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Stonebriar Mortgage

Stonebriar Mortgage

No Document Loans

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No document loans can be a great solution for borrowers who want to invest in property but have little to no documentation. Many private lenders offer this unique financing option. Commonly known as “no-doc mortgages” or “no-doc loans,” these loans accept a variety of alternative financial documentation. No document loans are your path to home financing without the traditional income documentation, learn more about investing in a Dallas, TX or California home from Stonebriar Mortgage. We can help you find the right lender to start your journey to investing in real estate.

The Essentials of No Documentation Loans

With this type of loan, you are still not excluded from reviewing proof of income. Private lenders will take on risk when providing a mortgage; they must be diligent in ensuring that you can make the mortgage payments. Ensuring that you can pay off your loan is critical to your future.

Stonebriar Mortgage has worked with many clients to avoid risks inherent in some of the no documentation loan programs. A no documentation loan will typically have a higher interest rate than with traditional programs that require more paperwork. This higher rate offsets the level of risk for the bank. Many lenders will also ask for a larger down payment during the approval process.

Documentation such as asset, employment, income from other investments, and other information may be required during the process. Financials will vary depending on the type and size of the loan that a client seeks. Other factors also impact rates, if you have a strong credit score, then this can benefit you. A bank will also want to appraise the property that you seek to purchase. Stonebriar Mortgage will work by your side through closing to find the right financial solution.

The Perks of a No Documentation Loan

Obviously, many homebuyers will choose to work with a no-doc loan because they have difficulty showing their wealth and income on paper. Self-employed people are a target client for a no documentation loan, since they lack some documentation of taxable income. Instead, they may use their savings or at least six months of claimed income in reserve as documentation. Other people can use profit and loss statements and bank statements from their self-owned business.

Some people use no-doc loans to keep their financial history and tax filings private from the lender. If you do this, you may end up with a higher down payment and interest rate. However, your private information will be protected from other predatory lenders who may have an interest in gaining from your wealth.

Finding the Right Mortgage Today

No doc loans are not your only option.  Stonebriar Mortgage also works with traditional mortgage programs and can help you weigh the pros and cons of no documentation loans. Depending on your goals in owning real estate, we can help you find the right home and the right mortgage. We work with clients across Dallas, TX and California, which are high value real estate markets. Get started on investing in the booming real estate market. Contact our professional team in Dallas, TX or California today!

Commercial Purchase Loans

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Making a commercial purchase is a great way to invest in the booming real estate markets of Dallas Texas and California. Before you dive in, you’ll want to ask yourself many questions, learn the terms and study best practices. Understanding your goals and objectives in buying the property will help foster success. In this week’s blog post, Stonebriar Mortgage discusses things to consider when making commercial purchases in Dallas, TX or California.

Questions to Ask During a Commercial Purchase

It is important to review the commercial purchase market, your goals, and what you are looking for. Learning the real estate world is a big task, below are some simple questions to ask yourself while studying the investment possibilities:

  • What kind of property am I looking for?
  • Do I desire to use the building for my own business, rent it out, build equity, or something else?
  • What kind of location do you need?
  • Do I want to buy, or can I lease the property? What will I get approved for?
  • Thinking on approvals: what is my cash, financing, and/or ability to make a down payment?
  • Can and should I partner with someone else to buy the property?
  • How much money and effort am I willing to risk?
  • How much time do I have to manage the property?
  • How much work can I afford to put into the property?
  • What skills and knowledge do I need or already have?
  • Will I need to contract someone to get the knowledge needed?
  • Do I need a specialized property manager or not? What sort of manager do I want?
  • Finally, can I handle the responsibilities of being a landlord?

Learning More about Commercial Purchase Real Estate

Whether you’re experienced or just staring out, there will be an ongoing learning curve. Subscribe to this blog and follow other expert investors to stay current on the trends and predictions for Dallas, TX and California markets. You will want to keep a glossary of the technical terms handy. Here are some frequently used terms:

  • Debt Service Coverage Ratio (DSCR) refers to the amount of debt you’ll be able to pay each year using the income from the property.
  • Vacancy Rate refers to the average time and percent of properties that are vacant over the year in a certain area.
  • Usable versus rentable square footage- rentable square footage is the total amount of space, not just the portion the tenant will occupy. Usable square footage refers to the specific area the tenant will use for their business and can even include the columns, recessed entries, etc. This is an important term as you can maximize how many square feet you can charge for rent.

Stonebriar Mortgage is knowledgeable about the opportunities in Dallas, Texas and California markets for commercial purchases. Work with us today to start maximizing your wealth in real estate.

Cash-Out Refinancing

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Do you need extra cash flow to pay off major debts, repair your home, go to college, or make other upgrades to your house? At Stonebriar Mortgage, we help Dallas, Texas and California residents with various types of cash-out refinance options for their home. Cash-out refinance is used when people lend against the equity already built in their home. This week, we are here to tell you about various cash-out refinance options. Read on to learn more about why people might use them.

The Nuts and Bolts of Cash-Out Refinance

It is important to understand that completing a cash-out refinance means you will start a new loan. You will have to pay closing fees and may end up with very different loan terms than with your current mortgage. The current mortgage will not necessarily go away, either. However, if you have paid off more of your home and need extra cash flow, then this may be worth the cost. Do you need to make repairs you cannot afford or want to make another major investment in life? You can compare the costs of using a cash-out refinance instead of using other options to finance you needs.

Using a Cash-Out Refinance Loan

When you choose to use a cash-out refinance, make sure the benefits outweigh the costs. Look into other financing for your needs, such as student loans, debt restructuring, store financing, and other options. Interest rates may be lower or higher with the various choices. If you have a lot of high interest debt, then using a cash-out refinance loan may help you pay it off faster. In some cases, the interest on your new loan will be lower. However, you may be able to balance transfer your debt to a new credit card and this may cost less than a new home loan.

The Pitfalls of Using a Cash-Out Refinance Loan

As stated, there may be cheaper ways to finance your needs. For example, you may need to install upgrades or replace a major appliance in your home. It may be cheaper to look at in-store financing options. Some retailers offer 0% financing and credit cards that come with rewards programs. There are no closing costs associated with opening a new credit card, and usually no fees. In a cash-out refinance, fees are a certainty.

You will also take out equity that you had built in your home, essentially borrowing money you already paid, including interest. However, in some situations it makes the most sense to create cash flow from what you have already invested. For example, if you are using the funds to purchase a second home.

Stonebriar Mortgage is here to help homeowners in the California and Dallas, Texas markets consider a cash-out refinance. Contact our offices today!

30 Year Fixed-Rate Mortgages

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30 Year Fixed-Rate Mortgages

Are you in the process of buying a property and securing a mortgage? You need to make important financial decisions about how you choose to finance the building. You must think carefully and look at various terms, percentages, and payment plans. You can also choose between a fixed-rate mortgage (FRM) or an adjustable-rate mortgage (ARM). 30 year fixed-rate mortgages are a common loan that is maintaining a steady rate in today’s market. In this week’s blog post, Stonebriar Mortgage discusses 30 year fixed-rate mortgages for Dallas, TX and California homebuyers and investors.

Understanding Fixed-Rate Mortgages

A fixed-rate mortgage (FRM) comes with an interest rate that will not change during the loan. Obviously, this is a great option if you are worried about the economy and fluctuating interest rates. Conversely, if the market improves and interest rates fall, it will be much harder for you to change the terms of your loan and take advantage.

With all this in mind, what is one to do? Well, if you are planning to own the property or home for a while, the fixed-rate option may be ideal. Rates will fluctuate more the longer you stay. With an FRM, you will have a predictable monthly mortgage payment and rate. Regardless, you can decide to change the rate type or terms of the loan later, as long as you’re approved.

Selecting a 30-year Term for your Mortgage

Once you have chosen to get a fixed-rate instead of adjustable-rate mortgage, you have options on the number of years you have to pay the loan. Shorter loan terms may have higher monthly payments, but you will pay less interest over the life of the mortgage. Many people choose to have 30-year terms. This can result in better cash flow thanks to the lower monthly payment. Many experts foresee that the rates of 30-year fixed loans will remain steady.

Benefits of a 30-year Term Mortgage

You can write off interest paid on mortgages in your taxes. Some report that the deductions you’re able to get are higher with 30-year term mortgages. In addition, if you use the mortgage for a multifamily property, the improved cash flow will help you in times when residents cannot pay rent or must be evicted. Since there is a better debt service coverage, 30-year mortgages may have a better chance of getting approved than a shorter term. The loan will be amortized over a longer period, as well.

Stonebriar Mortgage helps many commercial investors in the Dallas, Texas and California markets succeed with their financial goals. Our expert staff are here to help answer any questions you have on 30-year term fixed-rate financing for homes and multifamily properties. Contact our team today!

Non-Owner Occupied Loans

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Non-Owner Occupied Loans

When you live in the home that you pay a loan on, this is called an owner occupied Mortgage. Even if the property has up to four units, and you live in one, it is still considered as owner occupied.  If you have a second home that acts as a vacation home, this is also considered owner occupied.

When you apply for the mortgage, the status of your property will be set as owner occupied or non-owner occupied depending on whether you plan to live there after the loan closes. In this week’s blog post, Stonebriar Mortgage helps real estate investors learn more about non-owner occupied loans in the Dallas Texas and California markets.

Buying an Investment Property with a Non-owner Occupied Loan

Real estate is a great investment, especially if you can generate a lot of income off renting the property out. A property with up to four units where you do not plan to live on-site is considered as non-owner occupied if you plan to rent the units for income. Provide accurate information as to your plans with the property when you go to apply for the loan. If your plans change after the purchase is made, you are fine, so long as your intent was accurate at the time you applied for the mortgage.

For example, you may apply and plan to live on the property, but then you get a job transfer and must leave. This is fine, if you plan to rent out the property, you do not need to change the loan so long as your original application was accurate. You must consider whether to buy a second home in the new area or rent. For this reason, you want to shop around when approving an investment property. The expenses can add up with an investment home that is non-owner occupied, but they are usually worth the wealth gained in ownership.

Costs Associated with Non-owner Occupied Homes

Since you will rent the property out to various tenants, you need to make sure you manage your business well and follow legal procedures for renting. Here are some of the costs you may expect when running the home:

  • Costs to market the property, sign leases, and turn-over the apartments if the tenant decides to vacate (you can consider using a third-party property management company to do all of this for you).
  • Costs for utilities, trash, water, and internet or laundry—you can also look for ways to include these costs in the rent you charge or ask tenants to pay for certain things on their own.
  • Costs for legal fees to ensure you properly maintain the place, address any tenant grievances, or proceed with eviction paperwork if a tenant is breaking the lease agreement.

You can always look for ways to do things on your own and save. Stonebriar Mortgage enjoys helping clients find their second home in Dallas, Texas and California make great income from non-owner occupied loans. Contact our staff today to get started!