How we are different:
1. Lower closing costs at the same rate
Example: Compared to Chase, US Bank, and Wells Fargo, on a $200,000 loan, our closing
costs are about $3,000 less . $300,000 loan, $4,500 less , etc.
The most we've ever beaten someone by is $10,000 .
How is this possible? Two reasons: 1 is the difference between wholesale and retail lending.
If a loan officer at a retail lender does something really egregious like forge someone's
pay stubs and gets caught, the lender is on the hook for his behavior. If we forge someone's
pay stubs, the lender is not on the hook. That liability has shifted to us, the broker.
By being subject to less liability, a wholesale lender can offer the
same loan at less cost. 2 is our fee . On normal loans, we charge 1.5% of the loan amount.
The maximum allowed by federal regulation is 3%. So you could be talking to another broker
who is also in the wholesale lending space, quoting you the exact same lender because that
lender was the best deal that day. But if they're charging 3% and we're charging 1.5%, we
still beat them by that same margin. If that sounds too good to be true, see the "Licensing
info" video above to verify licensing.
If you'd like a rate quote, we do not require a credit pull, loan application, or documentation. Call or e-mail, and we will tell you the information we need.
2. Higher debt-to-income ratios than bank lenders (we work with non-bank lenders)
Example: A couple making $80,000/year combined, with a $500/month car note and $200/month
student loan, Conventional, 5% down, 6.0% rate, 600/mth taxes + insurance: With a 50%/50%
DTI cap, we can pre-approve up to a $340,000 purchase price. A bank with
a 36%/45% DTI cap can only go to $285,000 . Same couple, no debts other
than the new mortgage: We can pre-approve up to $460,000 , 36%/45% lender
is capped at $303,000 .
This is not an advertisement, promise, or even an implication that you will qualify
for a 6.0% rate. Your rate will vary based on a number of factors, including but not limited
to the following: The state of the global financial markets, your personal credit score,
down payment, occupancy, and term.
3. We typically start with a soft credit pull so your scores are not affected
We also make suggestions to improve your credit score in the short run. An
improvement of 20 points on a Conventional $200,000 loan can easily translate into
a $250-500 savings in lender fees. $300,000 loan, $375-750, etc. Sometimes it's much
more, depending on down payment (or equity position, in the case of a refinance) and
which credit tier you're moving from.
Note: This is not credit repair, which is typically a longer term plan (1 year) for someone
trying to raise their credit score significantly, i.e. 50 points or more.
4. Besides your standard Conventional, FHA, VA, and USDA loans, purchase and refinance,
fixed and adjustable rates, 10-30 year terms, we offer a variety of alternative loan products.
Are you a business owner who has been turned down, due to the deductions on your tax returns
causing you to show little to no income? We can qualify you off of bank statements. Do you
have zero documentable income but at least a 640 credit score and lots of savings (or equity,
if a refinance)? We can do that loan. Are you good on income and credit, but have little to
no savings? Ask about our down payment assistance program. Good income and savings, but low
credit score? We can go down to 500 FHA/VA, 550 USDA. See below for more detail:
1. Use a concurrent, aka piggyback, HELOC to:
a. Purchase the new home before selling the old home
b. Avoid Jumbo rates and/or underwriting guidelines on the 1st mortgage
c. Avoid mortgage insurance
d. Avoid a Full Review and instead use a Limited Review on a condo
2. Assets as income: Don't have a job or own a business, but have a lot in a bank
account, brokerage account, etc.? Use that to qualify.
3. Renovation loans: Close in a normal timeframe (i.e. 30 days), finance the cost of
improvements, and have the work done over a maximum of 6 months post-close.
4. Under contract on a new build that won't be complete for awhile? Lock up to 180
5. Closing cost assistance from $500-$1,500 in the form of a gift that never needs to
be repaid, a pilot program by Freddie Mac. Income limits apply.
6. 1% Down: Bring 1% of your own down payment, receive 2% down payment in free money
from the lender, no monthly mortgage insurance. Conditions apply.
7. Down payment assistance for FHA loans in the form of a 2nd mortgage.
Negotiate a seller concession to cover your closing costs and you could literally be zero out of pocket.
Closing cost assistance for USDA loans, also in the form of a 2nd mortgage.
8. FHA and VA loans down to a 500 credit score, USDA down to 550.
a. Self-employed or own a business but don't qualify for a QM due to all of your deductions?
Qualify off of your bank statements in lieu of tax returns.
b. Community Mortgage: Qualify for a primary residence or vacation home using your
credit score, down payment, and reserves (funds left over in your possession after closing).
Your personal income or debts will not be factored in.
c. DSCR (debt service coverage ratio): Qualify for a rental property purchase using
the cash flow of the property. Your personal income or debts will not be factored in.
d. Close in an LLC, corporation, etc. instead of as a natural person
e. Interest only payments
f. 40 year term
g. Foreign national
h. ITIN in lieu of SSN
10. Hard money (short term business loans tied to real estate, not subject to state licensing):
a. Fix & Flip: If you don't qualify off of your income, or you wish to do
the work yourself instead of pay a contractor's markup, this loan product is for you.
b. Loan of last resort: Are you in bankruptcy or foreclosure, but
have a lot of equity that you'd like to tap into? Are you trying to close on an acquisition,
but had an investor pull out last minute? Are you trying to purchase raw land but no one
will lend to you? Ask us if we can help.