Mortgage Blog


Mortgage Application

    Before applying for a Pa mortgage loan, Do Not make Major Purchases of any kind or take on any unnecessary debt if you can avoid it. Reason being that bills for appliances, jewelry, ,furniture, vacations, cars orany of these expenses that may show up on a credit report can affect your DTI. (debt ratio) A 0% interest free loan for a year on some appliances from Home Depot still may need to have a monthly figure attached to it on your credit bureau, often 5% of total balance. That seemingly insignificant amount could be the difference on what rate your lender is able to approve you at, or worse yet, whether you get approved for the mortgage loan at all. Better safe then sorry. Get the loan then buy the appliances (or whatever else) later. You'll be glad you did. 

    Keep your funds where they're at. That includes checking, savings, money markets, CD's, retirement funds, 401k savings, mutual funds or stocks. Remember that a loan officer may need a paper trail of each account and transaction you make and it can be very messy. All loans require proper documentation especially these days. Lenders, banks and credit unions triple check every loan file for quality control, accuracy and fraudulent activity so leave your cash parked where it's at until you get solid advice from your lending professional. And by the way, consider not changing banks either.

Posted in:General and tagged: mortgageloanrefinance
Posted by Jill Kohler on October 21st, 2016 5:33 PM

Commercial Loan

Getting a commercial loan isn't easy, but you can start the process off by reading thru these top tips.  

1)  Have a business plan, with forecasts, projections, financial records and statements.
2)   Put your own money down.  You'll need a substantial deposit, at least 25%, sometime 30-35% depending on the type of commercial building it is.    
3)  Apply as soon as you can.  It can take 3 months to go thru the process.
4)  Deal with a commercial mortgage broker.  They have many lenders they deal with.  They will find the best lender for your scenario.
5)  Never order your own appraisal.  The lender will order it directly thru their own channels.  



Freddie Mac Multifamily Small Balance Loan Program

Freddie Mac multifamily financing (loans above $5 million)

Fannie Mae’s Small Apartment Loan program

Freddie Mac Hybrid Small Balance Apartment Loan program ($1MM-$5MM).

Freddie Mac Small Balance Apartment Loan Program Features

· Non-recourse

· No yield maintenance - step down prepay

· Converts to ARM at end of fixed term

· Highly competitive interest rates

· Up to 80% LTV

· 30 year amortization

· Full term interest only available

· No replacement reserves

· No underwriting floor rate maximizes proceeds

· Tax returns not required

· Assumable

· Cash out refinances

Fannie Mae Multifamily Loans

With industry low interest rates, customized terms and certainty of execution, the Fannie Mae DUS Multifamily Loan platform is one of the single largest sources of capital to the multifamily housing market. Hedge interest rate risk with fixed rate terms up to 30 years, maximize cash flow with low rates and interest only payment options, and maximize leverage with up to 80% LTV.

Features:

· Non-recourse / Assumable

· Up to 30 year fixed interest rates

· Up to 80% LTV purchase and refinance

MultiFamily Property


HUD FHA Multifamily and Apartment Building Loans

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms.

· Up to 35 and 40 year fixed rate terms

· Leverage up to 83% (90% for construction)

· Non-recourse / assumable

· No population or geographic restrictions

· Market rate or affordable

· Construction or permanent financing

Stated Income Loans

The stated income apartment loan program does not require personal or business tax returns. Personal financial statements and three years of property operating statements are required to verify ability to service the debt.

· Tax returns not required

· No personal or global debt DSCR

· Property operating statements required

· Credit and financial capacity requirements

Bridge Apartment Loans

Short term or bridge apartment loans are available for the renovation or repositioning of multifamily properties. Program can also be used for stabilized properties requiring a quick close or waiting for a permanent close.

· $5 million minimum

· Strong experienced sponsorship req.

· Up to 80% loan-to-cost

· Floating rate over LIBOR

 

Apartment loan refinance and purchase availability -- including LTV, DSCR, and loan size -- may vary depending on property location, economic conditions, exposure, and other variables that may negatively influence risk. Loan programs and program guidelines (including, without limit, fees, rates and features) are subject to change. Information provided is not an offer to make a loan and should be used for informational purposes only.


Freddie Mac Multifamily Small Balance Loan Program

Freddie Mac multifamily financing (loans above $5 million)

Fannie Mae’s Small Apartment Loan program

Freddie Mac Hybrid Small Balance Apartment Loan program ($1MM-$5MM).

Freddie Mac Small Balance Apartment Loan Program Features

· Non-recourse

· No yield maintenance - step down prepay

· Converts to ARM at end of fixed term

· Highly competitive interest rates

· Up to 80% LTV

· 30 year amortization

· Full term interest only available

· No replacement reserves

· No underwriting floor rate maximizes proceeds

· Tax returns not required

· Assumable

· Cash out refinances

Fannie Mae Multifamily Loans

With industry low interest rates, customized terms and certainty of execution, the Fannie Mae DUS Multifamily Loan platform is one of the single largest sources of capital to the multifamily housing market. Hedge interest rate risk with fixed rate terms up to 30 years, maximize cash flow with low rates and interest only payment options, and maximize leverage with up to 80% LTV.

Features:

· Non-recourse / Assumable

· Up to 30 year fixed interest rates

· Up to 80% LTV purchase and refinance

MultiFamily Property


HUD FHA Multifamily and Apartment Building Loans

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms.

· Up to 35 and 40 year fixed rate terms

· Leverage up to 83% (90% for construction)

· Non-recourse / assumable

· No population or geographic restrictions

· Market rate or affordable

· Construction or permanent financing

Stated Income Loans

The stated income apartment loan program does not require personal or business tax returns. Personal financial statements and three years of property operating statements are required to verify ability to service the debt.

· Tax returns not required

· No personal or global debt DSCR

· Property operating statements required

· Credit and financial capacity requirements

Bridge Apartment Loans

Short term or bridge apartment loans are available for the renovation or repositioning of multifamily properties. Program can also be used for stabilized properties requiring a quick close or waiting for a permanent close.

· $5 million minimum

· Strong experienced sponsorship req.

· Up to 80% loan-to-cost

· Floating rate over LIBOR

 

Apartment loan refinance and purchase availability -- including LTV, DSCR, and loan size -- may vary depending on property location, economic conditions, exposure, and other variables that may negatively influence risk. Loan programs and program guidelines (including, without limit, fees, rates and features) are subject to change. Information provided is not an offer to make a loan and should be used for informational purposes only.


Freddie Mac Multifamily Small Balance Loan Program

Freddie Mac multifamily financing (loans above $5 million)

Fannie Mae’s Small Apartment Loan program

Freddie Mac Hybrid Small Balance Apartment Loan program ($1MM-$5MM).

Freddie Mac Small Balance Apartment Loan Program Features

· Non-recourse

· No yield maintenance - step down prepay

· Converts to ARM at end of fixed term

· Highly competitive interest rates

· Up to 80% LTV

· 30 year amortization

· Full term interest only available

· No replacement reserves

· No underwriting floor rate maximizes proceeds

· Tax returns not required

· Assumable

· Cash out refinances

Fannie Mae Multifamily Loans

With industry low interest rates, customized terms and certainty of execution, the Fannie Mae DUS Multifamily Loan platform is one of the single largest sources of capital to the multifamily housing market. Hedge interest rate risk with fixed rate terms up to 30 years, maximize cash flow with low rates and interest only payment options, and maximize leverage with up to 80% LTV.

Features:

· Non-recourse / Assumable

· Up to 30 year fixed interest rates

· Up to 80% LTV purchase and refinance

MultiFamily Property


HUD FHA Multifamily and Apartment Building Loans

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms.

· Up to 35 and 40 year fixed rate terms

· Leverage up to 83% (90% for construction)

· Non-recourse / assumable

· No population or geographic restrictions

· Market rate or affordable

· Construction or permanent financing

Stated Income Loans

The stated income apartment loan program does not require personal or business tax returns. Personal financial statements and three years of property operating statements are required to verify ability to service the debt.

· Tax returns not required

· No personal or global debt DSCR

· Property operating statements required

· Credit and financial capacity requirements

Bridge Apartment Loans

Short term or bridge apartment loans are available for the renovation or repositioning of multifamily properties. Program can also be used for stabilized properties requiring a quick close or waiting for a permanent close.

· $5 million minimum

· Strong experienced sponsorship req.

· Up to 80% loan-to-cost

· Floating rate over LIBOR

 

Apartment loan refinance and purchase availability -- including LTV, DSCR, and loan size -- may vary depending on property location, economic conditions, exposure, and other variables that may negatively influence risk. Loan programs and program guidelines (including, without limit, fees, rates and features) are subject to change. Information provided is not an offer to make a loan and should be used for informational purposes only.


    Before applying for a Pa mortgage loan, Do Not make Major Purchases of any kind or take on any unnecessary debt if you can avoid it. Reason being that bills for appliances, jewelry, ,furniture, vacations, cars orany of these expenses that may show up on a credit report can affect your DTI. (debt ratio) A 0% interest free loan for a year on some appliances from Home Depot still may need to have a monthly figure attached to it on your credit bureau, often 5% of total balance. That seemingly insignificant amount could be the difference on what rate your lender is able to approve you at, or worse yet, whether you get approved for the mortgage loan at all. Better safe then sorry. Get the loan then buy the appliances (or whatever else) later. You'll be glad you did. 

    Get your FREE Quote Now!


Mortgage Rate QuoteMortgage Rate Quote
Posted by Michael and Jill Kohler on October 20th, 2016 8:15 AM


mortgage payoff balance
When people look at their mortgage statement they think that is their payoff balance.  This however is not the case. Your mortgage payment is paid in arrears. For example, your July payment is paying June’s interest. Remember when you bought or refinanced your home and the loan originator stated “you’re going to skip one month’s payment” or “you won’t have another payment due until the following month after closing”? Well this is where that payment essentially catches up with you. (Technically, it’s not “that” payment, you’re just always paying the previous month’s interest).


The escrow company will order the payoff from your mortgage company. The interest is prorated to the day of funding/closing. There may be additional fees included in your payoff that the lender will charge, such as:

  • pay off transmission fees
  • unpaid late fees
  • prepayment penalties (you may want to consider delaying a refinance if possible until the prepay period is over if you have a prepayment penalty)

Often times, the escrow company will request the payoff with a few additional days factored in to act as a cushion. The escrow company may (should) order an updated payoff closer to the signing date in order to provide the most accurate figures possible. The lender being refinanced will refund any difference in your favor. In addition, if you have an escrow reserve account for taxes and insurance, you will receive a refund from the lender in approximately 6-8 weeks after closing.

At your signing appointment, ask to receive a copy of your payoff statement. Check to see how recently it was requested. If it was ordered at the beginning of the transaction and you have since made a mortgage payment, you can ask the closer to order an updated statement prior to closing (with a refinance, there is a three day right of rescission that takes place, so there should be enough time for this to take place with most lenders).


Get your FREE Quote Now!
Posted by Jill Kohler on October 18th, 2016 2:51 PM

Getting a mortgage loan, whether FHA, refinancing, or conventional can take a little doing, but here are a few tips to prepare for the process. 

Get your FREE Quote Now!

1) Gather all your financial information in one place. Current W-2's (or 1099's), at least last years tax returns, preferably the last 2 years, current mortgage statements, 1 month of current pay stubs for all borrowers,

2) Have an idea of what your credit score is.   A lender will pull a trimerge report from 3 major credit bureau's and have some questions about these issues.  The lender may also guide you in the right direction if your credit is less than perfect on what steps to take to improve it.

3) Be honest and provide accurate information on your application. Credit reports,  bank accounts, and jobs are all verified. It's a lot easier to deal with an issue upfront than find out later in the loan process after you've paid for an appraisal and things are moving along.

4) Respond promptly to any requests for additional information so that you get your approval sooner.  

Posted by Jill Kohler on October 10th, 2016 3:34 PM

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