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Mortgage Loans For Foreign Nationals Customers

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Mortgage Loans For Foreign Nationals Customers

Does your client have to be a U.S. citizen to get a Mortgage Loan?

No, your client does not need to be a U.S. citizen to qualify for a mortgage loan. Foreign Nationals can qualify for a mortgage loan, as long as they can prove their residency status and meet the loan’s eligibility requirement.

It’s certainly possible to get a mortgage loan if they’re not U.S. citizens. In fact, a 2020 study from the National Association of Realtors (NAR) revealed that 62% of resident foreign home buyers purchased their homes with U.S.-based financing.

The process can vary depending on their residence status and other factors, but lack of citizenship shouldn’t present an issue when it comes to securing a mortgage loan. Here’s how to qualify for a mortgage as a non-U.S. citizen.

Is It Possible to Get a Mortgage Loan As a Foreign National?

Documentation requirements when applying for a mortgage loan will largely depend on your client’s resident status—whether it is permanent or non-permanent. In either case, buying a home in the U.S. is typically a matter of providing the required immigration and visa documents and meeting the loan criteria.

Meeting eligibility requirements may be challenging for some Foreign Nationals with limited credit information, as it may take some time to establish a solid history and credit score in the U.S. Fortunately, some lenders do not require borrowers to have a FICO® Score☉ and may elect to use a borrower’s international credit score to evaluate their credit history. Additionally, lenders may use non-traditional methods to assess the creditworthiness of applicants with a thin credit history or no credit score. That may involve the lender reviewing:

  • Payments for rent, utilities and other recurring bills
  • Bank account information, including recurring payroll deposits
  • Employment verification
  • Property records
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Lenders may use non-traditional methods to assess the creditworthiness of applicants with a thin credit history or no credit score

How Residency Impacts a Mortgage?

The process of qualifying for a mortgage loan is similar to what U.S. citizens experience if you’re a permanent resident with a green card or a non-permanent resident with a work permit or valid work visa. That’s because a lawful resident of the U.S. is eligible for a mortgage loan on the same terms as a U.S. citizen, according to standards published by Fannie Mae and Freddie Mac, the government-sponsored enterprises that guarantee most mortgages originating in the U.S.

However, those standards can cause it to be more challenging for foreign nationals who don’t reside in the U.S. to qualify for a mortgage loan.

A lender may still approve a mortgage loan for a foreign national whose primary residence is outside the U.S., but that means they won’t sell the loan to a government-sponsored enterprise. In this case, the lender may require a significant down payment (as high as 30% to 50%) to help offset their risk.

Mortgage Loan Requirements for Non-U.S. Citizens

Non-U.S. citizens must establish lawful residency in the United States to be eligible for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) home loans. A borrower may meet this guideline if they have the following:

  • A Social Security number (SSN) or, alternatively, an Individual Taxpayer Identification Number (ITIN).
  • They maintain “current” and “verified” status, supported by a valid employment authorization document (Form I-766/EAD) or a green card (Form I-551), work visa or other documentation proving current immigration status.

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A lawful resident of the U.S. is eligible for a mortgage loan on the same terms as a U.S. citizen, according to standards published by Fannie Mae and Freddie Mac

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Legal Non-Permanent Status

Many lenders may accept specific visas instead of an EAD as proof of borrowers legal non-permanent resident status, including:

  • NATO series (NATO 1-6)
  • Canadian and Mexican NAFTA series (TN)
  • E series (E-1, E-2, E-3)
  • G series (G-1, G-2, G-3, G-4, G-5)
  • H series (H-1B, H-1C, H-2, H-3, H-4)
  • L series (L-1A, L-1B, L-2)
  • O series (O-1A, O-1B, O-2, O-3)

Documentation For Foreign Nationals

In addition to establishing your client’s legal residency status, they’ll also need to provide documentation that shows the lender they meet standard mortgage loan requirements such as:

  • Employment and income verification: Be prepared to show recent pay stubs and W-2 forms covering the past two years. If you’re self-employed, 1099 forms from the past two years and/or a current profit and loss statement may suffice.
  • Asset verification: You may need to provide banking and investment account statements, such as savings, checking, retirement and brokerage accounts.
  • Financial liabilities: Your lender will want to understand your monthly debt obligations and certain other financial responsibilities. This includes bills for credit cards, auto loans, student loans, medical bills, alimony, child support and so on.
  • Personal information: You’ll need to provide personal identification, a Social Security card, rental history and immigration paperwork.

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A lender may still approve a mortgage loan for a foreign national whose primary residence is outside the U.S., but that means they won’t sell the loan to a government-sponsored enterprise

Find a Mortgage Lender as a Non-U.S. Citizen

Regardless of your clients citizenship status, it’s always wise to compare multiple lenders to ensure your clients get the best interest rate and terms available.

Before you search for a Foreign National Mortgage Loan, do a little homework to see what type of loan your clients may be able to qualify for, such as:

  • Conventional loans: Permanent and nonpermanent residents with a credit score of 620 or above may qualify for a government-backed mortgage. If you meet other criteria like two-year employment history, consistent income and a debt-to-income ratio (DTI) below 43%, you may be able to get a mortgage with a down payment as low as 3%.
  • FHA loans: FHA loans typically come with more lenient eligibility criteria, including down payments as low as 3.5% and minimum credit scores as low as 580. Non-U.S. citizens must have a Social Security number, valid green card, visa and income to qualify for an FHA loan.
  • USDA loans: The Department of Agriculture (USDA) loans offer loans to low- and moderate-income borrowers who want to buy a home in a rural area. Non-U.S. citizens need a Social Security number and valid Employment Authorization Document (EAD) to qualify for these no-down-payment loans.

Bottom Line

We offer a variety of fixed rate, adjustable rate, and interest only Foreign National Mortgage Loan Program throughout the State of Florida. We even have access to great alternative documentation loan programs where your clients may be able to qualify using bank statements and/or assets instead of W2s or tax returns.

If you have any questions about getting your clients qualified for a Foreign National Mortgage Loan feel free to contact us (786) 380-6621

This article was originally published by Tim Maxwell in www.experian.com

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Who is eligible for Non-QM Loans?

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Who is eligible for Non-QM Loans?

If your clients don’t meet the tight mortgage loan requirements of the Consumer Financial Protection Bureau (CFPB), they could be candidates for a NON-QM loan, also known as a Non-Qualified Mortgage Loan. These borrowers are those who own rental properties, are self-employed, or do not otherwise qualify for a conventional loan. Self-employed borrowers can also fit into the QM space with DG Pinnacle Commercial.

Borrowers who previously struggled to qualify for a QM loan because of credit concerns (such as bankruptcy, foreclosures, late payments, or other isolated credit issues) or have an unusual source of income may also consider this alternative.

This form of mortgage loan allows your clients to be eligible based on alternate ways as opposed to the usual income verification required for the majority of loans. Because they have more flexible qualifying requirements, NON-QM loans give a wider range of people the chance to invest in real estate.

Non-QM Loans Vs Common Misconceptions

An “agency” mortgage-backed security is a qualified mortgage loan. A Non-Qualified Mortgage Loan, in contrast, is appropriate for borrowers with unique circumstances or those whose salaries fluctuate from month to month. It is referred to as “non-agency” or “private-label.”

Many people experience wage fluctuations, including pensioners, self-employed business owners, and those working in the hospitality industry. By providing dynamic underwriting criteria for responsible borrowers with unique income requirements, NON-QM bridges the gap in this situation.

There is a common misconception that NON-QM loans are “bad loans” in disguise and should not be used. The truth is that these loans are subject to a different set of regulations than QM loans in order to safeguard NON-QM lenders and consumers from high-risk loans. The application process for NON-QM loans is largely similar to that for QM loans, with the exception of the documentation required.

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This form of mortgage loan allows your clients to be eligible based on alternate ways as opposed to the usual income verification required for the majority of loans

What Sets a QM Mortgage Apart from a NON-QM Mortgage Loan?

The main distinction between a QM loan (Qualified Mortgage) and a NON-QM mortgage loan is that a QM mortgage loan is more likely to be a conventional loan with government backing.

The greatest option for a real estate entrepreneur wanting to buy an investment property is a NON-QM with a private lender because a conventional loan (QM) is often performed through a bank or traditional financial institution on an owner-occupied property.

For real estate investors, a NON-QM or non-qualified mortgage loan is often a portfolio loan that does not meet the strict government or conventional mortgage criteria.

Why NON-QM Loans are Perfect for a Borrower’s Real Estate Investment?

Contrary to traditional investment property loans, which have a maximum LTV of 70%, a NON-QM Mortgage Program has a maximum LTV of 80%, has no PMI, and has rates as low as 7.46%. As a result, the borrower can make a smaller down payment on their purchase; average loan amounts range from $100,000 to $5,000,000.

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The greatest option for a real estate entrepreneur wanting to buy an investment property is a NON-QM with a private lender

Happy realtor in office with young couple in background | What are the Benefits of a DSCR Loan? | DG Pinnacle Commercial - Miami Mortgage Lender

How Does a Real Estate Investor Meet the Requirements of a NON-QM Loan?

NON-QM loans can be a better option for some of your clients if they’re real estate investors with an investment property and require a speedy turnaround without strict rules; these loans are exempt from these rules! The bottom line is that NON-QM lenders, including DG Pinnacle Commercial, can now approve additional sorts of real estate investment transactions more quickly.

To evaluate if a borrower can successfully repay the loan in the future, private lenders who use QM loans must first qualify the borrower’s income, liabilities, and monthly debt payments. Real estate investors must meet the stringent criteria established by the Consumer Financial Protection Bureau in order to be approved for a QM loan. This approval procedure typically takes more than a month to complete and involves borrowers to submit substantial evidence regarding their credit history, income, assets, and monthly debt payments.

Private money and NON-QM lenders are aware that every borrower has a unique situation and that not all borrowers would look like good candidates for a loan to a traditional financial institution (like a bank). The borrower’s job position, income, credit history, and need for liquid assets may be the reason for this restriction; nevertheless, with a non-qualified mortgage, private lenders prioritize a good credit score, investing experience, and liquid assets.

As a result, the lenient requirements of NON-QM loans make them perfect for the following categories of real estate investors:

  • Self-Employed Investors: We entirely comprehend how challenging it is to secure stable income, particularly in view of the historic year with COVID-19. Fortunately, NON-QM loans and asset-based loans are our areas of expertise at DG Pinnacle Commercial. We base our loans on the property’s actual value, the borrower’s credit rating, and their available liquid assets.
  • Foreign Nationals: Usually, government-backed loans demand a W2 or verification of a US Social Security number (which is a US tax form). NON-QM loans are the best option for foreign nationals who are in the United States on a visa and want to invest because they don’t have these limitations

The Advantages Of Non-QM Loans For Borrowers

NON-QM loans’ main advantage is that they present opportunities to borrowers who would not otherwise be able to qualify for mortgages. Millions of hard-working Americans, especially self-employed folks and small-business owners who have worked hard to succeed but are not eligible for QM loans, can now get the loan funding they need thanks to non-qualified mortgage loans.

The following are some advantages that borrowers receive from DG Pinnacle Comercial NON-QM loans:

  • Broader, more flexible underwriting standards
  • Being able to close more quickly than a QM loan
  • Ideal for 1-4 family investment properties
  • Does not demand tax records or proof of income
  • Those who are self-employed are the best candidates for NON-QM loans.

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Millions of hard-working Americans, especially self-employed folks and small-business owners who have worked hard to succeed but are not eligible for QM loans

Bottom Line

A NON-QM loan will help certain borrowers who have unusual sources of income or a high DTI get the money they require. Additionally, NON-QM lenders impose requirements for Non-Qualified Mortgage Loan customers and must assess their ability to pay back the loan.

A wide range of potential borrowers would benefit from this kind of mortgage loan, which can be utilized to purchase commercial and investment assets. It is best to get in touch with a licensed loan officer to find out if your clients qualify for a NON-QM loan and decide if this product is ideal.

This article was originally published in www.strattonequities.com

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Mortgage Loans For Your Self-Employed Customers

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Mortgage Loans For Your Self-Employed Customers

According to a recent McKinsey’s American Opportunity Survey, 36% of employed Americans identify as self-employed, representing a significant increase from an estimated 27% in 2016. This number includes “side hustles,” but 72% of independent workers say they have only one job. Those individuals, who include independent contractors, seasonal workers, vendors, freelancers, gig workers, and individuals who complete side jobs, often have difficulties securing a traditional mortgage.

Although this form of employment comes with benefits, such as greater flexibility and the ability to set rates and work schedules, it can be a significant hindrance when applying for a home loan. Most underwriters focus on elements such as steady employment, regular income, and tax returns to determine a borrower’s eligibility for a mortgage. However, independent contractors who receive 1099 earning statements often fall short in all those categories.

Although they may not qualify for traditional mortgages, self-employed individuals do not necessarily need to renounce their dreams of homeownership. 1099 mortgage loans are designed to help non-employees buy a home even if they may be ineligible for traditional home loans.

What is a Non-Qualified Mortgage?

Non-qualified mortgages, which include 1099 home loans, provide an alternative path to homeownership for borrowers who would not be eligible for qualified mortgages like conventional loans.

Qualified mortgages meet specific standards set forth by the Consumer Protection Act and the Dodd-Frank Wall Street Reform Act, signed by President Obama following the 2008 housing crisis. According to those criteria, the lender is restricted to using only the taxable portion of the applicant’s wages for qualification purposes. The procedure is relatively straightforward for employees who file a W-2 tax form since their income is typically regular and easily verifiable. However, not every borrower fits those standards. It is the case of self-employed individuals but also real estate investors, foreign nationals, and so on.

Non-qualified mortgages, on the other hand, use atypical methods of income verification to check the would-be borrowers’ ability to meet their mortgage obligations. For example, the underwriter may check the borrowers’ bank statements and other proofs of income, like 1099s, to verify their eligibility. Since non-qualified mortgages can be riskier for the lenders, they typically have lower loan-to-value limits as well as higher interest rates and credit score requirements..

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Those individuals, who include independent contractors, seasonal workers, vendors, freelancers, gig workers, and individuals who complete side jobs, often have difficulties securing a traditional mortgage.

Who Should Get a 1099 Loan?

1099 loans are a great option for self-employed borrowers, freelancers, contractors, and so on, who file using W-9s tax forms and will likely not qualify for a traditional mortgage.

In many cases, independent contractors write off their business expenses. This strategy helps them lower their tax burden but also reflects negatively on their taxable income and may disqualify them from a traditional mortgage. A 1099 mortgage loan evaluates the would-be borrowers’ financial soundness based on income from 1099 instead of tax returns.

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A 1099 mortgage loan evaluates the would-be borrowers’ financial soundness based on income from 1099 instead of tax returns.

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How to Qualify for a 1099 Mortgage Loan?

In order to qualify for a 1099 mortgage loan, borrowers must be able to prove that their income is sufficient to meet their mortgage obligations. Although their monthly income may not be as regular as employed borrowers receiving a salary, they must show that their business is profitable and consistent enough to provide the funds for a home loan despite the uncertainties that come with self-employment.

Since 1099 mortgage loans are perceived as riskier for the lending institutions than traditional mortgages, lenders often require would-be borrowers to have higher credit scores (at least 620 and over) and lower debt-to-income ratios than typical mortgages (typically 50% or less DTI.) It also means that the mortgage lenders will require more supportive documents: 1099 mortgage loan applications can be paperwork-heavy. The more documentation the borrower can provide to support their claim on their financial stability and ability to generate an income, the more likely it is that their application will be approved. The specific loan requirements for a 1099 mortgage loan depend on the lending institution, but the borrower must typically satisfy the following criteria.

To qualify for a 1099 mortgage loan, the borrower must be self-employed for at least one to two years, depending on the type of loan they are applying for. The borrower must provide employment verification documentation, such as communications with your licensed, certified personal accountant (CPA), proof of business such as business licenses, business insurance, membership to professional organizations, and so on. You must also demonstrate that you have a steady, reliable income using your 1099, but also other proofs of income, including bank statements, checks, and paystubs if you have another form of employment or other proof of payments.

If you intend to apply for a mortgage, it may be best to keep your business and personal expenses separate to minimize your credit utilization and increase your chances of being approved for a home loan.

Bottom Line

If your client is self-employed, he or she may not qualify for a conventional mortgage due to tax deductions. Our team of underwriting experts will then use your client’s business or personal bank statements to determine their monthly income after expenses.

This will enable you to offer them the best loan product for their needs.

Let’s get in touch so you can start expanding your business.

📲 305-851-5225

This article was originally published in www.crosscountrymortgage.com

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What are the Benefits of a DSCR Loan?

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What are the Benefits of a DSCR Loan?

The DSCR loan is designed for Real Estate Investors and mortgage brokers who want to qualify for a mortgage based on cash flow generated by their investment property instead of using income proof, tax returns, employment information, etc.

Because a DSCR may quickly identify a borrower’s ability to repay without requiring income verification, lenders use it to help real estate investors qualify for loans. Some real estate investors might not be eligible for a standard loan because they deduct expenses from their properties.

These real estate investors can qualify for the debt service coverage ratio loan more efficiently since they are not required to provide proof of income in the form of tax returns or pay stubs, which investors either don’t have or don’t accurately reflect their real income due to write-offs and business deductions.

For Whom is the DSCR Loan Perfect?

The DSCR loan is a good choice for investors who do not want to provide employment information, tax returns, payslips, W2s, etc. It’s ideal for self-employed borrowers with very complex incomes looking for an investment property, as it addresses the problem of having to deal with complex tax returns. It can also be a great option if you own several investment properties and say you have reached the traditional credit limit,

  • Investors who don’t wish to provide employment information (tax returns, payslips, W2, etc.)
  • Freelancers
  • Self-employed businessman
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The DSCR loan is designed for Real Estate Investors and mortgage brokers who want to qualify for a mortgage based on cash flow generated by their investment property

Benefits of DSCR Loans

  • Personal income is not taken into account by DSCR lenders: Because DSCR loans do not take into account your personal financial information, they are significantly more accessible to borrowers who may not have a considerable quantity of liquid assets.
  • They have quicker application and closure times: Because you won’t need to submit any personal financial information or explain gaps in your job history, DSCR loans often have a streamlined, quick application procedure.
  • You can commit to many properties simultaneously: Some mortgages require you to commit to only one home at a time. As a result, you can’t get a loan for a second property unless you’ve paid off your previous one. That is not how DSCR investor loans work. Instead, they allow you to obtain many loans for different properties at the same time simultaneously.
  • Ideal for both novice and seasoned real estate investors:DSCR loans are ideal for both novice and seasoned real estate investors. If you’re new to investing, this loan can help you get started on the right foot. And if you’re an experienced investor, a DSCR loan can provide the funds you need to take your business to the next level. So whether you’re just starting out or you’re a seasoned real estate investor, a DSCR investor loan is a smart option for financing your real estate investments.

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DSCR Loans often have a streamlined, quick application procedure

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How Can You Qualify for a DSCR Loan in 2023?

To qualify for a DSCR loan, the property’s rental revenue must meet or surpass the lender’s coverage ratio criteria. The coverage ratio, which varies based on the lender and borrower, is calculated as monthly rental income divided by mortgage payment. It normally ranges usually ranges from 1.0x to 1.5x.

The application procedure is streamlined and could take less time than a standard investment property mortgage because eligibility for a DSCR mortgage is mostly mainly on the rental income generated by the property rather than your personal income.

A real estate investor who wants to buy or refinance an investment property but does not have enough personal income to be accepted or does not want to give their tax, financial, and job paperwork is a good candidate for the DSCR loan program.

This article was originally published by Amresh Singh in www.homeabroadinc.com

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U.S. Cities Are Filling Up With Luxury Apartments

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U.S. Cities Are Filling Up With Luxury Apartments

Scores of luxury homes are coming to major cities across the United States.

Analysts at Yardi Matrix projected that more than 400,000 units were completed in 2022, and they expect another strong showing in 2023. Experts believe much of this new stock is built with upper-tier customers in mind.

High Prices

“You often see new housing branded as ‘luxury,’ in part because it’s new,” said Ethan Handelman, deputy assistant secretary at the U.S. Department of Housing and Urban Development. “When you get to affordable housing, we need to be providing some additional capital and/or rental assistance to help make that housing affordable to the people who need it most.“

Market-rate rents for new apartments can easily be multiple thousands of dollars monthly. For many high-wage earners in cities, this is achievable. But for moderate-income Americans, the sky-high prices appear disconnected from reality.

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For moderate-income Americans, the sky-high prices appear disconnected from reality

Prices and Regulations

“The marketplace is structured not to house certain people. We need to admit that,” said Dominic Moulden, a resource organizer at Organizing Neighborhood Equity DC.

Builders say the high cost of housing in the U.S. is related to the large amount of regulation in the housing sector. For example, they say, many U.S. cities are short on land due to restrictive zoning codes.

“Currently, 40% of the cost of multifamily development is in regulation,” said Sharon Wilson Géno, president at the National Multifamily Housing Council. “We have to do something about that if we’re going to build more housing.”

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Builders say the high cost of housing in the U.S. is related to the large amount of regulation in the housing sector

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Action Plans

In 2022, the Biden administration announced a housing action plan that aims to shore up housing supply within five years. But these efforts may not have a material impact on prices for some time.

“Unfortunately, I don’t think we’re going to see rents going down a whole lot over the next one to two years,” said Al Otero, a portfolio manager at Armada ETF Advisors. Developers cannot make a profit at those more affordable price points. Therefore, we see the development and the new construction at the much higher, higher end of the spectrum.”

This article was originally published by Carlos Waters in www.cnbc.com

Why You Should Help Your Clients Get a Conventional Loan in 2023

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Why You Should Help Your Clients Get a Conventional Loan in 2023

If you work with clients who are interested in buying a home, you may want to steer them towards getting a conventional loan. In 2023, there are several reasons why a conventional loan will be more advantageous for homebuyers than other types of loans. Keep reading to learn more!

What is a Conventional Loan?

Before we get into the reasons why a conventional loan is the best choice for your clients, let’s first review what a conventional loan is. A conventional loan is a mortgage that is not backed by the government. This means that the guidelines are set by Fannie Mae and Freddie Mac, which are government-sponsored enterprises.

There are two types of conventional loans: conforming and non-conforming. A conforming loan conforms to the guidelines set by Fannie Mae and Freddie Mac. A non-conforming loan does not meet these guidelines. The most common type of non-conforming loan is a jumbo loan, which is a loan for an amount that exceeds the limit set by Fannie Mae and Freddie Mac.

The most common type of non-conforming loan is a jumbo loan, which is a loan for an amount that exceeds the limit set by Fannie Mae and Freddie Mac.

Reasons Why Your Clients Should Get a Conventional Loan

Low Down Payment Requirements

One of the benefits of getting a conventional loan is that the down payment requirements are lower than they are for other types of loans. For a conforming loan, your clients will need to put down at least 3% of the purchase price of the home. For a jumbo loan, the minimum down payment is 10%.

More Lenient Income and Debt Requirements

Another reason to encourage your clients to get a conventional loan is that the income and debt requirements are more lenient than they are for other types of loans. For example, the debt-to-income ratio requirement for a conforming loan is capped at 50%. This means that no more than 50% of your client’s monthly income can go towards paying debts, including their mortgage payment, car payment, credit card payments, etc.

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This means that no more than 50% of your client’s monthly income can go towards paying debts, including their mortgage payment, car payment, credit card payments, etc.

Fixed-Rate Mortgage Options

Another advantage of getting a conventional loan is that there are fixed-rate mortgage options available. With a fixed-rate mortgage, your client’s interest rate will remain the same for the life of the loan, which gives them predictability when it comes to their monthly mortgage payments.

Adjustable-Rate Mortgage Options

If your clients are looking for an adjustable-rate mortgage, they can also find this option with a conventional loan. With an adjustable-rate mortgage, the interest rate will change over time based on market conditions. This type of mortgage can offer your clients lower interest rates and monthly payments at first, but there is also more risk involved because their payments could increase in the future if market conditions warrant it.

Private Mortgage Insurance Requirement Waived With 20% Down Payment

Another perk of getting a conventional loan is that private mortgage insurance (PMI) is typically only required if your clients make a down payment that is less than 20% of the purchase price of the home*. PMI protects lenders in case borrowers default on their loans; however, it can be costly for borrowers because it typically adds 0.5%-1% of the total loan amount onto their annual mortgage payment**. Waiving this requirement can help save your clients money each year on their mortgage payments.

Conclusion:

In conclusion, there are several reasons why you should help your clients get a conventional loan in 2023: low down payment requirements; more lenient income and debt requirements; fixed-rate and adjustable-rate mortgage options; private mortgage insurance requirement waived with 20% down payment.

*Private Mortgage Insurance (PMI) may still be required if HomeReady or Home Possible qualification criteria aren’t met even with 20%+ down payment.)

**This percentage may vary depending on factors like credit score.) Talk to one of our licensed Account Executives today about how we can help you!

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Goal-Setting Tips for Loan Officers

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Goal-Setting Tips for Loan Officers

Here at DG Pinnacle Commercial we believe that the more intentional we are about what we want to accomplish, the more likely it is that we’ll achieve our goals.

We also believe that in a rapidly changing industry like ours, it’s necessary to review and reset course more often than once a year. That’s why we suggest making a 90-day plan for mortgage loan officers to achieve their overall yearly goals. We refer to this as your 90-day sprint.

Micro-specific goals and 90-day strategies can help you reach your larger goals more effectively. They save you from getting overwhelmed by the overall goal and keep the plan manageable.

1. Create 90-Day Sprints

Once you have a general idea of what you want to accomplish, take your large goals and break them into 90-day increments. For instance, if you want to close $100 million in loans next year, you’ll need to close about $25 million every 90 days.

From there, outline the strategies you’ll need to achieve these goals, and put together a list of action items (organized by priority) to execute them. Then start working these action items into your schedule each week—and be consistent!

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The more intentional we are about what we want to accomplish, the more likely it is that we’ll achieve our goals.

2. Track Your Progress

Part of executing successful goals is tracking how far you’ve come since you began. This helps you figure out which actions will help you reach your goals and which ones won’t.

If you can, make notes of your activities and their results each day, and if something is not working, get rid of it. You’ll want to focus more energy on the activities that are working well. For instance, you may find that three follow-up calls per day netted you an average of two loans a month.

With enough data, you’ll find the motivation to keep doing these activities because you’ll know they work.

3. Have Realistic Expectations

Making good use of your time every day is what leads to improvement. The results aren’t going to be immediate, and that can make it hard to keep doing the important day-to-day activities that work.

The key is to persevere with a set of smart goals that you’ll reach gradually. This means setting realistic goals that can build on one another. For example, think about focusing on $100 million in loan production next year, which you can scale to $150 million the next year and so on—instead of just making a goal to be closing $300 million in five years.

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Part of executing successful goals is tracking how far you’ve come since you began.

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4. Build a Support System

A support system can make all the difference in helping you reach your goals: You’ll have a solid team behind you to tap for help and support. It’s important to have someone cheering you on and to take advantage of others’ perspectives. Your support system can include your manager, family or friends, or any other mentor or colleague who supports you.

An accountability partner can make all the difference, so don’t forget to add that to the equation. You need someone to help you review your strategies and keep you on track every 90 days.

5. Keep Your Eyes on the End Goal

When you’re working toward a long-term goal, it’s important to break it down into manageable chunks like our 90-day plans. But big-picture thinking can help you stay focused on the end game. Return to your larger vision when you need to remember why what you’re doing is so important to you.

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7 Ways to Market to Realtors as a Loan Officer

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7 Ways to Market to Realtors as a Loan Officer

As a loan officer, you know how important realtors are to the success of your mortgage career and business. But if they don’t know who you are, it’s impossible for them to send business your way. That’s why marketing to realtors is so important! Here are some of the best ways to make sure realtors know who you are and how you can help their clients.

Marketing to Realtors Is About Building Relationships

Before we get into the how, let’s talk briefly about the philosophy behind marketing to real estate agents. The most important thing to remember is that you’re building real relationships with real people. It’s the only way to cut through all the noise realtors get on a daily basis—a lot of it from other loan officers who also want to earn their referrals.

You can get realtors’ attention with a few key tactics. First, be consistent. Reach out to real estate agents on a regular basis and in a variety of ways, so they always remember who you are and what you do. Second, make yourself valuable to your audience. You can do this by making it easier for them to sell houses and secure financing for their buyers. Be generous with your knowledge and time, giving them a reason to WANT to recommend you.

Real estate agents are bombarded with marketing from loan officers who all offer similar products and interest rates. You’ll stand out from your competition by forging real relationships rather than pushing sales pitches and interest rates. So let’s talk about the most effective ways you can do just that.

1. Email Marketing Is a Good Way to Stay in Touch

Remember that realtors are getting similar canned messages from several loan officers at any given time. Use technology to stay in touch, but do it in a personalized, thoughtful way.

Instead of sending boring emails with graphs about rates or a dry monologue about the most recent Fed meeting, send realtors resources to grow their business, as well as materials they can easily share with their clients. Your content has to be relevant, or nobody will pay attention to what you’re sending.

So what’s attention-grabbing content? It could be a video about a difficult transaction you saved, or maybe an explanation of the cost of waiting and the value of today’s market. It could also be sending information about a new loan product that you know will help more of their clients.

You’ll stand out by sending personalized emails that are full of helpful information that realtors can use with their clients. Your goal should be to educate and inform agents so they can help their clients as they go through the process of buying a home. Remember, you’re there to make their job easier.

KEEP READING: Who Can Become a Real Estate Investor?

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Your goal should be to educate and inform agents so they can help their clients

2. Social Media Marketing Expands Everyone’s Reach

One of the best ways to begin to build relationships with real estate agents in a low-pressure way is to interact with them on social media. Comment, like, and share! Agents love to see people promoting their listings and social media content. If you stay consistent, they’ll get to know you better. Once you feel like you’ve established some rapport, you may want to reach out in a private message to introduce yourself. This is simple and FREE.

Another social media idea is to send realtors information about the market or lending solutions that they can use for their own posts. This gives them good content to post while also giving you more exposure. It’s a win-win!

And don’t forget to grow your own social media presence! Agents rely heavily on referrals and are always looking for ways to expand their network. Building your own social media presence makes the deal sweeter for agents who want to work with you because they’ll be getting in front of more potential clients. This is good for them AND for you. Social media is one of the top ways to obtain new business.

Social media is all about widening your reach at every opportunity.

3. Open Houses Are a Chance to Meet Realtors Face to Face

In 2022 some markets are starting to hold open houses again. They are a great way to introduce yourself to new realtors face to face. Showing up to a weekend open house can make a big statement about your willingness to go the extra mile. But don’t linger too long. If this is a “cold call,” it’s a perfect time for an introduction and some small talk, but save the sales pitch for later.

Open house interactions should be focused on the agent. Ask questions to familiarize yourself with the agent’s typical clients, and take note of how you can specifically help them. If the opportunity presents itself, ask to schedule a follow-up meeting where you can have a one-on-one conversation. If you don’t get an appointment, you may want to ask for permission to send them more information.

4. Co-Branded Marketing Makes THEM Look Good

One of the best ways you can help your real estate agent partners is by making them look good with very little effort on their part.

That means staying in constant contact with both the realtor and the client throughout the loan process. By creating ease for their clients throughout the process, you’ve created a WIN-WIN situation.

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Building your own social media presence makes the deal sweeter for agents who want to work with you because they’ll be getting in front of more potential clients.

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5. Personal Visits Build Relationships

It never hurts to stop by and say hi to your realtors. This personal touch is what builds relationships and goes a long way toward helping realtors to like and trust you. Don’t be afraid to keep showing up. Always ask how you can help make their job easier and what they need from you.

Realtors want to make sure the lender can create strong relationships with their clients. These personal visits will show that you fit the culture they want to build with their clients and that you can nurture those strong relationships. But be careful you’re not a pest. Know how to read the room!

6. Video and Livestream Marketing Packs a Big Punch

Savvy lenders are marketing with real estate agents in new ways—like video, livestream, TikTok, and podcasts. Two experts pack a pretty big impact with homebuyers because you’re able to build on each other’s credibility, and there’s no better way to deliver this type of content than video.

Whether it’s Facebook or YouTube livestream, a prerecorded video posted to social media channels, a podcast, or a quick TikTok video or Instagram Reel, real estate agents find value in this type of marketing and the exposure to new audiences.

7. Co-Hosting Events with and for Realtors

Holding events in conjunction with a realtor can be a wonderful way to increase exposure for both of you. The COVID-19 pandemic has changed the way we conduct events in many states across the country, but there are still opportunities to partner with your agents for small in-person gatherings and virtual events.

Another great opportunity is partnering up for a community event or charitable cause to support each other’s businesses and the community where you live. You may also want to hold events that directly benefit realtors, like sponsoring a continued education class or providing a real estate training or coaching series.

Lunch-and-learns are a great opportunity to provide value to an agent’s buyers. You can also host a broker open house with a luncheon for the realtors, or offer to sit at an open house to help answer financing questions from potential buyers.

All these activities have direct benefits for the realtors you’re working with and will go a long way toward cementing good relationships.

Concept of social media marketing | 7 Ways to Market to Realtors as a Loan Officer | DG Pinnacle Commercial Miami Mortgage Lender

Savvy lenders are marketing with real estate agents in new ways—like video, livestream, TikTok, and podcasts.

Bottom Line - Marketing to Realtors Is Essential for Success

It’s essential for loan officers to understand the importance of marketing to realtors in a way that grabs their attention and helps them build a relationship with you. Technology and new mortgage marketing tools may have changed the landscape of marketing, but there’s nothing more important than nurturing relationships with realtors by showing them that you care about them, their business, and their clients. A combination of technology and your personal touch can help you do just that.

At DG Pinnacle Commercial, we understand that building strong realtor relationships and a diverse referral network are vital to your success.

We can help you put your strategies into action. Our programs and products are available to those who are willing to make the effort. Contact us to guide you along the way and take advantage of the many opportunities in the Real Estate Market. Call or text us at 📱 305-851-5225

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Are Short-Term Rentals a Good Investment in Florida?

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Are Short-Term Rentals a Good Investment in Florida?

Thinking about investing in a short-term rental property in Miami or elsewhere in Florida? You are making a great choice. Short-term rentals are a smart investment in general, and Florida is a particularly good market for them. Let’s go over a few reasons why you will be glad that you moved forward with this investment idea.

1. Florida is a classic vacation destination.

When people in the US think about where they want to vacation domestically, Florida is high on a lot of lists. It is also a prime destination for international travel. The beautiful weather and sparkling waves give the state a strong magnetism for those looking to get away from it all, as do popular attractions such as Disneyworld and the Everglades. No matter what changes are in store over the years ahead, it seems likely that Florida’s appeal to tourists will continue to hold strong. That means that demand to stay in your short-term rentals should also continue to hold.

KEEP READING: How to Improve Cash Flow on Rental Properties

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No matter what changes are in store over the years ahead, it seems likely that Florida’s appeal to tourists will continue to hold strong.

2. “Post”-pandemic travel remains popular

Even though COVID-19 is still everywhere, 2022 saw a lot of people return to their previous life routines, including travel. Because they were cooped up for so long, the pull to get back out and see and do things has been particularly compelling. That has boded well for tourism in the state of Florida. As reported here, “According to VISIT FLORIDA, 32.6 million domestic visitors traveled to Florida in Q3 2022, representing 18 months of domestic visitation growth from 2019. So far this year, Florida has welcomed 104.5 million travelers, an increase of 4.1 percent from the same period in 2019, and over 15.3 percent more than in 2021.” It seems likely that this trend could continue for a while, so this is the perfect time to get in on it.

3. Less work, more money

Okay—some aspects of short-term rentals arguably involve more work than long-term rentals. You need to be constantly and aggressively marketing, for example. But there are definitely some aspects that involve less work. You do not have to worry about maintaining long-term relationships with tenants, for example. Many people also choose to just work for part of the year, and leave their rental empty (or occupy it themselves) the rest of the year. At the same time, you can pull in a lot of money with short-term rentals. It is not uncommon to charge as much for a night in a short-term rental as you would for a week or longer in a long-term rental.

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It is not uncommon to charge as much for a night in a short-term rental as you would for a week or longer in a long-term rental.

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4. Amazing flexibility

Speaking of taking time off, you can make a short-term rental available or unavailable as needed throughout the year. If you need to remodel the property, for instance, you can do that at the drop of a hat. Just close reservations for the period when you plan to work on it. With a long-term rental, you might not have this option at all until a tenant voluntarily vacates.

5. Doubles as a getaway for you

As we mentioned, some people may choose to reside in their short-term rental properties part-time, or even just stay there for a weekend now and again. You can use your rental property as a vacation home when you want to stay in it, and then rent it out the rest of the time when you don’t. If your primary residence is out of state, that makes it your home away from home.

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You can use your rental property as a vacation home when you want to stay in it, and then rent it out the rest of the time when you don’t.

Bottom Line

We recognize the potential financial benefits of real estate investing. It goes without saying that the many benefits of real estate investing outweigh the costs, and that as a real estate investor, you could earn a steady income that provides you with long-term financial freedom.

This year definitely looks promising for investors, and your real estate investments will indeed bring you high returns. The real estate market and housing conditions are in great shape, and you can be sure that you will make money if you invest in the right locations. It’s a simple equation: when the economy grows, the real estate market flourishes, and there is an abundance of real estate opportunities for you to take advantage.

We can help you put your strategies into action. Our programs and products are available to those who are willing to make the effort. Contact us to guide you along the way and take advantage of the many opportunities in the real estate market. Call or text us at 📲 305-851-5225

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Miami, Tampa Top Home Price Hikes

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Miami, Tampa Top Home Price Hikes

Miami and Tampa topped other metro areas in home-price increases in August when compared to a year earlier.

According to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, the Miami area had a 28.6 percent year-over-year increase, while the Tampa area had a 28 percent increase.

Miami and Tampa topped other metro areas in home-price increases in August when compared to a year earlier.

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The Charlotte area was third-highest with a 21.3 percent increase. The report, which provides data on 20 metropolitan areas, pointed to a “deceleration” in housing prices. But Craig J. Lazzara, managing director at S&P DJI, said in a statement that despite the “ongoing deceleration, August’s housing prices remain well above year-ago levels in all 20 cities,” with the largest increases in the Southeast and the South.

“As the Federal Reserve moves interest rates higher, mortgage financing becomes more expensive and housing becomes less affordable,” Lazzara said. “Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to decelerate.”

Original article published in CBS Miami