Reason no. 45 why to use Abacus Regional Mortgage

Everyone has the problem where a self employed borrower hasn't shown enough income in order to qualify.  This is the time of year when they prepare their tax returns for the previous year.  Everyone is gathering their receipts and deductions to try and pay as little income tax as allowed by the federal government.  The more you pull out of Uncle Sam's pocket, the less house you can afford.  Since lenders use a two year average of income to qualify a self-employed borrower, careful consideration must be used in doing 2012's return.  If the income is high enough, a buyer can boost their buying power greatly. 

The problem lies in what is know as Form 4506.  Because of many cases of loan fraud having occurred in the past, where buyers have given fraudulent 1040s to their lender far different than the actual one they filed with the IRS, lenders won't allow buyers to close on their homes until they receive proof of income from the IRS.  This form when sent to the IRS, verifies the 1040 transcript matches the one given to the lender.  It can take as long as 8 weeks by the IRS to verify a return has been filed by a borrower.  This has delayed many closings, and in some cases causing hardships with families.  I have three lenders who don't send this form to the IRS; therefore, I can close the loan with a newly filed tax return.  No delays means happy customers, and happy realtors.

Call me with your next mortgage loan.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
NMLS # 118317      

Commercial Loan Rates Drop....Finally!

For years, interest rates on commercial loans have been much higher than standard 30 year fixed rate mortgages for a primary residence.  The rates for home loans have been coming down lower in the past few years to record lows.  Most homeowners have refinanced their mortgages to the lowest payments possible, but commercial loan rates have remained steady. There has always been a difference in interest rates between the two types of mortgages of between .5 to 1.5% in rates.  Never before has the spread been as much as 3 % higher for commercial loan rates.  Until recently, rates on commercial loans have been TWICE the rate of residential home mortgages.  The reasoning of most banks has been that they are lending to businesses based on the depositors who have money in their banks.  These institutions have been paying depositors less than 1% on their savings accounts and CDs, yet they are charging 6.25% to the commercial borrowers. Since they have a limited pool of funds they can't lend like the banks who are selling their residential loans to Fannie Mae and Freddie Mac.  These agencies have an unlimited amount of funds to lend to the banks, making them flush with funds available to lend to homeowners.  Finally, they have come to realize that these low interest rates on home mortgages appear to be staying at these record low levels for quite some time.  In sympathy with the home mortgages, many local banks have reduced their lending rates on commercial loans to as low as 3.75%.  This marks a sharp reduction for what they were charging as recently as a few months ago.  Since most commercial loans are much higher than residential loans, the monthly savings will be significant.  If you haven't taken advantage of these low rates for businesses, you may get in touch with your current lender, or if you own a business in Pennsylvania you can call me.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972