Cool Program For Real Estate Investors To Acquire Property...

Good Morning!

Did you know we have Debt Service Coverage programs for non owner occupied investment property?

In other words we rely solely on the income from the property to qualify for the debt ratio to purchase a property.

It's a pretty simple program.

We take the income the property produces.

Subtract the expenses from the property.

If the left over amount is sufficient to make the full PITI mortgage payment then the property passes.

Loan to value ratios up to 80% depending on credit score.

Some reserves are required, depending on the amount of the loan.

It's a great program.

That's it for today!

Thanks for reading!

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Three Quick Credit Tips For You...

Good Morning!

Here's three little credit tips for you...

1) Did you know a single credit card late payment can ding your score by as much as 60 points?

a) Helpful strategy – set your payments up on autopay.

2) The quickest way to increase your credit scores are to decrease your credit utilization ratio. This is the amount charged on your accounts versus their total limit.

a) Best ratio is 10%. Certainly don’t go over 50%. (If limit is $1,000 try not to carry more than $100)

b) Another strategy is to ask for a higher limit to get your ratio more in line.

3) You can gain credit score points by paying off the credit card whose balance is closest to its limit. However, don’t cancel the account after you’ve paid it down.

That's it for today!

Thanks for reading!

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We Have Many Alternative Doc Loans For You...

Good Morning!

If you need an Alternative Documentation loan look no further. We have the most robust Alt Doc product offering in the mortgage industry.

Alternate Documentation loans are loans that allow you to use alternative documentation to prove your income. That is, other than the traditional Tax Returns, or W-2’s and Pay stubs.

Option 1: Bank statement loans.

Very simply we take the aggregate deposits of your bank statements (can be personal or business) and use this for your income.

Variables of Bank Statement loans…

24 Months of bank statements.

12 Months of bank statements.

2 Months of bank statements.

1 Month bank statement.

The reason we offer multiple options for months is that sometimes a 12 month average won’t work as good for the borrower as one month.

We offer down payments as low as 10% on owner occupied bank statement programs.

We also offer multiple ways of calculating deposits, which is very helpful if there are issues with one calculation method.

Rates on these program are usually only modestly higher than normal conforming rates.

Option 2: Asset Depletion

If you have no income to speak of, or at least you can’t prove your income via traditional means, or bank statements, then Asset Depletion may be an option for you.

If you have sufficient assets then we can use your assets in liu of income documentation.

We have down payments as low as 15% on Asset Depletion loans.

Option 3: Investor Debt Service Coverage.

This documentation option is for non owner occupied investment properties. It requires no income documentation. We use the income from the property (rental income) for the buyers income to get the loan approved.

Option 4:  No Ratio and Stated Income loans

No Ratio is stated income and verification of assets to close the transaction.  This is a non owner occupied investor loan only.

Stated Income and Stated Assets is also non owner occupied investor loans only.

We are experts at getting these loans closed and funded.

If you are needing an Alt Doc loan feel free to reach out to us with your questions, or apply now to get pre qualfiied.

Thanks for reading!

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Loan For Foreign Nationals...

Good Morning!

Did you know we have a loan program for Foreign Nationals?

A Foreign National is someone who is neither a US Citizen, or a permanent resident.

Here are some aspects of the Foreign National program...

70% LTV for Second homes & Investment Properties Purchases ( 1 year full doc or asset depletion)

65% LTV Cash out transactions

If no US credit, minimum credit score is waived

Max loan amount is 5 million

Cash out okay for reserves

65%  LTV for our Investor No ratio, rental income not required  

Eligible properties: SFR, 1-6 unit, warrantable/non-warrantable condos, & mixed use

5 yr, 7 yr, and 30 yr fixed terms with 10 year interest only payment option

That's it for today!

Have a great day, and thanks for reading!

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Here's A Stated Income Loan For Investors...

Good Morning!

Did you know we provide NO Ratio loans for investment loans?

On this loan we verify the assets to close, but NO INCOME VERIFICATION.

Loan to value ratios up to 80%.

Easy, and pretty cool!

Follow up with me if you are interested in this.

That's it for today!

Thanks for reading!

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How To Roll Minor Repairs Into Purchase Contract...



Good Morning!

I want to show you how to roll repairs into a purchase price.

I touch on this subject from time to time.

If you are buying a house that needs minor repairs – but the seller refuses to do them – what do you do?

This situation happens a lot, especially on bank owned homes.

The simple answer is to use an escrow hold back. …an escrow hold back is a small amount of money that is held out of the seller’s proceeds from the sale to make the repairs.

You have to write the escrow hold back right into the contract – under special provisions. To avoid having to rewrite this clause – be specific. Your realtor will need to write – “An escrow hold back in the amount of $______ will be used for (specific) repairs.”

One key with the escrow hold back is the repairs need to be minor – and they can’t take that long to finish. …an average amount of an escrow hold back is $1,500 to $5,000.

Knowing how to solve minor repair problems on an offer – can sometimes make the difference between getting a great deal on a house, or not buying it at all.

If this situation comes up with your deal – just give me a call – I can help you out.

That’s it for today!

Have a good day today! …and thanks for reading.

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Good Morning!

I want to show you how to roll repairs into a purchase price.

I touch on this subject from time to time.

If you are buying a house that needs minor repairs – but the seller refuses to do them – what do you do?

This situation happens a lot, especially on bank owned homes.

Max Amount Of Seller Help By Loan Program...

Good morning!

Do you know the best way to get sellers to help pay your closing costs, prepaid taxes, insurance and reserves when you buy a home?

…You ask them! (In a tight market some seller’s are reluctant to offer alot of help, but you can always ask.)

You make it part of your offer to purchase.

Here is a breakdown of the maximum seller help amounts by loan program…

Program: Conventional (fannie/freddie), owner occupied…

1) 25% or more down payment = 9% allowed seller contribution.

2) Less than 25% down and up to 10% down payment = 6% allowed seller contribution.

3) Less than 10% down payment = 3% allowed seller contribution.

4) Fannie Mae Homepath: less than 25% down = 6% allowed contributions; 25% down or more = 9% allowed contributions.

Program: FHA

1) 6% maximum seller contribution.

Program: VA

1) 4% closing cost contribution.

Program: USDA

1) No limit to how much sellers can contribute (is limited by actual closing costs/prepaids). When a home appraises higher than the sales price, closing costs can be financed with USDA rural loans up to the difference between the sales price and appraised value.

That’s it for today!

Have a good day today! …and thanks for reading.

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Update - Government Shut Down On Real Estate Business...

Good Morning!

I wanted to follow up on my blog post from last week...   http://www.berkshirelending.com/2018/12/26/how-gov-shut-down-will-affect-mortgage-business/

It was about the government shut down affecting the mortgage business.

Many wholesale investors are now suspending the requirement for pulling tax validation transcripts.

I figured this would happen.  ...otherwise, all purchase transactions would be shut down until the government reopened.

So, that's good news for those of us buying houses, or in the real estate business.

That's it for today!

Have a good week, and thanks for reading!


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Great No Money Down Loan...

Good Morning!

Hope you had a great New Years!

Want to buy a nice home in the country or outlying suburb with no money down?

Here's a program that might work for you...

It's called USDA, and here are some details on this program...

-Up to 100% of the Appraised Value – Total LTV of 102% –
-Difference of sales price and appraised value can be used for closing cost
-No Down Payment Required
-No Cash Reserve Requirement. No cash contribution requirement
-Unlimited seller concessions
-Unrestricted gifts, not necessary to document source, no seasoning
-First time home buyers allowed, but not limited to first time home buyers
-Non-traditional credit may substitute for lack of credit history
-Repair Escrow financed in loan up to $10,000 or 10% of loan

That's it!
Have a good day today!  …and thanks for reading.

Brett


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