Andrew Ikeda 0 Report post Posted January 16, 2004 Hello Fellow Investors, The owner of US Funding gave me a fax from a lender who will do 100% NO DOC...THATS RIGHT! No verification of income or assets. Minimum 660 FICO needed. With this type of product...it's all going to 'hang' on the credit score. If I can be of help please let me know! Sincerely, Andrew Ikeda (Loan Officer/Mortgage Specialist) US Funding Group, Inc. 888-889-1640 ext 220 360-433-6820 direct line 360-260-3272 fax 360-909-3374 mobile Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 16, 2004 Hi, Andrew. Man, that's a great program to have available! One hundred percent No Doc loan! Who'd a thunk it?? I assume it is for owner occupied properties only? Any other details on it: points, APR, etc?Thank you for passing that along to us. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted January 16, 2004 Hey Andrew- Do you know anything about two private loan companies "Novastar Home mortgage" and "genesis Financial Corp." I have been talking with them the last couple of weeks and it appears they can do no doc, 80%, 90%, 100% financing for non owner occupied, with scores 600+. Seems they are national companies and can do loans in my state NC. The loan officers or brokers are located out of my state and seem legit. It is a little over my head how these companies network across the country, but before I send them any information, I am doing a little due diligence. Seems these brokers have offices separate from the main corporate office. Checked with the Better Business B., so far eveything looks OK, from what information they have. But usually the info. is only about the main company and it's hard finding info. about the smaller offices or specific brokers. Do you know of any ways to check out agents of lenders to make sure they are on the up and up? Or I am being peranoid? Thanks Andrew. Do you make loans in NC? Forclosures are on the upswing here and sell quick and I am trying to get set up with a lender to pick up a couple. <Steve> Share this post Link to post Share on other sites
Andrew Ikeda 0 Report post Posted January 16, 2004 Hi Michael and Steve, Ok, here is what I know: The NO Doc is no income verification but they do verify employment. No asset verification. Couldn't reach the rep for pricing so I'll post next week on that aspect. Yes, it is owner occupied only....however, you can entice your tenant/buyers with this product and perhaps get cashed out sooner rater than later on an l/p?? Could also be used for a flip or assignment as well. I'll also look into prepay penalties and find out if they are the soft or hard ppp. Steve - your questions: I know Novastar and they are nationwide with very good loan products. We are working on an agreement with them as I write this to co-broker and do loan origination in the states that they are licensed to do which I've been told is 39+. Will post more info later as I get updates. As far as their reputation, I would feel comfortable with them. Genesis Financial I know nothing about them. As far as individual offices and brokers, my best suggestion is to go to the office and just meet them and ask them a ton of questions and see how they answer them. You could also call title companies and ask their title and escrow officers for an opinion or recommendation. No, you are not paranoid! There are a lot of loan officers and mortgage brokers that dont do a good job. Why? The reasons are endless from pure greed and being hasty to being ignorant. Again, I'd suggest a face-to-face meeting with them. You will be the best judge. (See my other post on financing tidbits in this forum). Sorry Steve, can't do NC yet...still working hard at getting some co-brokering going with other lenders. Again, I'll keep you posted...thanks for your interest. Best of luck and let me know if you have other questions. Andrew US Funding Group, Inc. 888-889-1640 ext 220 360-433-6820 direct line 360-909-3374 mobile andikeda@netscape.net and/or andrew.ikeda@usfundinggrp.com Share this post Link to post Share on other sites
<Steve> 82 Report post Posted January 17, 2004 Thanks Andrew for your insight. Maybe if you work out the co-broker with Novistar here in the future, we can do some business together. Thanks again!Steve Share this post Link to post Share on other sites
Andrew Ikeda 0 Report post Posted January 18, 2004 Hi Steve, Your welcome and working together in the future sounds great! Here are some questions to ask (mortgage company): 1) Give them a property you are interested in and have them calculate your PITI 2) Ask them if there are any pre-payment penalties and if so, how much 3) Ask them what the LTV is (loan to value). Also ask what the split is on the LTV, for example: is it 80% on the first and 20% on the second (if 100% financing) or 80%/15% for 95% LTV. And then ask for pricing (i.e. interest rates)on the first and second (if applicable). 4) Ask them if it is a soft or hard prepay. Soft = you can sell with no pre-pay penalties but refi you are penalized. Hard = you cant sell or refi w/o a penalty. 5) Ask if there is PMI/MI = mortgage insurance. If there is, ask them to calculate how much that will be on the property your interested in. 6) Ask them how long it will take from the time you do the application to the time it will record and fund. If they tell you two weeks, I'd be very cautious. From start to finish usually takes an average of 30 days...at least for the first loan. 7) Ask them what their closing costs will be (estimated). If they say they dont have any or $1500 or just an upfront number that's low...I'd be careful. The price they give you might be only their fees and not title and escrows and may not include all the other stuff like wiring fees, flood certificates, etc, etc. I would ask more questions on this. I usually tell my borrowers that it's around 5% for everything. I intentionally do this to under promise and over deliver...then my clients will love me and think I'm the greatest thing since canned beer! Think I've heard this one before! 8) Finally, from an investor/loan officer point of view, stay away from 30 year fixed loans...remember that you plan to unload this property in the near future so inquire about 2,3,5 year adjustable rates (ARMS) and/or 'interest only' type loans. This will put more $ into your pocket! 30 year fixed's are a moot point from investor's standpoint. Just some questions to get you started. It will make you look damn smart too and keep the loan officers on their toes! Thanks for your interest Steve. As usual, feel free to ask questions. Hopefully someday soon, We will be able to do business together. If you cant get straight answers from the loan officers in your area, you should be able to really motivate me to find a co-broker/lender in your area. I have some bitchin' ideas for investors and am working with one of my investors now on how to buy a lease purchase property from another investor and then flip it. He can put $15,000 into his pocket by April or May if he does this correctly and is motivated enough. It's a spectacular win-win situation for him,me, and his future tenant/buyer! Sorry buddy, I'm not going to disclose specifics here and now how I'm doing this but I'm too dog-gone excited to just keep it (the thought of it that is) to myself! Take care and best of luck to you. Andrew Ikeda (Loan Officer/Mortgage Specialist) US Funding Group, Inc. 888-889-1640 ext 220 360-433-6820 direct line 360-260-3272 fax andrew.ikeda@usfundinggrp.com and/or andikeda@netscape.net Share this post Link to post Share on other sites
Janie 0 Report post Posted January 19, 2004 Sorry,I'm super new and don't understand 100% no doc. Could you explain how this works and who can I contact in San Antonio,TX? Share this post Link to post Share on other sites
Andrew Ikeda 0 Report post Posted January 19, 2004 Hi Janie, Welcome to the website! Sure, a No Doc loan is (in most cases) simply a loan where they ask you for your name, SS# and a telephone number. No Doc means no documents. In most cases, the lenders will only call your employer to verify your employment but they will not ask or verify how much you make or how much in assets you have. On the other hand, a Full doc is where they do verify your job history, income, assets, etc. They will ask for W-2's, paystubs, bank statements, copies of your IRA and/or 401k's .....whatever you got! This is what is meant by 'full' documents....a ton of paperwork. The 100% means that they will finance 100% of your loan amount. So, for example, you find a house for $150,000, they finance all $150,000. There is a term you will need to know and understand when it comes to loans and it is called LTV = loan to value. You might see 95% No Doc which means that the lender will give you 95% of the $150,000 (again, using the above example) = $142,500. So you will need to come in with the other $7,500 downpayment. In the 95% No Doc, most loan officers/brokers simply drop the 'LTV'. Hope this helps. For Janie and the rest of you folks out there: I called the AE (account executive) and he quoted me rates shown below as of today (1/19/04): For 680+ 7.5% on the first and 12.000 on the second. This is an 80/20 loan. (That means that the 100% is broken into two separate loans. The reason for the split is so that there is no PMI/MI = mortgage insurance. The rates are higher on the second to make up for the lack of MI...remember that lenders are clever and will find a way to make money in return for no MI. ) For 660 - 679 FICO scores: 7.625 on the first and 12.00 on the second. For 64 - 659 only 95% LTV is available and the rates are the same as the 660-679. The AE also told me that there may be some points to pay up front but that will depend on what information we have and what shows up on a borrower's credit report. Hope this all is useful (if not interesting!) Andrew Ikeda (Loan Officer/Mortgage Specialist) US Funding Group, Inc. 888-889-1640 ext 220 360-433-6820 direct line andrew.ikeda@usfundinggrp.com and/or andikeda@netscape.net Share this post Link to post Share on other sites
Andrew Ikeda 0 Report post Posted January 19, 2004 Ahh...Janie, I forgot to answer one of your questions. You might want to ask around with lenders in your area to see if they can do this kind of loan. If you need any assistance or have questions, please feel free to contact me at the information below. Thanks and best wishes with your investing! Andrew Ikeda US Funding Group, Inc. 888-889-1640 ext 220 andrew.ikeda@usfundinggrp.com and/or andikeda@netscape.net Share this post Link to post Share on other sites
tgnite 0 Report post Posted February 1, 2004 Andrew, great posts! question 1. If I have a 660 Fico why would I require a no doc loan ?(faster? eaiser? ect...) question 2. You made reference to stay away from 30yr loans, so my Q is:What about a 30yr NO DOC thats Assumable? Now you have a great loan to pass to T/B and all you need to assume it is verify employment, name ssn ? is my reasoning rite? Share this post Link to post Share on other sites
Andrew Ikeda 0 Report post Posted February 1, 2004 Hi John, You have good questions also! First answer: Yes, this is usually to reduce documentation and time and just get the loan in place so yes, it's faster and easier. This could also be for people who are unemployed at the time being with good credit and optimistic that they will have a job soon so holding costs wont be a problem. Again, this is only for owner occupied and does not work for investors, however, it makes things a little easier for your t/b's to exercise the option and give you cash so you can move on to the next deal. Answer to your second question: Yes, in the pure sense, we dont encourage investors to put 30 year fixed loans in place simply because you dont plan to keep the property for long anyways...so a two year fixed or 5 year interest only loan would be much better and keep your payments down. In most cases, these loans are NOT assumable. As a loan officer, I offer my services to finance your t/b's with their own loan. Umm...I dont know any lender that will do a 30 year No Doc that would be assumable simply because an investor without a job could let someone without a job assume the loan? Sorry pal, the lenders are way too wise to go for that. But let's pretend you get a NO DOC loan and then find a t/b to lease option your property. The other day I suggested to an investor to do a 6 month lease option with their t/b. This gives me ample time to put financing together for them and you get cashed out sooner rather than later. Of course, if you want to milk some cashflow from the property for awhile or hold it as a rental, that is fine too. With a 2 year fixed or a 5 year ARM or interest only, you could save $100-200 plus every month and in five years would have saved enough money for refi costs plus have enough equity to get into a 2.95% non-owner occupied property with bi-weekly payments that would save you a ton on interest payments and you could pay off the loan in 15 years with the same monthly payments you would have on a 30 year fixed! It's too long and complicated to spell it out here but if your interested you can always email me at the address below and I'll be happy to explain it or answer questions you may have. Thanks John for the questions and happy investing! Andrew Ikeda (Loan Officer/Mortgage Specialist) US Funding Group, Inc. 888-889-1640 ext 220 360-433-6820 direct line andrew.ikeda@usfundinggrp.com and/or andikeda@netscape.net Share this post Link to post Share on other sites
