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Piggyback Loans

Piggyback Loans

MortgageDepot is pleased to announce the roll-out of a Simultaneous Home Equity Line of Credit when combined with a First Mortgage loan for either conventional or high-balance loans. There are many reasons why a piggy back loan is the right choice for you. either its good to avoid paying PMI or avoid Jumbo interest rates the piggyback loan is a loan that is a solution for many.

We have partnered with a Bank to offer this product.

Please see below for the product overview.

Some highlights include –

  • HELOC Rate is current prime rate plus margin below:
  • CLTV > 80%: 1.99%
  • CLTV 70.01% – 80%: 1.49%
  • CLTV 70% and less: 0.99%
  • Draw Period: Years 1-10; interest-only payments required during draw period.
  • Repayment Period: Years 11-30; principal and interest payments amortized over remaining term of the loan.
  • SFR, 2 Unit & Condos Accepted.
  • Second Home Accepted.
  • 1st Loan can be a Purchase or Refinance.
  • Minimum HELOC line amounts begin at $25,000. Maximum HELOC line amounts up to $500,000.
  • No additional document overlays.
  • Fico Scores as low as 700.
  • DTI as high as 45%
  • Gifts / Gift of Equity / Seller Concessions accepted.
  • No Prepayment Penalties.
  • No additional reserves required.

To find out more why this piggyback loans is right for contact our office for more clarification on the program and what it offers.

To contact us by phone call 800-535-0270 or email us by clicking here.

We could help you buy a home without an appraisal

Obtaining a mortgage to finance the purchase of a new home or to refinance a mortgage on an existing one is a pretty straightforward process. First, you get in touch with a mortgage broker from MortgageDepot to have all of your questions answered by one of our knowledgeable brokers. After we help you complete the mortgage application, we submit it to the lender offering you the best terms, and then we all wait for the appraisal to be completed.

Depending upon where the property is located, a borrower could wait weeks for an appraisal. Meanwhile, the lender and everyone else involved in the transaction must wait. If it seems as though there must be a better way to do things, there is, and Freddie Mac is ready to try it out.

Freddie Mac puts an end to the appraisal waiting game

The folks at Freddie Mac decided to follow the lead set by Fannie Mae and bow to the realities of modern technology by waiving appraisals when there is sufficient market data available on a particular property to permit them to determine its value. The two government-sponsored mortgage entities use algorithms and something Freddie Mac calls an automated collateral evaluation system.

The ACE system collects information from multiple listing services, public records and other data about homes bought and sold in a particular area and conducts an analysis. The result is a value estimate for the property being purchased or refinanced.

Time is not the only thing being saved by the new appraisal waiver program. Homeowners refinancing their existing mortgages and buyers purchasing will save the cost of the appraisal, which can be hundreds of dollars.

Eligibility guidelines for appraisal waivers

Expansion of the program refinance transactions to mortgages on home purchases required Freddie Mac and Fannie Mae to publish guidelines for eligibility, include the following:

  • Restricted to one-unit properties
  • Permitted for condominium unit purchases
  • Property must be used as primary or second home
  • Loan-to-value ratio up to 80 percent
  • Value of property cannot exceed $1 million

Appraisal waivers are not permitted for the following types of properties or loans:

  • Multiple-unit properties
  • Investment properties
  • Properties located in areas classified as disaster impacted
  • Construction loans
  • Manufactured homes

Property owners who refinance an existing loan will not be allowed to use the appraisal waiver program if the amount they are borrowing exceeds what is necessary to pay the current mortgage. So-called “cash-out” refinancing will still require an appraisal.

How MortgageDepot can help

Freddie Mac estimates that only 5 percent of the transactions it handles will be eligible for appraisal waivers. The brokers at MortgageDepot work for our borrowers to obtain the best deals in financing, including new loan programs. Whether through appraisal waiver programs, government-backed loans or conventional mortgage programs, we’ll find the loan and the program best suited to the specific needs of each borrower.

Our brokers specialize in finding solutions for borrowers presenting us with unique circumstances or situations. For the buyers whose dream home needs a lot of work, we have the FHA 203K loan program to given them the money they need to complete the purchase and to do the renovations after the closing. Contact MortgageDepot now for more information about appraisal waivers and the other loan programs we offer.

Contact us today at (800) 535-0270 or email us by clicking here.

Is Hard Money Dead?

Is Hard Money Dead?

Gone are the days of waiting for private investors to potentially lend you money. Here are the days of truly institutionalized and easy to use hard money product. We highly encourage all to reach out to one of our friendly mortgage consultants here at MortgageDepot. Let or team of professionals educate you on how we can bring a cheaper long term or short term financing alternatives to you that either can’t qualify or don’t want to wait around to qualify for bank financing for your investment properties. CALL TODAY 800-535-0270. Some bullet points on our new product are below.

  • RATES AS LOW AS 6.75%!!!!
  • All loans are “NIS/NIV” NO INCOME STATED/ NO INCOME VERIFIED!
  • UP TO 80% LTV!!!
  • NOW LENDING IN THE FOLLOWING STATES:  AL, AZ, CA, CO, CT, FL, GA, HI, ID, IL, KS, KY, LA, MA, MD ,ME, MO, MS, MT, NC, NH, NE, NJ, NM, NY, OK, OR, SC, TN, TX, UT, VA, WA, WI, WV, WY
  • Purchase and cash out transactions available.
  • NO SOURCING OR SEASONING OF THE DOWN PAYMENT WHATSO EVER!!
  • FAST CLOSING are an everyday occurrence. Typical closing times less than 2 weeks with ability to close in 4-5 days!
  • SFR, Condos, Townhomes and 2-4 units.
  • 5+units(multifamily), Mixed use, Office and Retail.
  • 3/27, 5/25 and 7/23 long term products available.
  • 6, 12, 24, 36 and 60 month short term bridge products available.
  • Easy to understand and simple underwriting guidelines!

We look forward to speaking with you!

Contact us today for a FREE consultation at (800) 535-0270 or email us by clicking here.

Splitting Escrows

Splitting Escrows

This is really never been heard of before but we now offer borrowers the ability to split paying escrows. Meaning that borrowers have the flexibility to either escrow for taxes or insurance. Before borrowers only had the choice of impounding both taxes and insurance or none at all and now borrowers have the ability to choose one or the other.

For more information contact our office.

Related Information:
  1. 2016 Qualifying Income
  2. Apartment Lending*
  3. Are you tired of non-performing hard money lenders?
  4. Avoiding Unreimbursed Employee Expense
Purchasing a home with a 203(k) loan

Purchasing a home with a 203(k) loan

The challenge for buyers searching for the perfect home is usually the price tag that comes with it. We might have the solution for someone willing to see potential in a home in need of a little love and some rehabilitation. Our FHA 203(k) loans offer the convenience of a loan providing the money a buyer needs to purchase the property and the funds required for the repairs. The entire process from finding a home to completion of its rehabilitation is a simple one.

Find the home and make an offer

FHA 203(k) loans make it easier to find a home because it allows buyers access to homes that might be out of their price range were they not fixer-uppers. Once a home is located, the following steps take place:

  • Buyers make an offer through their real estate broker or agent.
  • Contracts are signed with the seller containing a contingency clause making the purchase subject to the buyers being approved for an FHA 203(k) loan in the amount needed to complete the purchase and any repairs required by the mortgage lender or by the FHA.
  • Buyers meet with a representative from MortgageDepot to complete an application through an FHA 203(k)-approved lender. The application includes a proposal and detailed estimate of the scope and cost of the repairs.
  • The lender arranges for an appraisal to establish the projected value of the property after the repairs.

Our trained loan officers work closely with the lender and the buyers throughout the underwriting process that ends with a loan approval covering the cost of the purchase, the repair work and a contingency reserve to cover additional costs not covered by the original proposal and estimate of costs. For buyers who will not be occupying the home during construction, we can arrange to have up to six mortgage payments included in the cost of repairs.

Closing on the loan and the purchase

The closing is when title passes to the buyers after the seller is paid. The funds remaining from the FHA 203(k) loan are held in escrow to pay for the repairs. Money is released from escrow to a contractor at the completion of predetermined stages of work with 10 percent of each payment held until the lender checks to ensure no liens were filed by contractors or subcontractors.

MortgageDepot has the solution

We  take the challenge out of financing the purchase of a home in need of some work with FHA 203(k) loans.

Contact us today for more information at (800) 535-0270 or email us by clicking here.

Tags: 

Related Information:
  1. 2016 Qualifying Income
  2. 203K Loans
  3. 3.5% Down Payment for First Time Home Buyers
  4. 5% Down All Gifts Funds Allowed
  5. Apartment Lending*
HOT THIS WEEK

HOT THIS WEEK

Our Exclusive! Appraisal Waivers Now Available

We have partnered with a wholesale lender to give us a big advantage over our competition: appraisal waivers. This means we run the loan through Fannie Mae or Freddie Mac and receive a waiver for the appraisal, which means that no physical appraisal is needed saving borrowers money in appraisal fees.

Fannie Mae Enhancements

Fannie Mae is changing a number of guidelines to make lending easier. Below are the changes for loans submitted to underwriting effective immediately:

  • Student Loans
    • Monthly payments will now be based off of the amount showing on the credit report or 1% of the remaining balance.
    • Student loan debts may be paid off to qualify and classified as a rate/term refinance.
  • Condominium Reviews
    • Fannie to Fannie rate/term refinances up to 80% LTV, will no longer require a condo review.
    • Eligible in all 50 states
  • Debts Paid by Others
    • Non-mortgage debts paid by non-borrowers can now be excluded from the debt ratio calculation with 12-months canceled checks.
  • Properties Listed for Sale in the Previous Six Months
    • Cash-out refinances will no longer be capped at 70% LTV when the subject property has been listed for sale in the previous six months. With this update, properties that were listed for sale must be taken off the market on or before the disbursement date of the new loan.
  • Truncated Asset Account Numbers
    • Truncated or masked account numbers for bank and portfolio or investment accounts where at least the last four digits are displayed are now allowed on asset documentation.

Contact us today for a FREE consultation at (800) 535-0270