Realtors, CPAs, Lawyers, & Financial/Insurance Advisors:
Business owners often do not show sufficient income to qualify for a full income verification mortgage. Your clients who file a Schedule C, or receive a 1099 form, and clients who have a side gig, are ALL considered self-employed, in addition to those individuals who have formally opened an entity and file taxes for that entity. With 20% down payment and a good credit score, the loan is about ½ % higher in interest rate when compared to a full income check borrower with similar down payment & credit score. On a $500,000 loan, that is an extra $150 a month in payment on a 30-yr fixed rate mortgage. Many business owners can afford that extra cost to buy a home.
Alternate ways to calculate business revenue are plentiful and growing rapidly. Business bank statements, personal bank statements, 1099s, Profit & Loss statements, & future rents to be collected, are just some of the ways wholesale lenders are documenting income to approve self-employed borrowers for mortgages, without providing paystubs, W-2s, or Tax Returns.
Retail bankers: Your bank likely will not approve a borrower for an FHA purchase when borrowers have the minimum down payment and FICO scores in the 500s. Just this week, I inherited a deal just like the one I describe here. The bank could not approve the loan for multiple reasons. I elevated the client’s credit score by 80 points within 3 weeks and now have an approved loan at a great rate with zero points to the borrower. In addition to elevating the borrower’s credit scores, I restructured the assets to demonstrate all funds used for the transaction were sourced and seasoned. If a customer at your bank has been denied for a loan, call me to discuss it. I convert many of these transactions from denials to loan approvals.
I have access to loan programs that traditional banks who take deposits could never offer. Wholesale lenders waiving LLPAs on FHA loans with 600 – 660 FICO scores.
As a preferred mortgage broker, I receive additional discounts to share with borrowers. On my last closing of an $800,000 loan, I was able to give the borrower an additional $3200 credit provided by my lender, simply because I am a preferred broker.
Tip of the Week:
Never schedule a medical procedure at any Surgi-Center on a Friday.
Most surgeries that do not require an overnight stay in a hospital are now performed at Surgi-Centers, with more of these facilities popping up around us every day. Since these procedures are not emergency medicine, they are scheduled in advance. If you have a procedure on a Friday, go home and then have an issue the following day, you now need medical assistance on the weekend. The doctor’s office is likely to be closed, nor is your physician likely to be available. The office recording will advise you to call 911 or go to your local emergency room.
If you have a problem and your procedure was done early in the week, you can go directly to your doctor’s office, most of which are open Monday-Friday. Even if your doctor is playing golf that day, his or her partner will be able to see you.
In the rare case where something goes very wrong, and you are rushed to the emergency room, you want that to be on a Monday – Friday when the hospital is staffed with their regular doctors doing rounds. The best doctors in every field work during regular business hours. Rarely are specialists and elite doctors available on weekends, unless they are on call or checking up on a critical hospitalized patient. To this end, I will only schedule a procedure on Monday or Tuesday.
P.S. In advance of the procedure, request details about all costs for the doctor, anesthesia, lab bills, & any other costs for using the facility. Payment plans & prices are best negotiated when the procedure is scheduled for the coming week, not when you are signing your life away sitting on the gurney dressed in that hospital gown.
Quote of the Week:
“Do not wait until the conditions are perfect to begin.
Beginning makes the conditions perfect.”
- Alan Cohen
Click here to schedule a meeting with me through Calendly
Thanks,
Jeff Lafazan
About the Author of Jeff’s Common $en$e - Jeffrey Lafazan
Experience, Knowledge, Solutions & Customer Service, ALWAYS!!
Residential / Commercial / Bridge Loans
Renovation & New Construction / Fix & Flip Investors
HUD Multi-family loans to 85% with 35-year Amortization
Reverse Mortgages up to $4 million - including Co-Ops
SBA business financing up to 90%
Investor, Commercial, Bridge & SBA loans available in all 50 states.
Go Rascal (NMLS #2072896) is licensed in 34 states and growing.
Join Team Lafazan with national reach.
GoRascal Inc. (NMLS #2072896) is a licensed mortgage broker
In AL, AZ, CA, CO, CT, DC, DE, FL, GA, IA, IL, IN, KS, KY, MA, ME, MD, MI, MS, NC, NH, NJ, NY, OH, OR, PA, RI, SC, TN, TX, VA, VT, WA, WV, & New York
This communication is intended solely for licensed professionals and is not an offer to lend.
Cell # 516-375-3943
Jeffrey Lafazan NMLS # 69338
JLafazan@PrudentialB.com
JLafazan@GCFnyc.com
https://goldcoastbiz.com/
https://www.prudentialb.com/contact/mortgage-team/jefflafazan/
