What we mean by other financing is “residential loan options that are not Conforming, FHA, VA, USDA, or Jumbo first mortgage products”. We use “other financing” options in certain purchase or refinance situations where it either makes the most financial sense to do so, or when there are no other options.
Non-Qualified Mortgage Loans (Non-QM)
Conforming, FHA, VA, USDA and standard Jumbo loan programs are considered “QM” mortgages. Sometimes, however, a home buyer’s situation may not fit neatly in the box of conforming/standard guidelines. This is where the Non-QM loan options can help. Some business owners, for example, with exceptional credit may not show enough income for conforming qualification even though, “in real life”, they can afford a certain mortgage payment. Some Non-QM options would allow business or personal bank statements to be used to qualify their income instead of tax return calculations. Non-QM loan programs offer flexibilities in one or multiple areas of qualification which, in some cases, can be the break someone needs.
Secondary financing refers to second mortgage options, which can be used in refinance or home purchase scenarios. In purchase scenarios, secondary financing is used concurrently with a first mortgage to avoid mortgage insurance requirements or when it’s necessary to obtain the most favorable first mortgage option. In short, secondary financing can be used in creative and somewhat sophisticated ways to get the job done and to provide our client with the most favorable financing possible.
Here are some features of secondary financing options we offer:
- Fixed Rate Second Mortgages options
- 10, 15, 20 or 30 year terms
- Credit scores as low as 680 allowed
- Can borrow up to 90% of the home’s value
Reverse Mortgage Financing
Designed for homeowners age 62 and older, a reverse mortgage can help you unlock the equity in your home or finance a new home purchase. We make this piece of longevity-planning puzzle seamless and simple. As specialists in reverse mortgage financing, we are dedicated to helping people learn more about how reverse mortgages can be part of a retirement plan.
When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.
Whether you’re supplementing your income, investing full-time or have just purchased your first property, Finance of America Commercial is dedicated exclusively to real estate investors like you. Contact us for more information.
Product not directly offered by Mortgage Evolution. See your advisor for details. Broker featured in this advertisement is not employed by Finance of America Commercial LLC and their affiliation with Finance of America Commercial LLC is limited exclusively to the commercial loan products they can offer through their broker relationship with Finance of America Commercial LLC.
Product offered through Finance of America Commercial LLC || NMLS ID# 1133465 | Product not offered in all states. | Loans are subject to investor and business credit approval, appraisal and geographic location of the property and other underwriting criteria. Loan amounts and rates vary depending upon loan type, LTV, verification of application information and other riskbased factors. Application fees, closing costs and other fees may apply.
Some properties, due to condition, are not eligible for traditional, mainstream financing. An excellent option may be the FHA 203k rehabilitation loan. We have a department dedicated exclusively to this loan program.
This is not a commitment to lend. Prices, guidelines and minimum requirements are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision.