Profile picture for Steve Mandich

Steve Mandich

Lender

Mortgage Banker (37 years experience)

Specialties:
Purchase Loan,
Refinancing,
Home Equity,
Mortgage Planning

Advice

  • (113 Contributions,
  • 1 Best Answers,
  • 10 Helpful)

Contributions are sorted newest to oldest.

Jumbo loan for 615K with 5% down

Answer

The bank where I work offers 95% financing for loans up to $650,000 loan amount.  It needs PMI.  If your score is high enough, there is no add-on for pricing on this high of LTV for Jumbo loans.  Minimum score is 660.  Jumbo loans are over $417,000 and are done as a Portfolio loan.   First time buyers are OK.  30 and 15 year fixed rate, or 3/1, 5/1, 7/1, 10/1 ARMs.  For owner occupied house or Condo.

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Jumbo loan with 10% or less...

Answer

Hello, what I do in cases like yours is an 80% 1st and 10% 2nd loans.  The bank where I work does both the Jumbo 1st and the 2nd as Portfolio loans.  Other advantages include:  No PMI, no add-ons to the 1st for having a 2nd.  No points or fees on the 2nd.  No Pre pay penalty, no required impounds and no price change for not having impound account in California.   The 1st can be Fixed, ARM, or interest-only fixed or ARM.  The 2nd can be 10 or 15 year fixed rate.  Your numbers look good for qualifying for $900,000 or higher prices.  We do many purchase loans with this structure and I would be glad to help.

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90/10 Cash Out Refi

Answer

If your home has increased in value and current rates are lower, get a new refinance at 80% of the new appraised value, and add a HELOC for additional amount if needed up to 90% combined LTV.  That is what I have done lately for some customers.  The bank where I work does both loans at the same time.

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Jumbo cash-out refi

Answer

You may want to check with a regional bank or credit union that is a portfolio lender (they keep their loans and do not sell them.)The bank where I work does not lend in your area but offers cash out refinances, 75% LTV to $1.5M, and 70% to $2.5M.Lenders are going to look at your bonus income in 2013 and 2014, and confirm that it is continuing in 2015, but will not use the higher number.   So, look for a lender that will do Non QM loans at higher than 43DTI.  To approve a higher DTI of 55 to 60 or higher, we use a formula based on residual income.  As an alternative, we can use a formula based on financial assets as reserves.  

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If a house appraises for 10k less then the agreed selling price, how does this affect the loan amoun

Answer

When this happens, I give a copy of the appraisal to the buyer and have them drive and look at the comps and get a good idea if they price is too high, or the appraisal too low.There are several options:1.  Cancel the purchase using the appraisal contingency2. Negotiate the price down, either part or all the way to the appraised value.  The lender will use the lower of appraised or purchase price for LTV.3.  Pay the full price and give more down payment or use a 2nd.4. Appeal the appraisal.  This is difficult and often not successful.  Usually, you need to provide comparable sales that the appraiser did not use.  And do this only if the seller will not negotiate and you still want the house.A big consideration is the amount of down payment and loan needed.  If 15 or 20% down, the shortage can be made with a 2nd loan with no additional down payment, no PMI.

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s corp distributions, count as income?

Answer

Underwriters will look at last 2 years filed tax returns, using the average if the latest year has higher income, or using the latest year if it is lower.  Underwriters will also ask for P&L and Balance Sheet for the time from the last tax return to current time. If these show level or increasing numbers, good.  If they show falling income, the underwriter will adjust.  Sometimes these statements need to be prepared by a CPA, sometimes not, depending on the situation and the lender.For your 1120s form, they can add back depreciation deduction.  Underwriters will pay attention to any notes or mortgages due in less than a year listed on schedule L and make you prove they were renewed/extended, or paid or that you have the money to pay..For your K1, if your corp owns Real estate, there will be a cash flow analysis of the form 8825, adding back depreciation, and using the full mortgage payment.So, what is counted is your W2, income from the 1120s, and K1s, potentially adjusted as described above.  Best to show all to your loan officer.  At my bank, we have a spread sheet which lets us input numbers for each form, and it calculates the correct income.

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Construction Loan

Answer

The real benefit with a construction loan is that the construction banker, looks at the project before approval, does an appraisal as if everything is completed, and bases the loan on that value.  This can tell you if the amount you are spending will result in enough positive increase in value.  Also, during the construction, there are inspections periodically, and funds are disbursed to the contractors based on the amount of work done.  This is a big protection to you for bad contractors.  I have a case now where there was a problem with the contractor, who had to be fired.  The project is delayed and we are having to increase the amount of construction laon needed to fix the problems created by this first contactor.  At least the funds paid to that contractor were limited.

  (0)
Construction Loan

Answer

The real benefit with a construction loan is that the construction banker, looks at the project before approval, does an appraisal as if everything is completed, and bases the loan on that value.  This can tell you if the amount you are spending will result in enough positive increase in value.  Also, during the construction, there are inspections periodically, and funds are disbursed to the contractors based on the amount of work done.  This is a big protection to you for bad contractors.  I have a case now where there was a problem with the contractor, who had to be fired.  The project is delayed and we are having to increase the amount of construction laon needed to fix the problems created by this first contactor.  At least the funds paid to that contractor were limited.

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Home Equity Loan on I/O 1st Mortgage

Answer

The bank where I work does Intersest Only ARM and Fixed loans on first mortgages: 5/1, 7/1, 10,1 and 30 year fixed.  These go from conforming to $4,000,000 as Portfolio loans.  We can also do HELOCs on these or other lenders loans. Typcially, these go to 80% combined LTV at the best rate, or up to 90% combined LTV at a slghtly higher rate, with limitations for large value properties.  No fees or points, or appraisal fee to do these.  They are interest only for first 10 years, varible tied to Prime rate.  so, it is possible to get a HELOC behind an I/O first loan.

  (0)
Home Equity Loan on I/O 1st Mortgage

Answer

The bank where I work does Intersest Only ARM and Fixed loans on first mortgages: 5/1, 7/1, 10,1 and 30 year fixed.  These go from conforming to $4,000,000 as Portfolio loans.  We can also do HELOCs on these or other lenders loans. Typcially, these go to 80% combined LTV at the best rate, or up to 90% combined LTV at a slghtly higher rate, with limitations for large value properties.  No fees or points, or appraisal fee to do these.  They are interest only for first 10 years, varible tied to Prime rate.  so, it is possible to get a HELOC behind an I/O first loan.

  (0)