Non-Traditional Lending

To the Students from the March 29-31 Prelicensing Class in Bellevue, WA

Hi Everyone,
Here are the Q&As from Day 1.
There was a question about Errors and Omission Insurance available for loan originators. In doing research, I see that carrying this type of insurance is a requirement already in some states and in those states, insurance carriers have stepped up to offer the product. I can forsee a [...]

30Mar2010 | mf | 0 comments | Continued

Z3 Case Studies

Pedro and Kip are ready to buy a home.  Kip is a Veteran and they want to use her VA Eligibility Certificate to finance a home.  Pedro just finished college and has a degree in theater.  He is new on the job and works in customer service in a white collar industry.  Kip has worked [...]

24Nov2009 | mf | 19 comments | Continued

Z2: Case Studies

Vashon and Riley want to re-enter the housing market as investors. (They currently own their own single family homes.) They have attended several investment seminars put on by local real estate agents and have decided to begin buying homes at the foreclosure auctions or buying REOs from the banks.  They both have $50,000. to invest [...]

24Nov2009 | mf | 20 comments | Continued

Z1: Case Studies

Steve and Scott want to buy a small, 4 unit investment property. They will each live in a unit and they will rent out the other two units.  Steve is a Veteran. The home is located in a USDA approved area.  They have saved 10% for a downpayment. Which loan program would your group recommend [...]

24Nov2009 | mf | 20 comments | Continued

VA Loans

VA guaranteed home loans benefit veterans because they do not need to make a down payment and there is no upper limit or required cap on the income of the borrower.  Without a down payment as security against foreclosure, lenders receive a certificate of guaranty from VA.  In essence, as gratitude for honorable military service, [...]

24Nov2009 | mf | 17 comments | Continued

Hard/Private Money

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than a traditional mortgage loan. Hard money is similar to a bridge loan, which usually has [...]

24Nov2009 | mf | 22 comments | Continued

USDA Loans

USDA Rural Development Loan home page
USDA Mortgage Loan Origination Handbook
USDA ActiveRain channel
USDA Fact Sheet
USDA Guaranteed

Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Eligibility: [...]

24Nov2009 | mf | 19 comments | Continued