Property Imperfections in California causing you mortgage problems?
We've got your back. As a direct and correspondent lender (we do not broker this particular mortgage product), we can provide the solution with the responsible reintroduction of Escrow Holdbacks.
If you as an investor, your retail homebuyer friends, or your buyers if you are an agent, don't have the widest breadth of possible lending tools at their disposal in this hot market, it's not substantially different than showing up for a race in crutches. You need to be ready to run & move fast! And that means entrusting my team and I to deliver rock solid service and performance on the easy ones, handholding if it's your first time, and to be there for you when things get wonky on the tough ones.
- Buyer's agents, add value to your clients by helping them avoid hard money!
- Listing Agents and Probate Professionals, get top dollar for your clients by avoiding all the lowballers! Property specific escrow holdback preapprovals are available at the "Start Preapproval Process" button.
- Investors, avoid the 4 points upfront that fix-n-flip hard money lenders typically charge!
- General Contractors, talk to me about how to use that little bit from two bullet points ago about property specific escrow holdback preapprovals to increase your business.
In the past we've discussed cash out refinance niche facts, bank statements in place of tax returns to qualify, and a legal alternative to "subject to."
Now, let's talk bathrooms and "bathrooms"....
This is one of the two "bathrooms" in an Oakland home that one of our clients purchased earlier this month, at closing. It was a jumbo loan, the buyer was an owner occupant. The rate is competitive, 30YF. The ARV appraisal was $100 extra.
Again, we funded the loan & closed escrow with the "bathroom" in exactly that condition. This is a tool you NEED to have in your pocket for some of the partially neglected real estate we often see across the Bay Area, San Francisco, much of NorCal, Los Angeles, San Diego, basically anywhere in California where construction hasn't kept up with population influxes, causing real estate to remain in service for longer than it might in other parts of the country.
Real Estate agents that were doing it 10-15 years ago will recall that Escrow Holdbacks all the time were no big deal, but most haven't seen them in years and years. Guess what? We've brought them back! That picture above was actually our "beta test" made available four months ago to three preferred Realtors to keep their antennae up for model match properties, but now we're going live to the general public.
- An Escrow Holdback is where there's some, say, $6k item that needs to be done after closing. You take 150% of that, and arrive at $9k. Someone puts/leaves an extra $9k in escrow, held back to be disbursed to the contractor once the work is done.
- The property can have one thing like this, not multiple, or an Escrow Holdback is not a model match (but we do 203k).
- This product has fairly conservative credit underwriting - the big risk with the property condition needs to be compensated for by strong borrowers only. Think of FICOs over 680, no late payments in the last couple years.
- Investment property, expect 75% LTV.
- Owner occupants buying SFRs can prepare for 90% LTV conforming, 85% LTV for Jumbo.
- BTW have you put my business card on your cell phone yet? You will get one text message to import it, but no spam.
- Closing faster than FHA 203k or FNMA HomeStyle renovation mortgages, and rather than a bunch of reno fees you never get back, the Escrow Holdback funds are going towards improving the home.
- Work to be done after closing by a licensed general contractor of your choice.
- Seller or buyer can fund the Escrow Holdback.
- This is available in conjunction with some of the other niche lending things we offer, but not others. Homebuyers and investors that are already preapproved, and people with homes under contract, can reach out for details. Everyone else that wants to be ready to rock, let's get the conversation going so we can get you preapproved.
- Listing Agents and Sellers: Property-Specific Escrow Holdback Preapprovals are available!
Equal housing lender. This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. Information and/or data are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Bay Equity LLC, 28 Liberty Ship Way Suite 2800, Sausalito CA 94965.
<--- Even the houses that are a little beat up!