info@penalending.com
2097 Watersedge Drive
Deltona, Florida 32738
407-574-4728 in Orlando, FL Area
206-235-8656 in Seattle, WA Area
1-800-552-7185 Toll-free Nationwide
Creative
mortgages
125% CLTV LOANS
| Current Qualification Requirements |
Minimum Credit Score: 680
Maximum CLTV: 125%
Loan Types: Fixed Rates, HELOC
Reserves Needed: Typically 12-24 months PITI
Minimum Disposable Income: $3000 per month
Tax & Insurance Escrows: Required
Mortgage Insurance: Not Required
Pre-Payment Penalty: Can be waived with increase in rate
INITIAL REQUIREMENTS & INFO
CURRENT ESTIMATED RATES
Fixed Rate: 12.265% @2 Points Origination, APR 13.150% (with 720 score, $4000 disp. income)
HELOC: Prime + 3.745% @2 points Origination (with 720 Score, $4250 disp. income)
**Add 3.500% to rate if not funding 1st Lien with same lender.
*APR=Annual Percentage Rate. The above rates are based on 300 installments with A-Paper credit, Every borrower's situation is unique and you may not qualify for the above rates. This is not a rate-lock or commitment to lend and is for illustrative purposes only.
ITEMS NEEDED FOR CONSULTATION
1. Residential Mortgage Planning Form
2. W2s for Last Two Years
3. Last 30 Days Paystubs
4. Last 60 Days Bank Statements (all pages)
5. Most Recent 401k, IRA, Mutual Funds statements
6.
Last Two Years Tax Returns & YTD P&L if self-employed
FEES FOR SERVICE:
Origination Fee: typically 2% of the loan amount.
Processing: $595
Lender Fees, Title Fees, Transfer Fees, etc. vary by transaction
The above fees are usually payable at closing.
SERVING ALL 50 STATES & THE WORLD
EQUAL HOUSING LENDER
OUR SERVICE
Your Pena Lending Group consultant will conduct a thorough initial consultation that goes far beyond your ordinary loan application experience. Our Residential Mortgage Planning service takes into consideration your current financial situation as well as your future goals, and tailor makes recommendations based on current and projected real estate and financial market conditions. Once a strategy is drawn (using a suite of proprietary tools), your specific loan scenario is run through automated loan search and underwriting tools to find the best execution. After the closing of your loan, we also offer free active monitoring of your entire mortgage portfolio for life to capitalize on changes in the market and ensure your mortgage strategy is optimized.
INFORMATION ON 125% CLTV MORTGAGES
125% CLTV mortgages are a means to borrow more than your property is actually worth. Their availability in the marketplace varies, but there are usually 1-2 firms that have them available at any given time. They come in the form of a second mortgage, either as a piggyback to closing a first mortgage, or as an added standalone product.
One of the unique characteristics on these loans is a disposable income requirement, meaning that you are required to show a certain amount of cash left over from your income each month after paying all obligations.
Another factor to consider is there is usually a dramatic increase in the rate if you do not have
both the first mortgage and second mortgage with the same lender. This can make the loan extremely expensive and it may be a better strategy to refinance the first mortgage to enjoy a better rate on the 125% CLTV 2nd.
Getting these loans approved is not easy, and require full documentation and the underwriter may place many conditions before the loan funds. That is outweighed, however, buy getting some much needed cash far above the value of your home, a risky proposition to any lender.
Call Pena Lending Group today to discuss if this is a viable option for your cash requirements. This loan is definitely expensive and not suitable for all clients.
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