Non-Traditional, Very Useful, Financing Options!

I spend a lot of time talking about mortgage lending with Mark Moyes, one of my preferred lenders. Whether it is making sure current clients are moving through the underwriting process smoothly, or while trying to understand what lending options are open to other clients concerned about their situation. Most recently though, we were talking about financing options for Sellers & Buyers that might not have access to a traditional funding path or are wanting to do something different.

Two big notes:

Just because it is an alternative funding path, does not mean it is shady or not a good option. They are just different from normal conventional loans and work for different buyers.
Second, I am not a Lender or Mortgage Broker! I cannot qualify you for a loan, I do not know what your cost or rate would be, nor do I know the full requirements for any of the loans.

Over the next few of articles, I will explore three different loans which may be better options for you, given your specific situation. The three loan types are:

Loan Program	Who	What does it do?
Cross Collateral Loan	Seller	Allows Seller to use the equity in their current home to purchase something new, without having to immediately sell.
No Ratio Loan	Buyer -> High FICO Score, Self-Employed or Small Business Owners	Removes Paycheck/W2 requirements for Buyers with Large Cash Reserves.
Debt Service Coverage Ratio (DSCR) Loan	Investor	Allows Investor to purchase if the rent exceeds the mortgage payment, w/o income documentation requirement.

Do any of these situations apply to you? Since you are reading this, I would guess one might. I will also tell you; I work with people in several of these categories all the time. Here is a somewhat typical situation I run across:

“A successful Small Business Owner wants to, and can afford to, purchase their first home. However, for them it makes more sense to keep as much money in their company as possible, and to only pay themselves only a small salary.

Rules of a conventional loan may say they can only afford a $500K house based their paycheck/W2. In reality though, they could afford $2M based on their business’s cash-flow.

In addition to this, in a few years they would like to purchase some rental properties, as they have always been told “Wealth is made in real estate!”

Stay tuned for my other articles. If you would like more information in the meantime, give Mark a call, (801) 999-0886. Here is a link to his blog, Mark’s Blog, if you have more time to spare.

Anyway, thanks for your time. If you’d like to connect or share your thoughts, I can be reached via email at craig@craigtheagent.com.

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