Preferred Lender Program
Mortgage Rates are the lowest they have been in nearly 40 Years!!
***Good news for Foreign Investors looking to finance your purchase! We have recently secured a private lender willing to finance our foreign buyers. Please contact us for more specific terms that are being offered. This lender will only lend on property bought from this site.
Our Finance Department is dedicated to matching you with the right lender for your situation, and with the lowest possible interest rate and fees. We do this at no cost to our customers, and do not financially benefit in any fashion from your loan.
Our Buyers save $1,500-$2,500 per deal in Bank & Lender junk fees by using our Preferred Lender Financing. We send a number of clients to our Preferred Lenders and they discount their fees to our clients as a result. This saves you $$$!!
Our Buyers save $1,500-$2,500 per deal in Bank & Lender junk fees by using our Preferred Lender Financing. We send a number of clients to our Preferred Lenders and they discount their fees to our clients as a result. This saves you $$$!!
We are in your corner, keeping you informed of the latest mortgage products available to real estate investors. Underwriting guidelines and loan products are literally changing on a monthly basis during this U.S credit crisis.
Ideally, you should be prepared to put down 25% on any 2-4 family, and 20% down on any single family investment property at this time. This is partly due to the fact that MI (Mortgage Insurance) companies are shying away from insuring mortgages on non-owner occupied properties.
As our customer, we are here to assist you in any way we can during your loan process. By using one of our preferred lenders, we can stay in the loop, thus enabling us to be sure that the appropriate steps are taken, which will move us towards a rapid closing.
Shown below is an outline of some recent changes to Fannie Mae underwriting guidelines. Some of you may wonder who is Fannie Mae (FNMA) and why would you be affected by their changes? The answer is simple; Fannie Mae & Freddie Mac purchase the majority of all mortgages originated through the banks/lending institutions these days, so their underwriting standards must be followed, or Fannie/Freddie will not buy the loan.
Fannie Mae Underwriting Changes to Conventional Financing:
· Maximum LTV on 2-4 unit investment property dropped from 80% to 75%. Single family investment property remains at 80%.
· Credit documents will be valid for 90 days instead of the current 120 for existing construction. The age of the document is measured from the date of the document to the date the Note is signed.
· Minimum credit score requirement increased from 620 to 660 on Multi-Family purchases.
· IRS Forms 4506 or 4506-T is required at application and at closing. This is due to fraud (misrepresentation of income).
· Age of appraisal is reduced from 6 months to 4 months.
· Trailing Secondary Wage Earner Income is eliminated. Now with relocation, only the income of the spouse with actual employment may be considered. Previously, it was possible to use the relocating spouse’s income from their employment prior to the relo without having an actual job.
· Verbal Verification of Employment required within 10 days of signing the Note for employment income and within 30 days for self-employed income.
· Stocks, bonds and mutual funds now valued at 70% instead of 100% to be used as reserves. Due to market volatility, Fannie Mae is devaluing your portfolio. This means that if you provide your mortgage originator with a stock, bond or mutual fund statement showing an ending balance of $10,000; the figure used for qualifying and on the application will be $7,000 (70% of the value). Stock options and non-vested restricted stocks are no longer eligible to use as reserves.
· Retirement accounts valued at 60% instead of 70% to be used as reserves.
Fannie Mae’s effective date applies to applications dated on or after September 1, 2009.