All Forum Posts by: Jerry Poon

I am a die-hard Toyota fan, and for the money you are looking to spend a Corolla would be best. If you can find a one-owner little old lady corolla with 100k to 140k miles you got a car that will last a long time. 

I like diesels as well, but the only problem is that they are expensive in repairs and one repair could wipe-out any previous savings form gas mileage. 

P.S. I own a 2015 Corolla and with less than 5000 miles I am getting 39.3 mpg and I hope to drive it as long as I can. 

@Jerry Poon, Joshua Nudell had some great info. @Karen Margrave thank for the mention. I am a private lender based here in San Diego. We do not generally report to credit bureaus. There have been occasions where a borrower has a great history with one of our loans and they initiate a credit bureau to contact us to verify and provide a mortgage history that credit bureau will add to borrower's account that will be included in scoring.

The loan and payments should be included in your loan application when qualifying for other loans including traditional conventional loans. 

Traditional Bank Pros: 

• Lower Rates
• Generally Lower Fees
• Longer Terms of Loan, i.e., 15-30-40 years
• Several federal and state authorities regulate banks along with the Federal Reserve. These include: The Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) and the banking departments of various states also regulate financial institutions.

Traditional Bank Cons:

• Possibly Lengthy Application Process
• Strict Underwriting Guidelines including financial documents to support debt to income ratios
• Longer Underwriting Times that can go between 45-60+ days depending on property.

Private Lender Pros:

• Fast & Easy Application Process due to being asset-based lender.
• Credit Score less of a factor as the weight is based on ability to make payments and not debt-to-income ratios.
• Generally quick funding turnaround between 5-10 business days. 
• More flexibility to customize loan to accommodate needs of borrower. This includes being able to lend to a borrower that may not have the best credit or a recent Foreclosure, Short Sale, BK, that would otherwise be declined from traditional bank.

Private Lender Cons:

• Higher Rates
• Generally Higher Fees
• Shorter terms that range from 6 months to 5 years
• Less regulated, so be sure to do your due diligence on the history of the private lender.

I tried to be as concise as possible, and I know there are more pros and cons to both routes, but I tried to at least highlight the main points.

Feel free to reach out with any other questions. Best wishes!

@Jerry Poon-

I apologize,  that should have read....

It really depends on your exit strategy. Arms are great if you know you DON'T want to hold the property for long. They're even better for your home. I use them because I move every two years to take advantage of tax free gains. I know I won't be in the home long enough for the Adjustable rate to kick in. 

@Jerry Poon I would go with the private lender as well for all of the reasons mentioned above.  Just make sure that you have all the correct paperwork in order (Agreement, Promissory Note, Mortgage & Memo of Mortgage).  In my case, I provide my documents to the lender (private lenders are non-professional lenders so they will not have this set up). You may need to invest in some attorney time to make this happen.  If your lender already has these forms and a process in place, keep in mind that you might be talking with more of a hard-money lender than a private lender.

They're even better for your home. I use them because I move every two years to take advantage of tax free gains. I know I won't be in the home long enough for the Adjustable rate to kick in.