Tag: Loan-to-value ratio

Innovative Mortgage News


Our Elite FHA and VA Interest Rates
Lead The Industry !!
If Your Buyer Has a Minimum 720 FICO Score
She/he may qualify for Elite Pricing
* Loans from $175,000 to $417,000
* All fixed-term mortgages
*Primary SFR’s
 
Combined with fast closings often less than 30 days
 
FYI…
We Can Submit & Lock A Loan Up ‘Til Midnight
and you also get…
Exceptional Service from a Local Mortgage Broker
Put these advantages in  

your tool kit to close more deals!
 
Gary King   239-989-2288   (mobile any time)    NMLS #386955
 

This is not a commitment to lend. Not all borrowers will qualify for this program.

Ready – Set – Close More Deals! Qualifying Your Buyer

As a real estate agent, how often have you put your buyer and a great property together at the right price, only to find out that they are having trouble qualifying for a mortgage? Well, here’s some information that may help.

The largest wholesale lender in the country has a product called “Pay Advantage” that will lend up to 95% LTV with no monthly mortgage insurance (commonly called M.I.). That’s a big deal, as a $190,000 FHA loan on a $200,000 purchase would require an extra $200+/mo for that M.I. – for the life of the loan! Not only would your buyer be paying an extra $2,500 a year, but they would not even qualify for an FHA loan, unless the property will be their primary residence. Second homes in Florida (or anywhere else) do not qualify for an FHA loan, but they do qualify for a Pay Advantage loan. Of course, that extra $200+/mo also adds some drag on the debt-to-income (DTI) ratio that cannot be exceeded for loan approval.

Now let’s consider the source of your buyer’s down payment for that 95% LTV. In most cases, all down payment and closing costs must be sourced from the borrower’s own funds. Believe me, the underwriters will pursue documentation that verifies those sources – bank accounts, investment accounts and the like. Underwriters will International Home Buyersquestion the source of any major deposits made in the last 60 days and will require a “paper trail” that accounts for any such deposits.

Well, this same lender has a 100% Gift Program that permits the borrower to use a “gift” of funds for the entire down payment, as well as closing costs! That means parents or other friends and relatives can “gift” the money to cover those costs, allowing your buyer to get a mortgage with virtually no out-of-pocket cash. I’m really beginning to like this lender!

Now add in closing times of 23 days, on average, in order to meet or beat your contract dates.

When you put all these advantages together, that can mean more closed deals, higher commissions and faster closings! Want to know more? Just give me a call.

Gary King

Innovative Mortgager, LLC

239-989-2288   mobile   (anytime)

Earth Calling Ben Or Is It Ben Calling Earth?

Unless you were on the space station, orbiting Earth, you already know that one week ago Ben Bernanke sparked a significant jump in mortgage interest rates with his Fed comments. In some cases, they increased by one half a point over night…that’s HUGE, as Billy Fucillo (our local mega-car dealer in SWFL) would say. Rates continue to climb and fall back, even on an intra-day basis.

There is some speculation that rates may calm down and even drop some, as the market adjusts from Ben’s comments about reducing the Review promotes growthFed’s volume of bond market purchases over the next eighteen months, if the economy continues to improve.
That leaves buyers and investors with a challenging decision – should you move ahead with that mortgage now or wait for a possible pull back in the rates? Here’s a suggestion…if the deal makes sense with today’s rates and terms, then act now. Do not wait for a marginal rate improvement that may not come or may cause you to miss the deal that is on the table now.
Rates are still very attractive vs. historical averages and there are many mortgage features in today’s market that are truly beneficial for the buyer. My company even has an escrow waiver program that can give you increased flexibility with your monthly payment and cash flow. You can also take advantage of our loan product that can go as high as 97% LTV with no mortgage insurance…now that really is HUGE!
Yes, commercial rates are not immune to increases, either, as they tend to follow Prime, LIBOR and other popular indices. So keep that in mind.
              Gary King, MBA

Residential & Commercial RE Advisor
 Real Estate Solutions of SWFL, LLC
                      and
               Broker/Owner
        Innovative Mortgage, LLC
Residential & Commercial Mortgages
       …extraordinary service!
    mobile 239-989-2288 (any time)

Innovative Mortgage – Gary King, Broker

Gary King, broker/owner of Innovative Mortgage, LLC, and Co-Owner of Real Estate Solutions of SWFL, LLC has broad experience in both financial Mortgage Needsservices and the real estate industry, specializing in commercial financing. As the former City Manager of Cape Coral (the tenth largest city in Florida), Gary provided executive oversight for a $447 million budget and all aspects of municipal planning and zoning, giving him comprehensive insight into the real estate markets.
Previously, as Senior Vice President of Strategy and Infrastructure for Boston-based State Street Corporation, Gary provided strategic oversight for all Information Technology computing and network platforms worldwide. State Street is a leading global provider of institutional investment services with $23.2 trillion in assets presently under custody and administration.
He is a featured speaker on Commercial Real Estate Trends and New Developments Affecting Commercial Mortgages.
Gary has both a BS and MBA from Northeastern University in Boston.
              Gary King, MBA

Residential & Commercial RE Advisor
 Real Estate Solutions of SWFL, LLC
                      and
               Broker/Owner
        Innovative Mortgage, LLC
Residential & Commercial Mortgages
       …extraordinary service!
    mobile 239-989-2288 (any time)
Email:  GRKServices@gmail.com

The Ultimate Advantage Loan Blows FHA Away!

As you may know, a main advantage of an FHA home loan has been the ability to buy a home with a small down payment, borrowing up to 96.5% loan-to-value (LTV) of your home’s purchase price and as much as 97.75% for a rate/term refinance, so long as you purchased costly private42-21058878 mortgage insurance (PMI) . Until now, that insurance could be eliminated from your monthly mortgage payment once you reached 22% equity in your home or 78% LTV…but no more! After June 3rd, you must pay PMI for 11 years, if you put 10% or more down. If you put less than 10% down, you will pay PMI for the life of the loan! 
With the FHA’s Mutual Mortgage Insurance Fund announcing a deficit of over $16.3 billion for fiscal year 2013, these changes are necessary to maintain the FHA’s mandated reserve requirement. That translates into loans and payments that are more expensive for consumers.
These tougher FHA rules have made the Ultimate Advantage Loan even more attractive! In a recent side-by-side example of a $210,000 home purchase with an approximate 96.5% LTV, the Ultimate Advantage Loan saved nearly $193 per month ($2,316 per year). Now that added cost for the FHA loan will continue for the entire life of the loan.
Email or call me to see the details of that comparison or to learn more about the Ultimate Advantage Loan.  (The comparison assumed a 3.875% note rate for the loan. Not all borrowers will qualify for this loan program.)
               Gary King, MBA
                Broker/Owner
        Innovative Mortgage, LLC
Residential & Commercial Mortgages
        …extraordinary service!
    mobile 239-989-2288 (any time)