Phil Caulfield Jumbo Loan California DRE #01030082

Stated Income Jumbo Loans

August 28, 2009 - Stated income jumbo loans have become available in California.

They are available for primary residences, vacation homes, rental property, and commercial property. This program is available on a wholesale basis through mortgage brokers, and I can also help homeowners and home buyers personally also.

In this post I will let you know about the features of this program for stated income jumbo loans.

This program for stated income jumbo loans is available for properties in California. The property should be within twenty miles of the California coast, however there can be exceptions.

If you are borrowing or have clients that need stated income jumbo loans with high loan amounts, that is OK. Eight digit loan amounts are accepted.

Stated income jumbo loans have traditionally required high credit scores. This program has a sliding scale for rates, with credit scores lower than 580 possible if the file has strong compensating factors.

This program for stated income jumbo loans accepts high loan-to-value (LTV) percentages. For example, on loan amounts up to $4 million, it allows a LTV of 75%.

Institutional lenders usually restrict the dollar amount of cash-out. This program allows unlimited amounts of cash out for stated income jumbo loans. This is a huge niche in the mortgage marketplace.

There are several different amortization options available. The borrower could amortize the payments over 15, 20, or 30 years. An interest-only option is available also.

Stated income jumbo loans that are funded by this program also have a term option. The term option ranges from one to five years.

There is a one year pre-payment penalty. However, the pre-payment penalty can be bought out with an addition to the fee. On the other hand, the rate for these stated income jumbo loans can be reduced by accepting a longer pre-payment penalty than one year.

Although I have described this as a program for stated income jumbo loans, full documentation loans are available. The rate can be reduced for full documentation, as well as for loan-to-value percentages less than 45%.

If you are expecting to get an A paper rate for your loan file, it ain’t gonna happen. I would describe the terms as between A paper and hard money. However, this program can really help people who can’t qualify for A paper, or who have specific needs that institutional lenders can’t fulfill.

The next step is to contact me . Again, I can help both homeowners and mortgage brokers with this program for stated income jumbo loans.

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Are you looking for a jumbo loan in San Mateo, CA? I can help you. As a mortgage broker in Burlingame (right next door to San Mateo), I am able to match you with the best jumbo loan for your needs because we are partners with many of the best jumbo lenders in the country.

As a mortgage broker, I save you money, time, and hassle in obtaining a jumbo loan.

I save you money because I offer a smorgasbord of jumbo loan programs.

If you call a bank they will offer you only the programs they have. Their jumbo loan programs may or may not be competitive. Their underwriting guidelines may not meet your needs. The benefits I offer is that I know who offers the most competitive jumbo loan rates. In addition, I know what the underwriting guidelines are of each of the lenders. With this knowledge I am able to save you money on your jumbo loan request.

I can save you time with your jumbo loan request.

Your time is valuable; you could spend a lot of it calling on the phone and searching the Internet for the best jumbo loan terms, or you can make one call to me because I have access to most of the jumbo loan programs.

Another way I can save time is I can say no to you. If you call a jumbo loan lender that is limited in programs available, they may try to push your file through their underwriter in hopes of getting it approved. Since I have so many jumbo loan programs available, I can say no, that will not work, here is an alternative that will.

Nobody likes the hassle of applying for a jumbo loan.

I minimize the hassle for you. After taking your jumbo loan application, I will send you a checklist of documents needed. Most loan agents provide this, however, my checklist is different. It is very specific to your situation. If your jumbo loan application requires two years of tax returns, I will ask for two years of tax returns - if it is not required I will not. I minimize your hassle by being very specific about your jumbo loan documentation requirements. Also, I try to get as much of your information upfront so that you are not getting nagging phone calls asking for more jumbo loan documentation.

San Mateo, CA has some very expensive homes. It's not unusual to see homes listed for sale for more than $2,000,000. If you need a jumbo loan of more than $1,000,000 do not be surprised if the lender requires two appraisals. The lender will usually use the appraisal with the lower value when underwriting your package.

If you are thinking about refinancing and obtaining a jumbo loan with cash out, don't be surprised if the lender limits the amount of cash out to $200,000. There are exceptions to this general rule - this is one area in which I can really help you because I know which jumbo loan lenders allow more than this amount.

Now in August, 2009, obtaining a jumbo loan is more difficult than ever. Make sure you contact a seasoned loan professional that you are confident than can help you navigate through this process!

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A Burlingame business networking group was recently formed in June, 2009. It is under the auspices of BNI, the largest business networking group in the world. The goal of this group is to pass referrals to business owners that we know, like, and trust.

If you are unfamiliar with BNI, here is a little bit of information for you. The networking group meets weekly. During the meeting there is an opportunity to network with members and guests. Each person is also allowed to give a 30 to 60 second "infomercial" about their business and the type of people they would like to meet.

Only one person per occupation is allowed in each chapter. There is an intial fee to join, and monthly dues are charged to cover the costs of the meeting room and meals.

Guests are encouraged to attend our networking group. Guests are allowed to attend two meetings before deciding to make a commitment to join our group.

The Burlingame BNI networking group meets every Thursday from 7:30 AM to 9 AM at Sapore Italiano restaurant. The restaurant is located at 1447 Burlingame Avenue in Burlingame.

If you are looking to grow your business, please come as my guest to see if this networking group would be of benefit to you. We are looking for owners or representatives of all types of businesses. If your occupation has been committed to in our group, we may be able to refer you to another local group.

I look forward to meeting you!

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Are you looking at homes for sale in Burlingame? Burlingame is a very desirable area to live. Here are some tips for you if you are planning on financing with a loan the purchase of one of the Burlingame homes for sale.

Although many of the homes for sale in Burlingame are valued for more than one million dollars, there are plenty of homes that sell for less than this amount. A 10% down payment is required for conventional financing with a purchase price up to $810,833. This sale price will allow an agency jumbo loan of up to $729,750. An agency jumbo loan is a loan that can be purchased from the lender by Freddie Mac or Fannie Mae.

If you need to borrow more than $729,750, then you will need to obtain a jumbo loan. Here in August, 2009, the jumbo loan market has become more accessible than it has been in the last two years. This accessibility is great news for homebuyers that are looking at homes for sale in Burlingame.

Here are the maximum loan amounts for a fully documented loan to purchase one of the homes for sale in Burlingame with a jumbo loan:

• 80% with a maximum loan amount of $1,100,000
• 75% with a maximum loan amount of $5,000,000

These maximum loan amounts require certain credit scores. If you do not have the minimum credit score required, then you will have to make a larger down payment.

On the subject of credit scores, some lenders will reduce the points charged based on certain credit scores of the borrower. If you have submitted an application to purchase one of the homes for sale in Burlingame, ask your loan agent if you qualify to have the points charged reduced.

Suppose you need to stretch your budget because the homes for sale in Burlingame are expensive. Here is a strategy that can help you maximize the loan amount and sale price that you are comfortable with - it's called the "buydown strategy".

Here is the buydown strategy in a nutshell: instead of insulting the seller of one of the homes for sale in Burlingame with a lowball offer, try this: make an attractive offer to the seller on the sale price, and ask the seller to credit you at closing up to 6% of the loan amount toward non-recurring closing costs. With this credit toward closing costs, you can use these funds to buy down your interest rate. This strategy will increase your purchasing power by roughly 14%.

For example, if you thought your monthly budget would allow you to purchase one of the homes for sale in Burlingame for $1,000,000, the monthly equivalent budget would be up to $1,140,000 with the buydown strategy, more or less.

One of the most important tips I can give you if you are going to make an offer on one of the homes for sale in Burlingame is to get pre-approved for your loan. Homes for sale in Burlingame that are in a good location and priced attractively often receive multiple offers. If you are not paying cash, you will lose in a multiple offer situation without a pre-approval letter.

In order to obtain a letter of pre-approval, you will need to provide your loan agent an application, along with your income and asset documentation. Your agent will obtain a credit report, and ask you what the maximum sale price, down payment, and monthly payments you are comfortable with for your offer or offers on homes for sale in Burlingame. With this information, they will submit your file and get it pre-approved prior to making your offer(s).

If you have a difficult time proving that you can afford the monthly budget to afford one of the Burlingame homes for sale, there are programs available that do not require you to provide income documentation. Here are the maximum loan amounts for this program:

• 75% of the sale price up to a loan amount of $1,000,000
• 70% of the sale price up to a loan amount of $1,500,000
• 65% of the sale price up to a loan amount of $3,000,000
• 60% of the sale price up to a loan amount of $4,000,000

My last tip is that if you want to purchase one of the great homes for sale in Burlingame, work with a competent loan agent. Getting a low rate is important, but getting your loan approved quickly with the least amount of hassle is just as important!

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Are you looking for a construction loan in the Los Angeles, California area? Well, it has not been easy to find funding for a construction loan lately, but there are some sources starting to make funds available.

If this is the first time you have looked for a construction loan, there are some details that you need to know.

First, there are generally three parts of getting a construction loan approved. The first part is the general contractor approval. The lender will usually like to see the contractor's resume, list of projects completed, credit history, licensing, and insurance coverage.

The second part of getting a construction loan approved is the project approval. The lender will want a copy of the plans, construction contract, permits, receipts for payments, and a list of building materials.

The final part of getting a construction loan approved is credit approval. Credit approval for a construction loan is similar to getting credit approval for a mortgage. The lender will look at your capacity to re-pay (employment, income, debts, repayment history, etc.).

Here are some tips that will help you with your construction loan:
1. Do not start construction until your construction loan has been recorded with the county. It makes the process much easier for you and the lender.
2. Hire a general contractor with a strong resume and a good reputation for his work in the Los Angeles, CA area.
3. Be very organized with your documentation for the lender. The easier you make it for the lender, the easier it will be for them to approve your construction loan.

Once these three parts of the construction loan are approved, the lender will start to disburse your funds. The first disbursement will pay off your existing mortgage, if you have one. The exception to this disbursement would be if they approved it as a second mortgage (rare).

A construction loan usually has some built-in protection for the borrower: funds are usually not disbursed until an inspector inspects the property to make sure the work the contractor is asking payment for has been completed in a workmanlike manner.

The payment you make for a construction loan is similar to that of a payment on a home equity line of credit - you only pay interest on the amount disbursed.

For example, If you are approved for a $1,000,000 construction loan, but only $500,000 has been disbursed, then you would only pay your monthly payment on the $500,000 disbursed.

Sometimes a construction loan will be set up with a reserve fund. The reserve fund is used to make your payments. A reserve fund is nice because it allows you to keep your money in the bank. On the other hand, if you do employ a reserve fund to make your payments, you will be paying interest on interest.

After the project has been completed, you have three options as a borrower: pay the loan off, accept permanent financing from the construction lender (usually worked out prior to the beginning of a construction loan - called a construction to perm loan), or obtain a take-out loan (a loan from another lender to "take out" the construction lender). These choices are necessary because construction loans are usually written with a payoff date from six to twelve months from the initial disbursement.

Here in the summer of 2009, the cost of construction has declined in Los Angeles, CA because of our economic downturn. Now may be a good time to consider building that new home or re-modeling the home you have. Remember, get that construction loan lined up first!