Mortgage Refinancing - Suprising New Lending Source for Investors

Go figure.  

Banks are a mess.  The government is trying to help, but lenders keep closing.  Rates are getting worse even as the economy sinks…

Lenders are lending less, and less.

Even “blue chip” borrowers can’t get loans if they own too many properties. 

Well an unlikely (or maybe not) source has opened the vault to good investors at ridiculously cheap rates.

Cheap?  How does 4.5% Interest - Only sound?

And it’s only for investors.

Listen to what they are willing to do:

                Blanket loans for multiple properties.

                No limit on number of properties owned.

                Collect payments every 90 days.

                Most credit doesn’t matter – just mortgages.

                No cash needed to purchase property.

                Cross collateralize property in other countries.

Who in the world is willing to take such risks?

An organization who is the foremost authority in the world at managing risk – Lloyds of London.

It actually makes perfect sense.

Most people know Lloyds of London because they offer unusual insurance policies to high profile clients.   They have insured the legs of Betty Grable, Brooke Shields and Tina Turner.

Who better than to understand and be willing to accept risk in a market few others are willing to.

Their magic number is 70%.  Purchase or cash-out refinance.  One property or multiple. 

You do have to have sufficient income to qualify on paper – No Stated Income Whatsoever.

So if you have strong income and want to capitalize on the market in Florida, you may have a new financial partner.  Their Pilot program is only being offered by a select number of lenders, which we have access to. 

Hey, if they are willing to insure Keith Richard’s fingers  they can handle lending good money to good borrowers with good income, regardless of the rest of the market. 

Call me today to see if the program works for you.  954-217-9518 x310

Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A mortgage and investment firm specializing in Investor Loans that Use Private Lenders that fund Hard Money Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518.

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Tags: RealEstate, Loans, Refinance

 

New Homes For Sale - Less = Better For Housing Recovery

Good Video from The Street I thought I would share.

Cramer talks about the relatively small number of new homes being built, and how that is one supply factor which is working in the right direction for housing to recover.   The other major supply factor that is still working against the recovery is the great amount of foreclosure.

Here is the link:

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Tags: RealEstate, New Homes For Sale, Economy

 

HUD Loans - FHA waiver of 90 day seasoning for sellers not what it appears to be?

HUD Loans - The investor community got excited (me included) when the news was released that the 90 day seasoning for sellers to be on title had been waived.

For those not familiar, FHA loans are a great tool for homebuyers who have less than perfect credit and little down payment.  There is not a comparable loan program today to help the average person buy their home with little down (especially in depressed real estate markets).

So while FHA loans are the perfect loan for a large segment of people, they traditionally have had a 90 day seasoning requirement for sellers.  What this means is that a seller of a property must own the property for a full 90 days before entering into a contract to sell it to someone who plans on getting an FHA loan to buy the property.  The only exception to this was if the seller was a chartered bank.

This was put into place to discourage “flip” situations where an investor would buy the property for a discount and then mark it up greatly in a short period of time.  While it can be argued that FHA should not be concerned about how much profit a seller makes, and you would have a good argument, the fact remains:

…at some point they noticed they had a higher number of defaulting loans on properties where there was a recent flip, then they did on the rest of the loans they were doing.  For whatever the reasons..

So those investors who took the risk upon themselves to buy a property at the courthouse steps, or otherwise and fix it up and put it for sale would tend to shy away from buyers who needed FHA loans to purchase because of this seasoning requirement. 

The waiver of this made big news in the investor community, because it appeared that now the bank waiver was opened up to help the industry move all of the foreclosure properties for sale. 

Well, not quite, it would appear…

Here is the link for the actual HUD document regarding the waiver.

Here is the crucial part:   

“Section 203.37a(b)(2) of the FHA regulations, 24 CFR 203.37a(b)(2), is hereby waived for a period of one year from today’s date with regard to sales of properties acquired by mortgagees, whether sold directly by the mortgagees or by their subsidiaries or by vendors to whom they have transferred titles to properties for the purpose of effectuating sales of those properties.”

Raises the question whether any foreclosing party and their agents can use this now, or just those banks that we had mentioned before….one thing we did confirm….if you are buying to fix and sell right away, you do not qualify for the exemption.  Rats…

More to come on the foreclosing lender aspect….

Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A mortgage and investment firm specializing in Investor Loans that Use Private Lenders that fund Hard Money Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518.

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Tags: FHAloans, real estate, investment

 

Real Estate - Best US Places To Invest, Biggest Drops Ahead, Most Recession Proof

Three interesting top ten lists in a story by Forbes.com. 

Best Places in the US to Invest in Real Estate.

10. Orlando, FL
9. Phoenix, AZ
8. Las Vegas, NV
7. Chicago, IL
6. Boston, MA
5. Seattle, WA
4. San Francisco, CA
3. Los Angeles, CA
2. Washington, DC
1. New York City, NY

Biggest Further Price Declines this year.

10. Cleveland, OH
9. Detroit, MI
8. Phoenix, AZ
7. Tampa, FL
6. Las Vegas, NV
5. Los Angeles, CA
4. San Diego, CA
3. Orlando, FL
2. Sacramento, CA
1. Riverside, San-Bernadino, CA

Most Recession Proof Cities

10. Ft Worth, TX
9. Charlotte, NC
8. Seattle, WA
7. Houston, TX
6. Salt Lake City, UT
5. Raleigh, NC
4. San Jose, CA
3. Austin, TX
2. San Antonio, TX
1. Oklahoma City, OK

You can check out the whole story here.

It’s a little tricky to get the list on one page.  Why I complied them here.  But the commentary on each individual market is worth reading. 

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Tags: RealEstate, Invest, Homes

 

Home Mortgages - IndyMac Closes - Wachovia rolls out the red carpet for refinancers.

Home Mortgages - Indymac Bank officially stopped taking new applications on both its wholesale and retail channels last week.  It plans to still close those loans which were issued commitments. 

Indymac had developed a reputation in the broker community for handling many different types of loans.  From conventional “A-Paper” loans to foreign nationals, to construction-permanent loans.  Their sister company, Freedom Financial is one of the leading originators of Reverse Mortgages in country as well. 

Wachovia, in the meantime, completed it’s dismantling of the World Savings lending platform.  They are no longer offering the signature World Savings Option Arm, and waiving pre-payment penalties on all  existing Option Arms on the books - inviting borrowers to please refinance and pay them off.  So if you have a World Savings ARM loan with a pre-payment penalty, you just caught a break! 

Get “real-time” custom mortgage rate information using our Mortgage Rates search engine.

World Savings for years was known as a portfolio lender that offered ARM loans to foreign nationals, and those with equity.  In fact, there was a time that if you needed a stated income loan, or a foreign national loan, they were one of the only games in town. 

For many years they offered primarily one product, the much maligned option ARM.   Prior to the widespread offering of these loans by many lenders, World Savings was one of the only lenders offering this flexible loan program.   World Savings representatives claimed that because of the way their ARM loan worked, they never had a borrower experience the dramatic payment increases from a “recast”. 

Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A mortgage and investment firm specializing in Investor Loans that Use Private Lenders that fund Hard Money Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518.

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Tags: mortgagerates, home mortgages, loans

 

Mortgage Interest Rates - New Real Time Search Engine

Mortgage Interest Rates - shopping for them on line can be quite a headache.  There are so many websites.  Some have mortgage interest rates posted in plain view, some want you to just call them.  Sometimes the rates posted don’t apply to your loan, but how can you tell?

Even for mortgage professionals, it can take a long time to check every lender’s rates to see who is offering the best deals day - to -day.

Sometimes, you just want to get a straight answer, now, without having to check a bunch of websites.  But it’s not been that easy…

Until now. 

Real Rates.  Real Time. 24/7

New technology is allowing us to provide a search engine for mortgage rates to you, available 24/7 on our website.  This is the same engine that we use as mortgage professionals to quickly compare rates from the various companies we work with. 

Within seconds of filling in some information that is necessary to determine the rates and programs available to you, you can get up to the minute interest rate quotes on four different programs.

The best part is it is so simple.  The engine only shows you the winning, or lowest rate for the program you chose based on your qualifications.  You don’t have to sift through to find the best deal, the search engine has done it for you. 

You will get a range of interest rates available, whether you decide to pay points to buy the rate lower or not - you have complete control.  Once you are ready to speak to someone and ask questions or proceed, we will be right there ready to help you.

Give the engine a test run here:  Current Mortgage Rates

Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A mortgage and investment firm specializing in Investor Loans that Use Private Lenders that fund Hard Money Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518. Gene Schroeder and Angelo D’Alessandro are the founders and owners of Bank On It! - A Real Estate Investment Firm that sells Investment Properties at Wholesale Prices. Gene and Angelo can be reached at 954-515-0030. The three have also formed a service to connect prospective borrowers to a network of Local Mortgage Brokers called 888-2Lend-Fast.   

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Tags: mortgagerates, loans, technology, search engine, real estate

 

Cramer: Florida Raises Hope for U.S. Real Estate KO, CSCO, TOL, RIMM, INTC, GOOG, PEP, GS, YHOO, MSFT, SPF - TheStreet TV

Jim Cramer comes out and says he believes that Florida has hit the bottom, and the recovery here should be be about a year ahead of most of the country. If he is right and the end of declines are near, then the best deals for buyers will be gotten right now, when only a few people are saying its the bottom. Once everyone starts calling it the bottom, it will be because it will be in the rear-view mirror in the past.

If you have trouble with this video try this link:

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Foreclosure Homes - Foreclosures Climb, Mortgage Rates Climb, and (gasp) Multiple Offers in some areas?

Foreclosure homes continue to run rampant nationwide, but are at the same time creating opportunities for buyers.
 
Was reading that, yet again, the number of homes in foreclosure or some stage of default are at alarming numbers and that the government may need to step up their efforts to do something about it.  Same beat that we have been hearing for months. 

Then I got to the bottom of the article….

“In some neighborhoods, lenders are slashing prices dramatically to rid themselves of an unprecedented number of foreclosed properties, sparking bidding wars and multiple offers. While that’s a positive for the real estate market, buyers in other parts of the country are still holding back.”

Bidding Wars and Multiple Offers - Wow.   Been a while since those words were said…

here is the link to the entire article…

http://www.msnbc.msn.com/id/25130532/

Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A mortgage and investment firm specializing in Investor Loans that Use Private Lenders that fund Hard Money Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518. Gene Schroeder and Angelo D’Alessandro are the founders and owners of Bank On It! - A Real Estate Investment Firm that sells Investment Properties at Wholesale Prices. Gene and Angelo can be reached at 954-515-0030. The three have also formed a service to connect prospective borrowers to a network of Local Mortgage Brokers called 888-2Lend-Fast.    

 

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Tags: foreclosurehomes, real estate, loans

 

HUD Loans - FHA looked to as savior, but for how long?

HUD loans - Specifically FHA Loans, are loans insured by the federal government which are designed to help low down payment, or credit challenged borrowers. 

The mortgage industry has been looking at FHA loans as one of the last ways to help the non-perfect customer borrow against their home, or buy a home.  Now latest news out is that FHA in 2007 endured one of their worst financial periods ever, losing 4.6 Billion dollars.

Contrary to popular belief, FHA loans are becoming increasingly more difficult to get, and that trend does not appear to be changing given this news.  Where a minimum credit score traditionally was not required on FHA loans, many lenders have required a 580 or higher. 

It is certainly reasonable to expect that someone requesting tens of thousands of dollars be expected to have such a low starting score, however some of the human element that has always been involved with granting these loans has been lost.

In the past, if you had a poor score, but it was the result of a) incorrect information or b) severe circumstances out of your control, it was possible to provide proof refuting the credit report and your ability to make the payments.  Now, some lenders will not look at the loan if it does not have the required score at all. 

Specifically attacked in this WSJ article is down payment assistance programs, which help borrowers purchase homes with a reduced cash investment.  These programs were under fire and some were slated to be discontinued late last year.   They continue for now, but for how long? 

If you are in the market to buy a home in the next 12 months, holding out for further price decreases, may work against you.  It’s possible you could get a lower price, but you may need more cash that you can come up with to buy it.   Take advantage now, while the programs are available and the prices are great.

Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A mortgage and investment firm specializing in Investor Loans that Use Private Lenders that fund Hard Money Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518. Gene Schroeder and Angelo D’Alessandro are the founders and owners of Bank On It! - A Real Estate Investment Firm that sells Investment Properties at Wholesale Prices. Gene and Angelo can be reached at 954-515-0030. The three have also formed a service to connect prospective borrowers to a network of Local Mortgage Brokers called 888-2Lend-Fast.     

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Tags: realestate, hud loans, loans

 

Credit Card Line of Credit Going to Get Squeezed next?

As if the troubled housing areas did not need any additional pressure from unexpected bank practices, here is this story about what they are doing with Credit card Lines of Crredit now.

“Banks that issue cards like Visa and MasterCard, as well as the American Express Company, are cutting the limits for customers who have run up big debts, live in areas that have been hit hard by the housing crisis or work for themselves in troubled industries.

The reductions come as consumers, squeezed by a slack economy, a weak housing market and rising unemployment, are falling behind on monthly credit card payments in growing numbers.”

We have been warning people for some time that the lenders have been shutting off access to open Home Equity Lines of Credit.  Without warning, lenders have been targeting the areas where home values have been dropping and simply freezing the lines of credit.  Customers received no warning, simply a letter informing them of no further access on the line of credit.

Now they are targeting the same areas, but reducing credit lines on credit cards as well.  If you use credit cards to manage your regular bills, keep a close eye on this.  It takes years to establish good credit.  But 30 days to set you back sometimes.  Getting your monthly bills interrupted and late payments showing up on credit cards which you are suddenly at your new lowered limit will certainly pressure your FICO score.

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Tags: linesof credit, real estate, loans