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Stonebriar Mortgage

Stonebriar Mortgage

Nationwide High Balance Loans

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Nationwide high balance loans are a great option for homebuyers looking to finance a higher priced home. They can also be used for current homeowners wanting to refinance. This loan is a jumbo loan. Many receive a great 30-year fixed rate without having to meet strict underwriting requirements normally used on large mortgages. This week, Stonebriar Mortgage teaches Dallas, TX and California homeowners about the benefits of using Nationwide High Balance Loans.

Requirements for Nationwide High Balance Loans

Nationwide High Balance Loans are a type of jumbo loan. This loan exceeds conforming loan limits set by Government-Sponsored Entities (GSEs). Many counties in California and Dallas Texas have high value homes on the market that may require non-conforming loans. The Federal Housing Finance Agency (FHFA) sets conforming loan limits annually. Approval for refinancing using a Nationwide High Balance loan, therefore, is also impacted by the annual limit. If looking to refinance using this product, note that the loan must have met conforming limits at the time it was sold to Fannie Mae. Properties can be one- to four-units, condos, co-ops, or manufactured housing.

How to Qualify for a Nationwide High Balance Loan

If you are looking to gain approval for a Nationwide High Balance Loan, it is best to meet the below criteria:

  • A credit score of at least 620 or more. The lower credit scores may lessen the amount of funds approved.
  • A maximum 80% loan-to-value amount.
  • A debt-to-income ratio of less than 43%.
  • Use of the loan for a primary or second home.
  • Provide ample income documentation, but less documentation than for a jumbo loan.
  • Provide the down payment required by the lender, though many do not usually ask for 20% like with a jumbo loan.

Pros and Cons of Using Nationwide High Balance Loans

With Nationwide High Balance Loan approvals, some lenders prefer to avoid using manual underwriting. Some interest rates tend to be higher than for conventional loans. This is because you are asking for more money, so the loan carries more risk for a lender. There are lower limits on this loan than with a jumbo loan. If you need more than a nationwide high balance loan can offer, you may have to re-apply for a jumbo mortgage. A higher loan amount or lower credit score may increase your interest rates. However, if you have great credit, they may allot you a higher debt-to-income ratio than 43%. You also do not need traditional income documents required by other programs.

Stonebriar Mortgage will help you accomplish your homeownership goals in Dallas, TX or California. We work with customers of all types and enjoy helping investors. Contact our team today and discuss the many benefits of using a Nationwide High Balance Loan.

Small Business Loans

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The U.S. Small Business Administration (SBA) is a federal agency that was created to help and protect small business owners. The SBA gives out loans via private lenders to help small businesses with their capital and operating needs. Stonebriar Mortgage works with the SBA to help Dallas, Texas and California business owners. We help provide the loan, and the SBA insures it.  For this reason, we can get you a great rate on a small business loan. In this week’s blog post, Stonebriar Mortgage is here to help you learn all you need to know about small business loans in Dallas, TX and California.

Varieties of SBA Loans

One of the more frequently used SBA loans is known as the 7(a) Loan Program, which provides general small business loans for a variety of needs. Business owners can use 7(a) loans for working capital, for equipment or furniture purchase, for remodeling, or for revolving funds. Since the SBA insures the loans, they are guaranteed for up to $5 million.

Other varieties of SBA Loans include:

  • Disaster loans, which come with low-interest rates and aid business owners to repair and replace equipment and property after a natural disaster or unexpected event. These SBA loans are available for up to $2 million.
  • Certified Development Company/504 loans, or Real estate and equipment SBA loans, are used for the purchase of land, improvements, new construction, or long-term equipment and machinery. These loans may also be approved for up to $5 million.
  • SBA Microloans were created for small business owners that need a small, short-term loan. This simpler loan option provides funds up to $50,000.

Stonebriar mortgages works with businesses of all types. We are here to help you learn which type of SBA loan your business may need and gain approval for. Our professional staff can help review your finances and also make sure the loan helps create the best option for your financial future. We can show you the great SBA loan competitive rates. These can be very competitive against a traditional business loans, which is great for a small growing business.

Small Business Loan Requirements from the SBA

In order to understand the repayment term for your SBA loan, you will need to review in detail how you intend to use the funds from your lender. For example, with working capital or daily operation loans, the maximum term is up to seven years. With a purchase of new equipment, the maximum term is up to 10 years. In real estate purchases, the term can be up to 25 years. The interest rates and term will vary.

Getting Help with Your Small Business Loan

Stonebriar Mortgage works with business owners in Dallas, TX and California to get the funding they deserve for their ultimate success. Contact Stonebriar Mortgage today to get started!

Bank Statement Loans for Investment Properties

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Right now, it is a great time to invest in real estate. News reports that home sales are booming, especially in California and Dallas, Texas markets. If you are an investor, entrepreneur, or have nontraditional sources of income, then you may have a hard time securing a standard mortgage. You will not qualify for programs such as FHA Loans or VA Loans. Many lenders have other types of financing for people without regular tax statements and W2s. Stonebriar Mortgage helps real estate and other home speculators learn all the benefits of using Investment Property Loans to purchase homes in Dallas, TX and California.

Obtaining Approval for an Investment Property Loan

Many real estate investors or self-employed may not be able to show income to qualify for a conventional loan. Despite this, many can maintain a good credit score and financial stability, which can get them approved for other types of financing. Some conventional loans or bank statement loans may still be available to you. As you go to obtain approval for a mortgage, seek out an Investment Property Loan that can use variety of documents to prove your ability to pay the mortgage.

“No Income” Mortgages

With a “no income” mortgage, the underwriters will have to prove that you have other financial assets to pay a loan and calculate how much you can afford. Therefore, your documentation must be able to show that cash flow and funds from assets or interest will generate enough funds. Often, they will determine how much you can afford to pay on a mortgage from dividends, profit and loss statements, etc. Alternatively, you may have a hefty sum of cash to put a down payment, and so less financing is needed. There are many commercial programs for multi-unit properties that use Investment Property Loans.

Bank Statement Loans

One great way to obtain approval for an investment property loan is through a bank statement loan, these programs will include:

  • Ability to secure a loan for a high-value home, with high limits;
  • Ability to secure a loan without providing W2s or tax returns;
  • Ability to show a debt-to-income ratio that can sometimes reach up to 50%;
  • Ability to secure decent rates, with some investors securing loans in the 5% range;
  • Ability to use equity-based financing;
  • Ability to get rental, vacation, or owner-occupied homes;
  • Ability to use personal or business bank statements; and
  • Ability to secure flexible financing terms (fixed or adjustable rate).

As long as you’re able to show thorough accounting, you can apply for investment properties. Stonebriar Mortgage is here to show you more benefits to using other Investment Property Loans, contact our staff today and get started making great investments in the Dallas, TX and California Markets.

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!

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!