July 24, 2014

Bay Area Jumbo Loans Approved When Other Lenders Say No – Plegded Assets and Asset Depletion Are Okay!

 

C2 Financial and Jason Wheeler have some unique products that will help you get a jumbo loan closed.  If you have significant stock holdings, or other liquid assets however you lack the ability to document income as defined by the IRS we can likely help you if you have been turned down by other banks.  We can get an easy approval on your jumbo loan.

We have unique pledged asset, and asset depletion programs that no other lender can offer!

We are going to cover the creative products offered through one of our Portfolio Federal Banks that help borrowers all over Califorina and the Bay Area close the below scenarios.

We invite you to invest a bit of your time to see how you might be able to close jumbo loans that may have seemed impossible by extending out a phone call to us with your Jumbo Loan scenario…

 

Sample Scenario of a Jumbo Loan we Approved

• Transaction Type: Purchase

• Purchase Price: $862,500

• Property Type: SFR

• Occupancy Investment

• FICO: 767

• LTV: 90% (Guidelines are 50%, utilized Pledged Asset program)

• Loan amount at 90% LTV: $776,250

• Product: Portfolio 5/1 arm

• DTI: 15/40

This is a solid borrower who purchased an investment property using our Pledged Asset program and only put down 10% (no MI). We did require a 40% asset pledge that allowed the borrower to continue trading and earning interest on his current investments and not incur a tax hit for capital gains. Our Pledged Asset program can be used with any loan BofI offers up to $5mm ($10mm case-by-case).

 

Sample Scenario of a Jumbo Loan we Closed

• Transaction Type: Purchase

• Purchase Price: $1,370,000

• Property Type: SFR

• FICO: 772

• Assets: $721,000

• LTV: 80% (Guidelines are 65%)

• Loan amount: $1,096,000 @ 80%

• Product: Portfolio 5/1 ARM

• Rate: 4.25% Borrower Paid Comp

• DTI: 35%

This borrower was a self-employed dentist and we were able to use his wife’s income who worked for him. The borrower’s current residence was listed for sale, did not have a contract and we did not include that payment in the DTI calculation. An asset pledge was used in the amount of $415,000 and was an active trading account (2:1 for pledged assets using volatile assets).

 

Sample Scenario of a Jumbo Loan we Approved

• Transaction Type: Cash Out ($1,700,000 cash to borrower)

• Appraised Value: $3,500,000

• Property Type: Single Family Home

• FICO: 701

• Assets: $122,000

• LTV: 68.6% (our max is 55%)

• Loan amount: $2,400,000

• Product: Portfolio 5/1 ARM

• Rate: 4.75% Borrower Paid Comp

• DTI: 36%

The borrower was taking cash out to buy a non-owner condo. Our guidelines have a max LTV of 55% which left the short by $476,000 (13.6%). We ended up doing a cross collateral on the new condo they were purchasing.

 

Sample Scenario of a Jumbo Loan we Approved

• Transaction Type: Rate in Term**

• Appraised Value: $5,700,000

• Property Type: SFR

• FICO: 709

• Assets: $182,000***

• LTV: 43%

• Loan amount: $2,435,000

• Product: Portfolio 5/1 ARM Interest Only

• Rate: 5.375

• DTI: 40%

This loan had a couple special features to it. It was such a unique transaction that the Loan Officer nearly passed it up. At the end, he was very happy he moved forward with it. **The loan actually had about $1,600,000 in cash (payoff was about $650,000) that was used to pay out an ex-spouse, so we agreed to consider this a no cash out (.500 in fee) loan. In addition, we used some of the “cash out” (a little over $1,000,000 in total assets) in addition to his current assets ($182,000) to calculate extra income by using our Asset Depletion Program***. This is a very solid loan for our portfolio.

 

Sample Scenario of a Jumbo Loan we Approved

• Transaction Type: Cash Out Refinance

• Appraised Value: $1,500,000

• Property Type: Condo

• FICO: N/A

• Assets: $400,000

• LTV: 50%

• Loan amount: $750,000

• Product: Portfolio 5/1 arm

• DTI: 34%

This Foreign National loan originally came in late 2011 through our Cash Recapture program. At that time it was a loan amount of $500,000 (33.3% LTV). The loan came back to BofI in March 2012 as a cash out for the remainder of the available cash. We did the loan at our max LTV of 50% ($750,000) for another $250,000 to the borrower.

 

Sample Scenario of a Jumbo Loan we Approved

• Transaction Type: Purchase

• Purchase Price: $3,500,000

• Property Type: SFR

• FICO: 693

• Assets: After down payment and 12 month’s reserves $700,000

• LTV: 65% (Guidelines are 60%, got exception to 65%)

• Loan amount at 65% LTV: $2,275,000

• Product: Portfolio 5/1 arm

• DTI: 25%

Borrower had a short sale on an Investment Property 7 months ago, but was never late….Borrower came in with cash to make deal with the current bank.

 

Sample Scenario of a Jumbo Loan we Approved

• Transaction Type: Refinance, No Cash out, payoff is $1,350,000

• Appraised Value: $2,250,000 (ownership is seasoned less than 12 months so we use a purchase price of $1,850,000)

• Property Type: SFR

• FICO: 761

• Assets: $750,000

• Final LTV: 72.9% (Guidelines are 60%, got exception to 65%)

• Loan amount at 65% LTV: $1,202,500

• Final Loan Amount: $1,350,000

• Funds to close: $147,500

The home was purchased in October, 2011 and because there wasn’t 12 month’s seasoning, the loan amount was based off of the purchase price of $1,850,000. As you can see, there is a difference in the final LTV (72.9%) and the LTV we received an exception for (65%) which is $147,500 (7.9%). In this scenario, the borrower will need to come in with the difference to close. However, the borrower had a free and clear property worth $900,000 that we were able to do a cross collateral with and he was able to keep his money in his account.

 

Sample Scenario of a Jumbo Loan we Approved

• Transaction Type: Purchase

• Purchase Price: $2,500,000

• Loan Amount: $2,000,000

• Property Type: SFR

• FICO: 580 (not a typo)

• Assets: $2,000,000

• Exception LTV: 50%

• Effective LTV: 80% (with pledge)

Our Jumbo Portfolio Federal Bank was able to do this purchase transaction with 20% down and a 30% Pledge for an effective LTV of 80%. The DTI was below 15% and a monthly draft from the account was required.

As you can see we get Jumbo Loans DONE when other lenders can’t do it. We mainly do this in cities across the California SF Bay Area like, Orinda, Lafayette, Pleasant Hill, Alamo, Blackhawk, San Ramon, Walnut Creek, San Francisco and Oakland CA.

 

About Jason Wheeler - Bay Area Mortgage Lender

Jason Wheeler got started with a lending business in business in 2003 Jason has become a top producer for one of the largest most well respected brokers still in the lending business and producing quality loans in California today.
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While learning the ropes as a wholesale lender he quickly realized in order to succeed, you must become proficient in marketing as well. Internet marketing quickly became a hobby and developed into a second passion. Over the course of time Jason found some great success in marketing online with blogging and social media. You can connect with Jason with a phone call email or on or Facebook

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