March 13, 2024 • 15 mins
In this must-listen episode of the Mortgage Mindset, we delve deep into the world of non-qualified mortgage (Non-QM) options with a focus on the 1099 and Profit & Loss (P&L) loan programs. Whether you're a real estate professional, a lender, or a self-employed individual navigating the mortgage landscape, this episode is tailored just for you.
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Episode Transcript
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(00:05):
good morning
good afternoon
good evening
wherever you are and whenever you're listening
I wanna congratulate you
on taking step towards bettering yourself
learning how to be a better professional in
the real state world
today we are joined by Chris Brazell
Director of operations for the Sherry Riano Team
what's going on
good afternoon
good morning
good evening
hope you're doing well
and my name is Hunter Boyd
(00:26):
I'm the director of sales for the Sherry Riano Team
this is mortgage mindset
today we're gonna continue on our non qm series
we're gonna be talking about two additional
non qm programs
the 1099 loan program
and the profit and loss or the PNL
loan program
and let's dive right in so Chris
why don't we just go over a general
review of what is a 1099 loan just yeah
(00:49):
so let me let me start by saying
so let's just get down to the basics here
1099 just so y'all know
different than a W2
how is it different than a W2
1099 is just total gross receipts of income
so there's nothing deductive
um that that's what makes
the major difference between somebody that's
self employed and somebody that's a W2 employee
(01:11):
so W2 takes out your taxes
things like that and tells you
what you've made based on your net revenue
your net income
yep 1099 is just total gross
and so with that you know
anybody that's 1099 is deemed in the mortgage industry
self employed
hmm all right
so what would you get
a 1099 from
whoever's paying you for the work you've done
(01:32):
and then you have to file a
Schedule C on your tax returns
and that Schedule C is where
you start taking the deductions of depreciation
maybe expenses here
expenses there
things like that
and then you pay your taxes on your net revenue on this
on the Schedule C
so 1099 employee is exactly that
somebody that is employed
by an employer or is paid as a contract worker uh
(01:54):
but they are responsible for their own taxes
and deductions on their tax returns okay
and high level view of a PNL or profit and loss
yeah so PNL
um what that is
it's literally like uh
quick books
you know it is the best way to think about it
it's you take your
your grocery seats
and you literally
start taking the deductions and say okay
I'm deducting this expense
(02:15):
that expense
maybe you pay employees to work for you you know
so that's gonna come off your deductions
and so a P N
L is a way you keep track of your business income
and expenses
and that's typically what
a self employed borrowers gonna give to their CPA
at the end of the year
file their taxes
so the PNL is just tracking
month a month
all your income
all your revenue
(02:36):
and all your expenses
okay alright
so let's get the boring stuff out of the way real quick
this is a non qm loan
this stuff changes literally overnight
sometimes before you place an offer with a non qm loan
if you know
your client is using one of these products
we encourage you to reach out to your lender
whether it's the Share
Rihanna team
or whoever you're working with
confirm that one
that loan program is still available
(02:57):
the structure that lender had this loan program under
is of still available as well
because even the structure
whether down payment
credit scores
things like that
all that can change
literally overnight
this is stuff that they house
they monitor
they will take all the way to pay off
whether that might be foreclosure
or paying off the loan
so they kind of make up their own rules
(03:17):
similar to like a local credit union
all right let's dive into 1099 a little bit more though
um so one cool thing
I think a lot
about this program that a lot of people may not know is
no tax returns are required
don't need to see him
a lot of people
that's their number one question
is a self employed borrowers hey look
I write off a lot of my income
(03:37):
as you should
you should take advantage of the tax
laws that are available to you
um but you know
that does provide a little bit of hesitancy for our
self employed bar bar
so allowing someone upfront to know
hey look we don't
need to see any tax terms
I think that is a huge relief
off of a lot of self employed bars minds
yeah correct
and also it
allows you to kind of
(03:58):
the best of both worlds
and what I mean by that
is your CPA
or tax prepares
job is to work for you
on your behalf
and take advantage of those tax
laws that are out there
that you can take expenses
and in turn it
it lessens your tax burden
that you're gonna pay the
IRS at the end of the year for your
your tax Bill
so you get to do that
take advantage of those rules that are out there
(04:20):
lessen your tax burden
and then since we don't need to see these
it helps you get into a house
so you don't have to pay
his high taxes
because typically
if you're gonna go a
conventional route
we have to see
two years of
tax returns
if you're self
employed yeah
and so typically
you got to back up 2 years
and start telling
your CPA or
tax prepare hey
I'm thinking of buying a house soon
(04:40):
which is basically code
for saying hey
I can't write
off as much of my rent as my income
cause the your CPA
or tax prepare
is gonna know that
we need to see
the bottom line number
these programs are there
if you wanna buy right now
you've already written off
all your expenses
can't go back
and redo your taxes
and you don't wanna
redo your taxes
cause you're gonna have to you know
(05:01):
foot that Bill
of paying your tax
burden to the IRS
when you redo
your taxes and
and that allows us
you know to
get you in based on
your gross receipts
so the cool thing about
the 1099 is
we can go to a three million dollar loan on these
which is great
that's incredible
that's covers pretty much
anything in
the Raleigh area yeah
it's a great loan
so we're gonna look at your
(05:22):
two years of 1099
you do have to be
two years of self employed
and the key with this is
a lot of times we uh
anybody that's self employed
we can take two years
as long as you're self employed
it doesn't matter who
you work for
a 1099 wants to
see some stability
a 1099 program
excuse me and so you
we are gonna wanna see that
you're self
employed with a single
(05:43):
employer for those
two years okay
so that is the
key with this and so
um you know
it's gonna help realtors
you know realtors
if they work for
Keller Williams
work for Coldwell Bank
or IE you know
any of those real state groups
that's it self employed
a 1099 employer
but you're working
for the same
employer for
two years then this
this opens up this
program to you
that's awesome
(06:03):
yeah that is
a unique thing about
the single employer thing I think
um a lot of
people kind of
assume you know
certain different things
so having that as a
little bit additional overlay
um I do love that
this is an owner occupied
second home
investment property loan as well
uh a lot of these things
like the DSR
that's only
available for
investment properties
you know so
(06:23):
it opens up
things there
and also allows for a cash
out refinance
so that you know
if maybe hey look
appreciation
is happening
in an astronomical
way in the area
my homes appreciated
50% in the last
couple years
let me tap into that
appreciation and
really kind of
use that to my advantage
maybe I need to purchase another property
(06:44):
maybe I need to
you know get into
the investment space
um so that's
really good
one of the things that
seems to be consistent with a lot of these non
qm loan programs
which I think is
just mind blowing
right now is
the 40 year
interest only
option where for
this amateurization is
not over 30 years
like a traditional
it spread out over 40
and it is only interest
(07:05):
so you are taking
advantage of the
appreciation
by owning the home
however you're
not paying down that principal
loan balance
you're making your
interest only payments each month
that's gonna be a significantly reduced
monthly payment
yeah it's great
cause it helps
you qualify
for more of a home
cause since it's a 40 year
interest only
we say I owe in
the business
but since it's a
40 year I owe loan
(07:26):
you qualify on
the interest
only payments
and therefore
can get you into a
bigger house
if that's what
you're looking to accomplish
you know in this
again we're
getting more income from
your your 10
ninety nines
we're getting a lot more
being able to qualify
you for a higher house with
the interest
only payments
and things like that
so here's also the thing
six 40 minimum
credit score 6 4
(07:47):
yeah that's
back in the day
when they used to have these portfolio loans rolled out
it used to be you couldn't touch any of these programs
unless it was 700
and that's right
and now I mean
this program goes down is low 6:40
also minimum 10% down
so you're not looking at having to put 25
30% down 10% down
minimum up to 90% loan to value
(08:09):
that's great
that's really relaxed in the last couple years
I mean even like I would say six months ago
we were seeing minimum of 20
and 25% down for some of these programs
and so to see a drop already kind of opening up
especially in 2024
we're gonna
expect to see a lot more buyers in the market
I think they're just trying to capture that yeah
and one other thing too
I wanna touch on that
(08:30):
it is again
referring back to what you started the podcast with
you know double check with us as your lender
guidelines change a lot
yep but the season and requirements on on past
let's call them hiccups
you know bankruptcy
foreclosures
and things like that
on a lot of these nine qm programs
it's a lot less in conventional financing
so hey let's say you had a couple bad years in a row
(08:51):
you know things
things go south
that happens to everybody
oh and a lot of these
it's only two years seasoning from the
from the foreclosure
short sale bankruptcy
any of those major credit hiccups
I mean it's like half for some of our loan programs
exactly right
so you know
again if you're looking to buy now
and you're like
I can't I have to wait the four or five years
that's required by Fanny Man
Freddie Mac
talk to us yeah
(09:12):
this a get in with 1099 b
you don't have to wait the full four to five years
from the seasoning requirement past that credit hiccup
yep absolutely all right
let's switch gears
let's jump over to P
now real quick
do like a brief dive into it
um so one of the things about this program
it does the penile does need to be prepared by a CPA
(09:33):
or tax prepare is not something you wanna be able to
or you can do yourself
you need to have
some level of authority involved in the
in the profit and law
statement yeah
it's gonna that that's our
what we call business a third party
a third set one interested third party
what that means is
it's somebody that is just their job to drop the C
the P&L it's their job to you know
and I I don't like to say this
(09:53):
but it's you know
it's their job to tell the truth basically
that's right
they're uninterested in that fact as that
they're just doing their job
they're providing the numbers to us based on what
you provide them
and that way
that's how they're uninterested third parties
that they're giving us
non biased information
and so the PNLs drawn up by the CPA
tax prepare
give it to us
we send it to the investor
(10:14):
we get to qualify an income
and get it back to you
this also can go up to a 3 million dollar
loan amount
which as you said
covers most of the area um
now this one does require 20% down
so it's a little bit different than the 1099
you're gonna need that extra skin in the game
so that the 20% down is required on this
but also 6:00 40 credit minimum
which is great
(10:34):
that's wild yeah
it's it's a really good
program out there and again
we just look at it
on both the PNL and the 1099
we're gonna wanna see business bank statements as well
just it's kind of correlate the fact that
what you're giving us as far as a 1099
past 1099 and a PNL
is going into your bank account month to month
so we are gonna wanna
see these things to kind of double and triple check
(10:54):
but again we do not need tax returns
and pay stubs
things like that
that are not gonna be required for this loan program
I think it's important to remember
you know conventional financing
there are so many guidelines
overlays things like that
that you know
all kind of point to the same income W Two's
monthly pay stubs
things like that um
even your tax return to some situations will need
(11:15):
this is kind of
a different way of
referring that
when we have a 1099 yes
we can see the 1090 nines for last two years
but also you know
we're gonna see
you need to see
bank statements of this kind of as a secondary support
like hey look
this income is still coming in
is still consistent
um for females
I do like that we have a one year and a two year option
obviously the more verifications with any type of
(11:35):
non qm loan
the more verification
the longer the period of a review
the generally
the lower the interest rate will be
so you know
you're gonna see a little bit more of a um
closer to conventional interest rate than
you would on a two year
than you would on a one year
but it does give you that flexibility
of say you had one bad year
and you want only use the good year
no more most recent
(11:55):
better year where
you got into the business
and they added a lot of
you know write offs expenses
startup costs
so even your PNL shows up a pretty
you know let's just say
a lower bottom line
and so you do have that one year flexibility where if
you're really
ramped up and
and really doing
really good business here
number two in
the business
and that will help
you out a lot
that's it that's it
(12:16):
that's good
um both these programs
I think I don't know if we mentioned it earlier
but both these do require 150,000 dollar loan minimums
um that's not a US thing
that's an investor thing
it's kind of like
you know part of the
making up their
own rules there
um but once again with PNL
2 years of seasoning
for foreclosure
short sale bankruptcy
even the deed
and Lou stuff
um so once again
(12:36):
no not having to wait
the full four years there
there's options
out there for people
um with all different kinds of dynamics
and this is what these
both of these loan
programs are for
and other not
QM products
we've talked to
about in the past DSR
investment properties
bank statement loans
it's if you
ever have a client or a friend or
anybody that
you talk to say
(12:57):
I can't get a loan
because I know
I can't get a loan
because I'm self employed
that should ring a bell
right then and there
and say hey
you need to talk to
the share reality
and talk to hunter
and Chris they
I've heard them talk about these loan programs
because it relaxes
the rules that
Freddie Mac
put on self
employed borrowers
where we have to
use that Schedule C
net income to match up with what
(13:17):
you pay taxes on
this open set up
so if you ever hear from somebody saying
I'm self employed
I know I can't
get a mortgage
you know that
this is what these loan
programs are for
and for our lenders
this is also
the benefit of
being a broker
having different loan options
available to
having different
programs available
to not just
the standard you know
fanny Freddy
uh hedge loan
(13:38):
and then you know
ride up send it off
having these options are
wanna bring in more loans for you
each and every month
there's gonna be a different software
you're gonna have to learn for sure
there's gonna have to be
different rules
and underwriting
procedures timelines
turn turn times
and stuff like that
but it's going to help
you bring in more loans
for the real
estate agent out there
making sure that
you're knowledgeable
(13:58):
when you have that
conversation with someone
and you're just sitting down with them
they're telling you
they're telling you
you about themselves
hey I'm a self
employed borrower
honestly I write
off most of my stuff
I've kind of
had this issue in the past
where I went to a bank
and they said
they couldn't help me
this is these
are cues for
you to kind of hey look
I've got somebody for you
it may not work out
maybe it's a situation where
(14:19):
unfortunately
there's nothing we can do
but let's at least check
right I mean
we're supposed to be doing
our due diligence
for these people
putting our best foot forward
making sure we're
exploring every
avenue to help
our clients
everyone deserves a home
and we believe that here
the share round team
no matter how
big the house
no matter how small
no matter the situation
everyone deserves
a place to call home
(14:39):
well look the spin
mortgage mindset
if you found today
educational
if you found it informative
or enjoyable
to even listen to
a little bit
maybe you like my voice
maybe like Chris's
hit that subscribe
hit that like
hit that follow
we're here every Wednesday
we got one more episode
we know of them
non QM we're
excited to share about
asset qualifier
coming up make sure
you listen to that
I think it's gonna help
a lot of you
(15:00):
see you next week
the Mortgage Mindset Podcast is hosted by
the Sherry Riano Team at Clear Mortgage
powered by City First Mortgage Services LLC
Sherry Rianos NMLS ID is 7 1 7 7 4
visit us at thesherryrianoteam.com
for more information about our team
the opinions expressed on the show by
the host of their guests are their own
and do not necessarily reflect the views
and opinions of Clear Mortgage
(15:21):
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please note that
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or the direction of HUD FHA
City First Mortgage Services is an Equal Housing Lender
programmes rates
and terms subject to change without notice
(15:41):
underwriting terms and conditions apply
good morning
good afternoon
good evening
wherever you are and whenever you're listening
I wanna congratulate you
on taking step towards bettering yourself
learning how to be a better professional in
the real state world
today we are joined by Chris Brazell
Director of operations for the Sherry Riano Team
what's going on
good afternoon
good morning
good evening
hope you're doing well
and my name is Hunter Boyd
(00:26):
I'm the director of sales for the Sherry Riano Team
this is mortgage mindset
today we're gonna continue on our non qm series
we're gonna be talking about two additional
non qm programs
the 1099 loan program
and the profit and loss or the PNL
loan program
and let's dive right in so Chris
why don't we just go over a general
review of what is a 1099 loan just yeah
(00:49):
so let me let me start by saying
so let's just get down to the basics here
1099 just so y'all know
different than a W2
how is it different than a W2
1099 is just total gross receipts of income
so there's nothing deductive
um that that's what makes
the major difference between somebody that's
self employed and somebody that's a W2 employee
(01:11):
so W2 takes out your taxes
things like that and tells you
what you've made based on your net revenue
your net income
yep 1099 is just total gross
and so with that you know
anybody that's 1099 is deemed in the mortgage industry
self employed
hmm all right
so what would you get
a 1099 from
whoever's paying you for the work you've done
(01:32):
and then you have to file a
Schedule C on your tax returns
and that Schedule C is where
you start taking the deductions of depreciation
maybe expenses here
expenses there
things like that
and then you pay your taxes on your net revenue on this
on the Schedule C
so 1099 employee is exactly that
somebody that is employed
by an employer or is paid as a contract worker uh
(01:54):
but they are responsible for their own taxes
and deductions on their tax returns okay
and high level view of a PNL or profit and loss
yeah so PNL
um what that is
it's literally like uh
quick books
you know it is the best way to think about it
it's you take your
your grocery seats
and you literally
start taking the deductions and say okay
I'm deducting this expense
(02:15):
that expense
maybe you pay employees to work for you you know
so that's gonna come off your deductions
and so a P N
L is a way you keep track of your business income
and expenses
and that's typically what
a self employed borrowers gonna give to their CPA
at the end of the year
file their taxes
so the PNL is just tracking
month a month
all your income
all your revenue
(02:36):
and all your expenses
okay alright
so let's get the boring stuff out of the way real quick
this is a non qm loan
this stuff changes literally overnight
sometimes before you place an offer with a non qm loan
if you know
your client is using one of these products
we encourage you to reach out to your lender
whether it's the Share
Rihanna team
or whoever you're working with
confirm that one
that loan program is still available
(02:57):
the structure that lender had this loan program under
is of still available as well
because even the structure
whether down payment
credit scores
things like that
all that can change
literally overnight
this is stuff that they house
they monitor
they will take all the way to pay off
whether that might be foreclosure
or paying off the loan
so they kind of make up their own rules
(03:17):
similar to like a local credit union
all right let's dive into 1099 a little bit more though
um so one cool thing
I think a lot
about this program that a lot of people may not know is
no tax returns are required
don't need to see him
a lot of people
that's their number one question
is a self employed borrowers hey look
I write off a lot of my income
(03:37):
as you should
you should take advantage of the tax
laws that are available to you
um but you know
that does provide a little bit of hesitancy for our
self employed bar bar
so allowing someone upfront to know
hey look we don't
need to see any tax terms
I think that is a huge relief
off of a lot of self employed bars minds
yeah correct
and also it
allows you to kind of
(03:58):
the best of both worlds
and what I mean by that
is your CPA
or tax prepares
job is to work for you
on your behalf
and take advantage of those tax
laws that are out there
that you can take expenses
and in turn it
it lessens your tax burden
that you're gonna pay the
IRS at the end of the year for your
your tax Bill
so you get to do that
take advantage of those rules that are out there
(04:20):
lessen your tax burden
and then since we don't need to see these
it helps you get into a house
so you don't have to pay
his high taxes
because typically
if you're gonna go a
conventional route
we have to see
two years of
tax returns
if you're self
employed yeah
and so typically
you got to back up 2 years
and start telling
your CPA or
tax prepare hey
I'm thinking of buying a house soon
(04:40):
which is basically code
for saying hey
I can't write
off as much of my rent as my income
cause the your CPA
or tax prepare
is gonna know that
we need to see
the bottom line number
these programs are there
if you wanna buy right now
you've already written off
all your expenses
can't go back
and redo your taxes
and you don't wanna
redo your taxes
cause you're gonna have to you know
(05:01):
foot that Bill
of paying your tax
burden to the IRS
when you redo
your taxes and
and that allows us
you know to
get you in based on
your gross receipts
so the cool thing about
the 1099 is
we can go to a three million dollar loan on these
which is great
that's incredible
that's covers pretty much
anything in
the Raleigh area yeah
it's a great loan
so we're gonna look at your
(05:22):
two years of 1099
you do have to be
two years of self employed
and the key with this is
a lot of times we uh
anybody that's self employed
we can take two years
as long as you're self employed
it doesn't matter who
you work for
a 1099 wants to
see some stability
a 1099 program
excuse me and so you
we are gonna wanna see that
you're self
employed with a single
(05:43):
employer for those
two years okay
so that is the
key with this and so
um you know
it's gonna help realtors
you know realtors
if they work for
Keller Williams
work for Coldwell Bank
or IE you know
any of those real state groups
that's it self employed
a 1099 employer
but you're working
for the same
employer for
two years then this
this opens up this
program to you
that's awesome
(06:03):
yeah that is
a unique thing about
the single employer thing I think
um a lot of
people kind of
assume you know
certain different things
so having that as a
little bit additional overlay
um I do love that
this is an owner occupied
second home
investment property loan as well
uh a lot of these things
like the DSR
that's only
available for
investment properties
you know so
(06:23):
it opens up
things there
and also allows for a cash
out refinance
so that you know
if maybe hey look
appreciation
is happening
in an astronomical
way in the area
my homes appreciated
50% in the last
couple years
let me tap into that
appreciation and
really kind of
use that to my advantage
maybe I need to purchase another property
(06:44):
maybe I need to
you know get into
the investment space
um so that's
really good
one of the things that
seems to be consistent with a lot of these non
qm loan programs
which I think is
just mind blowing
right now is
the 40 year
interest only
option where for
this amateurization is
not over 30 years
like a traditional
it spread out over 40
and it is only interest
(07:05):
so you are taking
advantage of the
appreciation
by owning the home
however you're
not paying down that principal
loan balance
you're making your
interest only payments each month
that's gonna be a significantly reduced
monthly payment
yeah it's great
cause it helps
you qualify
for more of a home
cause since it's a 40 year
interest only
we say I owe in
the business
but since it's a
40 year I owe loan
(07:26):
you qualify on
the interest
only payments
and therefore
can get you into a
bigger house
if that's what
you're looking to accomplish
you know in this
again we're
getting more income from
your your 10
ninety nines
we're getting a lot more
being able to qualify
you for a higher house with
the interest
only payments
and things like that
so here's also the thing
six 40 minimum
credit score 6 4
(07:47):
yeah that's
back in the day
when they used to have these portfolio loans rolled out
it used to be you couldn't touch any of these programs
unless it was 700
and that's right
and now I mean
this program goes down is low 6:40
also minimum 10% down
so you're not looking at having to put 25
30% down 10% down
minimum up to 90% loan to value
(08:09):
that's great
that's really relaxed in the last couple years
I mean even like I would say six months ago
we were seeing minimum of 20
and 25% down for some of these programs
and so to see a drop already kind of opening up
especially in 2024
we're gonna
expect to see a lot more buyers in the market
I think they're just trying to capture that yeah
and one other thing too
I wanna touch on that
(08:30):
it is again
referring back to what you started the podcast with
you know double check with us as your lender
guidelines change a lot
yep but the season and requirements on on past
let's call them hiccups
you know bankruptcy
foreclosures
and things like that
on a lot of these nine qm programs
it's a lot less in conventional financing
so hey let's say you had a couple bad years in a row
(08:51):
you know things
things go south
that happens to everybody
oh and a lot of these
it's only two years seasoning from the
from the foreclosure
short sale bankruptcy
any of those major credit hiccups
I mean it's like half for some of our loan programs
exactly right
so you know
again if you're looking to buy now
and you're like
I can't I have to wait the four or five years
that's required by Fanny Man
Freddie Mac
talk to us yeah
(09:12):
this a get in with 1099 b
you don't have to wait the full four to five years
from the seasoning requirement past that credit hiccup
yep absolutely all right
let's switch gears
let's jump over to P
now real quick
do like a brief dive into it
um so one of the things about this program
it does the penile does need to be prepared by a CPA
(09:33):
or tax prepare is not something you wanna be able to
or you can do yourself
you need to have
some level of authority involved in the
in the profit and law
statement yeah
it's gonna that that's our
what we call business a third party
a third set one interested third party
what that means is
it's somebody that is just their job to drop the C
the P&L it's their job to you know
and I I don't like to say this
(09:53):
but it's you know
it's their job to tell the truth basically
that's right
they're uninterested in that fact as that
they're just doing their job
they're providing the numbers to us based on what
you provide them
and that way
that's how they're uninterested third parties
that they're giving us
non biased information
and so the PNLs drawn up by the CPA
tax prepare
give it to us
we send it to the investor
(10:14):
we get to qualify an income
and get it back to you
this also can go up to a 3 million dollar
loan amount
which as you said
covers most of the area um
now this one does require 20% down
so it's a little bit different than the 1099
you're gonna need that extra skin in the game
so that the 20% down is required on this
but also 6:00 40 credit minimum
which is great
(10:34):
that's wild yeah
it's it's a really good
program out there and again
we just look at it
on both the PNL and the 1099
we're gonna wanna see business bank statements as well
just it's kind of correlate the fact that
what you're giving us as far as a 1099
past 1099 and a PNL
is going into your bank account month to month
so we are gonna wanna
see these things to kind of double and triple check
(10:54):
but again we do not need tax returns
and pay stubs
things like that
that are not gonna be required for this loan program
I think it's important to remember
you know conventional financing
there are so many guidelines
overlays things like that
that you know
all kind of point to the same income W Two's
monthly pay stubs
things like that um
even your tax return to some situations will need
(11:15):
this is kind of
a different way of
referring that
when we have a 1099 yes
we can see the 1090 nines for last two years
but also you know
we're gonna see
you need to see
bank statements of this kind of as a secondary support
like hey look
this income is still coming in
is still consistent
um for females
I do like that we have a one year and a two year option
obviously the more verifications with any type of
(11:35):
non qm loan
the more verification
the longer the period of a review
the generally
the lower the interest rate will be
so you know
you're gonna see a little bit more of a um
closer to conventional interest rate than
you would on a two year
than you would on a one year
but it does give you that flexibility
of say you had one bad year
and you want only use the good year
no more most recent
(11:55):
better year where
you got into the business
and they added a lot of
you know write offs expenses
startup costs
so even your PNL shows up a pretty
you know let's just say
a lower bottom line
and so you do have that one year flexibility where if
you're really
ramped up and
and really doing
really good business here
number two in
the business
and that will help
you out a lot
that's it that's it
(12:16):
that's good
um both these programs
I think I don't know if we mentioned it earlier
but both these do require 150,000 dollar loan minimums
um that's not a US thing
that's an investor thing
it's kind of like
you know part of the
making up their
own rules there
um but once again with PNL
2 years of seasoning
for foreclosure
short sale bankruptcy
even the deed
and Lou stuff
um so once again
(12:36):
no not having to wait
the full four years there
there's options
out there for people
um with all different kinds of dynamics
and this is what these
both of these loan
programs are for
and other not
QM products
we've talked to
about in the past DSR
investment properties
bank statement loans
it's if you
ever have a client or a friend or
anybody that
you talk to say
(12:57):
I can't get a loan
because I know
I can't get a loan
because I'm self employed
that should ring a bell
right then and there
and say hey
you need to talk to
the share reality
and talk to hunter
and Chris they
I've heard them talk about these loan programs
because it relaxes
the rules that
Freddie Mac
put on self
employed borrowers
where we have to
use that Schedule C
net income to match up with what
(13:17):
you pay taxes on
this open set up
so if you ever hear from somebody saying
I'm self employed
I know I can't
get a mortgage
you know that
this is what these loan
programs are for
and for our lenders
this is also
the benefit of
being a broker
having different loan options
available to
having different
programs available
to not just
the standard you know
fanny Freddy
uh hedge loan
(13:38):
and then you know
ride up send it off
having these options are
wanna bring in more loans for you
each and every month
there's gonna be a different software
you're gonna have to learn for sure
there's gonna have to be
different rules
and underwriting
procedures timelines
turn turn times
and stuff like that
but it's going to help
you bring in more loans
for the real
estate agent out there
making sure that
you're knowledgeable
(13:58):
when you have that
conversation with someone
and you're just sitting down with them
they're telling you
they're telling you
you about themselves
hey I'm a self
employed borrower
honestly I write
off most of my stuff
I've kind of
had this issue in the past
where I went to a bank
and they said
they couldn't help me
this is these
are cues for
you to kind of hey look
I've got somebody for you
it may not work out
maybe it's a situation where
(14:19):
unfortunately
there's nothing we can do
but let's at least check
right I mean
we're supposed to be doing
our due diligence
for these people
putting our best foot forward
making sure we're
exploring every
avenue to help
our clients
everyone deserves a home
and we believe that here
the share round team
no matter how
big the house
no matter how small
no matter the situation
everyone deserves
a place to call home
(14:39):
well look the spin
mortgage mindset
if you found today
educational
if you found it informative
or enjoyable
to even listen to
a little bit
maybe you like my voice
maybe like Chris's
hit that subscribe
hit that like
hit that follow
we're here every Wednesday
we got one more episode
we know of them
non QM we're
excited to share about
asset qualifier
coming up make sure
you listen to that
I think it's gonna help
a lot of you
(15:00):
see you next week
the Mortgage Mindset Podcast is hosted by
the Sherry Riano Team at Clear Mortgage
powered by City First Mortgage Services LLC
Sherry Rianos NMLS ID is 7 1 7 7 4
visit us at thesherryrianoteam.com
for more information about our team
the opinions expressed on the show by
the host of their guests are their own
and do not necessarily reflect the views
and opinions of Clear Mortgage
(15:21):
or City First Mortgage Services
please note that
Clear Mortgage is powered by City First Mortgages LLC
and their animal s ID is 3 1 1 7
Clear Mortgage and City First Mortgage Services is
not an agency of the Federal Government
is not acting on behalf of
or the direction of HUD FHA
City First Mortgage Services is an Equal Housing Lender
programmes rates
and terms subject to change without notice
(15:41):
underwriting terms and conditions apply
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