Alternative mortgage lending products are necessary for the pool of California homebuyers. Some lenders loosen up their standards with more flexible guidelines.
— 1st Nationwide Mortgage (1st NWM) announced that it has been offering bank statement loans up to $1 million on adjustable rate mortgages that are fixed for the first five years then revert to variable rates every year thereafter. 1st NWM also provides a foreign national loan for foreigners with the same terms up to $1 million.
"We've seen a definite need for alternative documentation on lending programs among our self-employed prospective borrowers," said 1st NWM’s SVP of Mortgage Production, Chris Arco. "For all our clients, we want to be their mortgage advisor they turn to for help in realizing their dreams of homeownership and future financial objectives. By having a bank statement program in lieu of providing tax returns, we've found a way to help a greater number of people do exactly that."
With this option now available, prospective borrowers are no longer restricted to applying for a mortgage that requires them to provide their tax returns. Under the new program, typically, a home buyer will need to put down twenty-five percent on a single family residence and show consistent monthly income on their bank statements for a 1-2 year period.
And for those looking to refinance without tax returns and use only bank statements, they must have thirty-five percent equity post refinance or 65% LTV at closing. This is especially attractive to investors who bought homes using all-cash transactions in the last few years. They are able to pull out as much as $300,000 under this increasingly popular mortgage product.
Mortgage loans without tax returns are now more easily accessible through the right lenders which allows self-employed individuals and freelancers the ability to be considered for a mortgage that they wouldn't have normally had the opportunity to get, when they lack the conventional methods to show proof of their income.
Even though new lending laws became effective earlier this year, most likely borrowers believe that they must give their tax returns to the lender for any loan they apply for. This not true. The rule states as long as the lender has a means to verify the borrower’s income and that is being accomplished through bank statements.
1st Nationwide Mortgage is an Orange County, California based, direct-to-consumer mortgage lender operating throughout California as well as Colorado and Texas. 1st Nationwide Mortgage makes available to its clients attractive and innovative mortgage programs with competitive yet reasonable rates, and the convenience of a web-based application process.
Name: Eric Catanzaro
Organization: 1st Nationwide Mortgage
Address: 65 Enterprise, Aliso Viejo, CA 92656
For more information, please visit http://www.1stnwm.com
Release ID: 42147