• Ask about our bank statement program which eliminates the use of tax returns and we just use the deposits in your bank account to calculate income.
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What are Closing Costs

What are Closing Costs

CLOSING COSTS are fees that are earned prior to closing but are payable at or prior to closing and Fees that are required to be paid at closing to complete the loan transaction.

These Fees are itemized and estimated for you on the Good-Faith-Estimate now know as Loan Estimate which is provided within three business days of the filing of your application.

Closing costs can be divided into two broad categories. First, there are Fees required by your lender and/or mortgage broker as a condition of closing your loan. These Fees may include an application fee, appraisal Fee, Credit reporting Fee, interim interest until the end of the month, mortgage broker points and lender points ( a point is one percent of the principal loan amount ). Tax and insurance escrow’s will be discussed later. Second, there are Fees payable to third parties whose services are required by the lender as a condition of closing your loan. The most prominent of these Fees are related to the delivery of a title report and a policy of title insurance to the lender, to ensure its interest in the property securing the loan. In addition to collecting Fees for title insurance premiums, necessary searches and policy endorsements, the title company will collect from the borrower at closing an amount sufficient to pay the mortgage recording tax (0.80% in New York State, 1.80% in the five boroughs of New York City, not applicable on Co-op’s) the fee to record the deed (in purchase transactions) the mortgage and any satisfactions, and an amount sufficient to pay any open taxes or assessments or any such charges that will become due within sixty days of closing.

Further third party Fees include charges for hazard and flood insurance (if applicable), flood certification, private mortgage insurance (if applicable), termite inspection, well water and cesspool inspections (if applicable), legal fees payable to the lender’s settlement agent, and survey charges (if applicable).

If your loan provides for the lender to escrow funds for the payment of taxes and/or insurance, an amount necessary to fund the escrow account will be collected at closing, so that there will be sufficient funds available, when combined with the amounts collected as part of your monthly payments, to pay these charges as they become due.

Closing costs may be paid out of the loan proceeds or they may be paid separately by the borrower, usually by certified check. Certain loan programs allow the borrower to finance the closing costs by increasing the loan amount in an amount sufficient to pay these charges or by adjusting the interest rate.

The Loan estimate (Good-Faith-Estimate) will estimate each of the above described charges that are applicable to your loan transaction, for you.

Contact us today at 800-535-0270 for more information or email us here.

Self Employed – ONE YEAR TAX RETURNS – Jumbo Loans to $3.5mm

Self Employed – ONE YEAR TAX RETURNS – Jumbo Loans to $3.5mm

Self Employed – ONE YEAR TAX RETURNS – Jumbo Loans to $3.5 million.

A common request as of late has been Self Employed Borrowers only wishing to provide their most recent tax returns covering a one year period, so yes, WE CAN OFFER THIS AMAZING NICHE to our clientele.

The Self-employed Program which goes as high as $3.5 million in guideline, allows for a Self Employed Borrower to partake of this aspect with the following needs
 

  1. The borrower has been Self Employed for at least 2 years;
  2. The borrower provides their most recent tax filings for their Personal & Business Tax Returns with all schedules;
  3. An unaudited Profit & Loss is provided from the tax year end to current date.
  4. An unaudited Balance Sheet is provided from the tax year end to current date.

Once it’s determined by comparison review that the income is stable, positive and trending; borrower can proceed as a Full Doc loan under the Self-Employed Program

  • 85% to $1.5mm loan amounts.
  • 80% to $3.0mm loan amounts.
  • 65% to $3.5mm loan amounts.
  • Unlimited Cashout.
  • Gifts allowed.
  • Can close in the name of an LLC.
  • Interest Only.
  • Can be an ARM or Fixed rate mortgage.
  • Cashout Proceeds can be used to satisfy the Reserve Requirement

Should you have any questions or comments, please feel free to reach out to us.

Contact us today at 800-535-0270 for more information or email us here.

Home Equity Lines Of Credit

Home Equity Lines Of Credit

Heloc also knows as Home Equity Lines Of Credit are a perfect 2nd mortgage for a perfect situation.

Home Equities are primary know as second mortgages but can also be used as first mortgages for those that don’t have a first mortgage in place. There are many reasons why a home equity line of credit is beneficial.

When is the best time to provide our clients with a HELOC? When they don’t need it!! Its a great source of money when need it, like a rainy day fund. Heloc’s is perfect to have access to funds during a difficult time. Even if things are good, clients can use it to pay off bills, pay for college educations, weddings, vacations and more!

Get started now! It’s easy to Get you set up with a HELOC:

Contact us for more information about Home Equity Lines of Credit.

Call us today at 800-535-0270 for more information or email us here.

FHA Loan Types

FHA Loan Types

The FHA will back any mortgage loan known as the FHA loans. These loans are characterized by a small down payment and minimal credit requirements when compared to traditional mortgages. An FHA mortgage has an upper limit for the mortgage, which is specific to where the property is located in New York. Due to the extensive cost of living in New York, as well as a higher cost of living, FHA loan limits are more here than the majority of the country. 
 

An FHA loan has a 30-year term with a fixed rate similar to a traditional mortgage. Three components make up the FHA mortgages:

  • a low requirement for credit scores
  • only 3.5 percent for the down payment
  • and mortgage and upfront insurance for the loan of more than 78 percent.

Monthly mortgage payments are assessed until such time as the loan equals 78 percent of the value of the home. A borrower can qualify for these mortgages when they are only two years out of a Chapter 7 bankruptcy or one year out of a foreclosure, as long as the remainder of the credit file is positive. 
 
If you are looking to get one of these loans, you need to have two credit lines open minimum. For those who don’t have any credit file, utility bills or rental payments can also be used. Prospective mortgage payments and current debt must equal a ratio of less than 31 percent for mortgage payments when compared to income. Based on a case-by-case basis, there are exceptions to this rule.

To help you understand all of the ins and outs of this loan, our team of professionals at MortgageDepot will go over everything with you to make sure you understand the FHA loan limits. Our goal is to get you into a mortgage that is going to work the best for your specific wants and needs. 

Contact us today at 800-535-0270 for more information or email us here.

It’s Time to Plan Ahead on New Construction

It’s Time to Plan Ahead on New Construction

We help clients get a head start on all their new construction projects before the season is over!

Now’s one of the best times for your clients to build so that their investment properties are ready by spring or summer! The markets will warm up quickly after winter, and we’ll make sure our clients are prepared.

Our New Construction product finances build-ready lot acquisition, up to 90% of construction costs, and is ideal for infill or scattered lot construction.

Some more features include:

  • Single loans up to $1MM for beginner investors
  • Exposure Limits (LOC) up to $10MM for seasoned investors
  • Minimum credit score of 620
  • Rates starting at 6.99%

We are here to help you and our investor clients! Be sure to reach out and discuss your investment plans, so that we can get you the funding you need.

Contact us at 800-535-0270 for more or email us here.

Fundamentally Changing The Face of Hard Money

Fundamentally Changing The Face of Hard Money

Since the deregulation in 1980 “Hard Money” loans have been a accepted alternative to bank financing. With or competitors current rates from 9% to 14%, points ranging from 2% to 5% and most loans being short term bridge loans, it is obviously the last resort on any borrowers mind.

Over the years MortgageDepot has tried to close the gap from what hard money currently looks like to what we think hard money should look like. Well we are proud to announce that with the new expanded guidelines on our business purpose subprime product we have achieved our goal of fundamentally changing the hard money landscape forever! we are very excited to offer to residential and commercial property owners financing that is long term (no more pesky balloon payments), rates from 6.875 to 9.99 all at NO POINTS!

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

  • All loans are “NIS/NIV” NO INCOME STATED/ NO INCOME VERIFIED!
  • UP TO 80% LTV
  • Purchase and cash out transactions available.
  • 100% gift funds acceptable!
  • 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 products available.
  • NO balloon payments ever! 30 year fully amortized loans!
  • Easy to understand and simple underwriting guidelines!
  • Rates from 5.99% to 9.99%
  • No points!!!!!
  • Buy down options available.

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

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