Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance

LOGO - STEWART BROWN JR ORIGINAL
NEXA Logo Header
Menu
Menu
Stewart Brown Jr - Logo
Menu
Stewart Brown Jr - Logo

Realtors

Realtors

Realtors

Every Real Estate Agent needs a solid lender relationship in order to support their clients financing requirements.

STEWART BROWN JR LOGO SQUARE

Here are some of the brokerages I work with as a lending resource.  As your dedicated mortgage specialist I’m here to provide a superior level of service to you and your clients.

 

Here are some of the brokerages I work with as a lending resource.  As your dedicated mortgage specialist I’m here to provide a superior level of service to you and your clients.

 

Email Me >

Request a Presentation >

Request a Presentation >

Email Me >

By using a trusted lender who can help you access numerous sources of financing for your investment properties, you get one step closer to financial freedom.  In addition, borrowing funds to acquire real estate helps you leverage your investment and magnify your returns.  Below I’ve addressed some of the most common questions and concerns both novice and experienced investors have asked.  Reach out to me for additional questions or a complimentary analysis of your investment plan.

 

By using a trusted lender who can help you access numerous sources of financing for your investment properties, you get one step closer to financial freedom.  In addition, borrowing funds to acquire real estate helps you leverage your investment and magnify your returns.  Below I’ve addressed some of the most common questions and concerns both novice and experienced investors have asked.  Reach out to me for additional questions or a complimentary analysis of your investment plan.

 

Common Questions asked by Realtors:

How much do investors have to put down on a multi-unit property?

Multi-unit properties available for residential financing can only be 2 - 4 units. 5 or more units would need commercial financing. Therefore, residential financing in the form of conventional loans (Fannie Mae and Freddie Mac) require 25% down on 2 - 4 units.

Multi-unit properties available for residential financing can only be 2 - 4 units. 5 or more units would need commercial financing. Therefore, residential financing in the form of conventional loans (Fannie Mae and Freddie Mac) require 25% down on 2 - 4 units.

Aside from a down payment, what other funds will be required from my client to get a loan?

Once a Purchase Agreement is signed by all parties, the EMD or earnest money deposit will need to be wired to the Escrow company. The EMD is typically 3% of the sales price. In addition, home inspection and appraisal fees need to be paid up front. The total cash needed depends on what was negotiated in the contract.

Once a Purchase Agreement is signed by all parties, the EMD or earnest money deposit will need to be wired to the Escrow company. The EMD is typically 3% of the sales price. In addition, home inspection and appraisal fees need to be paid up front. The total cash needed depends on what was negotiated in the contract.

How many days do we need a loan contingency for?

The standard in California is 17 days. However, this ultimately depends on the quality of the borrower's credit package. Strongly qualified borrowers can receive an approval sometimes within hours. However, if there are credit or employment issues or we are asking for "exceptions" to the underwriting guidelines then we may need the entire allocated time.

The standard in California is 17 days. However, this ultimately depends on the quality of the borrower's credit package. Strongly qualified borrowers can receive an approval sometimes within hours. However, if there are credit or employment issues or we are asking for "exceptions" to the underwriting guidelines then we may need the entire allocated time.

When is my client's rate locked in?

Typically, the rate would be locked once the buyer signs the Purchase Agreement. Since most escrow periods are for 30 days that is how long the lock would be in effect for.

Typically, the rate would be locked once the buyer signs the Purchase Agreement. Since most escrow periods are for 30 days that is how long the lock would be in effect for.

How long is a rate good for?

Your buyer makes the decision on when to lock their interest rate. I offer an array of lock periods ranging from as short as 15 days up to 1 year. I offer a lock and shop program that allows your client to look for a home for 60 days and then 30 days for escrow.

Your buyer makes the decision on when to lock their interest rate. I offer an array of lock periods ranging from as short as 15 days up to 1 year. I offer a lock and shop program that allows your client to look for a home for 60 days and then 30 days for escrow.

Are there any issues with the loan if the seller wants to rent back?

No there wouldn't be any issues with this. However, it is good to be aware that loan docs state that for an owner-occupied property the buyer is promising that they will move into the residence within 60 days and live in the property for a minimum of one year. So essentially, the seller can rent back for at most 59 days past the close of escrow.

No there wouldn't be any issues with this. However, it is good to be aware that loan docs state that for an owner-occupied property the buyer is promising that they will move into the residence within 60 days and live in the property for a minimum of one year. So essentially, the seller can rent back for at most 59 days past the close of escrow.

Is a termite inspection and report required?

This depends on the lender, or whether the appraiser notices termite damage and asks for a more indepth inspection, and ultimately the loan program. If the parties have waived the termite inspection then lenders generally won't require it. However, if the contract calls for an inspection, report and repairs then the lender will see it as a contractual obligation and it will be required.

This depends on the lender, or whether the appraiser notices termite damage and asks for a more indepth inspection, and ultimately the loan program. If the parties have waived the termite inspection then lenders generally won't require it. However, if the contract calls for an inspection, report and repairs then the lender will see it as a contractual obligation and it will be required.

What can I do if my client received a bad appraisal?

After the 2008 financial crisis, property appraisal and mortgage financing became highly segregated. Prior to 2008, unethical lenders would purposely influence the outcome of appraisal reports to inflate property values. Today, we have an amazing system that keeps this unsavory practice from happening. However, sometimes the appraisal doesn't go the way we would hope. If our client receives a bad appraisal, depending on the loan program, you can provide better data or write a letter stating where the mistakes are in the appraisal. Either the appraiser will agree, and make the changes or not. You will have success if the value or outcome is based on bad or faulty data. But, if it's the subjective part of the appraisal, then you may have an uphill battle. Conventional loan appraisals are easier to have changed or modified than government insured mortgages like FHA and VA. You should also note that private mortgage insurance (PMI) companies are extremely careful in reviewing every appraisal and will quickly realize if they think the appraisal was “stretched.”

After the 2008 financial crisis, property appraisal and mortgage financing became highly segregated. Prior to 2008, unethical lenders would purposely influence the outcome of appraisal reports to inflate property values. Today, we have an amazing system that keeps this unsavory practice from happening. However, sometimes the appraisal doesn't go the way we would hope. If our client receives a bad appraisal, depending on the loan program, you can provide better data or write a letter stating where the mistakes are in the appraisal. Either the appraiser will agree, and make the changes or not. You will have success if the value or outcome is based on bad or faulty data. But, if it's the subjective part of the appraisal, then you may have an uphill battle. Conventional loan appraisals are easier to have changed or modified than government insured mortgages like FHA and VA. You should also note that private mortgage insurance (PMI) companies are extremely careful in reviewing every appraisal and will quickly realize if they think the appraisal was “stretched.”

If my client uses an FHA loan will the entire home need to be repaired?

Technically speaking, FHA or the Federal Housing Administration does not require anything. FHA is a division of HUD, the U.S. Department of Housing and Urban Development. FHA assigns the task of measuring risk to the appraiser and underwriter. The appraiser and underwriter then follow HUD guidelines. These guidelines state the property must be habitable and meet health and safety standards. The seller may have to fix and repair items such as peeling paint, cracks in the sidewalk or driveway, malfunctioning electrical or plumbing, etc. It's all about health and safety.

Technically speaking, FHA or the Federal Housing Administration does not require anything. FHA is a division of HUD, the U.S. Department of Housing and Urban Development. FHA assigns the task of measuring risk to the appraiser and underwriter. The appraiser and underwriter then follow HUD guidelines. These guidelines state the property must be habitable and meet health and safety standards. The seller may have to fix and repair items such as peeling paint, cracks in the sidewalk or driveway, malfunctioning electrical or plumbing, etc. It's all about health and safety.

Is FHA only for low income borrowers?

No this is not true. FHA loans have no income limits. FHA simply means it is backed by the U.S. federal government. They are typically for borrowers with lower credit scores and little money to put down. However, just like a conventional loan, the borrower must qualify with supporting documentation.

No this is not true. FHA loans have no income limits. FHA simply means it is backed by the U.S. federal government. They are typically for borrowers with lower credit scores and little money to put down. However, just like a conventional loan, the borrower must qualify with supporting documentation.

How much credit can the seller give my buyer?

This depends on the loan program. The seller can contribute 3-6% credit towards closing costs. These funds can go towards non-recurring closing costs or both non-recurring and recurring depending on the loan program.

This depends on the loan program. The seller can contribute 3-6% credit towards closing costs. These funds can go towards non-recurring closing costs or both non-recurring and recurring depending on the loan program.

Can you get my client a loan if they have no credit?

Yes. FHA and the first time homebuyer programs under Fannie Mae (HomeReady) and Freddie Mac (HomePossible) allow the borrower to have no credit or "blank" credit report and use alternate credit.  

Yes. FHA and the first time homebuyer programs under Fannie Mae (HomeReady) and Freddie Mac (HomePossible) allow the borrower to have no credit or "blank" credit report and use alternate credit.  

Can you get my client a loan if they have a bankruptcy, foreclosure or short sale?

Yes. However, two or more years must have elapsed from the discharge depending on the type of bankruptcy and loan program they are applying for.

Yes. However, two or more years must have elapsed from the discharge depending on the type of bankruptcy and loan program they are applying for.

Can my client get a loan if they had a foreclosure?

Yes. Depending on the loan program three more or years must have elapsed.

Yes. Depending on the loan program three more or years must have elapsed.

My buyer is receiving gift money towards their purchase. How much can they receive?

Your buyer can receive as much as their donor is willing and able to give. The gift must come from a family member or individual with a close demonstrable relationship such as a recognized non-profit or church.

Your buyer can receive as much as their donor is willing and able to give. The gift must come from a family member or individual with a close demonstrable relationship such as a recognized non-profit or church.

Can my client get a loan if they are not a U.S. citizen?

Yes they can. You do not need to be a U.S. citizen in order to obtain mortgage financing in the U.S. Proof of residency will be required such as a visa or alien card. Although, certain types of visas are ineligible such as a diplomat's visa.

Yes they can. You do not need to be a U.S. citizen in order to obtain mortgage financing in the U.S. Proof of residency will be required such as a visa or alien card. Although, certain types of visas are ineligible such as a diplomat's visa.

Can my client get a loan if they just graduated from high school or college?

Typically, a borrower needs 2 years of employment to qualify for a loan. However, if your client has graduated with a higher degree or technical program and has obtained a job in the same or similar field as their degree, then 2 years of employment requirement can be waived. However, a high school degree or GED would require 2 years of employment as well.

Typically, a borrower needs 2 years of employment to qualify for a loan. However, if your client has graduated with a higher degree or technical program and has obtained a job in the same or similar field as their degree, then 2 years of employment requirement can be waived. However, a high school degree or GED would require 2 years of employment as well.

Can my client get a loan if they are self-employed and have a lot of write-offs?

Yes they can. Typically, they would only qualify based off of AGI or adjusted gross income on their tax returns. Some tax deductions will reduce their qualifying income and some will not. However, there are other alternative documentation loan programs available. There's usually always a work around and solutions for self-employed borrowers as well as other borrowers with non-traditional income sources can be found. I work creatively with all my clients to find the best solutions.

Yes they can. Typically, they would only qualify based off of AGI or adjusted gross income on their tax returns. Some tax deductions will reduce their qualifying income and some will not. However, there are other alternative documentation loan programs available. There's usually always a work around and solutions for self-employed borrowers as well as other borrowers with non-traditional income sources can be found. I work creatively with all my clients to find the best solutions.

Skip to content