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Non-owner occupied renovation loans

Non-owner occupied renovation loans

One of the most innovative loans on the market for real estate investors is the non-owner occupied renovation loan. This mortgage allows an investor to borrow the money to purchase a property that’s in need of renovations and also to borrow money to do the renovations, and then roll it all into one mortgage.

One of the beauties of non-owner renovation loans is that they’re based not on the current value of the property, but on what the value of the property is after the renovations are completed.

Many buyers know it’s possible to get a renovation home loan for an owner-occupied property. But few realize the same thing can be done for an investment property. At MortgageDepot we’re experts at helping real estate investors accomplish their goals through the use of non-owner renovation loans. We understand the complexities of this type of financing and are ready to help you learn more about the possibilities it can offer.

What You Need to Know About Non-Owner Occupied Renovation Loans

They’re Available For Up To 80% LTV (After Improvements) If you’re buying an investment condo to rent out, but the unit needs improvements, the amount you can borrow is based on 80% of the value of the condo after the improvements are made. If the renovated condo will be worth $200K, $160K would be the maximum loan available for purchase and renovations. The final determination of the value of the property is subject to an appraisal done after the renovations are complete.

The Renovations Must Improve the Overall Value of the Property
Experienced investors know that cosmetic changes done to a property might make it look good to some tenants, but they don’t necessarily add resale value. Before securing a non-owner occupied renovation loan, a detailed analyses should be done in order to ensure all improvements that are being financed are going to add resale value to the house so it will appraise for the correct amount after the renovations are complete.

All of the Improvements Must Be Permanently Affixed to the Property
An above ground pool would not be a good improvement for this type of loan, but new interior plumbing would.

There’s No Minimum Repair Amount Required
In other words, this is the perfect loan whether the property you’re buying needs 2 new bathrooms, a new roof and all new wiring, or it just needs a new driveway.

They work For 1 Unit or Several, and For SFRs, PDUs or Condominiums
Whether the investment property you’re buying is an attached or detached condo, a single-family residence, one unit in a mixed-use development, or an entire multi-unit building, this loan can potentially work for you.

  • Borrowers Can Own Up To 4 Financed Properties
  • Both Purchase and Rate & Term Refinance Options are Available
  • Loans Are Based on the Borrowers Credit Score According to Desktop Underwriter (DU)

If you’re a real estate investor looking for a renovation mortgage loan to help you acquire and add value to an investment property, contact us at MortgageDepot today. We’re experts in non-owner renovation loans, and we’re looking forward to helping you achieve your goals.

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

*This product is not regulated by the New York State Department of Financial Services

We could help you buy a home without an appraisal

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 one of our mortgage loan officers to have all of your questions answers. After the consultation and completing the necessary information we need for the mortgage application, we submit your loan 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 we at MortgageDepot have lenders that will issue an appraisal waiver.

Fannie Mae and Freddie Mac put an end to the appraisal waiting game

As a mortgage broker we work with lenders that 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 Fannie Mae and Freddie Mac 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

Fannie Mae and Freddie Mac estimate that only 5 percent of the transactions they handle will be eligible for appraisal waivers. Our loan originators 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 loan officers 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 give 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.

*This product is not regulated by the New York State Department of Financial Services

Purpose for Refinancing

Purpose for Refinancing

How Can a Mortgage Refinance Help Me?

A mortgage refinance can be a very beneficial decision for certain borrowers. Before making that important decision, you must have a clear view about how a mortgage refinance can really help you. If you fall within the following groups, you should find out more about refinancing your mortgage.

You currently have and adjustable rate mortgage (ARM)

The interest rate and mortgage payment of this type of mortgage can change any time. It can either increase or decrease. If you want peace of mind of having a steady monthly payment, you might consider refinancing your mortgage for a fixed rate mortgage. This will give you the certainty that your mortgage payment will not increase due to the market condition.

You can afford to make bigger payments

If you got a raise or simply you have more money than before, you can change your type of mortgage. If you have a 30-year mortgage, you could change it to a 15 or 20-year mortgage. How this can help you? You will be able to pay off your mortgage sooner, saving you a lot of money on interest. It is amazing how much money you can save by decreasing your mortgage term.

Your credit score got better

Sometimes after paying on time your mortgage during a few years, your credit score gets better. With a better credit score, you can get a better interest rate in mortgage loans. If this is the case, your mortgage payment can get lower.

Saving money is the biggest reason why you should consider a mortgage refinance. You can save money by lowering your monthly payments, or by paying off your mortgage
sooner. Just think about every thing that you will be able to do with extra cash in your pocket every month. How nice it would be if you pay your mortgage 10 or 15 years earlier.

If you think, you can benefit from a mortgage refinance, or want to find out whether or not you qualify, give us a call. We are a reputable mortgage company located in the New York area and can help you with any of your mortgages needs.

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

*This product is not regulated by the New York State Department of Financial Services

Stated Income Owner-Occupied for Commercial Properties

Stated Income Owner-Occupied for Commercial Properties

As we continue to build our business relationship with our clients, we are excited to announce our new Stated Program for owner-occupied commercial properties ONLY.

Below please find our minimum eligibility for you to send in your deals for review.

If the deal is a good fit, we will issues a LETTER OF INTENT to outline the basic structure of the proposed loan within 24-48 hours.

Eligibility

  • Minimum middle Fico score of 700

(if multiple guarantors, all other borrowers/guarantors must have a minimum of 650)

  • Business must be in existence for 5 years (on subject property)
  • Experian Business Score:
  1. a) Minimum Intelliscore Plus of 41
  2. b) Minimum Financial Stability of 50
  • Minimum DSCR of 1.10x
  • 80% Occupancy Required over 90 day trailing
  • 6 months reserves
  • Net Worth requirement on loan amounts exceeding 1M

Benefits:

  • No Personal or Business Tax Returns
  • No Business Financial Statements
  • Up to 75% LTV (depending on credit score)
  • 250K To 2M Loan Amount

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

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.

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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*

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