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PURCHASE
LOANS
Single Family
Residences and Residential Units not more than 4 units.
|
Loan Amount |
|
Minimum |
$125,000 |
|
Maximum |
None |
|
Down Payment
Requirements |
|
None |
- Programs
with No down payment available
- Also
available 3%, 5% or more down
- 5%
down loans are available for up to
$750,000
- With
and without mortgage insurance
options
|
|
Fixed
Rate Loans |
|
5, 7, 10, 15, 30 and
40 years |
:
|
Adjustable
Rate Mortgages (ARMs) |
|
Available Indices |
- One-Year
T-Bill Spot
- One-Year
T-Bill Average
- LIBOR
- 11th
District Cost of Funds Index
- 6
month CD
- LAMA
|
|
Adjustment Periods |
- Monthly
- Every
6 months
- Every
12 months
- 3/1,
5/1, 7/1, 10/1 ARMs
|
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|
For
example, a 5/1 ARM has an initial interest
rate fixed for 5 years and thereafter it
becomes a 1-year adjustable. Hence the name
5/1 ARM. Despite the initial fixed rate
period, these loans are considered Adjustable
Rate Mortgages. |
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FHA, VA LOANS
Government loans have
certain advantages and disadvantages over conventional loan
products.
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FIRST TIME BUYERS
Certain special
first-time homebuyer programs are made available from time
to time. These loans typically have either income
restrictions, geographic location restrictions or both.
These programs either pay part of the buyer’s closing
costs or allow lower down payments. The underwriting
guidelines are also a little more flexible.
We keep track of those
programs and offer them to our clients when they qualify.
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DAMAGED CREDIT
(SUB-PRIME MORTGAGES)
Whether a borrower has
good credit or bad, anyone who wants to qualify for a
mortgage should and can. The question is: When? At what
rate? With how much down? At what cost?
Anything that is not prime
"A Paper" loan is defined as "Sub-prime"
loan. Sub-prime loans accommodate irregularities that
conventional A loans do not allow.
Sub-prime loans accommodate
credit, income and property irregularities—Debt to income
ratios may be too high for A loans. Credit may be
unacceptable or the property features may not be acceptable
for A loans. With the proper pricing adjustment, sub-prime
loans address most of these issues. As we say in the
business: "There is a loan for everyone and someone for
every loan."
Obtaining a mortgage for
someone with damaged credit is becoming easier and easier.
With newer automated risk-evaluation methods even the
pricing is getting easier and easier to determine.
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REFINANCE LOANS
Almost all of the
Purchase Loans are available for refinancing purposes as
well. No additional modification may be necessary. However,
depending on the specifics of the loan requested, some
adjustments may have to be made. Refinancing loans are less
lenient with allowed Loan-To-Values, especially when the
borrower is getting cash out at part of the transaction.
What affects interest rates will list the causes of
adjustments.
Whether it is a bankruptcy,
foreclosure or simply late payments, there is always a
solution. With a little effort, some of the minor blemishes
may be easily overcome to achieve A credit rating.
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COMMERCIAL
Commercial loans are
different in nature from 1-4 unit residential loans.
The underwriting
guidelines, down payment requirements, interest rates and
indices used are significantly different than those used on
residential single family loans. The interest rates vary
from property to property and it is acceptable for lenders
to decline to lend on certain properties. Such a practice is
prohibited by law on residential properties.
|
Types
of Properties |
- Residential
units (5 units and more)
- Commercial
- Industrial
properties
|
All commercial loans we
arrange must be secured by real estate except for some
exceptions with SBA loans. We have excellent relationships
with Small Business Administration (SBA) Preferred lenders
as well.
|
Min/Max Loan Amounts |
|
The minimum loan
amount we entertain is $500,000, and we have
some extremely competitive rates on loans
over $1 million. |
No maximum loan
amount. |
|
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HOME CONSTRUCTION
For the construction of owner-occupied residential
properties of 1-4 units. Either a straight construction loan
or a construction-to-permanent loan. After the completion of
the construction, the loan would become a permanent loan, or
the borrower can obtain a whole new mortgage.
The acquisition of the land can be
accommodated as well. The plans and permits can be secured
after the land acquisition. A down payment of only 20% is
quite common. We even have a program which does not even
require income documentation as long as the credit is good
enough.
No speculative construction loans under
this program.
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HOME IMPROVEMENT
For owner-occupied properties within the FHA maximum loan
amounts, we commonly recommend an FHA loan because it allows
the most flexibility and is the most cost effective.
For mortgages exceeding the
FHA loan limits, there are several options:
-
Single purchase
loan with a home improvement provision for up to
10% of the property’s purchase price.
-
A standalone home
improvement loan in a second position for as high
as $100,000 or more, depending on the overall loan
to value.
-
A standalone home
improvement loan of any position or loan to value
not to exceed $25,000.
-
Standalone second
position loans with a maximum allowable loan to
value of 125%.
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DEBT
CONSOLIDATION
Some of the second position loans can be used for debt
consolidation as well.
Depending on the specific circumstances of
a borrower, it may be more cost effective to obtain a new
first mortgage instead of securing a standalone second for
debt consolidation.
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