The Recent Closed Deals--PRIVATE MONEY
Mr. Inabind has poor credit, no income, and a foreclosure action pending on a home that he owns for investment purposes. Fortunately, Mr. Inabind has $200,000 worth of equity in said home, with a market value of $250,000. In order to pay off outstanding debts and avoid foreclosure, Inabind needs approximately $100,000. We are able to find financing (from a private lender) for this client at 65% of the home's market value, or $162,500. The result? The existing $50,000 mortgage is paid, and another $50,000 is used to pay other debts outstanding, leaving Mr. Inabind $62,500 to use as a cushion until his financial situation improves.
The Recent Closed Deals-80 - 10 HELOC
Mr. and Mrs. Snowbird are on contract to purchase their dream home on the beach. They have a surplus in equity in their home up north, but will not close on said property before they close on the beach house. The Snowbirds know that upon selling their former residence, they will be able to pay down the note on the beach home to less than 80% of the original purchase price, but will still have to make the same loan payment, as they have a thirty year fixed rate mortgage. The Snowbirds are less concerned with paying the mortgage off in a reduced time period as they are with having greater cash flow. Furthermore, the mortgage used for purchase on the beach property must be for 90% of contract price, as they still have equity tied up in their former home. Loans over 80% of purchase price typically result in the lender requiring the borrower to incur an additional expense: Private Mortgage Insurance. The Snowbirds problems: Mortgage Insurance, and a larger mortgage/ payment than they will ulitimately need. The solution: An 80% first mortgage, and a 10% home equity line of credit (HELOC). The first and second mortgage combined will meet the Snowbirds purchase funding needs, and by having a first that does not exceed 80%, they will not be required to pay for mortgage insurance. The really great news is that as soon as their snowland property sells, they can pay off their 10% second mortgage, thus improving their monthly cash flow.
The Recently Closed Deals-Cookie Cutter
Mr. and Mrs. Applepie do everything right (from a lender's perspective). They have high credit scores, substantial verifiable income, and 20% money to put down on a $300,000 purchase price. They are highly desirable borrowers, and lenders make them aware of their interest in loaning them money, inundating them with offers on a daily basis. The Applepie's problem: finding the most competitive interest rate, and avoiding hidden points and fees. The solution: we shop for the Applepie's. As a correspondent mortgage lender, we have access to wholesale pricing offered by various financial institutions. This sets us apart from retail lenders such as local or national banks that have limited program menus.
The Recent Closed Deals-St ated Income JUMBO
Mr. John A. Borrower needs to finance 90% of his $385,000 purchase price. He is self employed, and as a result, has insufficient documented income to qualify for financing conventionally. The 90% loan amount equals $346,500, which places Mr. Borrower in the harder to qualify "Jumbo" loan matrix. Furthermore, Mr. Borrower's credit score is lower than traditional guidelines permit. In summary, here are the challenges: High "Loan to Value," "Jumbo" loan size, insufficient documented income, and low credit score. The solution: As Mortgage Brokers specializing in hard to place deals, we are able to structure a program to fit Mr. Borrower's very specific needs. Mr. Borrower expresses an interest in selling his home within three years and making a substantial profit, as he purchases in a rapidly appreciating neighborhood. We then suggest that Mr. Borrower accept a three year adjustable rate mortgage (said mortgage has a fixed rate for three years, then becomes subject to change) to offset the lender rate "hits" that are common with higher risk loans. The result: Mr. Borrower is able to purchase his home with 90% financing at a very competitive rate.
