Announcing the latest attempt to help Homeowners reduce their mortgage payments! This new program is called the Home Affordable Refinance Program 2.0 (HARP 2.0). Among the highlights for this program are the following:
HARP 2.0 Information - Eligible Borrowers
Must have a current mortgage owned by Fannie Mae or Freddie Mac originated on or before May 31, 2009
To determine if you have a Fannie Mae owned loan, click here
To determine if you have a Freddie Mac owned loan, click here
HARP 2.0 Information - Program Guidelines
Unlimited Loan-to-Value (LTV) - this can be calculated by dividing the 1st mortgage loan amount by the current value of the property.
Unlimited Combined-Loan-to-Value (CLTV) - this can be calculated by dividing the 1st & 2nd mortgage loan amounts by the current value of the property.
Loan Amounts up to the High Balance Conforming limits
San Diego - $546,250
Los Angeles - $625,500
Orange County - $625,500
Riverside - $417,000
San Francisco - $625,500
Ventura - $598,000
San Luis Obispo - $561,200
HARP 2.0 Information - Loan Purpose
Rate & Term Refinances only
Cannot combine multiple mortgages (2nd mortgage must subordinate, if applicable)
Maximum Cash-Out = $250.00
All Non-Recurring Closing Costs & Recurring Costs (Impounds) can be financed (if applicable)
HARP 2.0 Information - Eligible Properties
Owner Occupied
2nd Home
Investment Properties
1-4 Units
Number of Financed Properties
Fannie Mae - No Limit
Freddie Mac - No Limit (only if refinance is done on the owner occupied property). Otherwise, a maximum of 4 properties owned (if refinance is done on 2nd home or Investment Property)
HARP 2.0 Information - Credit Requirements
No minimum credit score required
Mortgage Payment History
No 30 Day Late Payments in the past 6 months
Maximum of 1 30 Day Late Payment in the last 7-12 months
HARP 2.0 Information - Private Mortgage Insurance (PMI)
No PMI required if not currently in place on existing mortgage
The logical first step in the home buying process is to get pre approved for a mortgage loan before you submit an offer to purchase a specific home. Most Home Sellers (and the Real Estate Agent's who they hire) will not even consider your offer until they are certain that you can follow-through on the money. If you are paying all cash for your home, you can simply show your bank statements and avoid the need to get pre approved for a mortgage loan entirely.
The majority of people reading this article do not have the amount of liquid assets needed to pay all cash for their home. Thus, you are encouraged to read the simple steps in the flip chart below to better understand how to get pre approved for a mortgage loan.
For more information on the home-buying process and your specific mortgage loan program options, please feel free to visit www.ApprovingSD.com or contact Jason E. Gordon at 619-200-8031 or email jgordon@amerifirst.us
Jason Gordon will patiently guide you through the process and help you get pre approved for a mortgage loan.
HARP Underwater Mortgage Refinance - No appraisal no equity loan program guidelines have been released. The goal of this program is to assist Homeowners who would typically qualify for an opportunity to refinance their existing mortgage into these historically low interest rates if not for the fact that they had lost equity in their home (through no fault of their own).
Unfortunately not every Homeowner will qualify. That said, this program promises to assist millions of Borrower's in their quest to reduce their monthly mortgage payments. In an effort to help you determine if this program is for you (or your Clients), please read the initial HARP Underwater Mortgage Refinance - No Appraisal No Equity guidelines below:
Loan Eligibility:
The loan must currently be owned by Fannie Mae or Freddie Mac
To search if your loan is owned by Fannie Mae, click here
To search if your loan is owned by Freddie Mac, click here
Loan-To-Value (LTV) restriction of 125% has been removed
LTV is calculated by dividing the new 1st mortgage by the appraised value
Example: $140,000 1st Mortgage, $100,000 Home Value = 140% LTV
Contact me at the number below for a sales-free, hassle-free evaluation to determine whether you would benefit from the HARP Underwater Mortgage Refinance - no appraisal no equity program.
Trusted Industry Advisor
The above information was compiled and distributed by San Diego Residential Mortgage Specialist, Jason E Gordon. As a Certified Mortgage Planning Specialist (CMPS) Certified Distressed Property Expert (CDPE) and Certified Mortgage Coach (CMC), Jason E Gordon utilizes his advanced training to examine a prospective Client's complete financial picture, while carefully listening to their overall goals. If it is mutually agreed that a new loan makes sense to pursue, Jason strives to make the entire loan process as seamless as possible. He truly believes that providing open communication and patient educational guidance to his Clients and Business Alliances has been a pivotal component to building his business, while enhancing his reputation in the Mortgage Industry as a Trusted Advisor. Visit www.jasonegordon.com or www.ApprovingSD.com or more information.
Click here for daily mortgage interest rate updates and projections for the HARP Underwater Mortgage Refinance - no appraisal no equity
Posted by: Jason E. Gordon at 12:33am
Tags: harp underwater mortgage refinance - no appraisal no equity
At last, an opportunity for Real Estate Investors to quickly and easily search for available real estate investment properties based on "cap rate" or "cash flow" calculations. All Real Estate Investors and Real Estate Professionals are encouraged to try this free technology at www.revestor.com. Revestor provides a free online investment property search tool to help you make the best possible decisions, while finding the most cost-effective deals!
For a quick summary of the features of this website, click the video below.
If you would like to learn more about this exciting free online investment property search tool, please either visit www.revestor.com or click here to read an article published in LeadCritic.
For mortgage financing options geared towards Real Estate Investors, please feel free to contact the Residential Mortgage Specialist to the right of this page, or visit www.ApprovingSD.com for more information (including a secure online mortgage application).
Enjoy this free online investment property search tool!
San Diego Refinance No Appraisal No Equity Loan Program
Updated Guidelines (as of March, 2012) can be accessed by clicking here!
Great news for Homeowners in San Diego and across the country! For a limited time, the Government has unveiled a new loophole aimed at helping homeowners save money, even if they have lost all of the valuable equity in their home. This new program is estimated to help over 1 million homeowners, but will expire at the end of 2013.
Locally, this program is being called the San Diego Refinance No Appraisal No Equity loan (although it is available across the country). At the time this article was printed, details of the program are still pending. What we do know thus far is that the San Diego Refinance No Appraisal No Equity loan seeks to eliminate the 125% loan-to-value (LTV) limit.
To better understand LTV, imagine a home is worth $100,000. If an LTV limit of 125% is present, the Homeowner may not borrow more than $125,000 (125%).
In states like California, Florida, Nevada, Arizona and Michigan (to name a few), the 125% LTV restriction has prevented over 1 million homeowners from taking advantage of these historically low interest rates (even when these homeowners are current on thier existing mortgage).
Do you qualify for the San Diego Refinance No Appraisal No Equity program?
Unfortunately, not all Homeowners will qualify for this program. To find out your specific options, you are recommended to consult a San Diego Residential Mortgage Specialist to determine if you are eligible to take advantage of this rare loophole.
Who is offering the San Diego Refinance No Appraisal No Equity program?
At this time, only a few mortgage companies have expressed a willingness to offer the San Diego Refinance No Appraisal No Equity program. Among your current options is AmeriFirst Financial Incorporated, a local San Diego Direct Lender with offices in Carlsbad, Sorrento Valley, and Del Mar (as of December, 2011).
To find out if you are eligible for this San Diego Refinance No Appraisal No Equity program, please contact:
Jason E. Gordon
Residential Mortgage Specialist
CMPS, CDPE, CMC, NMLS #259027
Direct Lender / Wholesale Broker
12544 High Bluff Drive, Suite 100, San Diego, CA 92130
Direct 619-200-8031 | Fax 888-392-7699
Truth Behind Mortgage Quotes. If you are considering a new mortgage (or know someone who is), this article is a "must read" before you move forward.
There are few industries (if any) which attempt to confuse their targeted Clients (over what they are actually buying) more than the Banking/Lending industry. As Consumers, we are exposed to mortgage advertisements via our televisions, radios, computers, mailboxes, and even on computerized billboards. Banks across the country attempt to identify the specific "hot buttons" that will make a potential Client buy their mortgage products, and then they advertise accordingly.
These same advertising mortgage quote gimmicks then trickle down to Mortgage Companies (who sell the Bank's loan programs), and eventually to some Loan Officer's who work for the Mortgage Companies and/or Banks. It bears noting that many modern-day Loan Officers avoid subjecting their Borrowers to these "shell game gimmicks" (although sadly, not all Mortgage Professionals can be relied upon to conduct themselves in this manner).
This article is meant to assist Borrower's (and Real Estate Professionals who may have an influence over these Borrowers) in their quest to understand what their lending options truly are on any given day.
There are 2 categories of "cost" associated with a mortgage:
1. Cost-to-Acquire: These "Non-Recurring Closing Costs" (NRCC's) are specifically related to the up-front fees that are as charged to create the new mortgage loan. Examples of these costs include (but are not limited to):
a.Appraisal
b. Title Insurance
c. Escrow
d. Origination / Discount Points
e. Processing
f. Underwriting
g. Recording
h. Notary
i. Flood Certification
j. And others...
NOTE: These NRCC's are charged on every new loan...the question is: who pays for them?
2. Ongoing Cost of Borrowing the Money: This ongoing cost is expressed in the form of a numeric interest rate (which ultimately affects the monthly payment and overall finance charges the Borrower must pay to the Bank).
Case Study:
Let's say we have a Borrower who would like to obtain a mortgage loan of $350,000. For ease of mathematics, let's say that the typical Non-Recurring Closing Costs (NRCC's) to create a loan of this size are $3,500. If the Borrower decides to pay 1 point (in addition to their standard NRCC's), then the additional fee would be $3,500 (since 1 point = 1.00% of the new loan amount). On any given day, this particular Borrower should have 3 different choices provided by his/her Mortgage Professional. These choices are:
In the table above, Option B displays the standard interest rate on a given day with the Borrower paying all of the typical NRCC's on his/her own. From there, we can easily assess the trend (which is the general rule of lending):
• The more you pay up-front, the less you pay along the way (Option A)
• The less you pay up-front, the more you pay along the way (Option C)
Earlier, I mentioned that the advertising methods used by Banks tend to cater towards pushing the right "hot buttons" of a given Consumer. If the Bank (or Loan Officer) feels that their prospective Borrower is rate and/or payment sensitive, they will likely quote Option A. Conversely, if the Bank (or Loan Officer) feels that their prospective Borrower is fee (closing cost) sensitive, they will quote Option C.
Ultimately, regardless of which Option is selected, it rarely affects the Bank (or Loan Officer) in terms of profitability.
In the above referenced table,
• The cost difference between Options A & B = $3,500
o $7,000 - $3,500 = $3,500
• The monthly payment difference between Options A & B = $51.23
o $1,747.50 - $1,696.27 = $51.23
• The estimated "break-even period" would then be 68.23 months (5.69 years)
o $3,500 cost difference divided by $51.23 payment difference = 68.23 months
o 68.23 months divided by 12 months in a year = 5.69 years
• Conclusion: In this particular example, if the Borrower intended on keeping his/her loan for over 5.69 years, it would likely make sense to pursue Option A (due to the fact that their ongoing savings would eventually catch up to the extra money paid up front).
So how do you know if you are working with the right Professional?
• Ideally, you will work with either a Direct Lender or Wholesale Mortgage Broker who has the ability to "shop" between multiple Investors on any given day.
• By doing so, your Mortgage Professional has the ability to determine which Investor has the best overall pricing (by doing the "shopping" for you)
• If you are working with one single Bank (i.e. one single Investor), your Mortgage Professional will not have the ability to shop around for you. In fact, even if this Mortgage Professional knows that the pricing from their Employer (Bank) is not the best, they will still feel compelled to sell their Bank's loan to you (because that is their only option, and that is what they are paid to do)
Additional tips:
• Before you insist on a quote, allow your Mortgage Professional to learn more about the specifics of your risk profile (i.e. your credit score, amount of equity in the home, debt-to-income ratio, liquid assets, etc.)
o People who insist on immediately asking "what's your rate?" or "what are your fees?" without allowing the Loan Officer to understand what they are working with are unknowingly perpetuating the "shell game" that is used by unethical Loan Officers!
o This Loan Officer doesn't want you to hang up on them (or walk away), so they are likely to answer your question if pressured to do so. The fact is however, that if they provide you a quick answer without knowing what they are working with, they will probably end up being wrong (and you will end up getting angry and claim that you were "bait & switched"). The reality is that all of this could have been avoided by simply allowing the Loan Officer to do his/her job (which is to interview you before providing you a quote!)
• Work with a Mortgage Professional (Loan Officer) whom you feel you can trust.
• Consider working "by referral only" when selecting a Loan Officer. This method will benefit you in multiple ways:
o You met this Loan Officer through a trusted source (as opposed to rolling the dice randomly by logging on to a website, answering an advertisement, and/or walking into a Bank and selecting the first person who was available)
o This particular Loan Officer has an added level of accountability to the person who referred you to them (the last thing this Loan Officer would want to do is to mistreat you and risk losing that ongoing referral source!)
• Work with a Mortgage Professional (Loan Officer) who provides multiple choices (like the ones detailed in the table above)
• Ideally, your Mortgage Professional will calculate the numbers for you (to help you determine your break-even point, and therefore which option will be best for you).
o A Mortgage Professional should never assume that their Borrower understands how to calculate the mathematics associated with these Mortgage Loan options on their own.
• Never be afraid to ask questions and/or request clarification (remember: this is your money...do your diligence and choose wisely!)
• If your Mortgage Professional fails to ask you how long you intend on keeping your new mortgage, they are not fully equipped to provide guidance on which option is best
o Example: In the table above, Option A would not make sense if you intended on selling your property in 4 years (since you would not keep your loan long enough for your monthly savings to "break-even" with your up-front costs).
Additional advertising myths:
• There is no "magic bank" that always has the lowest interest rate each and every day!
• There is no "magic bank" that always has the lowest closing costs each and every day!
It is heavily recommended that you look beyond the advertising gimmicks of the major Banks, Credit Unions, and "Dot Com Mortgage Companies". Learn the facts and avoid getting hooked in by a clever marketing campaign. Remember the universal rule of any type of business:
REVENUE - EXPENSE = PROFITS
If a Bank is spending hundreds of millions of dollars on marketing costs, they need to make up for these EXPENSES by increasing their REVENUE in order to maximize their PROFITS (and keep their Shareholders happy). Like moths drawn to an open flame, millions of Borrowers are drawn towards the light of their local Banks...only to eventually get burned in the process.
For more information on topics like this, please feel free to visit www.MortgageStreetSmarts.com (an educational resource for Borrowers, Real Estate Agents, and Financial Professionals)
For more information on topics like this, please feel free to visit www.ApprovingSD.com (an educational resource for Borrowers, Real Estate Agents, and Financial Professionals). Educational content provided by:
are helping Borrowers avoid the pitfalls of having a high debt-to-income ratio! For those of you who work with Borrowers (or if you are a Borrower), it would benefit you to familiarize yourself with this mortgage niche program.
The philosophy of the San Diego Asset Depletion Mortgage Loan is to reward a Borrower who has large balances in their liquid asset accounts. When analyzing this particular Borrower's financial profile, these large assets are considered a "compensating factor" to offset some of the risk typically associated with a Borrower who has a high debt-to-income ratio.
If you are a Borrower (or are working with a Borrower) who has a good chunk of money in the bank, but feel that a mortgage approval is out of reach due to a high debt-to-income ratio, I encourage you to learn more about San Diego Asset Depletion Mortgage Loans.
Example of an San Diego Asset Depletion Mortgage Loan being acquired:
Our Borrower was pursuing a mortgage loan for $1,200,000 with a willingness to invest 30% (or more) on the down payment on a luxury home. Like many Self Employed individuals, this gentleman had significant business expenses to deduct from his gross revenues. For this reason, his debt-to-income ratio under typical Fannie Mae or Freddie Mac standards was a whopping 106% once the new projected housing payment was factored in.
It bears noting that I was not the first person this Borrower spoke to when he shopped around for a mortgage...but I definitely proved to have the best deal, as the numbers below will reinforce. The quotes given by other Lenders were Hard Money loans pricing as high as 14% interest rate with 5 points on a 3 Year Fixed Mortgage. Let's stop and do the math on their loan versus a San Diego Asset Depletion Mortgage Loan:
5 points on a loan of $1,200,000 represents a cost of $60,000 (in addition to the rest of his closing costs)! To make matters worse, the principal + interest payment on a $1,200,000 mortgage at 14% = $14,218.46.
Fortunately, this story will conclude with a very happy ending to report. By using the San Diego Asset Depletion Mortgage Loans qualifying niche, I was able to offer this Borrower a 3.875% interest rate with 1.5 points on a 5 Year Fixed Mortgage.
The monthly principal + interest payments on this mortgage were $5,642.85 ($8,575.61 monthly savings versus the other loan). The 1.5 points = $18,000 (a savings of $42,000 in upfront costs), and the loan carried a 5 year fixed rate as opposed to a 3 year fixed rate (allowing the Borrower 2 extra years of predictable payments)!
The loan has funded, escrow has closed, and the Buyer/Borrower now has a new place to call home!
Announcing the Asset Depletion qualification method to help Borrowers who have sufficient liquid assets, but their income is not high enough to qualify for a mortgage loan! This loan is available through Jason E Gordon, San Diego Residential Mortgage Specialist. Please read below for more details:
Typical Fannie Mae and Freddie Mac approval guidelines fail to assist Borrowers with a specific financial profile of "debt-to-income ratios too high to qualify" according to Fannie/Freddie methods of interpretating income. Specific examples include:
Self-Employed Borrower's with a NET INCOME (after expenses) that is too low to qualify
Borrower's who own Rental Properties with carry-over losses (or low NET INCOMES)
Retired Borrowers
Borrower's with high Net Operating Losses
Somehow the mortgage industry is failing to assist high net worth Borrower's who are:
Supplying jobs
Supplying housing
Retired after serving our community in the workplace for most of their lives
Successfully utilizing current tax codes to minimize the amount of income taxes they are paying
Asset Depletion is a method for an Underwriter to use a Borrower's LIQUID ASSETS to provide more income to qualify! After all, assets belonging to a Borrower are typically parked in an interest/income producing vehicle such as checking, savings, money market accounts, bonds, stocks, mutual funds, etc. These assets are producing income for the Borrower, and will only be considered on an Asset Depletion program.
Asset Depletion loans are not for everyone! Among the requirements to consider are the following:
$300,000 minimum loan amount (sorry, no exceptions)
40% debt-to-income ratio is needed
Only Liquid Assets are eligible (not equity in a property)
Age of Borrower + total Liquid Assets are computed into a specific qualfying algorithm
Significant liquid assets will be needed to properly impact the application. For example:
44 year old Borrower with $1,000,000 liquid assets may qualify for an extra $5,368.00 per month of income using this formula
73 year old Borrower with $1,000,000 liquid assets may qualify for an extra $9,250.00 per month of income using this formula
Both of the above amounts may be used in conjunction with all "other income" on the application (salary, commissions, social security, pensions, etc.)
Although no specific minimum FICO score is required, the Borrower must have reasonably good credit (subject to Underwriter interpretation)
There are equity (also known as loan-to-value or LTV) restrictions in all Asset Depletion loans, which depend on the type of loan transaction (purchase, rate/term refinance, cash-out refinance), along with property occupancy intentions (primary residence, second home, investment properties).
As a Certified Mortgage Planning Specialist (CMPS) Certified Distressed Property Expert (CDPE) and Certified Mortgage Coach (CMC), Jason E Gordon utilizes his advanced training to examine a prospective Client's complete financial picture, while carefully listening to their overall goals. If it is mutually agreed that a new loan makes sense to pursue, Jason strives to make the entire loan process as seamless as possible. He truly believes that providing open communication and patient educational guidance to his Clients and Business Alliances has been a pivotal component to building his business, while enhancing his reputation in the Mortgage Industry as a Trusted Advisor. Visit www.ApprovingSD.com for more information.
Click here for daily mortgage interest rate updates and projections
Announcing the Pledged Assets Mortgage program designed to assist high net worth Borrower's in their attempts to leverage their invested assets while still qualifying for a mortgage loan. Essentially, we allow the Borrower to "pledge" (hold as collateral) a portion of their assets in lieu of a down payment. Perhaps the best feature of this program is the fact that the Borrower does NOT need to move their assets away from their current Financial Advisor or Financial Company!
Pledged Assets Mortgage qualification guidelines are utilized to help Borrowers who have sufficient liquid assets, but prefer to allow their investments to continue growing for them even after the home is purchased! This loan is available through Jason E Gordon, San Diego Residential Mortgage Specialist. Please read below for more details:
Traditional Fannie Mae and Freddie Mac approval guidelines require specific Loan-to-Value (LTV) equity restrictions to ensure the Borrower has enough "skin in the game" when purchasing a home. Those who understand financial leverage methods of wealth accumulation can successfully identify the opportunity cost of a particular investment being lost if an Investor is forced to liquidate these assets in conjunction with a home purchase.
Potentially avoiding capital gains taxes (consult your CPA for more details)
Assets continue to grow from interest/dividends, allowing the Borrower to continue sweeping profits
Any person may choose to pledge their assets on behalf of the Borrower (no gift letter required)
Currently available in conjunction with Asset Depletion loans on a wide variety of different mortgage programs, including interest-only
Loan amounts up to $10,000,000 (or higher on a case-by-case basis) with a minimum of 10% down payment (and no mortgage insurance)
All pledged assets may remain with current investment company (no need to move the money and disrupt the current financial plan with the current Financial Planner)
No alteration requirements to the assets themselves (the Borrower may continue to trade in the same portfolio provided the minimum value is maintained)
There are specific eligibility requirements of the Pledged Assets Mortgage program, including:
Eligible assets must be managed by an Investment Broker/Dealer
Eligible assets must be held in an account based in the United States (either by a US entity or a US branch of a foreign entity)
Eligible assets do not include assets bought on margins, options, warrants, IRA assets, 401K assets, annuities, insurance benefits, 529 or other educational savings plans.
Eligible assets will be underwriten within 2 specific stability categories, yielding the following requirements:
Stable Assets (savings money market, CD) require a pledge of 1:1
Example: $1,500,000 of pledge use requires $1,500,000 worth of assets as collateral
Volatile Assets (stocks, bonds, mutual funds) require a pledge of 2:1
Example: $1,500,000 of pledge use requires $3,000,000 worth of assets as collateral
Release of Pledge - The loan may be paid down and the pledge may be released without triggering a pre-payment penalty at any time. If the property has increased in value rendering the Pledged Assets no longer relevant (typically after a period of roughly 36 months), the pledge may be released (under Underwriter discretion). In order to be eligible for release of pledge, the Borrower must be current on all loan payments with no delinquencies in the previous 12 months. Please contact Jason E Gordon, San Diego Residential Mortgage Specialist for more details.
Pledged Assets Mortgage loans are not for everyone! Among the requirements to consider are the following:
$300,000 minimum loan amount (sorry, no exceptions)
40% debt-to-income ratio is needed
Although no specific minimum FICO score is required, the Borrower must have reasonably good credit (subject to Underwriter interpretation)
There are equity (also known as loan-to-value or LTV) restrictions in all Pledged Assets Mortgage loans, which depend on the type of loan transaction (purchase, rate/term refinance, cash-out refinance), along with property occupancy intentions (primary residence, second home, investment properties). All details are provided in the matrix below:
Creative financing and make-sense underwriting guidelines still exist...you just have to know who to speak to in order to locate these programs! Contact Jason E Gordon, San Diego Residential Mortgage Specialist today if you are a Borrower (or are working with a Borrower) who may benefit from these approval guidelines!
As a Certified Mortgage Planning Specialist (CMPS) Certified Distressed Property Expert (CDPE) and Certified Mortgage Coach (CMC), Jason E Gordon utilizes his advanced training to examine a prospective Client's complete financial picture, while carefully listening to their overall goals. If it is mutually agreed that a new loan makes sense to pursue, Jason strives to make the entire loan process as seamless as possible. He truly believes that providing open communication and patient educational guidance to his Clients and Business Alliances has been a pivotal component to building his business, while enhancing his reputation in the Mortgage Industry as a Trusted Advisor. Visit www.jasonegordon.com for more information.
Click here for daily mortgage interest rate updates and projections
While basic understanding of the “book smarts” within the mortgage industry will help you understand specific terminology, loan programs, and features, there is so much more you will need to know in order to make an informed financial decision. My approach is designed to teach you the "street smarts" necessary to allow you to make the most informed decision regarding your mortgage options.
