Home Loan Product FAQ

A self-employed mortgage, also known as a "self-employed home loan" or "mortgage for self-employed individuals," is a type of mortgage designed for individuals who are self-employed or have income that is not easily documented through traditional means, such as regular pay stubs and W-2 forms. Self-employed individuals often face unique challenges when applying for a mortgage because their income streams can be more varied and unpredictable than those of traditional salaried employees. They might earn income from sources such as freelance work, contract projects, business ownership, investments, and more. As a result, their financial documentation might not fit the typical mold that lenders look for when evaluating loan applications. Our Self-employed mortgages take into account these different income structures and provide alternative ways for self-employed individuals to demonstrate their ability to repay the loan. And most importantly, we do not require any tax returns!

In most cases, self-employed borrowers can qualify for "stated income" loans or "bank statement" loans. With stated income loans, borrowers provide a statement of their income without extensive verification. Bank statement loans involve showing a history of regular deposits into a bank account to verify income.   It's important for self-employed individuals to work with a mortgage broker or lender experienced in dealing with self-employed borrowers. These professionals can guide borrowers through the process and help them find the best mortgage option based on their unique financial circumstances. 

A DSCR mortgage refers to a loan that is evaluated and underwritten based on the Debt Service Coverage Ratio (DSCR) of the property.  the DSCR is a financial metric used by lenders to assess the borrower's ability to generate sufficient income to cover their debt obligations, specifically the mortgage payments of the subject property. Typically, with a DSCR mortgage product, no borrower income or employment verification is required. 

DSCR ratio requirements normally require a coverage of 1:1.00 or 1:1.25.  However, there are new DSCR loans we can offer that allow for 0.70 coverage (negative cash flow)  or even a a zero coverage  DSCR loan.  Those options will require stronger equity positions.

DSCR loans are available only for investment property and some owner-occupied commercial property.

Our products are available for loan amounts $150,000 to $3,000,000 and above. 

A non-QM (Non-Qualified Mortgage) loan is a type of mortgage that doesn't meet the strict requirements set by government-backed agencies like Fannie Mae or Freddie Mac. These loans are designed for borrowers who may not meet the traditional criteria for a conventional mortgage, typically due to non-traditional income documentation or unique financial circumstances. Non-QM loans provide flexibility for borrowers who may have: Non-traditional income sources: Self-employed individuals or those with variable income streams may find it challenging to meet the income verification requirements of a conventional loan. Unique credit situations: Non-QM lenders consider a broader range of credit history, allowing borrowers with past credit issues or recent bankruptcies to qualify. Higher debt-to-income ratios: Non-QM loans may have more lenient guidelines when it comes to the borrower's debt-to-income ratio, which is the percentage of their monthly debt payments compared to their monthly income. Keep in mind that non-QM loans often come with higher interest rates and might require a larger down payment compared to conventional loans. If you'd like more information about non-QM home loans or if you have any specific questions, feel free to connect with us!

A "no income" or "stated income" mortgage is a type of loan where the borrower's income is not verified by traditional means, such as W-2 forms or tax returns. Instead, borrowers are allowed to state or disclose their income on the loan application. This type of mortgage is typically used by self-employed individuals or those with non-traditional income sources who may have difficulty providing documented proof of income. Here are a few key points to keep in mind about no income or stated income mortgages: Income disclosure: Borrowers are required to provide an estimate or "state" their income on the application. This can be based on their own assessment or an average of income for individuals in their profession or industry. Higher interest rates: Due to the higher risk associated with limited income verification, lenders often charge higher interest rates for these types of loans. Larger down payment: Lenders may require a larger down payment as an additional risk mitigation measure. Our self-employed mortgage products allow as low as 10% down with high credit scores. It's important to note that each lender may have their own specific criteria and guidelines for these types of mortgages. If you're interested in a no income or stated income mortgage, we are probably a good source to connect with. We have been offering these loan programs (again) since 2016. We have developed one of the nations largest menu of options for lite doc and no income doc home loans. We are ready to guide you through the process and help you find the best option for your situation.

A "no tax return" mortgage, also known as a bank statement loan or an alternative income verification loan, is a type of mortgage where the borrower's income is not verified through traditional tax return documentation. Instead, the lender examines the borrower's bank statements or other financial records to assess their ability to repay the loan. Here are a few key points about no tax return mortgages: Self-employed borrowers: These types of loans are often used by self-employed individuals or business owners who may have non-traditional income streams or write-offs that make their tax returns less representative of their actual income. Bank statements as proof: Lenders will typically review the borrower's bank statements for a specified period, often 12-24 months, to evaluate their income stability and cash flow. The deposits and average balances in the bank statements are used to determine the borrower's income. Higher interest rates and requirements: No tax return mortgages typically come with higher interest rates and may require a larger down payment or lower loan-to-value ratio compared to traditional mortgages. This is due to the higher risk associated with alternative income verification. Limited availability: Not all lenders offer no tax return mortgages, so it can be more challenging to find these types of loans compared to conventional mortgage options. But good news,  we do offer these home loan options! In fact, this is our most popular specialty loan product. We would love to answer any of you questions regarding our "no tax return" mortgages.

An asset depletion loan, also known as an asset-based mortgage or an asset qualification loan, is a type of mortgage that allows borrowers to use their liquid assets, such as savings, investments, and retirement accounts, to qualify for a loan without relying solely on traditional income documentation like pay stubs, tax returns, or W-2 forms. In an asset depletion loan, the lender considers the borrower's total liquid assets and calculates an "income" based on the assumption that these assets will be depleted over the life of the loan to cover the mortgage payments. This calculated income is then used to determine the borrower's eligibility for the loan and the loan amount they can qualify for. Essentially, the borrower's assets are treated as a form of income to establish their ability to make mortgage payments. This type of loan can be particularly beneficial for individuals with substantial assets but limited verifiable income, such as retirees or those with significant investments. It provides an alternative way to demonstrate financial stability and repayment capacity to a lender. Here are a few key points to consider regarding asset depletion loans: Asset Types: Lenders typically consider liquid assets that can be readily converted to cash, such as savings accounts, stocks, bonds, mutual funds, and retirement accounts. Calculation Method: Lenders have different methods for calculating the asset depletion "income." Some may amortize the assets over the loan term, while others might use a percentage of the total assets as a yearly "income." LTV Ratio: Loan-to-value (LTV) ratio is still a significant factor in determining loan eligibility. The value of the property being financed in relation to the calculated income and the borrower's assets will influence the loan approval process. Interest Rates: The interest rates for asset depletion loans may vary depending on the lender, the borrower's credit profile, and the overall risk assessment. Documentation: While asset depletion loans rely less on traditional income documentation, borrowers will still need to provide evidence of their assets through account statements, investment portfolios, and other relevant documents. Requirements: Different lenders might have specific requirements for the types of assets they accept and the ratios they use to calculate the "income." Borrowers should work closely with lenders who offer these types of loans to understand the exact criteria. If you're interested in pursuing an asset depletion loan, we recommend speaking with one of our mortgage professionals who can provide you with the most current information and guidance based on your financial situation.

A cash-out refinance is a type of mortgage refinancing where you can borrow additional funds against the equity you have in your property. It allows you to convert a portion of your home's equity into cash, which you can use for various purposes like home improvements, debt consolidation, or even for funding your travel adventures! 

We offer cash out mortgages for:

Single Family Homes
Condos
Condotels
Multi-family Homes
Mixed Use Property
Commercial Property

Cash Out refinances are available for Primary, 2nd homes and investment property.

We offer all mortgage products for cash out Jumbo, FHA, VA, Conventional and our full menu of low doc, alternative income qualifiers. 

Loan Amounts from $150,000 to $4,000,000 and above are available.

Give us a call or book and appointment today and we can help identify the right solution for your cash out refinance.

A jumbo mortgage is a type of home loan that exceeds the maximum loan limits set by government-sponsored enterprises like Fannie Mae and Freddie Mac. These loan limits vary depending on the location and can change annually. Jumbo mortgages are typically used to finance high-value properties, such as luxury homes or properties in expensive real estate markets. Since jumbo mortgages are larger than conventional loans, they can require higher down payments, have stricter credit requirements, and may have slightly higher interest rates. However, we have have a full array of Jumbo mortgages that still provide borrowers with the opportunity to finance their dream homes in desirable when the loan amounts exceed conforming balances.

Jumbo Mortgage Details:

Loan amounts available $500,000 to $6,000,000. 

Available for purchase, refinance and cash out refinance.

Available for primary, 2nd home and investment property.

Traditional full income documentation as well as lite doc and alternative income options. 

Down payment as low as 10% available. 

An FHA (Federal Housing Administration) home loan is a mortgage loan that is insured by the FHA, which is a part of the U.S. Department of Housing and Urban Development (HUD). The FHA loan program was created to make homeownership more accessible, particularly for first-time buyers and individuals with lower credit scores or limited down payment funds.

One of the main advantages of FHA loans is the lower down payment requirement. Borrowers may be eligible for a down payment as low as 3.5% of the purchase price. Flexible credit requirements: FHA loans tend to be more forgiving when it comes to credit scores. Borrowers with lower credit scores may still be eligible for an FHA loan, provided they meet other criteria. Mortgage insurance: FHA loans require borrowers to pay an upfront mortgage insurance premium (MIP) at closing and ongoing monthly mortgage insurance payments. This insurance protects the lender in case of borrower default. Loan limits: FHA loan limits vary by location, and they are typically higher in areas with higher housing costs. Streamline refinancing: FHA loans offer a streamline refinance option, allowing borrowers to refinance their existing FHA loan with less paperwork and documentation. It's important to note that FHA loans are only available for primary residences, not for investment properties or second homes. If you have more questions or need further details about FHA home loans, feel free to ask!

A multi-family loan, also known as a multi-family mortgage, is a type of loan specifically designed for purchasing or refinancing properties that contain multiple individual housing units within a single building or complex. These units can include apartments, condominiums, townhouses, and other similar housing structures. Multi-family loans are typically used by real estate investors, developers, or property owners who wish to acquire or manage residential properties with multiple rental units. The loans are structured to accommodate the unique characteristics of these properties and the income potential they offer.

Multi-Family Loan details:
1-4 unit options for primary & investment purchase.

5+ unit options available for investment only.

Loan amounts $250,000 and above.

DSCR loans and Lite doc products available. 

A Conventional or Conforming home loan is a type of mortgage loan that is not backed or insured by a government agency such as the FHA or VA. Instead, conventional loans are financed by private lenders such as banks, credit unions, or mortgage companies. Here are some key features of conventional home loans: Down payment: Conventional loans typically require a down payment that ranges from 3% to 20% of the home's purchase price. The exact amount depends on various factors, including the borrower's creditworthiness and the specific loan program chosen. Credit requirements: Conventional loans generally have stricter credit requirements compared to government-backed loans. Lenders typically prefer borrowers with good credit scores (usually 620 or higher), although some lenders may have more flexible options for borrowers with lower credit scores. Private Mortgage Insurance (PMI): If the down payment is less than 20% of the home's purchase price, private mortgage insurance (PMI) is usually required. PMI protects the lender in case the borrower defaults on the loan. Once the borrower has built sufficient equity in the property, they may be able to cancel the PMI. Loan limits: Conventional loans have maximum loan limits set annually by the Federal Housing Finance Agency (FHFA). These loan limits vary depending on the location of the property and can change each year. Interest rates: Interest rates for conventional loans can vary depending on market conditions, the borrower's creditworthiness, and other factors. Borrowers with excellent credit typically qualify for the best interest rates. Loan terms: Conventional loans offer a variety of loan terms, including 15-year and 30-year options. Shorter-term loans generally have lower interest rates but higher monthly payments. Conventional loans provide flexibility and are often a popular choice for borrowers with good credit, a stable income, and the ability to make a substantial down payment. If you have any further questions or need more information, pleaese contact us today. We are ready to help! feel free to ask!

A VA (Veterans Affairs) loan is a type of mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs. These loans are available to eligible veterans, active-duty service members, and some surviving spouses. The VA loan program was established to help veterans and military personnel achieve homeownership with favorable terms.

Here are some key features of VA loans: No down payment: One of the major benefits of VA loans is that they typically do not require a down payment. This can be a significant advantage for eligible borrowers who may not have substantial savings for a down payment. No private mortgage insurance (PMI): Unlike conventional loans, VA loans do not require borrowers to pay for private mortgage insurance. This can help reduce monthly mortgage payments. Competitive interest rates: VA loans often offer competitive interest rates, which can save borrowers money over the life of the loan. Flexible credit requirements: While the VA does not set a specific credit score requirement, lenders may have their own criteria. However, VA loans generally have more flexible credit requirements compared to conventional loans. Funding fee: VA loans require a one-time funding fee, which helps offset the costs of the VA loan program. The amount of the funding fee depends on factors such as the type of service, down payment amount, and whether it's the borrower's first time using a VA loan. Assistance in avoiding foreclosure: The VA offers support and resources to help homeowners avoid foreclosure if they face financial hardships. It's important to note that VA loans are designed for primary residences and have specific eligibility requirements. If you or a client of yours is a veteran or active-duty service member, exploring the option of a VA loan can be beneficial. Let us know if you need more information or have any other questions on our VA home loan products!

A bridge or hard money mortgage is a type of short-term property loan that is commonly used in real estate transactions when there is a need for  quick financing or when traditional lending options are not readily available or feasible.  

These loan types have minimal documentation and often can be closed in 7 days. 

 

A mortgage broker for investment property borrowers will counsel and consult on the loan options available from different wholesalers, institutional lenders, and private capital groups. The mortgage broker will organize and lead the task of taking your application, preparing your submission package and compiling the data that will determine your approval.  This involves building a complete  complete file of information about your transaction including  credit report, appraisal, verification of experience, rent rolls or lease agreements, assets, and so on. When the file is complete, but sometimes sooner, the lender "underwrites" the loan, which means deciding whether or not you are an acceptable risk.  There are direct lenders that also perform these same tasks but the downside for the investor is a direct lender can only offer THEIR rates and products. 

When securing funding for an investment property purchase or refinance the borrowers income and employment are rarely documented.  The cash flow and ROI (return on investment) become the center of income qualification for most investment property.  So often the traditional  income and employment sections of the aplication or left blank for an investment property loan. Today, there are investment mortgages that don't even require the property to have a positive cash flow. Negative or No cash flow is even allowed at lower LTV's. 

Over the last 22 years of my lending experience I have clearly learned the benefits of having multiple lenders compete for a loan.  This is even more true in the investment product space where the transaction is a bit more intimate and complex.  "Lenders" love to stay in their sweet spot and each will navigate in and out of rate competitiveness based on their appetite and the availability of their funds.  As mentioned we have over 100 sources of funding by which to shop your scenario with.  Some of this is automated and some of this is a tedious, manual task. We need to fully understand your scenario, your experience and your time line. Once we have the details we will go to work!  When we feel we have a market best quote or term sheet we will present it to you in writing. We are looking to win every deal for you! We want to be your partner in success for each and every deal.

We have a wide range of mortgage products that will serve purchase and refinancing scenarios for the following property types:

 

  • SFR homes & 2-4 Units
  • Condo & Condo-Tels
  • 5+ Multi Family Property
  • Office
  • Retail
  • Warehouse
  • Industrial
  • Restaurant
  • Auto Use

And many others. Please call to check!

A Fix N Flip mortgage, also knowns as a rehab loan or renovation loan, is a type of mortgage designed specifically for real estate investors who purchase properties with the intention of renovating and reselling the property for a profit in  a short period of time.

This type of mortgage provides funding for both the purchase price of the property and the costs associated with its renovation or rehabilitation. It is typically a short-term loan with a repayment term ranging from 6-18 months. 

 

Many factors come into play when identifying the time line for funding a loan from start to finish. Bridge and Hard Money mortgages are designed for quick closes taking as little as 7 days.  Long term financing options can close as quickly as 10 days and up to 21 or 30 days for other loan types.  

Yes.  A ground-up construction loan, also knows as a construction loan, is a type of loan designed to finance the construction of a new building or property from the ground up. This type of mortgage is utilized when a borrower or developer intends to construct the building or home on a vacant lot with an intent to sell.

This type of loan typically requires experience of similar projects over the last 36 moths.  Recently there have been options available for "first time builders" but it those options will require more equity contribution from the borrower. 

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