Help Your Clients Become More Informed by Jeff's Common $en$e!
Realtors, CPAs, Lawyers, & Financial/Insurance Advisors:?
Business owners often do not show sufficient income to qualify for a full income verification mortgage. Your clients who file a Schedule C, or receive a 1099 form, and clients who have a side gig, are ALL considered self-employed, in addition to those individuals who have formally opened an entity and file taxes for that entity. With 20% down payment and a good credit score, the loan is about ? % higher in interest rate when compared to a full income check borrower with similar down payment & credit score. On a $500,000 loan, that is an extra $150 a month in payment on a 30-yr fixed rate mortgage. Many business owners can afford that extra cost to buy a home.
Alternate ways to calculate business revenue are plentiful and growing rapidly. Business bank statements, personal bank statements, 1099s, Profit & Loss statements, & future rents to be collected, are just some of the ways wholesale lenders are documenting income to approve self-employed borrowers for mortgages, without providing paystubs, W-2s, or Tax Returns.?
Retail bankers:
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Your bank likely will not approve a borrower for an FHA purchase when borrowers have the minimum down payment and FICO scores in the 500s. Just this week, I inherited a deal just like the one I describe here. The bank could not approve the loan for multiple reasons. I elevated the client’s credit score by 80 points within 3 weeks and now have an approved loan at a great rate with zero points to the borrower. In addition to elevating the borrower’s credit scores, I restructured the assets to demonstrate all funds used for the transaction were sourced and seasoned. If a customer at your bank has been denied for a loan, call me to discuss it. I convert many of these transactions from denials to loan approvals.
I have access to loan programs that traditional banks who take deposits could never offer. Wholesale lenders waiving LLPAs on FHA loans with 600 – 660 FICO scores.
As a preferred mortgage broker, I receive additional discounts to share with borrowers. On my last closing of an $800,000 loan, I was able to give the borrower an additional $3200 credit provided by my lender, simply because I am a preferred broker.