You may be stuck in a situation where you’ve been denied by your current lender because you have enough of a down payment but they are unable to get you a conventional or government loan. I’m going to breakdown one of our newest products available to see if you may qualify. The terms available on these types of loans can vary depending on the length of time between the economic event, credit score and down payment. I’m not going to get into pricing in this article but I can say that it is much lower than hard money interest rates and costs.
The goal for these products is mainly short term, however can also be designed for long-term as well.
Questions I ask when determining whether or not a portfolio loan makes sense:
Program Details:
Credit Score & Reserve Requirements:
Loans on properties in New York & Maine only eligible for 2nd homes and MA properties not eligible.
This program will allow for a myriad of problems that a borrower had in the past and it’s almost too much to say in a short article. I have had borrowers approved that have a charged off 2nd mortgage, foreclosures on multiple properties, short sales not seasoned 4 years for conventional and loan limits too low for FHA.
You cannot combine a bank statement loan or stated income loan with this program. You must be able to provide proof of income and that you have recovered from the event. If all you have is a foreclosure in the past you would be a fantastic candidate for this.
When it comes to niche/outside the box type financing there isn’t just one bucket you want to have available. It’s crucial to have options for people and understanding which one would suit the borrowers best depending upon the situation. More info: [email protected]
The goal for these products is mainly short term, however can also be designed for long-term as well.
Questions I ask when determining whether or not a portfolio loan makes sense:
- How long are you going to have the loan before you can refinance?
- What is the payment difference between a regular conventional loan and a portfolio loan?
- How much is it to rent a similar property?
- Are the homes in your area appreciating?
Program Details:
- 10% minimum required for 2 years out of foreclosure, bankruptcy, DIL
- 10% down no minimum required time for short sale
- 15% minimum required for day after foreclosure
Credit Score & Reserve Requirements:
- 660 – 15% down, 6 months of reserves post-closing
- 620 – 20% down, 3 months of reserves post-closing
- 580 – 30% down, 3 months of reserves post-closing
Loans on properties in New York & Maine only eligible for 2nd homes and MA properties not eligible.
This program will allow for a myriad of problems that a borrower had in the past and it’s almost too much to say in a short article. I have had borrowers approved that have a charged off 2nd mortgage, foreclosures on multiple properties, short sales not seasoned 4 years for conventional and loan limits too low for FHA.
You cannot combine a bank statement loan or stated income loan with this program. You must be able to provide proof of income and that you have recovered from the event. If all you have is a foreclosure in the past you would be a fantastic candidate for this.
When it comes to niche/outside the box type financing there isn’t just one bucket you want to have available. It’s crucial to have options for people and understanding which one would suit the borrowers best depending upon the situation. More info: [email protected]