February 27, 2025 • 40 mins
Navigating the world of property financing can feel like wandering through a maze without a map. That's why we brought in mortgage broker Rhonda Hutchison, owner of Envision Home Lending, to shed light on the often misunderstood differences between mortgage brokers and loan brokers.
The conversation reveals a crucial insight many borrowers miss: working with a mortgage broker gives you access to multiple lenders instead of being limited to a single bank's offerings. This becomes particularly valuable when you don't fit the traditional borrowing profile. Self-employed? Written off too many business expenses? Have a unique financial situation? A mortgage broker can find lenders with flexible requirements when mainstream banks say no.
Rhonda shares an eye-opening strategy for would-be real estate investors: purchasing a duplex or fourplex as your primary residence requires just 3% down payment versus the 20-30% typically required for investment properties. By living in one unit while renting the others, you can begin building wealth with significantly less capital. After residing there for the required 12 months, you're free to move out and convert it fully to an investment property.
We also uncover the dangerous misconception between pre-qualification and pre-approval. Many banks offer quick pre-qualifications that only check your credit score without verifying income or calculating debt ratios. This false confidence leads countless homebuyers to heartbreak when they find their dream home only to discover they don't actually qualify for financing during the underwriting process.
Whether you're a first-time homebuyer, self-employed professional seeking financing options, or aspiring real estate investor, this discussion provides actionable insights to navigate property financing with confidence. The pathway to generational wealth often begins with real estate ownership – let us help you take that first step with knowledge and preparation.
If you need assistance in obtaining funding, email us at podcast@tdjequityfundinginsiders.net. Tell what the scope of funding is needed and the amount. A broker will contact you to discuss your funding needs. And remember, at TDJ Equity Funding, we do not force your funding needs into a lender's box but find a lender's box that fits you!
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:22):
We'll be right back, ready to get the inside scoop.
On equity funding, tune in toTDJ Equity Funding Insiders
Podcast for an in-depth look atwhat it takes to access
financial capital and maximizeyour investments.
Speaker 2 (00:43):
Hear from experienced professionals, including
bankers, underwriters, loanofficers and industry experts as
they share their unfilteredstories and valuable lessons on
securing funds, giving power tothe business on WebDAR series,
(01:03):
and so we want to thank you allfor showing up.
So today we're going to talkabout the mortgage broker
industry, for, as I'm a loanbroker and who we have a guest
that we have on our show todayis Rhonda Hutchison.
She owns Envision Home Lending,she's a mortgage broker, she's
a business owner, and she canactually help you with the
(01:27):
understanding of how it's goingto work.
So that's what we're doingtoday, and we're going to start
off with that, so you can knowhow the mortgage business works
as well as how the loan businessworks.
So let's start off.
First of all, ms Rhonda, if youdon't mind, my friend, my girl,
if you would introduce yourselfand let everybody know about
what you do, a little backgroundabout you as well.
Speaker 3 (01:47):
Okay, hi, thank you, number one.
Just thank you for allowing meto come and just share with you
on a day and thank you forletting me be on this platform
to be able to share.
So I'm very important.
So I appreciate that.
But again, my name is RhondaHutchison and I am the owner and
the president and CEO ofEnvision Home Lending and I
started oh my goodness, I'vebeen in the mortgage industry oh
(02:09):
gosh, about eight years now,but I've always been in finance.
I retired from FedEx with 30years of experience, went into
the mortgage industry while Iwas still working at FedEx, and
then what I decided to do whenpurchasing my third home.
I became intrigued with theprocess because I realized how
much people didn't know aboutthe loan process and I became
(02:34):
intrigued and say I wannaeducate, especially my people,
of the rules and guidelines sowe can make good choices.
So that's why I started in theindustry about eight years ago.
Speaker 2 (02:47):
Okay, about eight years.
So from there it brings you towhere you at now with Envision
Home Loans.
So let's go into it.
First of all, we're going toexplain the difference, because
you are a mortgage brokercorrect?
A mortgage broker, that iscorrect.
And I am a loan broker.
So what we're going to do is goin and explain what's the
difference, what we do both doso you guys can understand the
(03:07):
difference between.
So if you would start inletting people know what is a
mortgage broker and what all youdo, yes, a mortgage broker is
different from a mortgage lenderor what we call a loan officer.
Speaker 3 (03:20):
A mortgage broker is one that own their own brokerage
and what they do.
They have availability to lenddifferent lenders.
They're not stuck in a box likea lender.
For instance, if you have abank, that you can only offer
their products, you can only goby their guidelines, that we
(03:40):
shop around with differentlenders to be able to give the
bar the best interest rates, thebest experience and the loan
product can best suit themdepending on the situation.
So brokers say we just shoparound.
We just shop around.
We have access to differentlenders, not just one lender as
a lender or a bank, but we havemultiple lenders that we can go
(04:02):
to to be able to fit whateverthe borrower needs.
Speaker 2 (04:07):
Or the client needs.
Okay, and so let's.
I want to explain on that shoparound, because a lot of people
have their own definition whatthey think that is.
When you guys actually shoparound, you're not running
people credit through a wholelot of different.
Oh no, how does that work?
Speaker 3 (04:21):
so we can let me shop around and say, okay, there may
be specific need for a buy.
It may be a higher DTI debt toincome ratio, and that's how
much money you have coming inversus how much money you're
going going out.
Or there may be a specificreason where you may have um, um
, not two years some of thebasic criteria two years of job
experience, or you may have sometexts right.
(04:43):
Also, you may have filed yourtaxes and there may be a lack of
experience.
Or you may have some taxwrite-offs, or you may have
filed your taxes and there maybe a lack of income.
Or there may be just somespecific reasons where you can't
go through just what we callthe general lending process and
we need to find a lender thatactually fit your needs.
So that's what we mean by shoparound, and also it may be one
lender may tell you no, when wecan go and say, okay, they told
(05:05):
you no, let's find someone elsethat may tell you yes because
they may have just a little bitless overlays.
And what we mean by overlays isthose things on top of the
general guidelines that they mayadd.
For instance, instead of a 620credit score for conventional,
which is the minimum creditscore for most conventional
financing.
They may add an overlay whereit's 660 or 680.
(05:28):
But we may find a lender thatsay, yes, we'll take a 620.
Or the FHA may go below a 580,which is FHA.
Standard is a 580.
They're minimum credit scoresand there are some lenders that
will go below a 580.
Speaker 2 (05:41):
So, the thing is.
What we have to see, then, iswhat you're saying is that, like
, we walk into a bank and allthey can give you is the
products they have, and if youdon't fit in that box of that
product, then you are denied.
And that's what people realize.
Because you deny that one bankon a mortgage doesn't mean you
can't get a mortgage.
You just can't get a mortgagewith them, right?
(06:02):
So the benefit is coming to you.
You have different products, sowhen you one, like you said,
when one person say no, theycan't do it, it doesn't mean the
next person can't do it Right.
Speaker 3 (06:12):
Yes, right, okay, that's right.
I mean, the door is not closed.
Exactly, the door is not closed.
Speaker 2 (06:18):
And what we want them to know too.
So let's go over a little biton the mortgage broker, because
I run into this a lot with whatI do Now.
The mortgage broker you helppeople with because I do
owner-occupied, no, you doowner-occupied, owner-occupied
yes.
Owner-occupied I donon-owner-occupied they say,
well, what does that look like?
If you're looking for a renthouse for rental property, for
your investment property, that'swhat we do.
(06:40):
She, as a person that's dealingwith rental, doing dealing with
property where you are livingin it, it's not the same.
The residences are the same,the regulations are the same,
the loan is the same, insuranceis not the same.
I'm sorry, none of that stuffis the same and that's why we
want to have that that you'reactually looking at.
A mortgage broker can take careof you getting your home, your
(07:00):
personal home, and you could dolike, if I want a vacation home,
you can do that too, right?
Speaker 3 (07:04):
Yeah, we can do second homes, vacation homes.
Yes, All right, so she canhandle for your personal.
Speaker 2 (07:14):
that's what she can do Now.
She also can handle alldifferent aspects of dealing
with you being in a home for usif they do like, if they want to
do HELOC, or you have somebodywho will do a reverse mortgage.
Speaker 3 (07:19):
let's talk a little bit about what all your services
provide in your company, okay,yes, we provide all the regular
loans, like your conventionalFannie Freddie, your VA loans,
your USDAs and all of those whatwe call just what we call
normal primary loans.
But we also do those otherloans like non-QMs.
(07:39):
And what is non-QM, that's anon-qualifier and that's
something that's beyond what weconsider as just a normal loan.
And that may be a bankstatement loan where someone may
have written off their andthat's using good gear toward
your self-employed, because whatthey do, they can make the
money, but they can't show it,they may not have filed their
(08:00):
taxes or they may have wrote offeverything, and that's what
that is.
Or your ITNs I attend whenyou're, maybe when you're not,
when you're for residence,you're from another country and
you don't have a Social Securitycard or number, and we can do
the ITNs.
Or asset depletions.
Let's talk about that.
Asset depletion is that, hey, Ihave the assets.
(08:21):
I can't show it on my bankstatement, I can't show it on my
W-2 or my tax, but I have ourown property.
I have own property.
Or even maybe that I have ahuge, let's say, I want to say
bank account, but 401k userthere, not 401ks user there,
larger than that but I have somekind of liquid asset that I can
(08:42):
get my hands on.
If something goes wrong, ifsomething goes awry, life
happens.
I have the asset that I can getmy hands on.
If something goes wrong andsomething goes awry, life
happens.
I have the funds that I canpull from and be able to secure
that loan and maybe considerless risk.
So those are in reversemortgage.
Let's talk about reversemortgage.
Reverse mortgage is a productand it's one of and that's why I
get excited, because that's myniche is that's a product for
(09:03):
those 62 years of age that owntheir own home and have equity
in their home at least 50% butthey need to take some of that
equity out and live off of, orthey may have some repairs for
their home or or something whatwe call an age in place where
they don't want to go to anursing home but they want to
stay in their home and they takethat equity out and there's no
(09:24):
monthly payment and it doesn't,it's not due until death, and
then that's another story.
We can go in that another time.
But yes, I, when I say I offera plethora, a plethora of things
that loan products, and that'sthe great thing about it being a
broker that you have a lot oflot of things in your arsenal
(09:45):
that you can do, and that istrue.
Speaker 2 (09:47):
But we want you all to understand that her loan
brokers, what she has in herarsenal, is for you that has
owner-occupied.
It's a house you're trying tobuy, that you're going to live
in, or it's a house you'reliving in and you want to look
at getting equity out.
So a broker like Ms Rhonda iswhere you want to go.
She gives you options comparedto if you just walk in one bank,
they only going to give youtheir options, but with Ms
(10:08):
Rhonda, you get to see youroptions and that's why it's
important to go to a mortgagebroker to at least look into
them when you're looking atpurchasing your own home right.
Speaker 3 (10:18):
Okay.
Speaker 2 (10:19):
Now let's do the difference here.
So now let's talk about I'm aloan broker, she's a mortgage
broker.
We're considered loan brokers.
So what we deal with, we dealwith real estate to a certain
point and our real estate isinvestment property only or
commercial property, meaningthat if you want to purchase a
strip mall, a strip area, anapartment complex or anything
(10:41):
that's commercialized, that'swhere we come in at and, like Ms
Rhonda, it's not like you gointo one bank and all they're
going to give you is what theyhave.
We have assets.
In our case, we have over 200different lenders that we can
see and, like you said, it'sbasically you all have to
understand you have customsituations so we need to do
custom things for you.
(11:01):
That's where a brokerage isreally, really good coming in,
so I handle non-owner occupied.
I also handle business ownersand real estate investors.
So if you want to start gettinga real estate investment and
you want to get some homes, youwant to do new construction, fix
and flip any of that.
That's what my business entitydoes.
Okay, so we have the loanbroker that does that.
(11:23):
We also provide the workingcapital.
We also provide everything youneed in your business to grow
for us money.
The thing is, we ran into, andthat's why I want you to talk a
little bit more.
People do not understand how,did not know how both of those
work together and but at leastat the same time we are
separated at the same time onwhat we do.
(11:45):
So what I would like for you todo if someone is looking at
getting a home and things ofthat nature, let's talk about
what all you guys offer to helpthem with that process.
Speaker 3 (11:54):
Okay, Okay, okay.
What we all help them is, firstof all, we want to make sure
you're prepared, and that's thekey is just making sure you're
prepared.
And what do you say, makingsure you're prepared?
Make sure that you have yourcredit, of course, and then make
sure that you have some form ofdown payment.
And we're making sure that wedo that, and we're looking at
(12:17):
your whole picture just to makesure you're prepared.
And that's the only thing Ialways say is making sure that
you're prepared.
And then we have a team, amarvelous team, that makes sure
that you go through the processsmoothly.
Now, let me just tell you it'snot what you could, a non-hiccup
.
You know, there's alwayssomething going, but we're
(12:38):
making sure that preparation iskey, okay.
And then what you do is thatyou go through the process.
We get you prepared, you fillout your application.
Once you fill out yourapplication, then what we do is
we make sure we have documents,required documents to support
your application, and that'swhen you get what we call your
pre-approval.
And your pre-approval hey,we're ready to go.
(13:01):
I have a real estate agent.
If you have one, they're goingto need that piece of paper
before they take you aroundshopping and then, once you do
that, you find your home, you'reunder contract.
You come back to me from thereal estate agent or my team,
and then what we do is we gothrough processing, then
underwriting and then closing,and what we do is we hold your
(13:23):
hands through that process.
It's not where you say, hereyou go, we'll see you at the end
at the closing table.
No, we hold your hand throughevery step to make sure that you
have your questions answered,that you know what to expect
next.
And the communication is key.
We make sure that wecommunicate because that's
important, because that's one ofthe reasons I became a loan
(13:45):
officer as well.
I want to make sure I go backand tell you that, because when
I was buying my third home, Idid not have a loan officer.
That was great withcommunication, and I really
realized how key communicationis.
And so that's I have a team.
I have a team that makes surethat we're on top of everything.
Speaker 2 (14:04):
Right so we can take care.
So, basically, if somebody isstarting out, look or even
looking at getting a house thatI think we run into a business
owners, we kind of focus morewith them.
But this is individual too,that if they're in business
which I love, the fact thatyou're saying, hey, just because
you don't have a traditionalW-2 like everybody else, you're
saying you still get a home.
Come to you and see, and that'swhat I think people need to
(14:26):
realize If you have your ownbusiness, you still can get a
home based on your business iswhat it's doing and that's what
Ms Rhonda can actually help youput that together so you can be
ugly.
You just start now.
We're not for sure because Ihave people that have homes and
they have equity in it.
And don't get me wrong, we'dlove for you all to come to us
(14:47):
and we'll pull money out and getyou in a loan.
But if you have equity in yourhome and that's where you need
to see, ms Rhonda first See whatyour potential of money that
you do have if you want to usethat, compared to if you go out
dealing with a loan that we haveand usually our loans interest
rate is going to be a lot higher, I'll be honest.
And he locks, I'm just going totell you.
Okay, he locks up, yeah, yeah.
(15:08):
So you know.
That's where you know you, youhave options, and we're trying
to show people that with theseseries, giving you power, giving
you knowledge of what's outthere.
So now, now let me say thiswe're finding out that, when not
finding, we know when you applyfor a loan and they ask for a
personal financial statement, msRhonda, I don't know if I
talked to you about this, butwhat they are looking for is
(15:30):
collateral, and the first thingthey want to do is look at your
house, not necessarily to put aclaim on your house or anything
like that, but if you have ahouse, that gives them where you
have value and it helps withyou getting a loan process.
So, compared to when I havepeople who don't have a home,
you might not as get as much asyou would have if they knew you
(15:52):
owned your home.
You see what I'm saying, and soI think we just are not aware
of that.
So now we come back to what youhave and how people need to
start off.
So, if we're talking aboutpeople that are starting out,
they're in business.
What is your recommendation ortailor solution, I guess, is
what you have that you wouldrecommend for them to kind of
start helping them get in thehousing process together.
Speaker 3 (16:15):
And that was the first thing that I said is
preparation.
Make sure that you talk with amortgage broker to see exactly
what you need.
Talk, sit down and talk aboutwhat your plans are.
What I need to do before Istart this process.
So the last thing you want todo is start something, going to
something and then in the middle, then something is found out
that in the middle that it couldbe in the beginning and we
(16:37):
could have been worked out.
And just, for instance,self-employed, self-employed
let's talk about self-employed.
Yeah, let's talk aboutself-employed.
It's that writing everything offon your taxes.
We know that we want to pay lesstaxes as possible, but writing
everything off and you'repreparing to purchase your home
(16:57):
or any property even could be acommercial property when your
taxes are viewed is making surethat you're not writing off
everything.
And if, for some reason, theyear before you wrote off
everything and now this year,let's look at things and say,
okay, next year let's make surethat you write off at least as
possible.
These are the things that Iknow they're mandatory, that you
(17:18):
need to write off, but let'snot write off.
You know every meal ticket thatyou, that you spend, or or
vacation that you went orsomewhere you've gone for a
conference and you what you need.
Talk to a mortgage professional, talk to a lending professional
as yourself, and see what arethe criterias, what are the
(17:44):
bases, what do I need to dobefore I start the process, if I
don't say anything else?
That's key because preparationcan make a difference, because
it makes the process smootherand it also gives you less
headaches when it comes to whenyou're going through the process
.
Speaker 2 (18:01):
so I would say that's that's key so basically, we're
saying something what everybodytake away from is to actually
know, um, the difference betweenmortgage broker and a loan
broker.
So in your mind, uh and this iskind of a little bit off of
what we had talked about earlieryou tell me what you have an
experience and, kind of a littlebit off of what we had talked
about earlier, you tell me whatyou have an experience in kind
(18:22):
of dealing with it.
What do you think people, howdo people look at the mortgage
business based on the loanbusiness?
What do you, how do they lookat that?
Do you have an understanding ofwhat people look at with that?
Speaker 3 (18:38):
When you say the mortgage business are you
talking about?
When it comes to residentialand then loan, it comes to like
uh, you know what you do as faras business loans.
Speaker 2 (18:43):
Exactly that's what I mean.
Speaker 3 (18:44):
Thank you, yes ma'am that exactly it, thank you okay,
okay, I'm glad I did, but inthe mortgage business, I guess
what people look at is that, uh,the collateral.
Not.
And, if you may think aboutthat, because I'm just thinking
about what you do and what we dois that when you're doing the
lending part as a lending broker, then the collateral is what
(19:07):
you're looking for most.
Speaker 2 (19:08):
But on my side I have to have that yep.
Speaker 3 (19:10):
Yeah, my side, we're looking at what assets you have.
As far as what's in the bank,your income is key.
It's making sure and that's whyI was saying preparation if
you're 1099 or you'reself-employed, not writing off
everything because it's and evenif you're a W-2 employee and
you have a side business andyou're writing off that side
(19:33):
business and you're actuallyreporting that side business
because you want to pay less onyour taxes and because I've had
someone that had an eyelash shopand never put an eyelash on in
her life because somebody toldher that's what she needed to do
is to have a side business, butwhen she came to buy a home
then she did not have the income.
(19:54):
So, income, assets andliabilities making sure that you
have less liabilities.
What do you say Liabilitiescredit card debt, loan debt, car
debt, student loan, debt makingsure that you have those things
under control, and that's whatI will say.
That's pretty much different.
I'm looking at all of thosevariables when you may be
(20:16):
looking at most important, likeyou say, collateral.
I know credit score isimportant for both of us, so we
know that.
But those are the keys is justmaking sure you have the income.
You have a little bit ofliabilities, debt, and then to
making sure that you're, thatyou are prepared beforehand,
before you move forward on it.
Speaker 2 (20:37):
Right, which is good, and so, in that, what you're
saying as well is we're going togive you some numbers.
We like and I know you guys doif you have like 30%, 45% of
utilization on your debt.
Speaker 1 (20:48):
What is yours?
Speaker 2 (20:49):
I mean because basically that's what we kind of
look for.
Some things don't need it, butwhen you do unsecured lending
like we do, which is like yousaid, that one is no collateral
but the interest rate is goingto be a lot higher because
they're based on the profile, onjust the end.
So that's where thatutilization comes in on our side
(21:11):
that you want to look at, butalso with you guys.
I think yours is debt to incomeis what you owe.
Speaker 3 (21:15):
Yeah debt to income, which is still credit
utilization, and if you reallywant to, just to break it down.
But yeah, it's a debt to incomeratio and typically for
conventional financing and ofcourse you know that's the loan
with the have the less risk.
We're looking at maybe betweena 43 to a 48,.
We will say back in, that meanshow much debt is, how much
(21:36):
income is going in, how muchdebt is going out, based on your
income.
And then, of course, if you goto FHA, which is an affordable
housing product, it does allowyou for a little bit more debt,
which could be between 55, 57%on the back end.
And when we say back end is howmuch income coming out and then
how much debt is coming inversus what's going out 50 for 7
(21:58):
cents coming in versus what'sgoing out 50 for 7 cents, 57% of
your income, which includesyour projected house payment at
the end of the day.
So that's very important is tomaking sure that you can keep
your debt to income ratio low aspossible, but going with FHA
does allow that.
Now we talk about non-QM.
Non-qm it just depends on,depends on, but you're still
(22:20):
looking at between the 40s and50s on your debt to income.
But non-QM is a differentanimal and it does allow for a
little bit more variables whenit comes to debt, to income.
Speaker 2 (22:32):
Okay, Well, we have someone to ask a question, which
is Ms Shakina, and thank you somuch.
Thank you, shakina.
We, which is Ms Shakina, andthank you so much, ms Shakina,
we appreciate you.
So she's asking Ms Jackal, whatare some acceptable forms of
collateral that we take?
And so what she's saying andasking, if I'm correct, you're
asking about us as a loan broker.
So loan brokers dealing withbusiness, our collateral that we
(22:56):
would accept it could be therevenue, only what you have
coming in your business, becausethat can be collateral.
You can also have your property.
If it's property, if you ownsomething, they'll take that as
collateral and then also yourfuture revenue you coming in
Because, like what you said, theyoung lady that had the
business, the thing is shedidn't conduct business, didn't
get money coming in, didn't havea cashflow.
(23:17):
That's what we're saying.
We look at that as actualcollateral and, if I'm correct,
on a non-QM, you would look atthat as well for them to get in
the house with you, am I correct?
Speaker 3 (23:28):
Yes, liquid assets, making sure you can cash it in
Right.
Speaker 2 (23:32):
So those are the type of collaterals.
When you come with business,you're looking at your revenue.
That's why I tell everybody,before you start looking at a
loan, let's look at what youhave.
Is it cash flowing?
Is it lucrative?
Are you making money?
Because that needs to be seenfor them to say, okay, we can
give you money because you couldpay it back.
So that's the main thing of.
And then, like I said, if youget into real estate, then it's
(23:55):
actually a property.
But let's say, let me say saythis, because I think sometimes
people have a confusion If youbuy a house now you correct me
if I'm wrong, ms Rhonda Okay, ifyou have a house that we went
through a mortgage broker withyou to get, and I move out the
house and I move a renter in,all right, we've just changed
(24:17):
the dynamic of the household.
People don't understand howthat works, and so you can
actually probably talk on aswell that once you move a renter
in, there's no own, there's no,it's no longer owner argument.
No, nope, it's not owner.
So, if it's not owner, I wantto ask you this, and I hopefully
I hadn't caught you off guard,because I've been wanting to
know when someone actually has ahome and I've moved out of the
(24:40):
home and I'm moving somebody in.
What should I do?
Anything to the lender at all?
Should I say something or leaveit alone?
Or what should we do?
Is that something you can evenanswer?
Speaker 3 (24:50):
Yeah, and you didn't catch me off guard, that's
oftentimes, but just making surethat you just did.
You just didn't purchase thatbecause you're supposed to stay
in that home at least 12 monthswhen you buy it and before you
can, yeah, you have to have ityour own, your, you have to own
that property to stay in that asyour primary, uh, 12 months
(25:11):
upon after you're closed on ahouse so just okay, so we've
been there some time and then welike four or five years and
move out.
Speaker 2 (25:17):
It won't be such a oh no, it's not.
Speaker 3 (25:19):
No, okay, no, and that's now.
It's an investment propertybecause it's.
It's a lot of people and I wantto say a lot of, uh younger
people that do that.
Uh, the smart, you know, thosemillenniums, they're smart.
They go purchase a home,they'll stay in the home one
year and then they go out and goget an apartment and they'll
have it in uh, a rental incomecoming in and then they'll turn
around and do it.
(25:40):
You know, get another, do it,just keep doing it, keep doing
it, and so that's how they'rebuilding generational wealth and
how they're building wealth.
Speaker 2 (25:47):
So, as long as you're staying in that property 12
months after you close, afteryou fund it, right it's your
primary property, then you candefinitely change it into a
rental or investment propertyinvestment and that's just
something like I said when Isaid off guard, because I should
have told you about that.
But we talked, okay what I sayyou I'm good, you know what I'm
(26:07):
saying, I know you can handle it, so this is my other thing then
.
Okay, so we can do that now.
I had someone that brought upsomething that made really good
with real estate investment.
They were saying that theywanted to buy a fourplex and
stay in one and then rent outthe rest.
That is something would you door you couldn't do.
Speaker 3 (26:29):
Yes, that's definitely something.
Anything that's less thanfourplex or less is considered
primary property.
It's residential?
Speaker 1 (26:37):
It's not commercial.
Speaker 3 (26:38):
But as long as you're staying on one side, long as
you're staying in one of thoseunits, it's considered.
But if you're not staying inone of those units, it's an
investment property.
Speaker 2 (26:49):
Right.
And let's say so everybody canknow the big difference is this
Investment property with merequire anywhere from 20 to 30%
down.
Investment property with merequire anywhere from 20 to 30%
down period.
No program okay, because yourexperience as a real estate
investor determines how much yougot to put down.
I don't know what the creditscore, but it's more your
(27:09):
experience than anything on theinvestment side.
Now, on your side correct me ifI'm wrong, ms Rhonda you can go
down to 3% now Program.
It's just more, it's less withyou getting in it.
So I guess it's probably anadvantage to get with you, stay
in a house or duplex or fourplexfor a year or so and then move
(27:30):
out, and that'd be a great wayto start without you coming out
with 30%.
I mean because- 20,.
Speaker 3 (27:35):
yeah, absolutely, and it's a great way to build
wealth.
Speaker 2 (27:53):
You know, just make sure your neighbors, whoever you
stay in and somebody you don'tmind staying next to, but, yes,
go ahead and stay in one ofthose units and then after that
you move out and then you have afour and loan brokerage can
work together.
Because we also, I tell like,the other day we had a young
lady come in, her and herhusband, they have like a
two-year-old and they want toget a real estate investment.
So she said, well, we figurewe'll go ahead and buy a couple
of houses and that'll get ourcash flow up and then we'll look
at buying our houses.
But, rhonda, I said the samething.
(28:15):
I told her.
I said why don't you just get aduplex, you know a fourplex,
and y'all stay in one side andjust rent it out?
And she said she never thoughtof it.
Well, they went through theprocess of actually getting that
done.
This was some time ago now I'mthinking about it and she wound
up doing it and later on shecame to me.
She said you know, that's thebest thing we could have done.
I mean, it're going to staythere a couple of years and then
(28:36):
move out, and we're going toactually have four instant
tenants when I move out.
So that is a wonderful idea andI'm glad to hear you, as a
mortgage broker, you feel goodabout it.
Now we can't talk about theother lenders, but I know when
you walk in a bank they arestrict on what they can and
cannot do.
Am I correct?
Absolutely, yes, absolutely.
That's where you come in andyou're a more versatile and
(29:00):
that's what I wanted everybodyto understand today how working
with a mortgage broker likeyourself, even if you're looking
at real estate, go there firstand see what they can show you
of what can do, because youalready you're aware of how to
do that and to make that happen.
So is there anything you wouldrecommend suggest with them
doing that type of process?
(29:21):
What are some of the thingsyou've heard, or some of the
things you want to kind of warnthem on doing that?
Anything like that you want togive us?
Speaker 3 (29:29):
And I know I feel like I just keep coming back to
this thing.
It's just preparation, that'swhat I keep saying, but to me
that's just key.
And do your research.
You know, if you want to startoff, go to your bank if you want
to start off and see what theyhave to offer, because I promise
you, once you leave thereyou'll be saying you know what,
I'm not coming to this bank.
But you know, start with yourbank because you really need to
(29:52):
see what's out there and thencome to a mortgage broker like
myself.
Come to me and let's comparenumbers, let's see what I can do
for you.
Because, like you statedearlier, Ms Jacqueline, is that
a bank, you're in a box.
You know whatever their creditscore criterias are, whatever
their loan products they offerand some most of them don't
(30:14):
offer FHA.
Some credit unions do not offerFHA product, they only do
conventional.
So just make sure that you'reprepared, do your research, do
what you need to do upfront andthen make the best decision.
But just know that when you cometo a mortgage broker, the
door's open because there's alot of opportunities and you're
(30:36):
just not in one sandbox playingin one sandbox that you get out
and you be able to have otheroptions.
Speaker 2 (30:43):
Other options and I think that is great, great
advice On my end for you all.
Knowing that you have themortgage broker, you've learned
about what we do as a loanbroker.
If you're getting in realestate or you're dealing with
your business, make anappointment with a mortgage
broker, loan broker, like yousaid, do your homework, see
what's out there, you know andwhat will work for you.
(31:03):
And, like I think, something Ido want to say that you
mentioned that we need to theycan ask for a list of services
that a bank provide or amortgage broker provide.
Right, absolutely.
Speaker 3 (31:16):
Absolutely, yes, absolutely, and and and also and
this is key too most times whenyou go to a bank or a credit
union, they're going to say, andif they give you an approval,
it's really not approval, it's apre-qualification.
They're running credit andthey're just saying, okay,
you're credit worthy, butthey're not collecting your
documents, your bank statements,they're not collecting your
(31:38):
W-2s, your paycheck stubs to seeif you're completely qualified.
So make sure that if you go toa bank and they said you run
your credit and give you anapproval letter, just know that
you're really not pre-approved,you're just pre-qualified,
you're just credit, because itis a difference.
It's a big difference becauseyou can go through the process
(31:58):
and then they find out that youdon't have enough years, you
don't have enough income, andthen there you are, you've found
the home of your dreams andthen you're not able to move
forward with that purchase.
So, like I said, do yourresearch, make sure that you're
pre-approved and notpre-qualified, and most banks
and the credit unions will giveyou a pre-qualification, not a
(32:21):
pre-approval.
Speaker 2 (32:22):
Okay, so we need.
That's a great takeaway.
Pre-approval andpre-qualification is two
different things.
Is that what you're saying?
Speaker 3 (32:31):
Yes, ma'am, absolutely.
When you're pre-qualified,they're just running your credit
and say, okay, you got aqualifying credit score, but
they're not checking any of yourassets, any of your liability.
Well, they ran credit, theylooked at your liability, but
they're not checking your incomeand they're not checking
anything else.
Speaker 2 (32:46):
They're not doing a debt to ratio.
None of that stuff.
Speaker 3 (32:48):
No, they're not.
No, no, no.
Speaker 2 (32:50):
Which can change the terms of a loan application.
Speaker 3 (32:54):
Oh yeah, absolutely Absolutely, and it can be a
quick denial.
If something comes up and it'snot, you know it's not caught
before beforehand.
And then you're going throughthe process.
You found the home that youfell in love with and then, in
the midst of you going throughthe process, then you find out
you're not qualified.
Speaker 2 (33:12):
You know.
See, that's why I say, with abroker, we can actually take you
looking ugly, right.
I mean, you know, like you'resaying you want them to be
prepared, she's telling you that.
But, guys, if you all come inand you're not, we all want you
to be prepared.
Believe me, we do.
But if you come in and you'renot, that's the thing.
That's such a great advantage.
As a broker, we know whatthings look like.
(33:33):
You know what underwriting islooking for, I know what
underwriting is looking for, andbecause both of us are aware of
what the process is behind thescene process, behind the loan
officer, we're able to help youto look like you need to, like
you said, be prepared so yourloan can go through and process
a lot better and a lot quickerand get approved by having that.
(33:58):
So, in your years of experience, how do you see?
Having that knowledge hasreally helped you to do what
you're doing now, knowing what'sgoing on in the background.
Speaker 3 (34:07):
Oh, yes, okay, I can talk about that.
Let me just tell you this whenI first started out, I was a
down payment assistant queen andI'm going to tell you what that
means.
Yeah, I was a down paymentassistant queen of like every
real estate agent that had aclient that had down payment.
But you want to know what itmade me a great loan officer?
(34:27):
Because I had to be strategicin my thinking.
I had to find out those thingsthat work.
You know we can't break therules, but you can find a way
around them sometimes and andbut what I'm kind of within
guidelines we're not talkingabout doing anything illegal,
but just making sure that, uh,doing those hard loans and being
(34:48):
strategic and being able tothink outside the box, that's
key.
And now that was the bestexperience for me is having
those hard loans, because I waswondering are you ever going to
get an easy loan?
But but it made me.
It did.
It really made me a strong,strong loan officer and I am
(35:09):
definitely blessed for it.
And so, yeah, you have to, andso that's why I can say you know
what I'm out there.
I'm not gonna say I'm one ofthe best, I'm the best out there
, right because you've been.
Speaker 2 (35:20):
You've been down there and that's why I know you
do good and you take on the hardstuff.
Like you said, reverse mortgageis one of your main thing and I
love that about you.
You actually take on the hardones and that's why I was saying
I wanted you on here so peoplecan see that we understand what
you're going through.
You don't have to be prettypretty, but we can help you get
it right.
Like I said, you definitely can, cause a lot of us don't know
(35:41):
what to do.
We don't know the process ofhow it works.
Now, we all.
Now this is what we really do.
We listen to everybody else andtell us how things, how I did it
, that's what they say, this iswhat I did, but you know, and it
just puts people in a reallybad, a real bad situation and
(36:02):
that's why it's important toknow, ronda, that you do have
that experience in thebackground.
You can guide them even beforeyou start the process.
They can sit out and talk toyou and you can say, okay, this
is the roadmap of what you needto do and that's what you want,
and you give them options andthis is what everybody got to
realize.
You have options, even when youdeny it yeah, yeah, you know
(36:24):
what I'm saying yes, yes, itdoesn't know.
And you know how they say it'snot over until the fat lady's
seen but yeah, so so exactly sothat's what we're actually
trying to enlighten you andhopefully we have.
So is there anything elsebefore we close out?
I have definitely enjoyed you,miss ronda.
Speaker 3 (36:44):
I always do, I really thank you, you too, I know it's
going to be a good show.
Speaker 2 (36:49):
I know it's going to be a good time so is there
anything you would like to sayto our audience together that
they can do a takeaway with?
Speaker 3 (36:57):
but no, and what I guess one of the things that I
was going to say is just makingsure is that home ownership if I
want to say anything else, ifyou want to build legacy, home
ownership is the key.
Home ownership, real estate,property what myself and Miss
Jackie does it's the key.
(37:18):
It is the key to generationalwealth.
Don't let nobody tell youanything else.
That's one of the mostimportant.
That is the most importantthing you can do if you want to
leave generational wealth.
And renting and leasing, thatis not prepare yourself to be
able to have your own home, haveyour own investment properties.
(37:42):
That's the key to generationalwealth.
If I don't tell you anythingelse, it's not going out here
doing anything else and I cangive you a whole list of those
things, but real estate is key.
If you want to leave a legacy,make sure you partake in real
estate.
Speaker 2 (37:59):
Exactly and thank you so much.
And on my side of it is that,like you said, real estate, so
she can help you withowner-occupied or, if you want
to, on my side, do noneowner-occupied Real estate will
make you the money and she is socorrect.
So we want to thank Ms Rhondafor coming out today.
Thank you for having me.
(38:20):
And we do, and I want to thankyou all and again, we want to
emphasize that we do our webinar, which is giving power to the
business owner, so that you canbe educated on what's out there
besides just working on yourbusiness.
All the aspects in life wetouch, but yet we don't know a
lot about it.
So we try to bring things indirectly for our business owners
(38:42):
that can help them understandwhen money is needed and how to
need it and where you can get itfrom and how does it work.
So that's why we have this andwe've been doing really good
with it.
If you guys want to see any ofthis, you're welcome to go to
our YouTube channel.
We'll actually have that allposted as well, as Mrs Rhonda is
(39:06):
on our referral page on ourwebsite, wwwtdjequityllc, up
here.
Yep, right there, I was gonna dothat.
Look at that Right there.
If you go to our website, youwill see Ms Rhonda there where
you all can get our informationas well as she has the
information that's on the screenour information as well as she
has the information that's onthe screen.
But we definitely want you toreach out to her, reach out to
myself and we can guide youwherever you need to go, but
definitely reach out to usbecause we are brokers and we
know a lot of people in thefield and we can deal with
(39:28):
custom situations.
Okay, so again, we want tothank you all so much.
You all have a great day andyou all take care, all right,
thank you, all right, thank you,thank you, bye-bye, bye-bye.
Speaker 1 (39:46):
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders Podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments.
It takes to access financialcapital and maximize your
investments.
Hear from experiencedprofessionals, including bankers
, underwriters, loan officersand industry experts, as they
(40:09):
share their unfiltered storiesand valuable lessons on securing
funds.
We'll be right back, ready to get the inside scoop.
On equity funding, tune in toTDJ Equity Funding Insiders
Podcast for an in-depth look atwhat it takes to access
financial capital and maximizeyour investments.
Speaker 2 (00:43):
Hear from experienced professionals, including
bankers, underwriters, loanofficers and industry experts as
they share their unfilteredstories and valuable lessons on
securing funds, giving power tothe business on WebDAR series,
(01:03):
and so we want to thank you allfor showing up.
So today we're going to talkabout the mortgage broker
industry, for, as I'm a loanbroker and who we have a guest
that we have on our show todayis Rhonda Hutchison.
She owns Envision Home Lending,she's a mortgage broker, she's
a business owner, and she canactually help you with the
(01:27):
understanding of how it's goingto work.
So that's what we're doingtoday, and we're going to start
off with that, so you can knowhow the mortgage business works
as well as how the loan businessworks.
So let's start off.
First of all, ms Rhonda, if youdon't mind, my friend, my girl,
if you would introduce yourselfand let everybody know about
what you do, a little backgroundabout you as well.
Speaker 3 (01:47):
Okay, hi, thank you, number one.
Just thank you for allowing meto come and just share with you
on a day and thank you forletting me be on this platform
to be able to share.
So I'm very important.
So I appreciate that.
But again, my name is RhondaHutchison and I am the owner and
the president and CEO ofEnvision Home Lending and I
started oh my goodness, I'vebeen in the mortgage industry oh
(02:09):
gosh, about eight years now,but I've always been in finance.
I retired from FedEx with 30years of experience, went into
the mortgage industry while Iwas still working at FedEx, and
then what I decided to do whenpurchasing my third home.
I became intrigued with theprocess because I realized how
much people didn't know aboutthe loan process and I became
(02:34):
intrigued and say I wannaeducate, especially my people,
of the rules and guidelines sowe can make good choices.
So that's why I started in theindustry about eight years ago.
Speaker 2 (02:47):
Okay, about eight years.
So from there it brings you towhere you at now with Envision
Home Loans.
So let's go into it.
First of all, we're going toexplain the difference, because
you are a mortgage brokercorrect?
A mortgage broker, that iscorrect.
And I am a loan broker.
So what we're going to do is goin and explain what's the
difference, what we do both doso you guys can understand the
(03:07):
difference between.
So if you would start inletting people know what is a
mortgage broker and what all youdo, yes, a mortgage broker is
different from a mortgage lenderor what we call a loan officer.
Speaker 3 (03:20):
A mortgage broker is one that own their own brokerage
and what they do.
They have availability to lenddifferent lenders.
They're not stuck in a box likea lender.
For instance, if you have abank, that you can only offer
their products, you can only goby their guidelines, that we
(03:40):
shop around with differentlenders to be able to give the
bar the best interest rates, thebest experience and the loan
product can best suit themdepending on the situation.
So brokers say we just shoparound.
We just shop around.
We have access to differentlenders, not just one lender as
a lender or a bank, but we havemultiple lenders that we can go
(04:02):
to to be able to fit whateverthe borrower needs.
Speaker 2 (04:07):
Or the client needs.
Okay, and so let's.
I want to explain on that shoparound, because a lot of people
have their own definition whatthey think that is.
When you guys actually shoparound, you're not running
people credit through a wholelot of different.
Oh no, how does that work?
Speaker 3 (04:21):
so we can let me shop around and say, okay, there may
be specific need for a buy.
It may be a higher DTI debt toincome ratio, and that's how
much money you have coming inversus how much money you're
going going out.
Or there may be a specificreason where you may have um, um
, not two years some of thebasic criteria two years of job
experience, or you may have sometexts right.
(04:43):
Also, you may have filed yourtaxes and there may be a lack of
experience.
Or you may have some taxwrite-offs, or you may have
filed your taxes and there maybe a lack of income.
Or there may be just somespecific reasons where you can't
go through just what we callthe general lending process and
we need to find a lender thatactually fit your needs.
So that's what we mean by shoparound, and also it may be one
lender may tell you no, when wecan go and say, okay, they told
(05:05):
you no, let's find someone elsethat may tell you yes because
they may have just a little bitless overlays.
And what we mean by overlays isthose things on top of the
general guidelines that they mayadd.
For instance, instead of a 620credit score for conventional,
which is the minimum creditscore for most conventional
financing.
They may add an overlay whereit's 660 or 680.
(05:28):
But we may find a lender thatsay, yes, we'll take a 620.
Or the FHA may go below a 580,which is FHA.
Standard is a 580.
They're minimum credit scoresand there are some lenders that
will go below a 580.
Speaker 2 (05:41):
So, the thing is.
What we have to see, then, iswhat you're saying is that, like
, we walk into a bank and allthey can give you is the
products they have, and if youdon't fit in that box of that
product, then you are denied.
And that's what people realize.
Because you deny that one bankon a mortgage doesn't mean you
can't get a mortgage.
You just can't get a mortgagewith them, right?
(06:02):
So the benefit is coming to you.
You have different products, sowhen you one, like you said,
when one person say no, theycan't do it, it doesn't mean the
next person can't do it Right.
Speaker 3 (06:12):
Yes, right, okay, that's right.
I mean, the door is not closed.
Exactly, the door is not closed.
Speaker 2 (06:18):
And what we want them to know too.
So let's go over a little biton the mortgage broker, because
I run into this a lot with whatI do Now.
The mortgage broker you helppeople with because I do
owner-occupied, no, you doowner-occupied, owner-occupied
yes.
Owner-occupied I donon-owner-occupied they say,
well, what does that look like?
If you're looking for a renthouse for rental property, for
your investment property, that'swhat we do.
(06:40):
She, as a person that's dealingwith rental, doing dealing with
property where you are livingin it, it's not the same.
The residences are the same,the regulations are the same,
the loan is the same, insuranceis not the same.
I'm sorry, none of that stuffis the same and that's why we
want to have that that you'reactually looking at.
A mortgage broker can take careof you getting your home, your
(07:00):
personal home, and you could dolike, if I want a vacation home,
you can do that too, right?
Speaker 3 (07:04):
Yeah, we can do second homes, vacation homes.
Yes, All right, so she canhandle for your personal.
Speaker 2 (07:14):
that's what she can do Now.
She also can handle alldifferent aspects of dealing
with you being in a home for usif they do like, if they want to
do HELOC, or you have somebodywho will do a reverse mortgage.
Speaker 3 (07:19):
let's talk a little bit about what all your services
provide in your company, okay,yes, we provide all the regular
loans, like your conventionalFannie Freddie, your VA loans,
your USDAs and all of those whatwe call just what we call
normal primary loans.
But we also do those otherloans like non-QMs.
(07:39):
And what is non-QM, that's anon-qualifier and that's
something that's beyond what weconsider as just a normal loan.
And that may be a bankstatement loan where someone may
have written off their andthat's using good gear toward
your self-employed, because whatthey do, they can make the
money, but they can't show it,they may not have filed their
(08:00):
taxes or they may have wrote offeverything, and that's what
that is.
Or your ITNs I attend whenyou're, maybe when you're not,
when you're for residence,you're from another country and
you don't have a Social Securitycard or number, and we can do
the ITNs.
Or asset depletions.
Let's talk about that.
Asset depletion is that, hey, Ihave the assets.
(08:21):
I can't show it on my bankstatement, I can't show it on my
W-2 or my tax, but I have ourown property.
I have own property.
Or even maybe that I have ahuge, let's say, I want to say
bank account, but 401k userthere, not 401ks user there,
larger than that but I have somekind of liquid asset that I can
(08:42):
get my hands on.
If something goes wrong, ifsomething goes awry, life
happens.
I have the asset that I can getmy hands on.
If something goes wrong andsomething goes awry, life
happens.
I have the funds that I canpull from and be able to secure
that loan and maybe considerless risk.
So those are in reversemortgage.
Let's talk about reversemortgage.
Reverse mortgage is a productand it's one of and that's why I
get excited, because that's myniche is that's a product for
(09:03):
those 62 years of age that owntheir own home and have equity
in their home at least 50% butthey need to take some of that
equity out and live off of, orthey may have some repairs for
their home or or something whatwe call an age in place where
they don't want to go to anursing home but they want to
stay in their home and they takethat equity out and there's no
(09:24):
monthly payment and it doesn't,it's not due until death, and
then that's another story.
We can go in that another time.
But yes, I, when I say I offera plethora, a plethora of things
that loan products, and that'sthe great thing about it being a
broker that you have a lot oflot of things in your arsenal
(09:45):
that you can do, and that istrue.
Speaker 2 (09:47):
But we want you all to understand that her loan
brokers, what she has in herarsenal, is for you that has
owner-occupied.
It's a house you're trying tobuy, that you're going to live
in, or it's a house you'reliving in and you want to look
at getting equity out.
So a broker like Ms Rhonda iswhere you want to go.
She gives you options comparedto if you just walk in one bank,
they only going to give youtheir options, but with Ms
(10:08):
Rhonda, you get to see youroptions and that's why it's
important to go to a mortgagebroker to at least look into
them when you're looking atpurchasing your own home right.
Speaker 3 (10:18):
Okay.
Speaker 2 (10:19):
Now let's do the difference here.
So now let's talk about I'm aloan broker, she's a mortgage
broker.
We're considered loan brokers.
So what we deal with, we dealwith real estate to a certain
point and our real estate isinvestment property only or
commercial property, meaningthat if you want to purchase a
strip mall, a strip area, anapartment complex or anything
(10:41):
that's commercialized, that'swhere we come in at and, like Ms
Rhonda, it's not like you gointo one bank and all they're
going to give you is what theyhave.
We have assets.
In our case, we have over 200different lenders that we can
see and, like you said, it'sbasically you all have to
understand you have customsituations so we need to do
custom things for you.
(11:01):
That's where a brokerage isreally, really good coming in,
so I handle non-owner occupied.
I also handle business ownersand real estate investors.
So if you want to start gettinga real estate investment and
you want to get some homes, youwant to do new construction, fix
and flip any of that.
That's what my business entitydoes.
Okay, so we have the loanbroker that does that.
(11:23):
We also provide the workingcapital.
We also provide everything youneed in your business to grow
for us money.
The thing is, we ran into, andthat's why I want you to talk a
little bit more.
People do not understand how,did not know how both of those
work together and but at leastat the same time we are
separated at the same time onwhat we do.
(11:45):
So what I would like for you todo if someone is looking at
getting a home and things ofthat nature, let's talk about
what all you guys offer to helpthem with that process.
Speaker 3 (11:54):
Okay, Okay, okay.
What we all help them is, firstof all, we want to make sure
you're prepared, and that's thekey is just making sure you're
prepared.
And what do you say, makingsure you're prepared?
Make sure that you have yourcredit, of course, and then make
sure that you have some form ofdown payment.
And we're making sure that wedo that, and we're looking at
(12:17):
your whole picture just to makesure you're prepared.
And that's the only thing Ialways say is making sure that
you're prepared.
And then we have a team, amarvelous team, that makes sure
that you go through the processsmoothly.
Now, let me just tell you it'snot what you could, a non-hiccup
.
You know, there's alwayssomething going, but we're
(12:38):
making sure that preparation iskey, okay.
And then what you do is thatyou go through the process.
We get you prepared, you fillout your application.
Once you fill out yourapplication, then what we do is
we make sure we have documents,required documents to support
your application, and that'swhen you get what we call your
pre-approval.
And your pre-approval hey,we're ready to go.
(13:01):
I have a real estate agent.
If you have one, they're goingto need that piece of paper
before they take you aroundshopping and then, once you do
that, you find your home, you'reunder contract.
You come back to me from thereal estate agent or my team,
and then what we do is we gothrough processing, then
underwriting and then closing,and what we do is we hold your
(13:23):
hands through that process.
It's not where you say, hereyou go, we'll see you at the end
at the closing table.
No, we hold your hand throughevery step to make sure that you
have your questions answered,that you know what to expect
next.
And the communication is key.
We make sure that wecommunicate because that's
important, because that's one ofthe reasons I became a loan
(13:45):
officer as well.
I want to make sure I go backand tell you that, because when
I was buying my third home, Idid not have a loan officer.
That was great withcommunication, and I really
realized how key communicationis.
And so that's I have a team.
I have a team that makes surethat we're on top of everything.
Speaker 2 (14:04):
Right so we can take care.
So, basically, if somebody isstarting out, look or even
looking at getting a house thatI think we run into a business
owners, we kind of focus morewith them.
But this is individual too,that if they're in business
which I love, the fact thatyou're saying, hey, just because
you don't have a traditionalW-2 like everybody else, you're
saying you still get a home.
Come to you and see, and that'swhat I think people need to
(14:26):
realize If you have your ownbusiness, you still can get a
home based on your business iswhat it's doing and that's what
Ms Rhonda can actually help youput that together so you can be
ugly.
You just start now.
We're not for sure because Ihave people that have homes and
they have equity in it.
And don't get me wrong, we'dlove for you all to come to us
(14:47):
and we'll pull money out and getyou in a loan.
But if you have equity in yourhome and that's where you need
to see, ms Rhonda first See whatyour potential of money that
you do have if you want to usethat, compared to if you go out
dealing with a loan that we haveand usually our loans interest
rate is going to be a lot higher, I'll be honest.
And he locks, I'm just going totell you.
Okay, he locks up, yeah, yeah.
(15:08):
So you know.
That's where you know you, youhave options, and we're trying
to show people that with theseseries, giving you power, giving
you knowledge of what's outthere.
So now, now let me say thiswe're finding out that, when not
finding, we know when you applyfor a loan and they ask for a
personal financial statement, msRhonda, I don't know if I
talked to you about this, butwhat they are looking for is
(15:30):
collateral, and the first thingthey want to do is look at your
house, not necessarily to put aclaim on your house or anything
like that, but if you have ahouse, that gives them where you
have value and it helps withyou getting a loan process.
So, compared to when I havepeople who don't have a home,
you might not as get as much asyou would have if they knew you
(15:52):
owned your home.
You see what I'm saying, and soI think we just are not aware
of that.
So now we come back to what youhave and how people need to
start off.
So, if we're talking aboutpeople that are starting out,
they're in business.
What is your recommendation ortailor solution, I guess, is
what you have that you wouldrecommend for them to kind of
start helping them get in thehousing process together.
Speaker 3 (16:15):
And that was the first thing that I said is
preparation.
Make sure that you talk with amortgage broker to see exactly
what you need.
Talk, sit down and talk aboutwhat your plans are.
What I need to do before Istart this process.
So the last thing you want todo is start something, going to
something and then in the middle, then something is found out
that in the middle that it couldbe in the beginning and we
(16:37):
could have been worked out.
And just, for instance,self-employed, self-employed
let's talk about self-employed.
Yeah, let's talk aboutself-employed.
It's that writing everything offon your taxes.
We know that we want to pay lesstaxes as possible, but writing
everything off and you'repreparing to purchase your home
(16:57):
or any property even could be acommercial property when your
taxes are viewed is making surethat you're not writing off
everything.
And if, for some reason, theyear before you wrote off
everything and now this year,let's look at things and say,
okay, next year let's make surethat you write off at least as
possible.
These are the things that Iknow they're mandatory, that you
(17:18):
need to write off, but let'snot write off.
You know every meal ticket thatyou, that you spend, or or
vacation that you went orsomewhere you've gone for a
conference and you what you need.
Talk to a mortgage professional, talk to a lending professional
as yourself, and see what arethe criterias, what are the
(17:44):
bases, what do I need to dobefore I start the process, if I
don't say anything else?
That's key because preparationcan make a difference, because
it makes the process smootherand it also gives you less
headaches when it comes to whenyou're going through the process
.
Speaker 2 (18:01):
so I would say that's that's key so basically, we're
saying something what everybodytake away from is to actually
know, um, the difference betweenmortgage broker and a loan
broker.
So in your mind, uh and this iskind of a little bit off of
what we had talked about earlieryou tell me what you have an
experience and, kind of a littlebit off of what we had talked
about earlier, you tell me whatyou have an experience in kind
(18:22):
of dealing with it.
What do you think people, howdo people look at the mortgage
business based on the loanbusiness?
What do you, how do they lookat that?
Do you have an understanding ofwhat people look at with that?
Speaker 3 (18:38):
When you say the mortgage business are you
talking about?
When it comes to residentialand then loan, it comes to like
uh, you know what you do as faras business loans.
Speaker 2 (18:43):
Exactly that's what I mean.
Speaker 3 (18:44):
Thank you, yes ma'am that exactly it, thank you okay,
okay, I'm glad I did, but inthe mortgage business, I guess
what people look at is that, uh,the collateral.
Not.
And, if you may think aboutthat, because I'm just thinking
about what you do and what we dois that when you're doing the
lending part as a lending broker, then the collateral is what
(19:07):
you're looking for most.
Speaker 2 (19:08):
But on my side I have to have that yep.
Speaker 3 (19:10):
Yeah, my side, we're looking at what assets you have.
As far as what's in the bank,your income is key.
It's making sure and that's whyI was saying preparation if
you're 1099 or you'reself-employed, not writing off
everything because it's and evenif you're a W-2 employee and
you have a side business andyou're writing off that side
(19:33):
business and you're actuallyreporting that side business
because you want to pay less onyour taxes and because I've had
someone that had an eyelash shopand never put an eyelash on in
her life because somebody toldher that's what she needed to do
is to have a side business, butwhen she came to buy a home
then she did not have the income.
(19:54):
So, income, assets andliabilities making sure that you
have less liabilities.
What do you say Liabilitiescredit card debt, loan debt, car
debt, student loan, debt makingsure that you have those things
under control, and that's whatI will say.
That's pretty much different.
I'm looking at all of thosevariables when you may be
(20:16):
looking at most important, likeyou say, collateral.
I know credit score isimportant for both of us, so we
know that.
But those are the keys is justmaking sure you have the income.
You have a little bit ofliabilities, debt, and then to
making sure that you're, thatyou are prepared beforehand,
before you move forward on it.
Speaker 2 (20:37):
Right, which is good, and so, in that, what you're
saying as well is we're going togive you some numbers.
We like and I know you guys doif you have like 30%, 45% of
utilization on your debt.
Speaker 1 (20:48):
What is yours?
Speaker 2 (20:49):
I mean because basically that's what we kind of
look for.
Some things don't need it, butwhen you do unsecured lending
like we do, which is like yousaid, that one is no collateral
but the interest rate is goingto be a lot higher because
they're based on the profile, onjust the end.
So that's where thatutilization comes in on our side
(21:11):
that you want to look at, butalso with you guys.
I think yours is debt to incomeis what you owe.
Speaker 3 (21:15):
Yeah debt to income, which is still credit
utilization, and if you reallywant to, just to break it down.
But yeah, it's a debt to incomeratio and typically for
conventional financing and ofcourse you know that's the loan
with the have the less risk.
We're looking at maybe betweena 43 to a 48,.
We will say back in, that meanshow much debt is, how much
(21:36):
income is going in, how muchdebt is going out, based on your
income.
And then, of course, if you goto FHA, which is an affordable
housing product, it does allowyou for a little bit more debt,
which could be between 55, 57%on the back end.
And when we say back end is howmuch income coming out and then
how much debt is coming inversus what's going out 50 for 7
(21:58):
cents coming in versus what'sgoing out 50 for 7 cents, 57% of
your income, which includesyour projected house payment at
the end of the day.
So that's very important is tomaking sure that you can keep
your debt to income ratio low aspossible, but going with FHA
does allow that.
Now we talk about non-QM.
Non-qm it just depends on,depends on, but you're still
(22:20):
looking at between the 40s and50s on your debt to income.
But non-QM is a differentanimal and it does allow for a
little bit more variables whenit comes to debt, to income.
Speaker 2 (22:32):
Okay, Well, we have someone to ask a question, which
is Ms Shakina, and thank you somuch.
Thank you, shakina.
We, which is Ms Shakina, andthank you so much, ms Shakina,
we appreciate you.
So she's asking Ms Jackal, whatare some acceptable forms of
collateral that we take?
And so what she's saying andasking, if I'm correct, you're
asking about us as a loan broker.
So loan brokers dealing withbusiness, our collateral that we
(22:56):
would accept it could be therevenue, only what you have
coming in your business, becausethat can be collateral.
You can also have your property.
If it's property, if you ownsomething, they'll take that as
collateral and then also yourfuture revenue you coming in
Because, like what you said, theyoung lady that had the
business, the thing is shedidn't conduct business, didn't
get money coming in, didn't havea cashflow.
(23:17):
That's what we're saying.
We look at that as actualcollateral and, if I'm correct,
on a non-QM, you would look atthat as well for them to get in
the house with you, am I correct?
Speaker 3 (23:28):
Yes, liquid assets, making sure you can cash it in
Right.
Speaker 2 (23:32):
So those are the type of collaterals.
When you come with business,you're looking at your revenue.
That's why I tell everybody,before you start looking at a
loan, let's look at what youhave.
Is it cash flowing?
Is it lucrative?
Are you making money?
Because that needs to be seenfor them to say, okay, we can
give you money because you couldpay it back.
So that's the main thing of.
And then, like I said, if youget into real estate, then it's
(23:55):
actually a property.
But let's say, let me say saythis, because I think sometimes
people have a confusion If youbuy a house now you correct me
if I'm wrong, ms Rhonda Okay, ifyou have a house that we went
through a mortgage broker withyou to get, and I move out the
house and I move a renter in,all right, we've just changed
(24:17):
the dynamic of the household.
People don't understand howthat works, and so you can
actually probably talk on aswell that once you move a renter
in, there's no own, there's no,it's no longer owner argument.
No, nope, it's not owner.
So, if it's not owner, I wantto ask you this, and I hopefully
I hadn't caught you off guard,because I've been wanting to
know when someone actually has ahome and I've moved out of the
(24:40):
home and I'm moving somebody in.
What should I do?
Anything to the lender at all?
Should I say something or leaveit alone?
Or what should we do?
Is that something you can evenanswer?
Speaker 3 (24:50):
Yeah, and you didn't catch me off guard, that's
oftentimes, but just making surethat you just did.
You just didn't purchase thatbecause you're supposed to stay
in that home at least 12 monthswhen you buy it and before you
can, yeah, you have to have ityour own, your, you have to own
that property to stay in that asyour primary, uh, 12 months
(25:11):
upon after you're closed on ahouse so just okay, so we've
been there some time and then welike four or five years and
move out.
Speaker 2 (25:17):
It won't be such a oh no, it's not.
Speaker 3 (25:19):
No, okay, no, and that's now.
It's an investment propertybecause it's.
It's a lot of people and I wantto say a lot of, uh younger
people that do that.
Uh, the smart, you know, thosemillenniums, they're smart.
They go purchase a home,they'll stay in the home one
year and then they go out and goget an apartment and they'll
have it in uh, a rental incomecoming in and then they'll turn
around and do it.
(25:40):
You know, get another, do it,just keep doing it, keep doing
it, and so that's how they'rebuilding generational wealth and
how they're building wealth.
Speaker 2 (25:47):
So, as long as you're staying in that property 12
months after you close, afteryou fund it, right it's your
primary property, then you candefinitely change it into a
rental or investment propertyinvestment and that's just
something like I said when Isaid off guard, because I should
have told you about that.
But we talked, okay what I sayyou I'm good, you know what I'm
(26:07):
saying, I know you can handle it, so this is my other thing then
.
Okay, so we can do that now.
I had someone that brought upsomething that made really good
with real estate investment.
They were saying that theywanted to buy a fourplex and
stay in one and then rent outthe rest.
That is something would you door you couldn't do.
Speaker 3 (26:29):
Yes, that's definitely something.
Anything that's less thanfourplex or less is considered
primary property.
It's residential?
Speaker 1 (26:37):
It's not commercial.
Speaker 3 (26:38):
But as long as you're staying on one side, long as
you're staying in one of thoseunits, it's considered.
But if you're not staying inone of those units, it's an
investment property.
Speaker 2 (26:49):
Right.
And let's say so everybody canknow the big difference is this
Investment property with merequire anywhere from 20 to 30%
down.
Investment property with merequire anywhere from 20 to 30%
down period.
No program okay, because yourexperience as a real estate
investor determines how much yougot to put down.
I don't know what the creditscore, but it's more your
(27:09):
experience than anything on theinvestment side.
Now, on your side correct me ifI'm wrong, ms Rhonda you can go
down to 3% now Program.
It's just more, it's less withyou getting in it.
So I guess it's probably anadvantage to get with you, stay
in a house or duplex or fourplexfor a year or so and then move
(27:30):
out, and that'd be a great wayto start without you coming out
with 30%.
I mean because- 20,.
Speaker 3 (27:35):
yeah, absolutely, and it's a great way to build
wealth.
Speaker 2 (27:53):
You know, just make sure your neighbors, whoever you
stay in and somebody you don'tmind staying next to, but, yes,
go ahead and stay in one ofthose units and then after that
you move out and then you have afour and loan brokerage can
work together.
Because we also, I tell like,the other day we had a young
lady come in, her and herhusband, they have like a
two-year-old and they want toget a real estate investment.
So she said, well, we figurewe'll go ahead and buy a couple
of houses and that'll get ourcash flow up and then we'll look
at buying our houses.
But, rhonda, I said the samething.
(28:15):
I told her.
I said why don't you just get aduplex, you know a fourplex,
and y'all stay in one side andjust rent it out?
And she said she never thoughtof it.
Well, they went through theprocess of actually getting that
done.
This was some time ago now I'mthinking about it and she wound
up doing it and later on shecame to me.
She said you know, that's thebest thing we could have done.
I mean, it're going to staythere a couple of years and then
(28:36):
move out, and we're going toactually have four instant
tenants when I move out.
So that is a wonderful idea andI'm glad to hear you, as a
mortgage broker, you feel goodabout it.
Now we can't talk about theother lenders, but I know when
you walk in a bank they arestrict on what they can and
cannot do.
Am I correct?
Absolutely, yes, absolutely.
That's where you come in andyou're a more versatile and
(29:00):
that's what I wanted everybodyto understand today how working
with a mortgage broker likeyourself, even if you're looking
at real estate, go there firstand see what they can show you
of what can do, because youalready you're aware of how to
do that and to make that happen.
So is there anything you wouldrecommend suggest with them
doing that type of process?
(29:21):
What are some of the thingsyou've heard, or some of the
things you want to kind of warnthem on doing that?
Anything like that you want togive us?
Speaker 3 (29:29):
And I know I feel like I just keep coming back to
this thing.
It's just preparation, that'swhat I keep saying, but to me
that's just key.
And do your research.
You know, if you want to startoff, go to your bank if you want
to start off and see what theyhave to offer, because I promise
you, once you leave thereyou'll be saying you know what,
I'm not coming to this bank.
But you know, start with yourbank because you really need to
(29:52):
see what's out there and thencome to a mortgage broker like
myself.
Come to me and let's comparenumbers, let's see what I can do
for you.
Because, like you statedearlier, Ms Jacqueline, is that
a bank, you're in a box.
You know whatever their creditscore criterias are, whatever
their loan products they offerand some most of them don't
(30:14):
offer FHA.
Some credit unions do not offerFHA product, they only do
conventional.
So just make sure that you'reprepared, do your research, do
what you need to do upfront andthen make the best decision.
But just know that when you cometo a mortgage broker, the
door's open because there's alot of opportunities and you're
(30:36):
just not in one sandbox playingin one sandbox that you get out
and you be able to have otheroptions.
Speaker 2 (30:43):
Other options and I think that is great, great
advice On my end for you all.
Knowing that you have themortgage broker, you've learned
about what we do as a loanbroker.
If you're getting in realestate or you're dealing with
your business, make anappointment with a mortgage
broker, loan broker, like yousaid, do your homework, see
what's out there, you know andwhat will work for you.
(31:03):
And, like I think, something Ido want to say that you
mentioned that we need to theycan ask for a list of services
that a bank provide or amortgage broker provide.
Right, absolutely.
Speaker 3 (31:16):
Absolutely, yes, absolutely, and and and also and
this is key too most times whenyou go to a bank or a credit
union, they're going to say, andif they give you an approval,
it's really not approval, it's apre-qualification.
They're running credit andthey're just saying, okay,
you're credit worthy, butthey're not collecting your
documents, your bank statements,they're not collecting your
(31:38):
W-2s, your paycheck stubs to seeif you're completely qualified.
So make sure that if you go toa bank and they said you run
your credit and give you anapproval letter, just know that
you're really not pre-approved,you're just pre-qualified,
you're just credit, because itis a difference.
It's a big difference becauseyou can go through the process
(31:58):
and then they find out that youdon't have enough years, you
don't have enough income, andthen there you are, you've found
the home of your dreams andthen you're not able to move
forward with that purchase.
So, like I said, do yourresearch, make sure that you're
pre-approved and notpre-qualified, and most banks
and the credit unions will giveyou a pre-qualification, not a
(32:21):
pre-approval.
Speaker 2 (32:22):
Okay, so we need.
That's a great takeaway.
Pre-approval andpre-qualification is two
different things.
Is that what you're saying?
Speaker 3 (32:31):
Yes, ma'am, absolutely.
When you're pre-qualified,they're just running your credit
and say, okay, you got aqualifying credit score, but
they're not checking any of yourassets, any of your liability.
Well, they ran credit, theylooked at your liability, but
they're not checking your incomeand they're not checking
anything else.
Speaker 2 (32:46):
They're not doing a debt to ratio.
None of that stuff.
Speaker 3 (32:48):
No, they're not.
No, no, no.
Speaker 2 (32:50):
Which can change the terms of a loan application.
Speaker 3 (32:54):
Oh yeah, absolutely Absolutely, and it can be a
quick denial.
If something comes up and it'snot, you know it's not caught
before beforehand.
And then you're going throughthe process.
You found the home that youfell in love with and then, in
the midst of you going throughthe process, then you find out
you're not qualified.
Speaker 2 (33:12):
You know.
See, that's why I say, with abroker, we can actually take you
looking ugly, right.
I mean, you know, like you'resaying you want them to be
prepared, she's telling you that.
But, guys, if you all come inand you're not, we all want you
to be prepared.
Believe me, we do.
But if you come in and you'renot, that's the thing.
That's such a great advantage.
As a broker, we know whatthings look like.
(33:33):
You know what underwriting islooking for, I know what
underwriting is looking for, andbecause both of us are aware of
what the process is behind thescene process, behind the loan
officer, we're able to help youto look like you need to, like
you said, be prepared so yourloan can go through and process
a lot better and a lot quickerand get approved by having that.
(33:58):
So, in your years of experience, how do you see?
Having that knowledge hasreally helped you to do what
you're doing now, knowing what'sgoing on in the background.
Speaker 3 (34:07):
Oh, yes, okay, I can talk about that.
Let me just tell you this whenI first started out, I was a
down payment assistant queen andI'm going to tell you what that
means.
Yeah, I was a down paymentassistant queen of like every
real estate agent that had aclient that had down payment.
But you want to know what itmade me a great loan officer?
(34:27):
Because I had to be strategicin my thinking.
I had to find out those thingsthat work.
You know we can't break therules, but you can find a way
around them sometimes and andbut what I'm kind of within
guidelines we're not talkingabout doing anything illegal,
but just making sure that, uh,doing those hard loans and being
(34:48):
strategic and being able tothink outside the box, that's
key.
And now that was the bestexperience for me is having
those hard loans, because I waswondering are you ever going to
get an easy loan?
But but it made me.
It did.
It really made me a strong,strong loan officer and I am
(35:09):
definitely blessed for it.
And so, yeah, you have to, andso that's why I can say you know
what I'm out there.
I'm not gonna say I'm one ofthe best, I'm the best out there
, right because you've been.
Speaker 2 (35:20):
You've been down there and that's why I know you
do good and you take on the hardstuff.
Like you said, reverse mortgageis one of your main thing and I
love that about you.
You actually take on the hardones and that's why I was saying
I wanted you on here so peoplecan see that we understand what
you're going through.
You don't have to be prettypretty, but we can help you get
it right.
Like I said, you definitely can, cause a lot of us don't know
(35:41):
what to do.
We don't know the process ofhow it works.
Now, we all.
Now this is what we really do.
We listen to everybody else andtell us how things, how I did it
, that's what they say, this iswhat I did, but you know, and it
just puts people in a reallybad, a real bad situation and
(36:02):
that's why it's important toknow, ronda, that you do have
that experience in thebackground.
You can guide them even beforeyou start the process.
They can sit out and talk toyou and you can say, okay, this
is the roadmap of what you needto do and that's what you want,
and you give them options andthis is what everybody got to
realize.
You have options, even when youdeny it yeah, yeah, you know
(36:24):
what I'm saying yes, yes, itdoesn't know.
And you know how they say it'snot over until the fat lady's
seen but yeah, so so exactly sothat's what we're actually
trying to enlighten you andhopefully we have.
So is there anything elsebefore we close out?
I have definitely enjoyed you,miss ronda.
Speaker 3 (36:44):
I always do, I really thank you, you too, I know it's
going to be a good show.
Speaker 2 (36:49):
I know it's going to be a good time so is there
anything you would like to sayto our audience together that
they can do a takeaway with?
Speaker 3 (36:57):
but no, and what I guess one of the things that I
was going to say is just makingsure is that home ownership if I
want to say anything else, ifyou want to build legacy, home
ownership is the key.
Home ownership, real estate,property what myself and Miss
Jackie does it's the key.
(37:18):
It is the key to generationalwealth.
Don't let nobody tell youanything else.
That's one of the mostimportant.
That is the most importantthing you can do if you want to
leave generational wealth.
And renting and leasing, thatis not prepare yourself to be
able to have your own home, haveyour own investment properties.
(37:42):
That's the key to generationalwealth.
If I don't tell you anythingelse, it's not going out here
doing anything else and I cangive you a whole list of those
things, but real estate is key.
If you want to leave a legacy,make sure you partake in real
estate.
Speaker 2 (37:59):
Exactly and thank you so much.
And on my side of it is that,like you said, real estate, so
she can help you withowner-occupied or, if you want
to, on my side, do noneowner-occupied Real estate will
make you the money and she is socorrect.
So we want to thank Ms Rhondafor coming out today.
Thank you for having me.
(38:20):
And we do, and I want to thankyou all and again, we want to
emphasize that we do our webinar, which is giving power to the
business owner, so that you canbe educated on what's out there
besides just working on yourbusiness.
All the aspects in life wetouch, but yet we don't know a
lot about it.
So we try to bring things indirectly for our business owners
(38:42):
that can help them understandwhen money is needed and how to
need it and where you can get itfrom and how does it work.
So that's why we have this andwe've been doing really good
with it.
If you guys want to see any ofthis, you're welcome to go to
our YouTube channel.
We'll actually have that allposted as well, as Mrs Rhonda is
(39:06):
on our referral page on ourwebsite, wwwtdjequityllc, up
here.
Yep, right there, I was gonna dothat.
Look at that Right there.
If you go to our website, youwill see Ms Rhonda there where
you all can get our informationas well as she has the
information that's on the screenour information as well as she
has the information that's onthe screen.
But we definitely want you toreach out to her, reach out to
myself and we can guide youwherever you need to go, but
definitely reach out to usbecause we are brokers and we
know a lot of people in thefield and we can deal with
(39:28):
custom situations.
Okay, so again, we want tothank you all so much.
You all have a great day andyou all take care, all right,
thank you, all right, thank you,thank you, bye-bye, bye-bye.
Speaker 1 (39:46):
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders Podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments.
It takes to access financialcapital and maximize your
investments.
Hear from experiencedprofessionals, including bankers
, underwriters, loan officersand industry experts, as they
(40:09):
share their unfiltered storiesand valuable lessons on securing
funds.
Popular Podcasts
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
The Clay Travis and Buck Sexton Show
The Clay Travis and Buck Sexton Show. Clay Travis and Buck Sexton tackle the biggest stories in news, politics and current events with intelligence and humor. From the border crisis, to the madness of cancel culture and far-left missteps, Clay and Buck guide listeners through the latest headlines and hot topics with fun and entertaining conversations and opinions.