JVM has always closed more purchases than refi’s, no matter how low rates were. We specialize in PURCHASES. We say this b/c we have myriad acquaintances in the industry who did nothing but refi’s but who are now clamoring for purchases.
We have an “Issues to Spot” worksheet with 282 issues that everyone in our firm must memorize. These are all issues that can affect purchases. Someone doing only refi’s will never be able to navigate purchases in today’s far more complex lending environment.
If a lender comes by asking for “purchase business”, quiz them about the following items:
(1) Can they close in 15 days? – JVM can;
(2) Are FLIP Properties OK for FHA and Conventional Loans? – they are at JVM;
(3) What is the appreciation limit for FLIP Properties at most lenders that allow FLIPs? – it is 20%
(4) Do Gift Funds need to be “sourced”? – for FHA, yes, for Conventional, no if the lender knows what they are doing;
(5) Can they close FHA Loans with a FICO LOWER than 620? – JVM can if there were no late payments in the last 12 months; JVM allows FICOs as low as 550;
(6) Do they have a “Stated Income” program with competitive rates? – JVM does if asset levels are high;
(7) How many months seasoning does a borrower need after a foreclosure? – 36 months;
(8) What is the max LTV for most “Hard Money” lenders now days? – 65%;
(9) What is the max Debt-to-Income Ratio for most loans? – at JVM it is 55%;
(10) What can be done if the Seller Credit for closing costs exceeds actual closing costs – At JVM we charge extra points and rebate them to the borrower;
The above are just a very few of the hundreds of things a lender needs to know to finance purchases effectively.
Ask these questions to every lender vying for business, and see what the responses are. EVERY employee at JVM knows these answers off the top of his or her head. We specialize in PURCHASES.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167