Ask the "Mortgage Man": Commercial Loans in the Lehigh Valley requiring NO...

Ask the "Mortgage Man": Commercial Loans in the Lehigh Valley requiring NO...: Can you imagine buying a commercial property and financing this piece of real estate without having the bank order an appraisal?  Most comme...

Commercial Loans in the Lehigh Valley requiring NO Appraisal!

Can you imagine buying a commercial property and financing this piece of real estate without having the bank order an appraisal?  Most commercial appraisals cost upwards to $2,000 per appraisal.  This is not only extremely expensive, but a commercial appraisal can be much more time consuming than a residential appraisal.  There is so much more paperwork and analyses that needs to be done to complete a commercial appraisal.  Since there aren't as many commercial properties selling in this market, the appraiser must go to remote areas to find similar properties to compare to the subject properties value.  Since most of my commercial loans don't require appraisals, I save my customers lots of time and money.  We can close most commercial loans in under 30 days!  In addition, I shop for the lowest interest rate which is now as low as four.  For a low cost, low rate commercial loan with the fastest closing, you need to look no further. 

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

Ask the "Mortgage Man": FHA LOANS WITH 600 SCORES

Ask the "Mortgage Man": FHA LOANS WITH 600 SCORES: We are introducing a new program for FHA with scores as low as 600.  There is no catch! Most lenders are requiring a minimum of 640 credit s...

FHA LOANS WITH 600 SCORES

We are introducing a new program for FHA with scores as low as 600.  There is no catch! Most lenders are requiring a minimum of 640 credit scores to finance FHA, but Abacus can do much lower scores.  These programs are almost the same as the typical FHA mortgages with a few minor differences.  I am outlining the differences for both programs below.

If a borrower's credit score falls between 620-639, a maximum debt ratio of 43% is allowed.  You can't go to 45.  If a borrower's new mortgage payment (PITI) doubles what a borrower is currently paying in rent, they must show an extra 2 months mortgage payments in reserve ( IRA, 401K, etc.)
They can't spend every dollar on buying the house, as a normal FHA program allows.  You can still get the seller to pay 6% of the selling price toward the buyers closing costs, but the buyer's 3.5% down payment CANNOT be a gift.  They must show proof that it is from their own funds. 
If a borrower's credit score falls between 600-619,  maximum debt ratios may not exceed 33/45%.  In addition, the borrower must put 5% down payment, not the standard of 3.5%.  The entire down payment must be the borrower's own funds.  If there is a doubling of the mortgage payment compared to what the borrower is currently paying in rent, they must show proof of an extra 2 months mortgage payments in reserve (IRA, 401K, etc.). 

This is a great opportunity to finance people who have experienced a problem with their credit in the past but have cleaned it up and still show scores below what is the norm.  It also helps to enable borrowers with high credit card debt to be able to purchase a home before having to pay down their revolving debt. 

For more solutions to your mortgage needs please contact me on my cell, email me at andrew.williams@abacusmort.com, find me on twitter at #abacusmort or find me on facebook.

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

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 

What are people waiting for?!!

 I can't understand why more people aren't buying homes right now. If you compare a $ 180,000 house of today at today's interest rates to the same house at 2007 prices and rates, the average monthly savings is $ 750 per month. If you could afford that house 5 years ago at a monthly payment that much higher, you would think people would be lining up to buy right now!

Andy Williams
President
Abacus Regional Mortgage
484 695 5972