Are you seeing a similarity between
oh seven or eight and what's kind of happening now or not?
Is it?
You know, it is getting back to there a little bit because our products
that were coming back, we've got a 40 year mortgage now.
So it allows people to expand that mortgage
payment out an additional ten years.
So that way it can their mortgage payment is less than that 30 year term.
I've seen some stated income loans coming back,
especially for the self-employed investors
and borrowers that don't want to give up all their information tax returns
and things like that. So it's coming back, but it's not.
The products aren't as unrealistic as they were back in 2007,
where if you had a heartbeat,
you know, here you go, here's your loan and here's your house.
Good luck.
You know, so the banks aren't, you know, being that ultra aggressive.
But but they are they're into so I
those are the products I thought were interesting
that some of you might think that our interesting is
you know if they start doing 40 year loans because that's a new product
for you, right?
Correct. Absolutely. Yeah.
So basically a 40 year loan is going to help increase
housing prices because people always off to a payment.
So if their payment is then divided by 40 instead of 30,
they can then afford it, which then kind of increases, you know,
the could increase the price of the house and then the stated incomes.
Interesting for people because it's way easier,
but at the higher interest rate, right? Correct.
Like what's the difference?
Are you not without quoting like is that a.
Probably a one and a half to 2% difference?
Okay.
But that's really good for some of us entrepreneurs
that maybe don't claim a lot of income or don't make,
you know, on paper, but then are able to get a loan.
Absolutely.
Is seller carry back loan a good option for someone who can afford
the monthly payments but can't qualify for a mortgage loan?
If the seller is willing to do it, then absolutely.
You know, those the the seller carry back itself.
You know, you have to negotiate those terms with the seller.
Right.
So if the seller is actually willing to carry back part of that mortgage
and give you a reasonable term and you have a good option in the future
to take take the seller out of the equation, then why not?
Right. Right. Well, I'm in seller carry back.
I mean, you assume their mortgage, right?
So if they have a low rate like a 2.6 or something, that's what you're assuming.
Well, it could be.
You don't I mean, there's different ways to do the seller carry back, you know,
whether it's
you know what, if you're putting down 20%, 30% and your DTI is just not high enough
and they're going to reduce their purchase price, you know,
to make sure that your debt to income ratio is lower on that home loan.
You know, there's a hundreds of different ways to structure that transaction.
But ultimately, like I said, it's what if the terms are, you know,
within reason and it makes sense for you and your family then by all means.
I mean, it's not uncommon for seller seller carry backs, but
you got to make sure that you put yourself in a in a good situation
where you know the terms are right for you and your family.
Now, let's just talk about getting qualified for a loan, too.
I think a lot of people listening have never gotten a loan
or they haven't gotten a loan recently.
So in this new environment, so what are the things people could be doing
to prepare to get a loan and get qualified?
Should they get pre-qualified? Like, what should they do? Well, absolutely.
The first thing to do is always try to get pre-qualified, whether it's
if you have a friend in the business that's a loan officer or myself
calling a loan officer right
away to get your credit pulled is the main thing is,
you know, everybody has these free credit reporting services, right?
And I'll get calls all the time like, hey, my credit
an 850 ray, nobody has a perfect credit score.
I mean, I've been doing this for 15, 16 years.
I've never seen an 850.
So, you know, you try to educate them about the credit and how the free
credit reporting services are not entirely accurate.
So once you get dialed in with, you know, a loan officer that they pull
a mortgage mortgage rating, and that's going to be your most accurate
credit report, you know, of your lifetime.
You get Experian trends in Equifax.
We use the middle of the three credit scores, do the qualifying.
And then based off your income and your dad's, we come up with a debt
to income solution based on the purchase price of the home
that you're looking to purchase or refinance.
So, you know, absolutely.
And everybody is always like, hey, if you pull my credit, is it going to ding me?
Well, it's just a credit inquiry.
It's not like you're going to drop 100 points, you know,
getting your credit report.
So that's definitely a big misconception in the mortgage business, too.
And and they've changed the algorithms a little bit now.
So if let's say you were looking to purchase a house, you call me,
I pull your credit, you usually get within 30 to 60 day grace period.
You could literally probably have ten, 12, 15 different lenders
pull your credit and it's going to stay pretty much the same.
And you know, when you get pre-qualified, like, what's the point of that?
Because I know a lot of people,
they don't want to get pre-qualified because they're afraid to make that move
because they feel like now they have to go find a house.
Maybe they're not ready,
but like I always tell it, my brother is one of those people
and I'm always telling him No, just get pre-qualified that way.
If you find something,
people will take you seriously because they don't
really take you seriously if you're not proven right.
And if you don't, yeah,
because we are the one that initiates those pre-qualification letters.
So if you don't, if your agent
doesn't have a pre-qualification letter, they will not be able to submit an offer.
The banks are the worst.
So like I never really recommend the first entrepreneurs go that route.
But these private loan companies can be very, very good.
And they're, you know, they're all insured and, you know, they're legit.
You just have to think outside the box a little bit.
Absolutely.
And a lot of, you know, the law, a lot of times they just don't have
the products that you know, I have the ability to obtain.
You know, where the mortgage banker. Right.
We're reaching out to other investors to invest within our company
to obtain additional mortgage servicing products.
Right. We have bank statement loans now.
We have a no doc.
We have an investment loan, which I'm sure Ken
would love for me to promote is basically it's
any investor out there purchasing investment properties right now.
You can put down anywhere from 10 to 25%, whatever it may be.
But if if that property itself there, the fair market
rental payment is less than the payment that you're qualifying for.
That's all the documentation you need.
So it's basically it's
kind of like a no doc, but as long as like I said, as long as that payment
is less than the fair market rental payment on that
appraisal, then there's really no other information that you need.
Oh, that's great.
So if the rents are more than your mortgage, basically,
then you'll be set to go without having a proof of income and all of that.
And if you need to, like I said, you can back that payment however you want
with with the down payment funds too.
Right?
So if it's like just, you know, above it, then you can put slightly more money down
or you can buy down the interest rate,
you know, however you want to do it in that situation.
But it's a real, really easy loan for a lot of those investors out there
that don't want to give you all your tax returns.
W-2, 1099.
The paying yeah.
Schedule season, anything of that sort.
For those first time homebuyers.
I just helped a girl buy a home. She's 22.
She only needed, like 4% down or 5% down,
which was like for her home was like $12,000.
Yeah. So talk about that because people don't know that.
Well, a lot of people don't realize either is down payment assistance programs.
There's, you know a few out there
I've actually closed transactions where they've only brought $1,000
to the table on some of these down payment assistance programs.
They're a little bit more harder to qualify,
meaning that the debt to income ratios will not exceed a lot of times 43%,
which means the mortgage payment plus their monthly debts can exceed
43% back end ratio.
But we also have first time home
homebuyer programs,
3% down if you're a veteran, 0% down.
So don't ever just assume that, you know, tempers are 20%
is the amount that you need to purchase a house
because you can get in the house with $1,000.
It's just you got to take the steps to get qualified
and pick up the phone and call a lender and get pre-qualified.
And some of those prepayment programs are a little more difficult
when the market was hot because people didn't want to deal with them.
Right? They wanted like all cash buyers and all that, right?
But now that the market is slowing down, it's easier
if you're in these programs to still be able to buy something.
Absolutely.
I mean, down payment assistance isn't always a bad thing.
And I like to call them just starter starter starter loans.
Right.
Because at the end of the day, yet
the rates are going to be typically higher
because that's how they get their money to pay you for those down payments.
But you always have the ability to refinance.
And, you know, if you if you believe that the rates
are going to eventually come back down, you'll eventually refinance.