paycheck

Why is this so important? The modern economy isn’t just 9-to-5 anymore, and these products recognize that.

“Now they’ve got products out there called non qm, non qualified mortgage, meaning they don’t qualify for Fannie, Freddie or the other ones I’ve mentioned. These are private lenders, investment firms that are buying these loans up and now they are really strict on credit.”
— Mike Brown

Self-Employed Borrowers: Challenges & Creative Solutions

If you’re self-employed, or get paid on commission, you know the drill: at tax time, you write off everything you can. Smart for taxes, not so smart when a mortgage lender wants to see high, steady income.

The Old Way

• Lenders use your tax return’s “bottom line”—meaning, if you wrote your income down, that’s all they count.
• In the past, there were “no doc” loans, but those got people into trouble (see: housing crash).

The New Way: Bank Statement Loans

This is one of the coolest newer products for self-employed buyers. Mike explains:

“We look at all his bank statements for 12 months, we take all of his employment related deposits and we multiply that by a factor…”

Here’s how it works:

• Look at bank statements, not just tax returns
• Add up the income flowing in over the year
• Use a percentage (depends on type of business—could be 50%, could be 80%) to estimate actual, usable income for the loan
• Still need a good down payment and strong credit, but WAY more flexible if you otherwise “look poor on paper”

Example:

• Self-employed borrower: $100,000 banked a year. 50% factor = $50,000 qualifying income.
• Bigger business: $1,000,000/year with 22 employees. 80% factor = $800,000 qualifying income.

Downside? Rates aren’t as low as perfect conventional loans (maybe 6.5% instead of 5.5%), but it’s a real mortgage, with a solid process.

Mortgage Lending: Past vs. Present

Mortgage rules have changed a lot in the last 20 years. Mike lived through the wild days of the early 2000s, when “subprime” was king.

The Wild West: Subprime Lending

• Loans given with almost no proof of income, to borrowers with low credit scores
• Adjustable “teaser” rates that spiked after a year or two
• People bought homes they couldn’t afford, and eventually lost them

“Back in the day, subprime would let someone with a 580 credit score with no money in the bank and no down payment get a loan.”

Smarter (and Safer) Now

• Non-QM borrowers need good credit and significant money down
• No more “no documentation” or “liar loans”
• Government products (FHA, VA, USDA) offer safe, fixed-rate choices for average credit and lower down payments

Sandy chimes in with a real story: a homebuyer moved to the area, bought a big house with “no income,” and lost it—but that should have never happened. Today, there are real checks and balances, with options if you’re on a “nontraditional” income path.

How Credit Scores Impact Your Mortgage

Before you ever see a house, you need to have a lender look at your credit. Why? Because credit scores are more than just a number; they affect everything from your approval chances to the rate you’ll pay.

Key Credit Principles

• Perfect credit isn’t required: Most government programs are pretty forgiving.
• Last 12 months matter most: Housing or rent payments late in the past year are a big red flag.
• One-time slip-up? Not the end. Occasional 30-day lates on a credit card are survivable, but 60- or 90-day lates are much tougher to overlook.
• FHA and VA loans can work with scores down to 580 (and sometimes even lower), but 600+ is always smarter.

“Don’t ever pre-qualify yourself. Don’t ever think you don’t qualify on your own. Talk to someone who knows how to underwrite a file, knows how to submit a file and can coach you on that.”
— Mike Brown

And Mike stresses—don’t let “bad” credit keep you from reaching out for advice. Most folks have a clear path within a year.

Real-World Credit Tips for Homebuyers

Credit can feel like a mystery, but Mike’s honest advice makes it manageable.

Got No Credit? Start Here:

• Become an authorized user on a family member’s credit card.
• Open a secured credit card with your bank.
• Pay it off regularly; lenders want to see some use, just not maxed out.

Credit Score Buckets

Not all credit scores are created equal—what matters are the buckets:

• 740+
• 720-739
• 700-719
• 680-699
• 660-679

Moving from 719 to 740 can mean a much better rate and lower payment, so every point counts.

How To Raise Your Score, The Real Way

Biggest tip? Don’t max out your credit cards.
Even a tiny balance left over is better than having a zero balance or maxed limit.

For example:

If you have a $1,000 limit:- Having a $600 balance hurts your score.- Keeping it under $300 is good.- An ideal scenario: $20-$100 balance at statement close.

Mike’s seen $10 left on a card bump a score up by 20 points—seriously!

“The number one goal is to have a lot of credit limit available to you with very little used. And what’s interesting about scoring model modules is that a zero credit card debt doesn’t look as good as a small balance.”— Mike Brown

Credit Simulators

Mike uses a simulator to tweak the numbers:

• He’ll tell you exactly how much to pay off (say, bring Card A down to $100, Card B to $50)
• Uses a rapid rescore to update the credit bureau quickly—just for your home loan.

The Trouble with “Old Debt”

Ever heard someone say, “Pay off old debts before applying for a loan”? That’s not always true, and sometimes it actually hurts!

• Paying an old collection can “re-awaken” it on your report, dropping your score
• Underwriters usually ignore collections over 2 years old or medical debt, so don’t touch them until you talk to a pro

Always check with your lender before paying anything old!

“If you’re thinking about fixing your own credit, talk to someone first.”— Mike Brown

When to Pay Down Debt (and When Not To)

• Lenders now rarely require you to pay off a debt to qualify.
• Instead, they count 5% of the bad debt balance against your monthly debt-to-income (DTI) ratio.
• That means you can often wait until after closing, or use your funds more smartly.

If you get a windfall (like a tax refund), ask your lender how to use it best rather than just dumping it into random old bills.

Getting Help: How to Contact Mike Brown

Ready for real answers, not sales pressure? Mike’s a straight shooter. He works with everyone—from Sandy’s buyers to people who just need advice.

Contact Mike Brown at:

• 📞 Phone: 816-517-8503
• 📧 Email: mike@
• 🌐 Website: mikebrownmortgagebroker.com

Of course, Sandy Reed is always a resource if you need help getting in touch or have real estate questions too.

Final Thoughts: Your Homebuying Journey Starts Here

If there’s one thing to remember, it’s this: Don’t let confusion or fear of rejection keep you from asking for help. The mortgage world has changed for the better—there are more options than you think, and there’s always a path forward with honest advice.

Buying a home is a big step, but it doesn’t have to be overwhelming or stressful. Partner with a pro who’s seen it all, who can help you clean up your credit, pick the right loan, and not leave money on the table.

Reach out, ask questions, and know that the right mortgage IS out there for you, whether you’re self-employed, starting over, or just looking for a better deal.

“He’s helped my clients, and he’s helped a lot of people that aren’t my clients. So I would not hesitate having you go see him. Thank you again for watching this today. I hope you learned something.”
— Sandy Reed

Have more questions? Ready to get started?
Give Sandy or Mike a call and start your journey to homeownership—armed with real knowledge, not just the usual lender talk.

Thanks for reading, and happy house hunting!

This blog post was based on a candid video conversation between Sandy Reed (Chartwell Realty) and Mike Brown (Alpha Mortgage). For personalized mortgage advice, always consult with a licensed mortgage professional.