100% Financing For Your Move-Up Buyer

If you ever had a move-up buyer who needed 100% financing, believe it or not, such a program exists.   In fact, there are many solutions to help your buyer buy now and sell their existing property after their purchase.   And yes, we’re talking about solutions beyond expensive bridge financing.   The following is a great example.

Our client owned a $2M property free and clear. He wanted to buy a new home for $3M. However, with his current residence being his largest investment, his assets were tied up in the home’s equity.  He needed to access the equity in his house and didn’t want to pay for an expensive, short term bridge loan.  Fortunately, we have a loan program that combines the value of both a client’s existing residence in conjunction with the new property purchase!  This program is called cross collateralization.  The following worksheet best illustrates how this works:

Referring back to our example, the borrower owned a $2M home and wanted to upgrade to a $3M home, which is $5M in combined equity. Using the cross collateralization program, we were able to loan the borrower up to 70% of the combined equity, which is $3.5M. In other words, we provided 100% financing on the new property using the equity in the borrower’s current residence!!!

Don’t Get Stuck Inside the Box

Have you ever had a client who wanted to purchase a home but their credentials made it impossible for them to find financing? You tried commercial banks, credit unions, and mortgage brokers but kept coming up with the same result – “I’m sorry, but you just don’t qualify.” In these cases, you need to find a lender who isn’t afraid to think outside of the box. Here at Absolute Mortgage Banking, we have found creative ways to get your client the financing they need to make that important purchase. Let’s take a look at two recent examples of how Absolute Mortgage Banking has found the right investors to close what most would say are impossible deals.

In early July we were approached by Stefan Walker, a broker at Alain Pinel Realtors, whose client had just moved to California. The client was looking to purchase a home in Los Altos Hills but – and here’s where it gets tricky – having recently relocated from The Netherlands, had no work visa, no social security number AND no US credit. So how did we turn this seemingly hopeless situation into a happy ending? We reached into our extensive product suite and pulled out a No Social Security and No US Credit Program. Not only were we able to provide Walker’s client with the necessary financing, but we did so in 21 days!

“Wow. A big thanks to all of you for pulling this off – nothing short of miraculous! I am amazed that you were able to get this loan done at all. Getting it done in less than three weeks with a borrower who basically doesn’t really exist as far as most US lenders are concerned [is] mind boggling. Thank you!”
– Stefan Walker, Alain Pinel Realtors

This second example is a true illustration of our ability to creatively serve our client, even if it seems there may not be a way for them to finance their home. We had a borrower who wanted to move within Palo Alto with his family, looking to upgrade from his current $2M residence, on which he had two mortgages totaling $800K, to a new $2.6M home. The borrower was self-employed and according to the traditional banks, did not have enough personal income or liquid assets to qualify for financing without first proving the sale or rental of his current residence. How could he be expected to move his family out of their house and prepare it to sell or rent BEFORE having another place to call home? We were able to help this family to receive financing for their new purchase by thinking outside the box and using our resources. By having a “rental survey” done that showed how much the current residence would rent for, using that as personal income, and finding the right private investor, we were able to provide the buyer with a $350K bridge loan (a 3rd mortgage on his current home!) for the down payment. This allowed the borrower to qualify for a new $1.9 Million loan on their new home, without having to first move out of their current residence and we were able to do all of this in less than 30 days!

As you can see, here at Absolute Mortgage Banking, we thrive where other lenders may not even try. Your client may have a situation that seems nearly impossible, but we work hard to bring to the table creative options, utilizing all of our resources and providing you and your client with exceptional service.

photo credit: I LIKE IT SIMPLE via photo pin cc