February 24, 2022 Transaction Rescue - California Association of REALTORS - California ...
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February 24, 2022 Transaction Rescue California Association of REALTORS®
Format for today’s WEBINAR
• For Webinar’s please use Questions & Answers feature to submit questions
and only use the Chat feature, if you are having a technical issue.
• Please keep questions general.
• If you have specific questions or afterwards, please email
• TransactionRescue@car.org
• Do to the changing nature of the material, we will be providing the slides on our website
later today. We appreciate your patience.
• We are trying to record this, and these will be available tomorrow, for your review.
https://www.car.org/FinWebinars
CALIFORNIA ASSOCIATION OF REALTORS®
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HTTP://www.car.org/finwebinars
For a full recording of webinar &
the corresponding slide deck
https://www.car.org/knowledge/multimedialibrary/webinars/financehelpline
SOURCE: California Association of REALTORS®
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Please be advised that you aren’t required to seek services
from any of the speakers in the presentation
They were chosen because we believe they’ll be helpful in
providing education without requiring you to give them
business. Having said that, we’re not making any
representations or warranties regarding the quality of their
services.
We understand that you may have your own preferred
companies and ultimately, it’s your decision as to whose
services you will seek.
SOURCE: California Association of REALTORS®
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Inclusivity Statement
We ask that each of you support C.A.R.’s diversity efforts by
committing to treating each other with dignity and respect. Please:
• Keep statements focused on the topic or question before the group.
• Avoid mention of irrelevant demographic information like age or
unrelated leadership experience.
• Refrain from saying or doing anything that could lead anyone to
feel excluded or belittled.
C.A.R’s Transaction Rescue Leadership may interject, as needed, to
promote full and respectful dialogue.
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Line Up / Agenda
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8
Transaction Rescue™
CALIFORNIA ASSOCIATION OF REALTORS®
Residential Lending in a
Lending Alternatives – Options for Missing Pillars
COVID-19-impacted Environment
Abel Fregoso Yong Choi Faramarz (FM)
Homebridge Guild Mortgage Moeen-Ziai
Financial CrossCountry
Mortgage
SOURCE: California Association of REALTORS®
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Transaction Rescue™
CALIFORNIA ASSOCIATION OF REALTORS®
Residential Lending in a
Lending Alternatives – Options for Missing Pillars - Breakouts
COVID-19-impacted Environment
Demaris Lopez Cynthia Leal Valerie Warren
Homebridge Guild Mortgage CrossCountry
Financial Mortgage
SOURCE: California Association of REALTORS®
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10Transaction Rescue™
CALIFORNIA ASSOCIATION OF REALTORS®
Residential Lending in a
Lending Alternatives – Options for Missing Pillars - Host
COVID-19-impacted Environment
Marc Farfel
Lender Liaison /
Transaction Rescue
Manager - California
Association of REALTOR®
SOURCE: California Association of REALTORS®
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1120% Down Payment is Required
FHA is the Only Product for a Low Down Payment Purchase Transaction
I May only Use my Savings for a Down Payment
My Credit History isn’t Good Enough
I Don’t Make Enough Money to Own
I Don’t Know Where to Start – The Buying Process is Complicated.Lending Terms /Abbreviations
• AUS – Automated Underwriting System
• LPA – Loan Prospect Advisor (previously – Loan Prospector LP) (Freddie)
• DU – Desktop Underwriter (Fannie)
• GUS – Government Underwriting System
• FICO – Fair Isaac Company (Loan Scoring Model Used By a Majority of Lenders / Investors)
• DPA – Down Payment Assistance
• MI – Mortgage Insurance
• UFMIP - Up-Front Mortgage Insurance (FHA Loans) & MMI – Monthly Mortgage Insurance (FHA Loans)
• PMI – Private Mortgage Insurance (Conventional Loans)
• LPMI – Lender Paid Mortgage Insurance
• OO - Owner Occupied Borrower / Co-Borrower
• NOO – Non-Owner-Occupied Borrower / Co-Borrower
• FTHB – First Time Home Buyer
• CalHFA – California Housing Finance Agency - GSFA – Golden State Finance Authority (Platinum)
• ITIN – Individual Tax identification Number
• Flipping – Selling within 3 months, with large value increase, may trigger Lender RED Flags
• ACH – Automated Clearing House
• Calculations
• DTI – Debt to Income
• LTV – Loan to Value and Combined Loan to Value (CLTV)
• DSCR – Debt Service Coverage Ratio
• PITIA w/MI – Principal, Interest, Taxes, (Hazard) Insurance, Association Fees, and Mortgage Insurance
SOURCE: California Association of REALTORS®
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14The Federal Housing Finance Agency’s (FHFA) announcement to increase the 2022 conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac to $647,200 on one-unit properties and a cap of $970,800 in high-cost areas. The previous loan limits were $548,250 and $822,375, respectively. Higher Loan Limits = More Properties Available to Entry Level Buyers ▪
Pillars of Qualifying
• Knowledge – How to prepare, starting early, asking for help, no bad questions, No Rush, and
most of all know, We Are Here for You and Your Clients.
• Credit
• Score, Tradelines, Depth
• Derogatory Items (collections, charge offs,
judgements, BK, Foreclosure)
• Capital
• Checking, Savings, Retirement, Gifts
• Capacity
• Wages, Self Employment, Rental Income
• Social Security, Disability, Pension
• Asset Depletion
• Collateral
• Value/Price, Property Condition, Occupancy page
SOURCE: California Association of REALTORS®
17Misconceptions About Qualifying
• Up to 4 people can be on a loan
• Co-borrower’ and Cosigners can own other property
• Gifts can be from Family or close friends
• Employers, Charities, Seller and Real Estate agent can contribute
• Non-Occupant coborrowers are allowed
• 2 years at current employer not required
• More than 1 employer is ok
• Permanent Residents are acceptable
• Some Work Permits are acceptable
• Social Security Income is acceptable
• Self Employed and 1099 Income acceptable
• SSI for children can be used
• Disability can be used
• Ok if NBS doesn’t have a social security number
SOURCE: California Association of REALTORS®
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18Co-Borrower vs. Co-signer
• Co-borrower
• On loan and on title
• Co-signer
• On loan but NOT on title
• Non-Occupant
• Will not reside in subject
• How coborrowers and cosigners are affected
SOURCE: California Association of REALTORS®
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19Communications Wire Warnings
Language and general letter contact:
• WIRE FRAUD IS ON THE RISE.
PROTECT YOUR FUNDS. Do not
wire funds based on an email
request, without verbal
confirmation. (Lender Name) will
NEVER request that borrowers
wire funds in connection with
their transaction.
• Lender Name Example -
(HomeBridge / CrossCountry
/Guild)California Association of REALTORS® -
What to Look for in a Lender
Pre-Review Lender
• Reputation in Area
• Experience with similar working partners
• Knowledge of a Multitude of lending and DPA Programs in Area
Lending Entity
• Loan Product Alternatives
• Work with DPA Sources
• Either Direct Endorsed or Evidence of Performance.
• Pre-Approval with TBD Capability
• Loan Officer Access to Underwriter Pre-Approval
• Good Appraisal Network from Within the Area or Knowledgeable on the Area
Appraisers
Partnership with C.A.R on Escalations or Sources
CALIFORNIA ASSOCIATION OF REALTORS®
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21When Buyer Brings Their Own Lender –
A How to Get Comfortable Checklist
• Start Early before House Selection
• Ensure They Will Provide a Conditional Approval Subject to TBD
• Direct Endorsed or Experienced
• Escalation Channels
• Timelines & Expectations Clearly Defined
• Turn-Around Times Clear
• You the REALTOR® are Included Throughout the Process
• The Only Fees They Charge Upfront, Appraisal & Credit (if any?)
CALIFORNIA ASSOCIATION OF REALTORS®
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22What Constitutes a Valid Loan Application?
1. Name
2. Income
3. Social Security Number
4. Property Address or (TBD)
5. Estimated Value of Property
6. Mortgage Loan Amount Sought
• Once these 6 items of information are submitted, Lender MUST supply
a Loan Estimate (LE) within 3 business days.Mortgage Application Checklist
Purchasing a home can be a complex process. However, knowing what
you need before you apply for a mortgage loan can help make the
process smooth and stress-free. Here’s what you will need to have
available when applying for a mortgage loan:
• ID
• Driver’s license or passport
• Residency
• Complete address for each residence you’ve resided in the past 24 months
• Purchase contract
• Sales contract (all addendums) with original signatures, along with copy of
the earnest money check
• Employment
• Name, address and phone numbers of all employers for the past two years
• Relocation: Copy of employer relocation agreement
• Income
• Last 2 years W-2 or 1099 forms
• Last 30 days pay stubs (including bonus &/or commissions
• Last 2 years tax returns (all schedules)
• Assets
• Last 2 months bank statements (all pages) on all checking, savings,
investment accts
• Divorced or Separated
• Complete divorce petition, recorded final decree &/or separation
agreement
• Rental properties
• Copies of current leases and tax returns
• VA loans
• Copy of DD214 and certificate of eligibility
Engage in the process early to insure a smooth closing.Lending & Why “Niche” / Non-QM exists
▪ Responsible Lending / Achieving Sustainable Homeownership –
Knowledge Sources and Helpful Partners
▪ 4 Pillars or the 4 C’s of Qualified Mortgage (QM) Lending
▪ Capital, Capacity, Credit, Collateral
▪ Missing Pillar or what makes it Non-QM / Niche or “Out of the
Box”
▪ Capital – Down Payment or Available Documentable Cash
▪ Capacity – Verifiable Income and Ability to Qualify, including Job Length, Bonus
or Commission and Inconsistent Pay or Overtime. Self-Employed, Citizenship
Status, Visa’s, ITIN, or Foreign Nationals.
▪ Credit – Score, Lack thereof, Life Events, History
▪ Collateral - Property Value, Condition, Types (ADU, Unwarrantable Condos, Mixed-Use,
Multi-Units, Land, Builder, Fix & Flip)“”Niche” – Non-QM (Alternative Mortgage Options)
▪ Foreign National Programs to 75% LTV
▪ Bank Statement Loans for Self Employed
▪ Other Property Type Alternatives - Mixed-Use, Land, Builder,
Fix & Flip
▪ Non-Warrantable Condos – Non-FHA or Conventional
▪ Asset Depletion Available – Can Use Assets for Income
▪ Investment Properties Using Subject Cashflow for Income -
DSCR
▪ Mixed-Use (50% vs. 25%), Multi-Unit
▪ Jumbo Expanded
▪ High LTV Jumbo
▪ Asset QualificationBANK STATEMENT LOANS
▪ Designed for Self-Employed Borrowers or 1099. Not Able to Fully Document
Their Income with Tax Returns.
▪ Purchase or Refinance
▪ Max LTV 80% purchase
▪ FICO – Minimum 660 with 80% LTV up to $3.0M
▪ DTI – Maximum 50%
▪ Income: Self-Employed 12 Months Personal Bank Statement or 24 Business
Bank Statements (Req CPA letter for Expenses)
▪ Down Payment Sources: Savings, or Investments
▪ Max Loan Limit: $3.0M
▪ Property Condition: C4 or Better (C1,C2,C3)
▪ Occupancy is limited to Primary Residence, or 2nd Home Purchase
▪ General Notes
▪ Talk to Your Lenders for Additional InformationASSET QUALIFIER LOAN
▪ Perfect for Borrowers with High Net Worth and Significant Assets. No
Source or Verifiable Source of Income.
▪ Purchase Only
▪ Max LTV 80% of Value
▪ FICO – 660 Minimum
▪ DTI – No DTI
▪ Income: No Employment or Income Verification
▪ Down Payment Sources: Borrower Must Have $500,000 Post Closing
Assets
▪ Max Loan Limit: $3,000,000
▪ Property Condition: C4 or Better (C1,C2,C3) per Appraisal
▪ Occupancy: Primary Residence Only
▪ General Notes – Review with Lenders in AdvanceINVESTOR CASH FLOW PROGRAM
▪ Qualification is determined solely based on the rent to payment ratio of the
subject property only, otherwise known as the debt service coverage ratio
(DSCR)
▪ Borrower must have 12 months history of owning and managing rental
properties
▪ No income/ Employment is verified therefore no DTI is calculated
▪ DSCR must meet of exceed 1.0% using either the fully amortized PITI or the
interest only payment amount
▪ Example:
▪ Rent of $1,000, payment of $800 = 1.25% ratio and is eligible
▪ Rent of $800, payment of $1,000 = .8% ratio and is ineligible
▪ Reserve are required and, in most cases, it is 9 months of PITIINVESTOR CASH FLOW PROGRAM
Investor Cash Flow Mortgage Program (ICFMP) OR DSCR Loan allows your clients to
qualify based on rental analysis to determine property cash flow. No personal income
required to qualify. This saves you from submitting complicated income statements and
tax returns.
▪ No personal income used to qualify
▪ Qualification based on property cash flow
▪ 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
▪ Credit scores down to 660
▪ Up to 75% LTV
▪ No DTI restrictions
▪ Must have current mortgage
▪ 1-4 units and condos
▪ No limit on number of properties financed
▪ Loans up to $3.0 million
▪ Seller concessions to 2%
▪ 7/1 & 10/1 ARMs or 30 year fixed
▪ Debt Service CoverageForeign National & ITIN Loans ▪ Foreign Nationals Program ▪ Purchase and Refi Ok & Self-employed Ok ▪ Up to 75% LTV ▪ Money for DP must be in US bank 30 days ▪ ITIN Program ▪ 15% Down payment ▪ 2 years tax returns ▪ 3 months bank statements ▪ ITIN card or passport
Foreign National Loans (cont’d) • Up to 75% LTV • No US credit required • Fewer country restrictions • DTI up to 50% considered • Investment properties • SFRs, townhomes, condos, 2-4 units • No SSN or ITIN required • 12 months reserves required • Non-warrantable condos considered • 5/1 ARM or 30-year fixed • Loans up to $2,000,000 (minimum $75,000) • Seller concessions to 2%
Credit Issues - Second Chance Lending ▪ Up to 90% LTV ▪ 600 Minimum credit score (some higher) ▪ Full Doc or 12-24 Month Bank Statement ▪ Up to 50% DTI ▪ 1 day out of Foreclosure, Short Sales and Deed in Lieu are Okay (verify) ▪ Up to 7% Seller Help Allowed ▪ Gift Funds Are Acceptable ▪ Need 3-6 months PITI Post-Closing
BANK STATEMENT LOANS
(12) or (24) MONTH
Bank statement program allows the use of the “primary wage-earner’s FICO.
At least one borrower must be self employed for two years. A CPA letter verifying self
employment must be provided.
▪ Personal – 12-months required
▪ Any atypical deposits must be sourced
▪ Total all eligible deposits, divide by 12 to determine income
▪ Transfers between accounts cannot be used in income calculation
▪ Watch for NSFs, excessive could result in a decline
▪ Business – 24-month options
▪ Four methods of calculation available
▪ Uniform Expense Ratio (35%)
▪ Profit & Loss Statement
▪ CPA Letter for Expense Ratio
▪ Deposits less WithdrawalsBANK STATEMENT LOANS (Cont’d)
(12) or (24) MONTH
▪ 12-24 Month Personal / Business Bank Statement Program
▪ *** ONLY APPLY’s to 1099 or Self Employed
▪ Profit & Loss Statements or Expense Factor
▪ Loans Up to 80% LTV for 660+ FICO
▪ Loan Amounts up to $3,000,000
▪ Interest Only, ARM and Fixed Terms Available
▪ Verifiable Income (by choice or don’t have)ASSET DEPLETION LOANS
How the Program Works
▪ Asset depletion is used to establish monthly income for borrowers based on
their liquid assets.
▪ Automated calculator uses a 4% rate of return on the assets plus a depletion
amount based on the borrower’s age & Social Security Administration’s life
expectancy.
▪ Assets are used at 100% face value including retirement accounts
(retirement only used if borrower is age 59 ½ or older.)
Loan Size up to $3 million as small as $100k allowed
▪ Up to 85% LTV for owner occupied (720+ FICO) and 2nd homes including non-
warrantable condos & cash-out refinances
▪ Investment Properties allowed up to 60% LTV including cash out
▪ Up to 10 financed units
▪ FICO as low as 620ASSET DEPLETION LOAN EXAMPLE Assumptions: ▪ Sales Price $500,000 with 25% down ▪ Borrower age 65 on social security income $2,500 per month ▪ Borrower has $150,000 in checking & savings, $350,000 in mutual funds, $850,000 in 401k for total of $1.35 million in assets ▪ Based on asset depletion calculator, $5,037 per month in income can be used in addition to social security income with 25% down and closing costs will be roughly $300,000.
California Association of REALTORS® -
Impact of Rising Interest Rates on Buying Power
A look at Changing Interest Rates on Your Mortgage
CALIFORNIA ASSOCIATION OF REALTORS®
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38California Association of REALTORS® -
A Look at the Changing Markets
• FHFA Announcement FHFA Announcement
• Fannie Mae Lender Letter LL-2022-01
• Freddie Mac (FHLMC) Announcement
CALIFORNIA ASSOCIATION OF REALTORS®
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39Credit Do’s & Don’ts
Top 10 Credit Do’s and more importantly Don’ts during the loan process
SOURCE: California Association of REALTORS®
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41REALTOR® Resource: Issues that
Alternative Financing Might Resolve
Buyers with one or more of these issues will find it very difficult to qualify for a conventional or government-insured
loan. Realtors should proceed with caution before submitting purchase offers for buyer’s with these issues:
✓ The buyer has one or more years of unfiled tax returns
✓ The buyer is married but the non-buying spouse is not available or unwilling to cooperate with the purchase
✓ All of the buyer’s income sources are cash and have not been reported for income tax purposes
✓ The buyer is self-employed with minimal net business income reported in recent tax years
✓ One or more of the buyers will not occupy the property as their principal residence
✓ The buyer’s assets are all cash and can’t be sourced
✓ The buyer discharged bankruptcy within the last 24 months or had a foreclosure less than three years ago
✓ The buyer’s Social Security number is not valid
✓ Buyer is a non-citizen and is not a permanent resident (green card holder) and they do not have a valid work
authorization card
✓ The property the buyer wants to purchase has serious health and safety problems, sub-standard non-permitted
improvements and can not be immediately occupied by the buyers
SOURCE: California Association of REALTORS®
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42California Association of REALTORS®
- Credit Break-Out Factors
1 - Payment History – 35%
• How recent is the most recent delinquency, collection or public
record item? 5.
• How severe was the worst delinquency—30 days, 90 days? Credit Mix
4. 10%
• How many credit obligations have been delinquent?
Pursuit of
2 – Debt – 30% New Credit 1.
• How much does the consumer owe creditors? 10% Payment History
• What percentage of available credit card limits is the consumer 35%
using? 3.
• What percentage is outstanding on open installment loans? Credit History
3 - Credit History – 15% Length 15%
• How long have accounts been established—average number of
months accounts have been open 2.
• New accounts—number of months since most recent account Outstanding Debt
opening
30%
4 - Pursuit of New Credit – 10%
• Inquiries: Number of recent credit inquiries (12 months)
• New accounts—number of trade lines opened in last year
5 - Credit Mix – 10%
• What is the mix of credit product types?
• Revolving credit—number of bankcard trade lines
• Installment credit—percent
CALIFORNIA ASSOCIATION OF REALTORS®
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of trade lines that are installment loans
43Barriers in Financing - How to Work Through Them
– Loan to Value (LTV) Basics
Loan / Value = LTV
For example, $400,000 Loan Amount divided by $500,000
Value Home equals 80% - % LTV
Loan + Down Payment Assistance (DPA) or 2nd Trust Deed (TD)
/ Value = CLTV or TLTV
For example, $400,000 1st Loan Amount + 50,000 2nd TD divided
by $500,000 Value Home equals 90% - % CLTV or % TLTV
SOURCE: California Association of REALTORS®
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44Barriers in Financing - How to Work Through Them
– Debt to Income (DTI) Basics
Housing Payments / Gross Income = front end DTI
For example, $1,000 mortgage divided by $3,000 income equals 33%
front-end DTI
Monthly debts + Housing Payment / Gross Income = Back end ratio
For example, $400 auto payment + $100 in Credit Cards + $1,000
mortgage divided by $3,000 income equals 50% back-end DTI
* On Credit Report as a recurring installment debt
SOURCE: California Association of REALTORS®
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45Key Concepts – Debt to Income (DTI)
Top (Front-End) Ratio
34.9% = $4,035 (PITIA w/MI) or
34.9% House Payment
57.3% PITIA w/MI House Payment (PITI)
(with higher rate due to 5% forgivable DPA)
(also assumes discounted DPA MI Calculation) and $200 in
Homeowners Association fees)
Taxes, Savings &
Other Expenses Monthy Installment &
7.8% Revolving Payments
The rest of your income
Bottom (Back-End) Ratio
Other Monthly Installment & 34.9% + 7.8% = 42.7%
Revolving Payments 42.7% = $4,935
7.8% = $900 Key DTI Ratio is under 43%
Includes : Car Payments, Student loans, Credit Card payments
SOURCE: California Association of REALTORS®
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Based on the Qualifying DPA with Freddie Loan Debt to Income Ratio is 36/43Upcoming STEPS Towards
Homeownership Event
April 6th 2022
10:00 a.m. – 12:30 p.m.
REGISTER HERE
SOURCE: California Association of REALTORS®
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49Transaction Rescue™
CALIFORNIA ASSOCIATION OF REALTORS®
Lending Alternatives
Residential–Lending
Optionsinfora Missing Pillars –
Guild Breakout
COVID-19-impacted Environment
Cynthia Leal Yong Choi
Guild Mortgage Guild Mortgage
SOURCE: California Association of REALTORS®
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53Bank Statement
Mortgage
Mortgage Solutions for Self-
Employed Borrowers
12 or 24 month business or
personal bank statements
2 years self-employed required
Up to 90% LTV, No MI (generally 700)
Credit scores as low as 600
Owner-Occupied, Second Homes
and Non-Owner Occupied
Purchase, Rate/Term Refinance &
Cash-Out Refinance 1099 Income Loan Option is great for self-employed
borrowers who are 1099 workers.
No Tax Returns are required
Most recent 1 or 2 years 1099s plus year to date earning
1099 Income statement allowed. Year to date earnings are verified
from earning statement, paystubs, or bank statements
Loan 1099s must be from a single employer and must be self
employed working for the same employer for 2 years
Up to 90% LTV, No MI with 700 score
Maximum LTV 80% LTV with 640 score
Credit scores as low as 600 with LTV 70% Qualification based on property cash flow –
minimum debt service coverage ratio 1.0
Investor Cash Max LTV up to 80%
Credit Scores as low as 600
Flow or Debt No DSCR needed with minimum 700 FICO & max
Service Coverage 75% LTV
No personal income or employment information
Ratio Loan required
(DSCR) Properties can be in LLC’s name
No Limit on total number of properties
Borrower MUST own primary residenceAsset Qualifier
Product based on borrower’s liquid
assets to qualify.
No employment, income or DTI to
justify ability to repay.
Up to 75% LTV with credit scores starting
at 700
Primary Residence Only
All assets must be sourced & seasoned
for minimum of 6 months
Required Assets: Loan amount, recurring
monthly debt multiplied by 60 months,
funds to close and 6 month reserves
Borrowers MUST have at least $500k in
post-closing assetsIndividual Tax Identification Number (ITIN) Mortgage Loan Full documentation loan Maximum LTV up to 75% as low as 620 FICO Credit scores as low as 600 with Max LTV 70% Primary Residence 1 Unit Only Up to 50% DTI
Foreign National Loans
Assets sourced and
No Income or US seasoned for 60 days – 12 months reserves
ACH auto-payment is
Credit required to MUST be in a US FDIC required and MUST be
required
qualify insured bank for a in a US bank
minimum of 30 days
Must have eligible
No sanction listed Cannot reside in the VISA: B-1, B-2, H-2,
No Gift Funds allowed
countries allowed United States H-3, I, J-1, J-2, O-2,
P1, P2
This is a DSCR
program with a 1:1
ratio on cash flowTransaction Rescue™
CALIFORNIA ASSOCIATION OF REALTORS®
Lending Alternatives
Residential–Lending
Optionsinfora Missing Pillars –
Cross Country
COVID-19-impacted Breakout
Environment
Faramarz Valerie Warren
Moeen-Ziai
CrossCountry CrossCountry
Mortgage Mortgage
SOURCE: California Association of REALTORS®
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61New Products for “Near Miss” • Expanded Full Doc • Asset Qualification • Bank Statements for Self Employed • W2 to 1099 • Investor Cash Flow - DSCR
HIGH LTV JUMBO Features Perfect For • 30 Year Fixed • High Wage Earner • 96.5% LTV to $1,500,000 • Low Cash in Hand • 95% LTV to $1,750,000 • Good Credit • Minimum Fico – 700 • Assets in accounts not targeted for down payment • DTI Max 40% • 18-24 Months Reserves
Transaction Rescue™
CALIFORNIA ASSOCIATION OF REALTORS®
Lending Alternatives
Residential–Lending
Optionsinfora Missing Pillars –
HomeBridgeEnvironment
COVID-19-impacted Breakout
Demaris Lopez Abel Fregoso jr.
Homebridge Homebridge
Financial Financial
SOURCE: California Association of REALTORS®
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74Sound familiar?
Are you losing out on closing deals
because buyers are self-employed?
Quick scenario: Self-employed buyer makes
$200K/year, credit score of 758. He writes off
75% of his income. Now he’s left with $50K trying
to qualify for a jumbo loan…and he doesn’t
qualify.
Because of our Bank Statement program, we
approved the borrower for a $750K loan.
Buyer got the keys, seller got their proceeds
and everyone went home happy!Sound familiar?
Are you losing out on closing deals
because buyers are investors?
Quick scenario: An investor is looking to purchase
his 19th investment home. His prior funding was
very costly because it was hard money with high
rates and fees. He was unable to qualify for a
mortgage using tax returns. After a rental analysis
was completed, he was able to qualify using the
Investor Cash Flow program.
The investor was able to purchase his 19th
home.Sound Familiar?
Are you losing out on closing
deals because borrowers cannot
qualify?
Quick scenario: A borrower recently sold their
multimillion dollar business. She started a new
business less than two years ago and so when
she tried to qualify for a loan, it was rejected
since she didn’t have a long enough self-
employment history. Her plans of moving into
her dream home were almost derailed.
Because of our Asset Qualifier program, we
approved the borrower and closed the loan.Sound familiar?
We were able to save these deals
because we work with these types of
buyers:
• Self-employed with significant write-offs
• Credit scores below conventional/jumbo
requirements
• Recent credit events
• Buyers with significant assets
• Investor specific programsOne Stop Shop • 80% straight down the fairway, conventional, FHA loans • 20% Non-QM products, non-traditional loans
Yong Choi Cynthia Leal Regional Manager – SoCal & Hawaii Branch Manager P: 909-376-5494 P: 310-720-5309 ychoi@guildmortgage.net teamleal@guildmortgage.net Company NMLS #3274 NMLS # 290679
CrossCountry Mortgage, LLC
Residential Lending in a
COVID-19-impacted Environment
Faramarz Moeen-Ziai Valerie Warren
VP, Mortgage Advisor Senior Loan Officer
M 415.377.1147 M 818.652.6347
D 510.254.4697 D 510.804.8396
F 510.254.4698 F 510.804.8397
W fmzteam.com W valeriewarrenloans.com
E fmz@myccmortgage.com E valerie.warren@myccmortgage.com
SOURCE: California Association of REALTORS®
page
83Abel Fregoso 619-572-3316 Abel.fregoso@homebridge.com Damaris Lopez 619-829-1851 Damaris.lopez@homebridge.com Grow your business by utilizing non-QM.
California Association of REALTORS® Free Member Benefit:
Loan Education:
• FHLMC – Freddie Mac - http://www.freddiemac.com/creditsmart/
• FNMA - Fannie Mae - https://www.frameworkhomeownership.org/get-started/homebuyer-education
Down Payment Assistance (DPA) programs
• GSFA Materials:
• https://wholesale.lhfs.com/download/GSFA_Gov_FHA_Select.pdf
• https://www.eprmg.net/guidelines/NHF-GSFA%20Platinum%20FHA.pdf
• CalHFA
• https://www.calhfa.ca.gov/homeownership/bulletins/index.htm
• https://www.calhfa.ca.gov/homeownership/materials/index.htm
• https://www.calhfa.ca.gov/homeownership/programs/myhome.pdf
HUD Counselor Selection Options
Loan Limits: Conventional Loan Limits FHA Loan Limits Area Median Income
CALIFORNIA ASSOCIATION OF REALTORS®
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86Other Resources for REALTORS® & Your Clients
Mortgage Relief:
• https://housing.ca.gov/homeowners/mortgage_relief_foreclosure_resources.html
CalHFA ADU Grants
• https://www.calhfa.ca.gov/homebuyer/programs/adu.htm#eligibility
Kama Burton Client Suggestions
• https://www.car.org/-/media/CAR/Documents/Transaction-Center/PDF/Mortgage-
Rescue/STEPS/Outreaches/Virtual-2021/Buyers-Presentation-CMB-Kama-Burton-1.pdf
Legal Webinars
• https://www.car.org/riskmanagement/live
STEPS Events 2022 Upcoming:
• April 6, 2022 – Virtual - Registration
• June 21, 2022 – Virtual
• October 11, 2022 – Live
• December 14, 2022 - Virtual
CALIFORNIA ASSOCIATION OF REALTORS®
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87California Association of REALTORS® Free Member Benefit:
• Transaction Rescue™
• Assist you with Communication & Escalations with Your Lender
• Property Concerns with Valuations, Title, & Vesting.
• Provide Insights to Lender & Down Payment Assistance
Website http://Mortgage.car.org
• Email TransactionRescue@car.org
• Hotline (213) 739-8383
• Webinars http://car.org/FinWebinars
https://www.amortization-calc.com/ - amortization schedule for mortgages to show
how much is going toward principal & interest.
https://www.calculator.net/amortization-calculator.html - another site that I
use to show amortization schedule along with figuring out mortgage P&I
CALIFORNIA ASSOCIATION OF REALTORS®
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