We originate permanent mortgage loans ranging from 5 to 30 years. We make FHA, VA, USDA, and conventional loans. We also do home equity loans, as well as the standard purchase and refi mortgages. Our rates are derived from wholesale rate sheets that are continuously updated by our investors.
" Overlays " is a term used in the industry to describe self imposed underwriting regulations applied in the approval process. The industry is controlled by the FNMA, FHLMC, GNMA, USDA and HUD, which set the standards for loan approval.
Most lenders, have their own, internal set of rules and regulations which are more stringent than that of FNMA and the other entities referred to above. Knowing those overlays and how they can affect your approval process is what sets us apart from other lenders. If you are dealing with a Wells Fargo, or J.P. Morgan Chase, and their overlays limit loan approval to a certain debt to income ratio, a borrower can be denied a loan. We, however, have numerous sources, and try to find an institution which offers overlays that are compatible with your loan situation. This flexibility, we feel, allows us a higher success ratio in loan approvals versus a single source lender.
We originate loans on lots that are intended to be the borrower's primary or secondary residence. These loans are for a period of 180 months, and loans can be used to either purchase the lot or refinance an existing loan. Lot loans can be for standard lots, or tracts of up to 10 acres. Surveys are required on acreage, and no mobile homes are allowed on property.
We broker FHA guaranteed Reverse Mortgages. These are loans that can be made to individuals of age 62, and over,
secured by the equity in their home. The older the individual, the larger the amount that can be borrowed. The funds can be taken in two annual lump sums, or in installments, at the discretion of the borrower. The home is used as collateral, but unlike a normal mortgage, no monthly installments are required. The credit and capacity of the borrower are not considered, other than the borrower's ability to service the ongoing taxes and insurance.
The property remains in the name of the borrower, and upon death, or the permanent abandonment of the residence, the home may be sold by the estate, or surviving relatives. Any equity existing in the home, upon sale, would remain in the hands of the surviving party, or the estate.
Downsizing seniors may use this loan to buy a home. As an example, if a senior were to sell a current home for $250,000, and elect to buy a $100,000 retirement home, the homeowner might take $30,000 to $50,000 of the proceeds from the sale of the current home, and use that as a down payment on the new home. Our reverse mortgage would complete the purchase price. The borrower could then put the remaining cash in savings.
We do cash out home equity loans for periods of 5 to 30 years, as well as Owelty Loans ( divorce buy-outs )
and home improvement loans, where the home improvement is part of a purchase or refi.