Read my blog
Alternative Lending Solutions!
(No tax returns or 4506 for wage earners or self-employed borrower)
- Loan Amount up to $5M
- Max 49% DTI
- Up to 10 financed properties
- Use lease agreement for rental income
- Non QM waiting periods on neg credit events
- 100% gift funds allow on primary and 2nd home
- Cash out loans okay
- 15 and 30 year fixed; 7/1 ARM (Interest Only Option available)
- P&I reserve requirement on subject property only
INVESTOR ADVANTAGE PROGRAM
(Income and employment not required on 1003)
- Qualify based on cash flow of the subject property only – No income doc required
- FICO score down to 640 okay
- Purchase, Rate/Term, and Cash Out Refinance
- Foreign National eligible
- First Time Investors eligible (w/ 5% LTV reduction). 12 month mortgage rating on current primary residence
Send me your scenario and let's find the right fit.
Nobody hesitates to take out a mortgage to buy their home. So what is the controversy around Reverse Mortgages all about?
Honestly, I don’t know. In the right situation, the benefits certainly outweigh the drawbacks.
A reverse mortgage is simply a tool that may allow you to stay in your home, rent free, while using some of your money that bought that home in the first place. That being said, like any major financial decision, you want to do your homework before you determine if it is the right tool for you.
Below you'll find two things to like, one thing to hate, and five things you need to know about reverse mortgages.
A reverse mortgage gives you the ability to use home equity for “extras” such as an annual vacation, new car or home improvements. This flexibility comes from the ability to take out equity as a lump sum, fixed monthly payments, a line of credit, or any combination thereof.
2. Non recourse financing
This simply means the total amount owed can never exceed the current value of the home. When the home is sold, after paying off the reverse mortgage, remaining proceeds go to you and your estate.
1. Sleazy sales tactics
If someone is trying to talk you into taking money out of your home to buy a financial product that will pay them a commission (such as an annuity), run for the hills.
Most people recommending such strategies are not financial planners. They are salespeople; one trick ponies, whose trick benefits them, not you.
There are times where it may make sense to use home equity to pursue other investments, but these strategies contain additional risk, and should only be used by sophisticated investors who fully understand and can afford the consequences.
Be aware of:
1. Moving after taking a reverse mortgage
Like any mortgage, there are origination fees and expenses incurred when taking a reverse mortgage. With a reverse mortgage rather than paying for these things out of pocket, the fees are just added to the balance of the loan. You want to amortize these expenses over the longest period possible.
If you plan on moving in the next 2-4 years, look for less expensive ways to borrow money before using a reverse mortgage.
2. Keeping the home in the family
Upon your death (or the second person to die if you are married) the reverse mortgage will have to be repaid. If there is not enough cash in your estate then your heirs may have to sell the property to pay off the loan.
If your intention is to keep the property in the family, you’ll want to make sure heirs will have the ability to pay off the loan, or refinance the property based on their credit application. Look out for yourself first though. Keeping the home in the family may be nice, but if a reverse mortgage could give you the extra income you need to be comfortable then maybe that is what you should do.
3. Status of the real estate market
The amount of money you receive depends on your age and the appraised value of your home. Taking a reverse mortgage when the real estate market is in a slump means you’ll qualify for less.
On the other hand, if you take a reverse mortgage when the market is booming, then later decide to sell your home in a down market, you may have little equity left.
4. Ownership responsibilities
You always retain title (ownership) of the home. Thus, you are responsible for taxes and insurance and must keep the home well maintained. This works the same way as any mortgage. If you don't pay your taxes, you'll be in trouble.
5. Eligibility for medicaid
Any proceeds you receive from a reverse mortgage are tax free - which is great. However funds received will count as an asset or as income and may affect your eligibility for Medicaid. Proceeds will not affect Social Security or Medicare Benefits.
By Dana Anspach Updated August 19, 2016
Whether you are an experienced Fix & Flipper looking for a new project, or a beginning investor searching for your first property, we offer Fix & Flip financing tailored to your specific needs. We focus on low rate and streamlined draw process, so you can focus on property improvements. Everyone loves showing off a successful before and after - we're here to help make it possible for you too!
- Rates starting from 6.99% Interest Only for experienced flippers.
- Lines of credit up to $10MM with individual loan amounts from $50K to $2.5MM for investors with previous fix and flip experience.
- Single loans available for new investors.
- Financing for up to 90% of acquisition costs and 95% of renovation expenses, up to 75% After Repair Value (ARV).
Here are a few items needed to get your application going:
- Personal financial statement (PFS) + 60 days worth of Bank Statements (all pages) to verify liquid assets.
- Recent personal federal tax returns (all pages).
- Recent corporate tax returns filed.
- Copy of Driver's License
- LLC or S-Corp Docs:
- a) Articles of Formation/Incorporation
- b) Certificate of good standing
- c) Copy of fully executed operating agreement
- d) Proof of EIN from IRS
Feel free to contact me for more details and scenarios.
Several factors determine your rate such as; credit score, down payment, type of property, type of loan, type of occupancy, loan amount and county you live in or are looking to purchase. In this blog, I will just concentrate on the loan amounts as they relate to rates.
There are basically two categories of loans that will determine your rate and loan program:
Conforming Loan: Loan amounts not exceeding $484,350 for Single Family Residence.
High Balance Loan: Loan amounts greater than $484,350, not exceeding $726,525 for Single Family Residence.
A loan amount exceeding $726,525 for Single Family Residence is called a Jumbo loan which is a totally different catergory and has its own sets of rulles.
There are 4 types of properties for residential loans - SFR, 2 Units, 3 Units, and 4 Units. The amount of loan limit is increased according to the number of units. Below is a table of the 2019 Loan Limits for LA and Orange Counties:
|LOAN LIMITS FOR LOS ANGELES COUNTY & ORANGE COUNTY|
|Property Type||Conforming||High Balance|
These loan limits apply to Conventional, FHA and VA loans. So when rate shopping, remember Conforming Loan Rates are lower than High Balance Loan Rates.
Find out how rates are doing today. Hit my email button and request today's quotes.
Contact Me Today
Let's find you the right home at the right price.