Archive for the ‘Unconventional Mortgages’ Category
Looking For Cash-Out Options? You Don’t Have to Look Any Further!
This portfolio lender is a division of the 3rd largest commercial bank in this United States. Fortunately, we have a broker relationship with their wholesale department. We receive A+ service and support – in other words, they want to work with us in an effort to close your loan quickly. This will allow you to obtain a 2nd mortgage up to 80% of the value of your home with a 650 or greater credit score to a maximum loan amount of $350,000.
This can be a HELOC (Home Equity Line Of Credit) or a fixed rate fully amortized loan. If you opt for a HELOC at first, you can change it to a fixed rate after the loan closes. We have a no point option, too.
Terms are available from 5 to 20 Years.
Credit approval to closing docs turn times are: full lender credit approvals are 2 to 4 days, underwriting approvals are 4 to 5 days, appraisal review is 3 to 5 days and if there are any additional conditions at that point, 4 to 5 days and closing docs, 2 to 4 days. So, application to closing table, we can close in under 2 weeks total. That’s service folks!
Because we are an information resource, you can see the guidelines for this loan program and other current lender niches.
Unconventional Lending and the Subprime Loans Crisis
Filed under: Unconventional Mortgages | Tags: credit score, subprime lending, subprime loan, subprime loans, unconventional lending
Comments (2) I get asked on almost a daily basis what exactly unconventional lending means. Many people have never heard of an unconventional mortgage or an unconventional loan. Basically, most of these types of loans fall under the category of subprime loans.
Normally, loans are offered at the prevailing interest rate of the time when the borrower is approved for such a loan. However, for whatever reason many borrowers do not meet the credit score requirements for a certain loan amount at a certain interest rate. But that person may be very interested in obtaining a loan of that amount, whether it be for a new house or a new business venture. Unconventional lending offers them the potential ability to acquire such a loan amount at a higher then prime interest rate. This is known as a subprime loan.
Subprime loans are generally only available during strong economic periods. This is exactly what we witnessed a few years ago. Unfortunately, when the economy rapidly weakened, the subprime lending market dried up, and all the variable interest rates were jacked up. Most homeowners who took out a subprime loan are not able to refinance until their credit is a little stronger. As such, many people are now stuck with an interest rate which is spiraling out of control.
Subprime loans are the first type of financing to dry up when the market collapses. This makes perfect sense; when the economy is good, unemployment is down and people are being paid more, they are less likely to default on their debt. When the opposite is the case, people with lower credit scores become much riskier investments.
So, unconventional lending can be a very neat tool for getting someone into a home who is a slightly riskier investment for a lender. But when things go sour, the funding dries up and subprime loans can be very difficult to obtain.
Reasons You Have a Bad Credit Score
Filed under: Unconventional Mortgages | Tags: credit report, credit scores, why you have a bad credit score
Leave a Comment We recently made an addition to our site which lists the top eight reasons why your credit score may not be where you want it to be. For better or for worse, our credit score and our credit report are more or less the sole determinants of whether or not we will be able to make the important purchases in our life. As such, it would behoove you to learn as much as you can about the factors that go in to determining your credit score, and do as much as you can to keep it as high as possible.
Check out our new addition, the top eight reasons why you have a bad credit score; and while you’re at it, browse the rest of our credit education section which is currently being updated and revamped.
Unconventional Mortgages: Time Machine
Filed under: Unconventional Mortgages | Tags: homeownership, unconventional mortgage loans, Unconventional Mortgages
Leave a Comment This one is interesting. Don’t ask how, but I stumbled upon an article written in 2005 about the uncertainty in the housing market. At that time, the market was still in the bubble, and homeownership was at an all time high. However, it remarked on the irony that housing prices were appreciating so much that new homebuyers were having trouble breaking into the market, despite the overall high percentage of homeownership.
The article went on to explain that, because of this, more and more buyers were resorting to unconventional mortgage loans as a means to acquire the financing necessary to purchase their new home. It then went on to remark that these unconventional mortgages make the buyers susceptible to an entirely new category of risks. Now, these are not the unconventional mortgage loans of the sort that Brokermortgages.com supplies. The article is talking about loans that allow homeowners to skip mortgage payments, and that sort of deal.
The Federal Reserve commented on this increase in unconventional loans, stating that they can be useful in allowing homebuyers to acquire property that they wouldn’t otherwise be able to get their hands on. But, the Reserve went on to say that these instances of creative financing are also luring buyers into homes that would otherwise, and should otherwise, be out of their reach. Governor Mark Olson went on to say: “When the payments on these novel mortgages adjust upward, the homebuyer may not be able to refinance such mortgages unless the home has increased in value.”
Truer words have never been spoken. We would be wise to heed the words of the forward-thinking, even when the market seems invincible. Hope this has been an interesting trip back in the time machine.
Mortgage Backed Securities Offer Hope?
Filed under: Unconventional Mortgages | Tags: bad credit loans, Mortgage Backed Securities, unconventional home loans bad credit, unconventional mortgage loans
Leave a Comment First of all, what is a Mortgage Backed Security (MBS)? An MBS is a security which is backed by assets. The cash flow is backed by principal and interest payments of the underlying mortgage loans; and many feel that this is where the hope lies for pulling out of this recession.
Mortgage backed securities developed something of a bad reputation when many of them consisted of subprime loans, which were often provided to homebuyers with unstable financial situations. However, this new round of MBS are not being stuffed full of subprime loans; those who were guilty of this in the first place on Wall Street are long gone.
In today’s world, mortgage backed securities are dominated by government-backed entities such as Freddie Mac and Fannie Mae. These “Agency MBS” as they are called, don’t deal with subprime loans and subsequently aren’t as volatile. Not that they are perfect. They will typically be called in long before refinancing, even MBS that mature at thirty years.
But overall the trend looks good. Bonds backed by mortgages are still relatively cheap, and investors are no longer as afraid of them as they were initially. In fact, the spreads seem to be pointed back in the direction they were originally, before this horrid recession. Many optomistic economists are claiming that this means the economic downturn may be making an about-face. Only time will tell.
Securing a Bad Credit Personal Loan
Filed under: Unconventional Mortgages | Tags: bad credit personal loan
Leave a Comment You will almost always be required to fill out an application when applying for a bad credit loan. This application will generally require your full name, social security number, some information about your income, and perhaps some other relevant information about your financials.
The application is a necessity because a personal bad credit loan is unsecured, as opposed to car loan or home loan. This means that you are not putting up any collateral in exchange for the borrowed money. So the bank (or other lending source) sees this as a riskier investment, and rightfully so.
For the same reasons, your loan amount on a bad credit personal loan will typically be restricted to somewhere around $2,000 or less, depending on your credit score and credit report (although sometimes you may be able to get around having to have a credit check). You can lower your monthly payments by spreading the loan period out or borrowing smaller amounts of cash. This will make your loan more likely to be approved.
Only take out a bad credit personal loan if you are sure that you will be able to handle the monthly payments and you will easily be able to pay it back in the near future. These loans can be great to see you through a sticky situation, but make sure its just a temporary situation, or the bad credit loan will simply postpone and exacerbate the situation.
Help with Unconventional Mortgages
Filed under: Unconventional Mortgages | Tags: secured loan, unconventional mortgage
Leave a Comment Today, I found someone who has a unique situation. He lives in a beautiful house, has fantastic credit, and wants to borrow $90,000 with his house as collateral. But he can’t get a mortgage because he lives in a nudist community. This is not the typical situation we deal with at Brokermortgages.com, but we are certainly positioned to help the guy. But this definately brings new meaning to the term “Unconventional Mortgages”
