Most homebuyers will simply need a basic, straightforward, typical loan. Conventional loans and FHA loans, for example, perfectly fit most borrowers, allowing them to purchase the home they need at a price they can afford.
But some borrowers are different.
Investors, foreign nationals, people with second homes, or buyers who prioritize monthly cash flow all need different loans that fit their unique situation. With that in mind, we proudly offer a variety of different loans that fit the specific needs of various borrowers. From cross-collateral to interest-only payments to home equity loans on investment properties, these loan options allow you to fully maximize your borrowing potential.
Specialty Loans: Unique Options Available from Our Team
“Collateral” is simply an asset that acts as security against a loan. If the borrower were unable to repay the lender, the lender would have a right to seize the collateral. For home loans, the property itself is the collateral; if the owner can’t repay the mortgage, the lender (usually the bank) seizes the property through the foreclosure process.
“Cross-collateralization” is simply using a property as collateral for multiple loans. Essentially, you use an asset that is already collateral for one loan as collateral for another. (Taking out a second loan on a home is essentially cross-collateralization.”) This is an extremely helpful option, and it can be used to relieve some of the hassle that comes with buying and selling properties. Essentially, this program allows you to avoid having to sell a departing property before purchasing a new one.
Financing for Foreign Nationals
It can be difficult for foreign nationals to find financing for their home-buying needs. Whether it is for a personal home or an investment, many foreign nationals discover that the credit they established in their home countries is not recognized in the United Stated, creating problems for their overall borrowing potential.
However, foreign nationals can bring a high level of investment into our country, so we are proud to help these people find financing for their specific needs. This includes owner-occupied properties so someone can purchase their personal home, but also includes investment properties, allowing foreign nationals to utilize the profitable American real estate market.
HELOCs on Investment Properties
A Home Equity Line Of Credit, or HELOC, (pronounced “hee-lock”) is essentially a line of credit that borrows against the equity you have in your home. The equity acts as security against the loan, which allows the lender to provide lower borrowing costs. When you need cash for home repairs or maintenance (or virtually any other purpose), this can be a useful choice.
A HELOC is not a typical loan where you are given a specific lump sum of money. Instead, it is a line of credit that you can use as needed. For example, you might get a HELOC worth $15,000; in this case you are able to borrow up to $15,000. You may only need $7,000, but the full amount is available if needed. HELOCs have a draw period, when you can use the credit, followed by a repayment period.
HELOCs on personal homes are common, but HELOCs on investment properties are not. A HELOC on an investment property allows you to make a variety of purchases while utilizing the equity you have generated in your rental properties. If you need repairs for windows, siding, or a new furnace, a HELOC can be a useful option.
Investment-Property Loans with No Ratios Required
For some borrowers, the debt-to-income ratio can hold up the borrowing process. Property investors, for example, can have a hard time getting loans if many of their properties are financed; even if their income is good and they are not at all stretched for finances, the ratio may arbitrarily hold them back.
However, there are borrowing options for investment properties that are available without using a debt-to-income ratio. For example, there are loans that can use future rent as income towards the loan, which eliminates the need for ratios.
Interest-Only Payments for Ten Years
If you want to reduce the amount of your mortgage payments while still being able to purchase a top-quality property, either for personal use or as an investment, we offer loans that have a 10-year interest-only period.
First is a 30-year fixed loan for owner-occupied purchases. With this loan, you can purchase your personal home and have reduced payments for a decade. This is useful if you want to keep your finances for investments or to make repairs to your purchase.
The other option is a 40-year loan with ten years of interest-only payments on an investment property. This loan option allows you to expand your investment portfolio while maintaining low payments.
15% Down on Investment Loans Up to $2.5 Million
Borrowing a significant amount of money can be difficult, as you are often required to bring a large downpayment, sometimes equalling millions of dollars for the downpayment alone. However, you can use our services to access $2.5 million in purchases with only 15% down on your investment properties.
10% Down On Loans Up to $3 Million
There is another option that allows for $3 million with only 10% down if you are using a gift fund for the downpayment and closing costs. This can be used to purchase a wonderful owner-occupied home.
Second-Home Purchases with Only 5% Down
If you are looking to purchase a second home, this is a fine option, as you only need 5% down. You can use this for up to $2 million, making it a popular choice for high-end second homes.
Owner-Occupied Purchases with Only 5% Down Up to $2.5 Million
You also have the chance to use a 5% downpayment on an owner-occupied property. If you are purchasing your primary home, this option creates more borrowing power with less up front expense.
Specialty Loans to Enhance Your Home or Investment Portfolio
If you want to take advantage of one of these specialty loans for primary houses and investment properties, contact our staff today!
“Chad, it was a pleasure working with you. Your loan was smooth, speedy, and we were kept well informed. I will make sure to prioritize offers where you are the loan officer as I know they run smoothly.”
A very responsible and experienced professional with his highly effective team
I really enjoyed working with Chad Baker and the rest of the team. This was our first time buying a home in California and we started with unnecessary assumptions based on our previous experience as home-owners in a different state. Chad and his team were available throughout the whole process, explaining the state differences, answering all our phone calls and emails quickly and directly, and providing detailed weekly status reports so that all parties including agents knew exactly where we were in the process. Chad was very experienced and provided customized loan products for us to consider, which definitely facilitated our transaction. I recommend the Chad Baker team! ”
Chad and his team are fantastic!
Chad and his team assisted me with the financing of my condo. Every member of Chad’s team was extremely professional, highly competent, super responsive, and friendly. They realize that financing a home can be a stressful experience and they do their best to alleviate that stress by keeping you in the loop on everything. They were great about giving me frequent updates on the status of my application. In addition, they happily answered my questions. At one point, when I felt like I was pestering Chad with questions, his response was a friendly, “keep them coming!” And he meant it!!! Likewise, Maria and Karina were just a pleasure to work with as well! This team is like a fine-tuned machine. Thank you so much for all of your help!!!