“Lenders that Offer Construction Loans”
We are often asked to supply a pre-qualification letter to lenders that offer construction loans, but they don’t offer the end loans. For us, that works just fine as we don’t offer any construction loans.
Shane was given a building lot by his grandparents. He had gone to the bank where he does his checking account business because they offer construction loans, but they wouldn’t do the loan as they have a guideline which requires ownership of the lot for at least a year.
When he contacted me, I arranged for a construction loan. They didn’t care if the loan was owned for 5 minutes and they would allow the value of the lot to be considered the down payment.
The lender required a letter from us saying that Shane was pre-qualified for the end loan, which we supplied. They never question our letters as we have worked together for years. The construction loan is set up for a year, but the builder only needed 6 months.
These specialty lenders like this construction lender fill a void in the market especially for individuals that inherit or are gifted a lot or acreage and want to build.
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“Return the Favor”
There is a bankruptcy attorney that sends me at least one client a month. Most of the time, these clients have already been through the bankruptcy process. Some own homes others do not, but all are sent to me because they want to know what it will take or how long it will take before they can get a new mortgage or can refinance.
I start working with these clients right away, many for a year or even two or three before a new mortgage can done. This attorney is very proactive when it comes to giving his clients “HOPE”.
A couple of years ago I referred a client to him that involved many millions of dollars and the client in now done with the BK process. It was a real mess, but now done. I am now beginning the education process as he will want to refinance the 8% mortgage that is on the home.
Going through a bankruptcy is not easy. There is shame and fear that is involved, but these are not permanent conditions. Often it is a case of bad things that happen to good people.
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“VA and FHA Streamline Loans”
Doing a VA or FHA streamline loan is a no brainer 90 percent of the time. No appraisals are needed and no income or job history is required.. I’m not kidding. Closing costs are minimal; often a credit from the lender can pay most or all of the costs. Lower interest rates and lower FHA monthly mortgage insurance can reduce the mortgage payment. I have seen payments reduced from $500 to $100, so for anyone that has one of these mortgages it is definitely worth checking out.
We do these mortgages in Connecticut, Massachusetts, Rhode Island, Maine, New Hampshire, Vermont, New York and Florida. Let a friend or anyone you interact with that has a VA or FHA mortgage know they may be over paying each and every month.
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“Beer Budget and Champagne Taste”
Brenda wanted to own a nice three bedroom ranch, but her budget was $150,000. In the area she wanted to live $150,000 wouldn’t give her what she wanted for her family.
Her Realtor called me regarding doing an FHA 203 K loan as the bank that did her pre-qualification doesn’t do them and they recommended the Realtor contact me. They have been referring these clients to me for many years.
I spent time with Brenda to discuss her options as she and her Realtor found a bank owned property that was in the area she wanted, but the home needed about $25,000 worth of work. With that amount of renovations the home would work.
The Realtor referred a contractor that looked at the property, but he felt the property was too far away for him, plus he had lots of work. I ended up referring a contractor who viewed the property and put a proposal together. For these loans, the contractor is crucial as there is a bunch of paperwork that is required.
Here is the neat part of this transaction. The appraiser has to come up with an “as is” value and a value after the renovations are completed. The purchase price was $109,000 and the final renovation number was $30, 800. The after renovation value came in at $166,000. What a way to create instant equity.
Buying a home that needs some renovations, might be a great option, no matter the price range goals someone has.
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“This Short Video Will pull at Your Heart Strings”
What immediately came to mind was, how many in this country that are unemployed or under employed that feel shame, have fear and feel helpless but think about the children. How do they feel?
When we bring food to a local homeless shelter and when we serve food on Christmas and Thanksgiving it breaks my heart, especially when we are serving children.
“$200,000 in the Bank, $80,000 Car with no Debt”
The best part is two years of tax returns that show about $6,000 in net income. He asked a great question, “Why won’t my bank give me a mortgage they know how much money goes through my checking account?”
Fortunately for me banks can’t lend to this kind of borrower, but we are fortunate to have a bank statement only loan product. As long as I can show 12 months of bank statements that show enough cash flow running through the account and enough to make the debt ratios work I can get a mortgage done.
These loans are typically 30 year mortgages and the rate is fixed for 5 years with interest rates that are in the mid 5% range. The same client commented on how crazy this interest rate was. I asked if he would rather pay the income tax based on his real income.
Prospective borrowers like this individual don’t have many options. I suppose he could start showing his correct income, but don’t see that happening any time soon.
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“Thank you, you are always so happy and helpful. God knows you were my financial saving grace leaving Florida.” Lee
Lee and her husband are leaving Houston and moving back to Sarasota, FL. I have been working with her, some of her other family members and countless referrals for more years than I care to admit.
Some of the greatest gifts you can give anyone in business is to keep coming back time after time to do business and to refer friends and family.
With this family I have done mortgages in Connecticut, Rhode Island, Maine and Florida. It is a good thing I am licensed in 8 states.