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Category: Programs We Offer
Created: 24 June 2015
Last Updated: 23 January 2020

Loan Purpose:

IRS 1031 Exchange for any borrower.

Tax and insurance impounds required

12 Month Mortgage Credit

Subject property and the borrower's primary residence. The rest of the properties on the schedule of real estate will be checked via 3rd party sources to ensure there are no Notices of Default (NOD).

Mortgages not rated on the credit report require canceled checks. The following is our delinquency tolerance on mortgages:

Bankruptcy - Must be seasoned 24 months from discharge or Sale.

Foreclosure- Must be seasoned 24 months from discharge or Sale.

Loan Submission Requirements

1003 Application

Full and complete only

Credit Report

650 middle score or lower of two. A one score report is a decline.

600 case-by-case. LTV reduced to 50%

Preliminary

Title Report

Refinance transactions only

Appraisal

1-4 unit properties are ordered through a 3rd party. Commercial appraisals require a Good Faith Deposit of $995. Our real estate department bids out the order and selects the appraiser weighing cost, estimated time of completion, and appraiser's credentials.

Lease Agreements

Rent roll and P&L for the property. These reflect the income the property generates. Rent rolls and operating income statements are not required on the investor 1-4 program. On our Traditional program, they are required and we will not order the appraisal unless we have these items.

Executed Purchase Contract

Funds to Close

90 days sourced and seasoned for purchases or refinances that are short to close. Funds from outside of the United States must be deposited into a bank within the United States before close. Funds can be seasoned in a foreign account.

Environmental

3rd party environmental insurer is utilized.

Eligible Vesting

The mortgagor must sign Mortgage/Deed of Trust and any related Riders. The guarantor is the natural person whose social security number, employment, assets, and credit are used to guarantee the loan. The mortgagor will sign the Note and any related Addenda, HUD1, and all other closing documents.

Entity Review

Entity docs will be reviewed immediately upon receiving all the necessary forms.

When vesting as a corporation or partnership we have a 3rd party review the entity docs to ensure we are allowing a valid vesting. It is a good practice to include entity docs with the initial loan submission to get the borrower's signature block sooner rather than later.

All Eligible Loans must have a natural person as the guarantor.

Closing costs must be 90 days source and seasoned

Gift Funds

Purchase transactions OK. Gift letter signed and dated by the donor is required and must include the amount of the gift funds, and that no repayment is expected or implied. Bank deposit must be documented.

No first-time homebuyer

First Time Investor

First Time Buyers

First-time investors are ineligible for out-of-state transactions.

Subordinate Financing OK

The Combined Loan-to-Value (CLTV) does not exceed 10% of the maximum LTV for Class type.

Non-Permanent Resident Aliens and Foreign Nationals

Non-Permanent Resident Aliens and Foreign Nationals are eligible for this program

Foreign Investors

These are investors that do NOT have a valid green card or work visa. We NOT do loans to these types of borrowers.

Compensating Factors

Compensating factors mean guideline exceptions

Collateral

Properties listed in the past 6 months are not eligible for cash out.

Occupancy

Owner Occupied properties

Property Types

Ineligible property types

Property Classifications

1 - 4 unit, Owner Occupied SFR, town-houses, 2-4 units, and condos- 70% maximum LTV

5+ units & mixed-use properties- 75% MAX

Mixed-use properties must meet the following standards:

Traditional II- 70% MAX

Traditional loan program includes office, retail, warehouse, mobile home parks (with a recreational vehicle component of 25% or less), certain mixed-use properties, auto-service, and self-storage.

In the case of mobile home parks, special rules apply. For "park-owned" mobile home units – as distinguished from the pads - the value, as determined in the "disposition value," shall not exceed $2,000 per (unit). At a minimum, mobile home units must be separately and distinguishably taxed by the local taxing authority to be considered in the determination of market value

Owner user properties require a business license for the subject property, and preferably, located in a commercially zoned area.

Process

We can close loans only as quickly as your broker/borrower return the stipulations requested. If we ask for something, we need it. It is our money to lend, so we ask for what we need. We will take a common sense approach and allow alternative documentation to what was requested if it makes sense.

Once the file has been cleared to close by underwriting, it moves to the funding department.

Funding

We have a 48 turn time on getting loan docs prepared. Be sure your broker has not set up a closing as our funding department will contact the closer and set the time. Our funding department will coordinate with the closers to ensure the loan docs are correct, and there is enough time for the closer to review the docs.

This is one individual commercial lender within our lender network

 

Reference# 554062015 22-5-12

 

Mortgage brokers/lenders perform acts for which a real estate license is required.