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Stated loan cutbacks - Pledged asset loans - Debt investors - No PMI to 90%LTV - Helocs

By
Mortgage and Lending with LX Financial LLC

The pendulum is still swinging towards more irrational, over-the-top caution. The absence, or lack of application of lending rules that caused the problems, have been replaced by excessive rules and procedural changes that limit the recovery of real estate. The constructive efforts of the legislators and regulators are erratic at best. I see a new future for portfolio loans that bypass Fannie Mae/Freddy Mac, FHA lending rules altogether, and offer more common sense lending criteria. Some good and bad news below. - Pau  

Stated loan cutbacks
Regulators are putting the squeeze on no-income/asset-check loans, also known as "liar loans". Stated income and no document loan programs have been dealt severe blows, resulting this month in cancellation of lending programs, and significant restrictions for all others.  Self-employed people often cannot document their income in a traditional manner, and with intelligent lending criteria there is a legitimate place for these type of loans.  To label self-employed in need of this type of loan in effect as "liars" is of course not right - and ultimately a reflection of the inabilities of those who are empowered to develop proper standards. Contact me if you have a scenario. Go here to read up on the history of stated loans 

No construction, rehab loans
How is this possible? There are no mainstream financing programs available for construction and rehab (203K excepted). There are unique options available, so do contact me with your scenarios.

Debt investors
The absence of construction and rehab loans is good and bad. Good because liquidation prices of rehab REOs are further depressed as a result, so there are good fix-flip profits to be made. It is bad because you  need to pay cash. Enter the debt investor to supply the funding otherwise provided by a mortgage. To see how you can finance or sell a rehab with significant profit potential, request a scenario quote here

Pledged asset loans
Good news! A unique new lending program:
- Up to 90% LTV (10% down needed) with asset pledge
- Any person may pledge assets on behalf of borrower
- Primary, second home, investment property allowed
- Pledged accounts may be considered for release after 36 months
- No loan limits of any kind

No PMI, and HELOCs
90% LTV fixed rate loans available to $800,000, no PMI.
1st and 2nd mortgage HELOCs to 85% LTV

Deb investment
Good news. You can invest in fix-flip projects without taking buying the property, get the security of a first mortgage, earn interest, AND get a profit share. (For example: $100,000 investment, $10,000 profit share, 8% interest. 6 month return: $14,400 or 14.4% (say 29% annualized). The minimum investment is $10,000. It does not matter what the property ultimately sells for, the debt investor has a set return and gets paid back first. If you are a:
- developer with a high profit fix-flip project, request a quote here.
- realtor selling a property with fix-flip potential, you can present it here
- realtor with buyers looking for opportunities, contact me
- an investor, go here for further information


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"A man's character is his fate"
Heraclitus

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