I’m a commercial mortgage professional and I deal extensively in private (hard money) loans. One of the most frequent questions I am asked is "What loan amount can I get"? That’s not an easy question to answer because privately funded loans are much less standardized than conventional, institutionally funded loans so there are no hard-and-fast rules. But I speak to lenders and investors everyday and can offer the following guidelines.
Vacant Land
Private lenders don’t like raw land and hate rural land. Hard money people tend to think in terms of quick sale value, incase they (God forbid) have to take back the property. Un-entitled, vacant land is among the most difficult to sell quickly. In the event you find a lender willing to make you a deal land, do not expect to be offered more than, the lesser of, 50% of the purchase price or 50% of the collateral’s quick-sale value. If the land can’t be financed conventionally and you are looking for hard money, be prepared to put down a huge down-payment or have the seller carry-back a big 2nd.
Properly zoned, fully entitled land that has all permits in place is a valuable commodity, even in today’s difficult real estate market. Land, however, doesn’t produce income and therefore can’t cover its own mortgage payment the way a hotel or an office building can. That’s why, most hard money sources will only lend up to about 60% against land. Further, if a property owner can’t demonstrate the means to make the payment, lenders will insist that interest payments are held by a third party as an "interest reserve". In this way lenders are protected. Any interest payments not made, due to early pay-off, will be returned to the borrower.
Underpreforming Buildings
From a lenders perspective, an underperforming or vacant building has much the same problem that raw land has; not enough income. The loan amount offered by a private commercial mortgage lender will depend greatly on the extent of the vacancy and the overall condition of the building. You won’t find any lenders willing to help you acquire a vacant building unless you have a sound, well thought-out plan for leasing it up fast, and even then LTVs will be in the 50%-60% range. Partially rented facilities with at-least some income generation might fetch as much as 65%. But again borrowers will be required to have a plan in place to fill-up the space.
Income Generating Buildings
This category is the most sought-after kind of collateral for any commercial real estate lender. A lender will have a lien on the income a building produces, not just the building itself. In the event of a collection scenario, rental income mitigates the costs of a repossession action. Investors can expect to receive term sheets that reflect between 60%-70% LTV. Apartments, office and retail are highly prized assets with warehouses and self storage facilities a close behind. Industrial facilities are less attractive to lenders because, in many cases, it’s the business, not the building that’s responsible for the generating the income.
The LTV numbers above are fairly typical but are not necessarily definitive. The important thing to keep in mind when looking into hard money loans is that they are offered by private finance firms or wealthy individuals. These lenders are free to be as flexible as they wish, after-all, it’s there money. Keep these guidelines in mind, but, don’t hesitate to pitch your deal to any private lender. If the deal is strong and you can sell the merits of it, you might just get lucky and receive more than you thought you could.
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What is a typical day like for a mortgage loan officer?I have 8 years experience in sales and am strongly considering becoming a mortgage loan officer and I want to make sure I have an accurate picture of what to expect. Thanks!
If you are both going to be on the loan, then both incomes will count. Critereia for a mortgage is dependent on the following:
* Credit Score – there are 3 credit bureaus and this thing called a FICO (Fair Issac) score. The closer your score is to 850 the easier the loan is to get and the better rate (lower interest) you will be offered.
* Debt to income ratio. If you earn $1,000 a month and have $750 per month in bills to pay, it will be tougher. Banks/mortgage companies like debt to income to be less than 50%, and would prefer 30% area.
* Don't be getting new loans and don't apply for new credit until after you have purchased your new home. These "inquiries" will bring down your credit score.
Look up your credit online now. You can get it done very inexpensively and know where you stand.
Hope that help
This information is really helpful. thanks for your help and hope to see you on the beaches of the world.
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Simply put the loan officer will get paid either three ways:
1. You pay him origination points
2. The lender will pay him
3. A combination of 1 and 2
For anyone to come here and tell you that only one or two ways is the right way or how much of % should be paid is completely wrong.
Each state is different on how much on an average a borrower will pay on origination points.
In order for you to find out how the loan officer is chargin your, look at the Good Faith Estimate.
If you are paying for origination points up front, you may be getting a better rate than having the lender pay the loan officer for his commission. Although you could be getting charge at both ends.
Look carefully at the Good Faith Estimate.
I hate macy’s…
Yes it is. In fact, it is common these days. It will all depend on what type of loan you are going for, and what type of collections you have. If you owe 200 bucks to a phone company from a year or two ago, it isn't as big of a deal to the lenders as owing 5,000 in back child support…. they do whatever makes sense…
Comment back on what type, how old, and total number of collection accounts, as well as a total dollar amount and I will tell you how your chances look…
Avg. Salary: 42k$
50 Salaries registered here:
http://www.whatsalary.com/us/salary/MORTGAGE-LOAN-OFFICER-T4154.htm
In an interest-only loan or mortgage the borrower only pays interest each month. This makes it cheaper than a conventional mortgage, in which part of each month's payment goes towards the principal and part goes towards interest. These loans have become popular because the monthly payments are lower, allowing borrowers to afford a larger home.
However, these loans can be dangerous, especially in a down housing market. The interest rates are generally fixed for the first 1, 3 or 5 years. After that, they convert to a conventional loan, with a higher monthly payment. Most borrowers take on these loans because they assume they will sell the home before the interest rate increases. In a down market, they may not be able to sell. If they cannot afford the increased payment, they may have to default on the loan, and foreclose on the home. So, when the rate starts to adjust, you would need to refinance again. And, either get a fixed or another interest only adjustable. And, yes, I do believe you mean ARM. Although, if you have extra money every so often, you can pay down the principal in extra payments.
I really suggest looking around at different careers websites, such as monster.com, in addition to checking out our careers page (I’m an employee of Quicken Loans).
Don’t worry about your lack of experience. At many mortgage companies, including Quicken Loans, no lending experience is not a problem.
In addition to on-going training, all new mortgage bankers attend five weeks of industry-leading training. We’ve been hiring 200+ new mortgage bankers a month for the past few months and we consider candidates with various work backgrounds and experiences.
I’ve included a link to our mortgage banker careers page that has more information, but if you have any questions feel free to contact me through my profile.
One thing, we only hire for employment in Detroit, Cleveland, and Scottdale, Arizona.
Good luck!
Mortgage Loan officers do not make anything from the SALE of a home. They make a certain percentage of the amount of the mortgage loan on the PURCHASE of a house.
The percentage of commission varies from state to state and from lender to lender.
I can tell you from my own personal experience.
First off, modifying your mortgage is a very difficult thing to do. Forget what the media and all these other yahoos are saying about the government's modification act. Most banks are not willing to modify your mortgage without putting up a fight.
Why? Because it costs them money to do it. Most mortgages are sold off to someone else after you take out the loan, but the original bank still acts as the servicer. They receive a percentage from the buyer of your mortgage to handle the payments and record keeping.
When something complex as a loan modification is requested, any profits they would make disappear and as such they are reluctant to do it.
The media and the banks themselves don't tell you this of course.
First-expect to hire a lawyer or get a legal aid lawyer. Most banks will not take you seriously unless you have a legal mouthpiece going to bat for you. Having a lawyer shows you mean business and just are not some schlub looking for a handout.
If you try to do it yourself, expect to be jerked around for months only to be told it can't be done and by the way we're starting foreclosure proceedings, which will only make the modification even more difficult.
The bank will not talk to you unless you are delinquent. And this is where time is of the essence-if you're very late with your payments and they have'nt started legal proceedings it makes the process much easier. Once legal proceedings start, then it becomes difficult if not impossible to complete the modification because now the courts will be involved.
Second-you will be expected to make your new payments ON TIME if you do receive the modification. The bank will not care how you accomplish this. You will be told that the first 3 payments or such MUST BE ON TIME OR THE AGREEMENT IS NULL AND VOID.
Keep in mind whatever agreement you agree to will only stall the inevitable. Eventually over time your payments will return slowly back to where they originally were. The original terms and payments will not go away. ALL A MODIFICATION DOES IS LOWER YOUR PAYMENT FOR A PERIOD OF TIME UNTIL YOU CAN GET BACK ON YOUR FEET.
Third-If you feel you can't keep up with the payments at any time now or in the future, consider selling the home while you can or give it back to the bank. It may seem difficult but it's a far better option than having it being taken away from you. Also note that if you file for chapter 7 bankruptcy, don't sign a reaffirmation of your loan. That way if you need to walk away you won't be held liable for whatever is still owed.
Fourth-I can't empathize this enough: NEVER, EVER, LET ANYONE TALK YOU INTO BUYING YOUR TITLE OR ASKING FOR MONEY TO REARRANGE YOUR LOAN. IT WILL BE A SCAM I ASSURE YOU AND YOU WILL STILL BE LEFT HOLDING THE BAG.
I hope this helps you and don't believe Obama and his socialist bullshit. What I told you is the reality and what the government says is fantasy.
Good luck!