Apr 05 2022

Serve More Borrowers with City Lending Products

One look at City Lending’s diverse suite of loan products says it all, with financing options to meet the unique needs of every kind of borrower imaginable.

We’re always on the lookout for talented loan officers to join the City Lending family. But why might you want to come aboard? One look at City Lending’s diverse suite of loan products says it all, with financing options to meet the unique needs of every kind of borrower imaginable. Let’s look at a few of City Lending’s offerings. 

Purchase Products for a Multitude of Borrowers 

Bank Statement Loans for Non-Traditional Earners 

An emerging trend even before COVID-19 shifted the world into a more online direction, gig workers and other self-employed folks are a rising demographic you should be targeting. These non-traditional earners often don’t have the pay stubs, tax returns, and work histories that conventional loans generally require for approval. But these would-be borrowers are creditworthy and can benefit from Bank Statement Loans that gauge earnings by looking at bank account deposits. 

VA Loans Are Available for Millions 

While veterans and active-duty members of the military don’t have to get VA loans when seeking a mortgage, they would be wise to consider one. Thanks to backing by the U.S. Department of Veterans Affairs, VA Loans have highly attractive features, such as up to 100% financing of the value of a home, with no maximum loan limit. Plus, there’s no mortgage insurance required and borrowers with credit scores as low as 600 can often qualify.  

How many of these potential borrowers are out there? According to the most-recent V.A. data, there are about 19 million veterans in the United States today. Add that to the 1.3 million active-duty members of the armed services and you’ve got north of 20 million people who might benefit from a VA Loan. 

Real Estate Investors Spend Billions 

Often when we think of people who are applying for mortgage loans, the mind conjures up an individual, couple, or family looking for a single-family home. And they are common borrowers. But loan officers know that these folks make up only a part of the lending landscape; property investors compose a huge portion of homebuyers in today’s market. In the third quarter of 2021, about 18% of all home sales went to real estate investors, who collectively spent around $64 billion. If nearly one in five homebuyers is a property investor, that’s a group you can’t overlook.  
 

So which loan products best serve these investors? City Lending’s Investor Cash Flow Program is tailored to the needs of real estate investors. With no requirement of personal income verification and loan amounts up to $1 million, Cash Flow loans look at the potential income that a property will generate in evaluating qualification. And not just for purchases — this program can also be used to refinance investment properties. 

FHA Loans for First-Time Homebuyers 

While first-time homebuyers don’t necessarily need to get FHA mortgages, it is a popular option for many. People who are buying their first home often have less money for a down payment, and FHA guidelines allow for as little as 3.5% down. Given that first-time homebuyers tend to be younger than those who have owned homes before, their credit histories are often shorter, and perhaps with a few issues, making the moderate credit score requirements for FHA loans a good potential fit. 
 

And the pool of first-time homebuyers is a group you certainly would not want to ignore. While the percentage of people who are buying homes for the first time fluctuates from year to year — falling from 33% in 2021 to 27% in January 2022 — the number of first timers who might be right for FHA loans is comfortably in the millions. 

ITIN for Foreign-Born Borrowers 

A considerable number of people who are allowed to work in the United States lack social security numbers or the documentation needed to qualify for conventional loans. This represents many would be home buyers who fall into this segment of the market.  

Many of these people may benefit from City Lending’s ITIN Number Loan Product. Even if a potential borrower is undocumented, or doesn’t have a valid residence permit, they may still be able to qualify for a mortgage loan. They just need two years of tax returns, and two months of bank statements among the requirements, and they can own a piece of the American dream even if they aren’t American citizens. 

Refinancing to Fit the Needs of Many 

RefiNow offers an excellent way for low-income homeowners to refinance and take advantage of today’s attractive interest rates to save money each month. How much money? At least $50 a month, though that number is often higher. RefiNow is perfect for those who may not qualify for a conventional loan, as this refinance program has more-relaxed application requirements, a debt-to-income ratio of up to 65%, and credit score requirements as low as 620. 
 

Do you know a borrower with a fixer-upper in need of serious work? Or maybe one who just wants a simple renovation, such as a bathroom makeover or an upgraded kitchen. Then they’re ripe for an FHA 203k Rehabilitation Loan Product, versatile loans backed by the Federal Housing Administration that allow borrowers to make home improvements on either a new home or one that they already own.  

You’re unlikely to find a borrower who doesn’t like getting cash that they can use for anything they want. From paying off a credit card to buying a new car, covering tuition costs, and more, FHA Cash-out refinancing can be an ideal way to use one’s home equity to put cash in their pocket. How does it work? The borrower simply replaces the mortgage they currently have with another mortgage, quite possibly at a lower rate given today’s interest rates.  

Are you considering a career at City Lending? If you’re ready for a challenging opportunity that perfectly balances work life and home life, we’re ready to talk. Contact us today. 

These days, more and more people are looking to buy their dream homes, especially as remote work and work-from-home setups have become an enduring trend. A 15 point increase in requests for home tours and other home-buying services, along with a 11% rise in Google searches for homes, indicate an uptick in demand to buy houses in the country. However, there is a definite worry about affordability when it comes to housing, especially as hefty price tags on available residences have kept the market just as competitive as before, if not more.

According to the latest reports from analysts, it’s not all bad for existing homebuyers and aspiring house hunters. As previous data shows, timing matters in the housing market, and working on different approaches to home buying – like through a reliable lender – can help advance you towards more affordable housing goals. Below, we discuss whether house hunters should buy now or wait, and why.

 

What is your financial situation?


Counter to the rise in home demand, there is a considerable lack of supply. Along with rising prices and interest rates, the housing market may seem like a highly competitive space with wealthy homeowners fighting for what little property is left. It can be overwhelming, but knowing where you stand financially can help you better strategize your home buying journey. Following the four key components of affordability, ask yourself:

  • How much do you have saved for a down payment?

  • How much does your household earn?

  • What debts do you carry?

  • What is your credit score?

 

Familiarizing yourself with these components will help inform your decision on whether or not to wait. For example, taking the time to improve your credit scores before committing can save you from higher interest rates in terms of your monthly mortgage payments. Alternatively, many young homebuyers are compromising by living with family for a significant amount time to save up for a down payment. Getting this out of the way when you’re able to can help you get better loans to buy sooner than later in case interest rates end up increasing.

What kind of home is best for you?

Buying a home is a huge purchase and a big commitment. With shifts to digital and remote ways of working taking place in recent years, this has provided homebuyers with opportunities to be more flexible when buying homes. Homes in areas away from busy cities and urban hubs, for example, are considerably cheaper. This makes them a perfect option for buyers who work from home, or aren’t required to be present in the office on a consistent basis.

The lifestyle you expect to live is as much a factor to consider as money. Condos and townhouses offer lower maintenance costs in the long run, and are perfect for smaller households when compared to single-family homes. If the household grows, homebuyers looking for a side income can even invest in renting out purchased properties to passively earn back what they spent and look into bigger properties for family use.

What does the future look like?


In a previous post, we talked about the rising mortgage and interest rates. While the market may seem bleak or intimidating in its current condition, housing experts also believe factors such as supply have a high chance of returning to pre-pandemic levels by the end of 2024. If you are financially able, buying now while others may be intimidated by the prices can give you an edge. Conversely, taking some time to get your finances in order can benefit you when it comes to securing better loans and lower interest rates.

Working with experts can help you make better decisions for the loans you need, making sure you don’t get trapped with high interest rates or hidden charges. The future of fintech suggests that big data is the future of loans, as more online lenders are now using algorithms, which predict potential defaults better than FICO scores do. Data is also leveraged precisely to identify customers who fit various products well — which can give you peace of mind, as an aspiring borrower. Here at City Lending for example, we find the right programs to fit your needs and profile, making sure you get some of the lowest down payments and interest rates along with a premium service.

And if you’re still unsure, it’s worth considering that waiting it out in the market’s current wild conditions could result in even higher interest rates in the future. At the end of the day, buying a house is ultimately a huge investment, which comes with benefits such as privacy and a financial investment that for the most part will weather most economic storms.

Find out if this is the right time for you to get a house by contacting one of our loan officers today.

 

Content intended only for the use of citylendinginc.com

Written by Alicia Christopher

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