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Creative Financing

Home Equity Line of Credit (HELOC)

A HELOC is a great option for homeowners to access cash equity from a currently owned home without having to refinance an existing mortgage. Borrowers have the option of opening either a line of credit or initiating an equity loan. The difference is, a line of credit typically comes with an adjustable rate and requires an interest-only payment (usually for a period of 10 years). An equity loan, however, gives borrowers a fixed interest rate and requires a monthly principal+interest payment. There are pros and cons to both programs so please reach out to your loan officer to find out which option is best for you.

Cashout Refinance

With equity on the rise in recent years, lots of homeowners are asking about ways to access cash equity from their current homes. A great way to pull out cash from your home’s equity is with a cashout refinance. This program will pay off your existing mortgage and give you a new mortgage with a higher loan balance. Anything over the existing mortgage amount would be paid to the homeowner at the time of closing. Cashout refinancing typically allows you to borrow up to 70%-80% of the current home’s value. Contact your loan officer today for more information and a free quote.

Bank Statement Loan

This option is Ideal for self-employed borrowers that don’t qualify because of tax write-offs or lack of tax-documented income. The lender will review your bank statements (typically over a 12-month period) and analyze deposits in order to calculate income. You may use personal or business bank statements to qualify. This program allows a down payment as little as 10% down and credit scores as low as 620. Contact your loan officer today to see if this program will work for you.

Debt Service Coverage Ratio (DSCR)

This program can be an amazing option for investors looking to purchase a new rental property. Rather than looking at personal income from the buyer, we qualify this loan based on expected rental property income. No tax returns or personal income documentation is required. Credit scores as low as 620 are acceptable and down payments may be as low as 20% for borrowers. You may also use this program to purchase multi-family properties and you can close the loan in an LLC, rather than your personal name which is a very nice benefit. Have questions on how to use this loan program? Contact your loan officer today.

Community No Income Loan

This innovative product addresses the regulatory rules limiting prime borrowers’ access to lending by eliminating unnecessary documents that are not part of the credit underwriting decision. A Community Mortgage allows a buyer to purchase a new home with no income documentation requirements, and no calculations of debt-to-income. This program is for primary and second home purchases and allows down payments as low as 20% for qualified buyers. Fico scores to qualify begin at 640, with 740 being a requirement for a 20% minimum down payment. Want to buy a home with this program? Even if you are a first-time buyer, contact your loan officer today for details and to get pre-approved.

“2nd Chance Program”

If you have had a recent bankruptcy/foreclosure/short sale, you may find getting a new mortgage impossible. Fortunately, this program allows you to qualify for a new home loan as little as 1 day after a credit event such as those listed in the previous sentence. A minimum credit score is 620 for this program, and you can qualify with as little as 15% down in some cases. You can also qualify with full income documentation or, if tax returns don’t work, you may qualify with a bank statement loan. Gift funds are allowed and debt-to-income can be as high as 50% so contact your loan officer today to find out if this program would help you.

Profit and Loss Only Loan

For self-employed borrowers that can’t qualify using 12 months of bank statements, this program is amazing. In lieu of bank statements, the lender will accept a P&L prepared on a CPA’s letterhead covering the most recent two years as well as current YTD for the business. Down payment can be as low as 20% but can only be used to purchase a primary residence. No first-time buyers may qualify for this loan but credit scores can be as low as 600. Contact your loan officer today to get terms and conditions of this awesome lending alternative.

Asset Utilization

If you are the type of client who has little monthly income but enough liquid cash to pay in full, check out the details of this program. You can qualify by dividing your total assets over 60, 84 or 360 months and get financing for up to 80% of the price of the home. The minimum credit score allowed is 600 and liquid assets can be funded in checking, savings, stocks, bonds, mutual funds, or the vested amount of retirement and money market accounts. Ex. $300,000 in qualified assets on hand = $5,000 additional monthly income if divided over 60 months. If you have lots of cash available but not enough monthly income to qualify, call your loan officer today to get approved for your new home or investment property.

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