Real Estate Purchase Mortgages, Mortgage Refinancing, Sub-Prime Loans, Second Mortgages, Home Equity Loans, Hard Money Lending, Bad Credit, Construction & Commercial Loans
Dennis Anderson, senior loan consultant,
discusses loan types.
“What
kind of mortgage loans do we do?
The answer is: What kind of real estate loan do you got?”
What sorts of loans do you offer?
Senior Loan Consultant Dennis Anderson: We always have A-paper loans, which are your premium borrowers, for purchase or refinance. Then there is sub-prime, which everyone knows banks are having trouble with now. And also hard money.
What is a hard money loan?
Dennis: Well, hard money means somebody who can't get a loan through conventional means. These are usually private lenders who will lend money at a higher interest rate. The value of the home against what they are borrowing has to be 65% or less of the loan valuation.
We have lot loans, construction and commercial loans, also. Debt consolidation loans are where we are refinancing somebody, we're paying off their credit cards, or their car loan, or whatever. We can save someone a lot of money every month by doing that. When you take the credit cards and the car loan and throw them into a mortgage, compared to what they are paying now on each of them separately, we're usually saving them some money here.
Buying an apartment building with five or more units? That's commercial. We do that. Residential is considered one to four units.
We also do second mortgages and reverse mortgages and home equity lines of credit.
Logan: The question of what kind of loans we offer really dovetails into being a mortgage broker. We literally have relationships with dozens and dozens of banks.
Meet Paul Joseph, loan consultant, talking
to a client.
If you go downstairs to Bank of the West, Washington Mutual, Bank of America or Wells Fargo, these are institutional banks, as distinguished from mortgage banks. You have heard of the collapse of the sub-prime market, right? There is a company down in Irvine that has an enormous branch office in Woodland Hills. This is New Century Financial. They were the largest sub-prime lender in the United States.
Here's what they did. They were a mortgage bank. All they did was make loans on homes. Nobody ever heard of them because they were not an institutional bank where you can keep a checking account and a savings account, like a Wells Fargo or Washington Mutual.
But if you go to the local bank branch down the street and say to the loan officer, "I'm building a house in the Hollywood Hills and I'd like a loan," they are going to say, "That's great, but not at this bank. Have a nice day." This is because they flat out just may not offer a construction loan, or if they do, the borrower may not even qualify for the darn thing. This could be based on credit or income, or any one of a number of factors. You're either in the box or out of the box.
Or you could go into that branch and say, "I'd like to get $30,000 cash out of my house. It's worth $500,000, I owe $300,000 on it, and I want to refinance my house, so it's going to be a new loan for $330,000. And my credit score is 540." And they are going to say, "Adios, have a nice day."
Is that a doable loan? All day long. The value is there, it's a really safe loan to do. But the loan guy at a big institutional bank's branch office ain't gonna do it. The question is, what kind of loans do we do? The answer is: What kind of loan do you got?
California Mortgage Home Loan Brokers,
a Los Angeles mortgage company
Attn: Michael McKown
16027 Ventura Blvd. Suite #500
Encino, CA 91436
818-841-0051 Local
888-632-9939 Toll Free
E-mail to Michael