• We now offer a 40-year loan with the first 10 years as interest only, enjoy a low monthly mortgage payment!!!
(800) 535-0270
Select Page
Which renovation loan works best for you

Which renovation loan works best for you

Many home buyers fall in love with a house that needs some TLC, but then realize they can’t afford to buy the house and also update it. Or if the house has major damage, they’re told it won’t qualify for a loan because it’s unlivable.

That’s where renovation loans come in handy. MortgageDepot is a leading expert on helping home buyers qualify for renovation loans, which allow buyers to roll the cost of home repairs into their mortgage.

Two renovation loans we recommend are the FHA 203K Full and the FHA 203K Streamline.

Both:

  • Are intended for owner-occupied properties
  • Are available for 1 to 4-unit properties, as long as one unit is owner-occupied
  • Offer a maximum loan-to-value of 96.5%
  • Allow for toxic remediation and septic repairs
  • Require PMI

Neither:

  • Allows a relationship between the borrower and the intended contractor
  • Allows for luxury upgrades, such as the addition of a putting green

The difference between the 2 loans is that the 203K Full is intended for structural repairs, while the 203K Streamline is intended for cosmetic fixes. If the house you want to buy needs a new roof or new wiring, the 203K Full would be your renovation loan of choice. If it needs fresh paint and a new refrigerator, the 203K Streamline is the right option.

There are also some other differences between these 2 loans:

The 203K Full:

  • Has no maximum repair escrow limit, except for FHA loan limits
  • Has a minimum repair base of $5,000
  • Is available for mixed-use properties
  • Is available for foundation work
  • Can be used for a tear-down and rebuild
  • Allows both structural and cosmetic repairs

The 203K Streamline:

  • Has a maximum repair escrow amount of $35,000
  • Has no minimum repair amount
  • Cannot be used on mixed-use properties
  • Cannot be used for foundation work
  • Cannot be used for a tear-down and rebuild
  • Is ONLY allowed for cosmetic repairs and upgrades

MortgageDepot is a leading expert on both 203K Full and Streamline loans. If you need to finance the purchase of a fixer-upper or refinance a home in need of TLC, contact us at MortgageDepot today.

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

Case Study on a recent transaction

Case Study on a recent transaction

Scenario: A New York borrower reached out to us in early October. The client is seeking to purchase a single family residence and time was most definitely of the essence at this point.

Problem: This client had a purchase contract that expired while he was seeking to fund. By the time he came to us, the purchase agreement had already expired and the selling agent was not open to extending the terms of the agreement. He had other potential buyers and felt like it would waste further time giving his client an opportunity to continue to seek to finance. To add a layer of difficulty, the client spoke English as a second language and had never purchased an investment property before.

Rationale: When we received this loan proposal, we were able to provide a pre-qualification on the first day. Knowing that this property was no longer protected by a purchase agreement, our first step was to reach out to both the buying and selling agent to plead our case and gain information. What we learned was that although there were many other parties interested in the property, there was no other buy/sell agreements on this property. We were able to convince the selling agent that it was in his client’s best interest to allow us the time to close this deal. He gave us ten days. The clock was now ticking…..
Additional problems:  Knowing we only had ten business days, we chose a lender that would lend based upon a broker price opinion (BPO) in lieu of a full blown appraisal. We knew that we simply did not have time to wait for an appraisal to come back. The additional problem arose due to the client’s lack of understanding of the process and language barrier. In short, he inadvertently canceled the BPO, causing the closing to get moved back three days.

Solution: Since we did not have the additional three days that this setback was causing we coordinated a massive effort between the lender, the broker performing the BPO, the buying agent and the selling agent and were able to get the BPO completed and in the system by the end of business that day and the closing pushed ahead to its originally scheduled date and time.

Outcome: The client was able to save his purchase. The referring broker was paid his fee the day after closing. The listing agent was astounded at the speed this process moved once we got involved. It had been 45 days prior to our involvements with zero results. The buyer’s agent was happy because she was able to save her commission. Bottom line, chalk up a win for all parties involved.

Conclusion:  We understand time sensitive transactions. We also understand that sometimes things out of our control can go wrong. We work diligently for each and every one of our clients in order to get their deals funded in a timely manner. It is what we do.

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

Investor 1-4 Program Enhancements

Investor 1-4 Program Enhancements

We are dedicated to helping our borrowers with getting the funding that they need, so we made some great updates to our No Income Verification’ program!

Moving forward, any purchase on a residential investment property, where the borrower has a 700+ FICO score, now qualifies for up to 75% LTV.

Also, we expanded our incredibly efficient commercial program to now include investment residential properties.

Here are some of the program highlights:

  • Guaranteed closing within 5 business days of receiving the appraisal and underwriting conditions on deals with 50% LTV or less
  • 620+ mid-FICO score qualifies your borrower
  • 700+ mid-FICO score qualifies for 50 BPS Reduction on the start rate
  • Bankruptcies: Okay 1 day after discharge
  • No tax returns or income statements required

Let us know if there’s anything that we can help with.

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

Downpayment Assistance Programs

Downpayment Assistance Programs

If you are interested in buying a new home in the near future, you may be taking a closer look at your finances and trying to figure out how you will get the money you need to purchase the home you want. You may qualify for the loan amount you desire based on your income, but you may not have quite enough money to make the full down payment.

One option would be to purchase a smaller home. However, this may not be desirable because most people need to find a home that has a minimum number of bedrooms, bathrooms and living areas to meet their family’s needs. Another option to consider is to use a down payment assistance program from MortgageDepot.

There are several different options available for down payment assistance, and this means that there may be a great solution available to help you overcome your current down payment challenge. Some programs use low-interest or no-interest second liens, and you can speak with a representative at MortgageDepot about the qualifications for these programs. An alternative to these programs would be a low down payment first lien or a first lien that enables you to accept a gift of funds from a family member. As you can see, there are many creative ways available that you could overcome the challenge of having a low down payment, and our team at MortgageDepot can help you to explore all of them in detail.

Getting pre-qualified through MortgageDepot is a great way to learn more about the loan programs that you may qualify for and to narrow down the down payment assistance programs that may be suitable for you. This will also tell you the loan amount that you may qualify for and other important information that you will need in order to move forward with your buying plans. We make it fast and easy for you to get pre-qualified. You can spend a few moments completing the short loan application online, or you can speak with us personally to complete the loan application over the phone.

At MortgageDepot we specialize in helping our clients overcome their unique challenges so that they can move forward with their dreams of home ownership. If you are challenged by a limited amount of money available for use as a down payment, a smart idea is to contact our office today to inquire about our programs and to get pre-qualified.

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

Home Purchase Loans

Home Purchase Loans

Most people who buy a home in New York or anywhere else use a home purchase loan, also called a mortgage, to pay for it. Before getting a mortgage, there are some things you should know.

Credit score is king

The most important factor in getting a mortgage and the interest rate you get is a credit score. People with high credit scores, around 760 and above on the FICO scale, get the best interest rates. That’s important because even an extra quarter percentage point can mean thousands of dollars in finance charges over the life of the loan.

Pay attention to the payment

When deciding how many homes they can afford for a home, most people focus on their monthly payment. But when calculating that payment, it’s important to keep in mind all that goes into it. Your monthly mortgage payment will include more than just you loan principal and the finance charges you owe. Your property taxes, homeowners insurance and any mortgage insurance you may have to pay are all added onto your monthly mortgage payment. That means a $1,000 monthly payment for principal and interest could easily grow to $1,400 or more by the time you account for those other items.

Don’t forget about closing costs

To get your mortgage, you have to pay closing costs, which include things such as title insurance fees and transfer taxes. In New York, those fees are among the highest in the country, costing more than $5,000 on a $200,000 mortgage. We are able to roll those costs into your mortgage, you usually have to pay them up front.

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

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*

© 2019 www.mortgagedepot.com. All Rights Reserved.
Licensed By The Following State Regulatory Agencies:
New York State Department Of Financial Services
Florida Office Of Financial Regulation.
Website Authorization By The New York State Department Of Financial Services Is Approved.
*Registered Mortgage Broker — New York State Department Of Financial Services – All Mortgage Loans Are Arranged Through Third (3rd) Party Providers’ NMLS # 1133788