Our team is going to work with you one - on - one to answer your questions and add incredible value, but we are mindful of your time. Here are some questions that we are often asked - and the answers.
Using passive income to qualify for a loan is acceptable, assuming it’s enough to offset the individual’s monthly liabilities (found exclusively on their credit report) and we have a two-year history of this type of income. On a case-by-case basis, a one-year history might be considered.
Yes, if you can show two years’ tax returns supporting self-employment status and all other underwriting qualifications are met.
Depending on your goals and, of course, each other’s qualifications, it is to your benefit to qualify individually, thus maximizing your access to all your conventional loan spots.
In general, a prequalification would be good for 120 days (the length of time a credit report is valid). However, assuming no negative changes to income, debt, assets and credit score, and pending some updated items (pay stubs, bank statements, etc.), a PQ is valid indefinitely.
Depending on where you are in the acquisition of properties, the credit score requirement changes. A person could qualify for an investment loan with a score in the mid 600’s, but this would require the individual’s application to have compensating factors — items such as strong assets or low DTI (debt to income). Once an investor reaches loan spots 7-10, however, credit score rules change and require a minimum middle credit score of 720 without exception.
No, you will only need to go through the full PQ process once. Of course, over time, we will need updated items for expired documentation.
Qualified individuals have access to 10 conventional loan spots. After you exhaust those 10, we have an additional unlimited number of loan spots under our Specialty NON-QM products.
Conventionally-speaking, rates will be less than, say, on a specialty loan product. Keep in mind that there are a variety of variables that factor into the interest rate you secure. Factors include credit score, loan size, LTV (loan to value), property type, occupancy and so on. Check with us for today’s rates.
Yes. There are two types of investment cash-out refinances — standard and delayed — and the rules are different for both. A quick call with us can clear up any questions you might have about either.
Yes, we do loans for primary residences, FHA, VA, USDA — and we offer a variety of Specialty (aka NON-QM) loans, including self-directed IRA loans.
Yes, HELOCs are considered sourced and seasoned funds.
The answer to this largely depends on you and how quickly you can provide the necessary documentation. We set a typical expectation to close at 20-45 days post prequalification. There are several factors that play into a longer close time, but, most commonly, a property’s construction completion and appraisal turn times are the factors that cause delays.
Yes, and depending on how many properties you have, those reserves' requirements change.
Conventional loans do not have prepayment penalties, but some of our specialty products will.
The down payment for an investment property must be in liquid form (checking/savings/money market accounts) and must be sourced and seasoned, meaning that we must be able to paper trail any large deposit as having originated with you. A minimum of 60 days is required for seasoning of funds.
For a conventional mortgage, the answer is no, as you must close in your individual name. Our specialty loan products do allow the individual to close title in the LLC, but the loan itself will still be secured by the individual.