Posts tagged ‘Introduces’

LeaderOne Financial Corp. Introduces New Jumbo Mortgage Solutions for High-Net Worth Borrowers


Chicago, IL (PRWEB) October 08, 2013

Amid the housing recovery, many home-buyers are rushing to take advantage of todays low mortgage rates, but jumbo mortgages for high-net-worth individuals can be surprisingly elusive, according to David Goldhirsh, a Chicago-based mortgage banker and vice president of LeaderOne Financial Corp.

So LeaderOne Financial Corp. is offering a suite of jumbo mortgage products that address many of the challenges high-net-worth borrowers face in the home-purchase and refinance arenas.

In Illinois, a jumbo mortgage is a mortgage loan exceeding $ 417,000. Small business owners, doctors in residency and investors taking depreciation on assets are among the high-net-worth individuals who often find themselves on the outside looking in when it comes to these loans, due to the rigid underwriting guidelines that arose following the housing crisis, says Goldhirsh. To many lenders, these types of borrowers can appear to be high risk because of inconsistent income, high debt-to-income ratios or sheltered assets.

“Its exasperating when youre making a nice living and doing all of the right things from a financial-planning perspective, and youre yet getting turned down by bank after bank,” says Goldhirsh. “There are millionaires with perfect ascribe who cant get the same terms as someone with a 620 FICO score.”

Goldhirsh works with a number of portfolio lenders who offer jumbo mortgages for high-net-worth individuals that address a variety of special circumstances.

High Net Worth, Low Income

One common scenario is the high-net-worth borrower who doesnt show enough adjusted gross income on paper to qualify for a large mortgage. Variables that can reduce adjusted gross income include low or negative partnership income, deductions for depreciation of large assets such as equipment or real estate, or even sizable alimony or child support obligations.

According to Goldhirsh, one option for this borrower is an asset depletion loan. In this type of loan the lender factors liquid assets, such as stocks, trust funds, or retirement savings (for individuals 62 and over) into the income calculation. The additional income is amortized over 30 years or until the borrower reaches age 85, whichever occurs first.

For example, lets assume a 50-year-old borrower with $ 2 million in liquid assets has an adjusted gross income of $ 10,000 per month but needs another $ 5,000 to qualify for their desired loan amount. The lender can amortize the $ 2 million over 30 years and, assuming a 5% rate of return, count another $ 10,736 toward the borrowers monthly income more than enough to qualify.

Pledging Assets, Preserving Cash

For other borrowers, qualification isnt the issue but rather cash management. The typical minimum down payment on a jumbo mortgage is 20 percent. Thats a lot of cash on a $ 1 million or $ 2 million home purchase. And while high-net-worth individuals might have access to those funds, they might not want to liquidate investments to free them up, as that could trigger capital gains taxes or disrupt other more lucrative investment strategies.

According to Goldhirsh, a good option for these borrowers is a pledged asset loan. With this product, the borrower can make a reduced down payment of 10 percent by pledging any additional required funds in the form of held securities or other liquid assets. Borrowers can continue to trade funds within the pledged account but are not allowed to withdrawal the funds for a period of time without the consent of the lender.

Since any family member can pledge assets on behalf of another family member, this is also a popular program for parents who are helping their children buy real estate. Goldhirsh notes that a pledged asset loan can also be used with a variety of property types including second homes and investment property.

Other programs that address common challenges for mortgages for high-net-worth individuals include:

????10 percent down payment for loans up to $ 750,000 or 20 percent down up to $ 2 million. ????Loans to foreign nationals. ????Loans for non-warrantable condominiums, including certain new-construction condos and condos in buildings with a high percentage of non owner occupants. ????Cash-out refinances up to $ 1 million (most lenders will limit cash-outs to $ 200,000). ????Loan amounts up to $ 5 million (or higher on a case-by-case basis).

“There are creative, competitively-priced solutions for a lot of scenarios,” said Goldhirsh. “Oftentimes, a borrower hears no from private banking and calculate theyre stuck, but there are some great programs out there if you know where to look.”

For more information, contact David Goldhirsh, LeaderOne Financial Corp., 773-384-5300, davidgoldhirsh(at)leader1(dot)com.

About David Goldhirsh

David Goldhirsh, NMLS number #8804, is a licensed mortgage banker in Illinois, headquartered at 1540 W. North Ave., Suite 200, Chicago, IL 60642. During more than 16 years of residential lending, Goldhirsh has been responsible for the origination of more than 2,000 loans with an aggregate value of more than $ 500 million. Goldhirsh offers competitively priced solutions across the full lending spectrum from FHA loans to jumbo mortgages.

LeaderOne Financial Corporation is an Illinois Residential Mortgage Licensee, MB 6760699 and is licensed by the Indiana Department of Financial Institutions. First Lien Mortgage Lending License #18715 and licensed the Wisconsin Department of Financial Institutions, License # 43800BA. Corporate Headquarters: 11020 King Street, Suite 390; Overland Park, KS 66210, NMLS ID #12007 http://www.nmlsconsumeraccess.org. This publication is for educational purposes only and does not constitute a loan approval or loan commitment.


Western Bancorp Introduces Your California Mortgage Newsletter

San Jose, CA (PRWEB) July 10, 2013

In many parts of California, the real estate game is different. Housing prices are high, inventory is low and competition for the most desirable properties can be fierce. When the stakes are higher, home buyer education becomes increasingly important.

To help California homebuyers successfully negotiate the states challenging real estate markets, San Jose based mortgage lender Western Bancorp has launched its “Your California Mortgage” newsletter.

Although Californias housing markets are diverse and constantly changing, the issues of finding affordable housing and appropriate financing will continue to face California borrowers. “Your California Mortgage” is designed to help home buyers and home owners face the unique challenges of the States real estate market and successfully finance or refinance their dream homes.

Low housing inventory is one issue that seems unlikely to change any time soon, according to the National Association of Realtors? (NAR). Nationally, the U.S. housing supply is currently around 5 months of inventory (It would take about five months to sell current inventory; most sources consider 6 months to be a balanced market that favors neither buyers nor sellers). That number is expected to be the norm for the rest of the year, according to the NAR. Inventory is often markedly lower in regions with robust economies such as the San Francisco Bay area.

Another stubborn issue for home buyers is tight credit guidelines that make financing less obtainable and affordable for many buyers. “Your California Mortgage” is designed to help prospective borrowers prepare for a successful mortgage transaction, including compiling the appropriate documents, and verifying their income, assets, and employment. The newsletter will also help to educate borrowers on key issues including debt management and building credit scores.

California borrowers tend to spend a larger portion of their income on housing, so the challenges facing most U.S. home buyers can be particularly difficult here, said Western Bancorp CEO Rick Soukoulis. Concerns about the cost and availability of mortgage financing are very real for borrowers of all types. One thing thats true in all markets is that smart borrowers who educate themselves and prepare for financing get better results, and we hope to support those goals with the Your California Mortgage Newsletter.

About Western Bancorp

Western Bancorp is a San Jose based mortgage company serving California borrowers for home purchase and refinance loans. Their experienced leadership team has closed more than 500,000 loans since 1986.

The company offers a large selection of loan products, including Fixed-Rate Mortgages, Adjustable Rate Mortgages (ARM), Home Equity Loans, Mortgage Refinancing, Jumbo loaned and more(at competitive ratting). Western Bancorp began with the goal of creating a better loan source for California borrowers. As a mortgage bank that only lends in California, Western Bancorp understand state and local regulations and how they affect local borrowers.