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 STATED INCOME, NO DOC AND NO RATIO MORTGAGES

These loans all fall under the "low- or no- documentation" family, loans which have come under tremendous scrutiny due to abuse by borrowers and loan originators alike during the past few years. Due to the increased scrutiny, these loans have tighter guideliines nowadays but are still available for borrowers with good credit:

Stated Income. A stated income loan comes in two "flavors": stated income with verified assets (SIVA, also known as reduced documentation) or stated income with stated assets (SISA). Generally, SIVA will be cheaper to obtain than a SISA loan. These loans have gotten much stricter in the past few months, and some of the important things that are being closely examined are 1)the reasonability of the stated income in relation to the profession and tenure listed on the application, 2)the reasonability of the stated income in relation to the assets declared on the application and 3) the reasonability of the stated income in relation to the use of credit as demonstrated on the credit report. These loans are intended for borrowers that have difficulty proving their income because of irregularities in their pay cycle, cash receipts, or little income provable due to write-offs. Do not overstate your income on these loans just to qualify for a loan you really cannot afford. A form 4506-T is often used to authorize the lender to pull a tax transcript and verify the income stated. A good way to check if the income you will be stating on the application is reasonable is to compare your stated income to what other similar professions make on www.salary.com. This website, and a few others, are used by underwiters at most lending institutions in determining if salaries are not overstated.

No Ratio. A No Ratio loan does not take into consideration your debt-to-income ratios to qualify you for a loan. Your employment is stated and verified, but the salary amount is left off of the application. A word of caution: a recent trend is for a lender to look up the salary range for your profession on www.salary.com or other similar website and compare that income to the income needed to qualify for the loan with typical debt-to-income ratios. If there is too much disparity, the loan will be declined or counter-offered to a full-doc loan, so this is no longer a "free ride" to qualify for loans you don't really qualify for income-wise.

No Documentation (No Doc). Sometimes referred to as a NINA (No Income No Asset) loan, this type of loan qualifies a borrower to purchase or refinance as long as they have good credit and plenty of down payment (or equity if the loan is a refinance). Income, assets, and employment are neither documented nor even stated on the application! These loans have pretty high rates and fees as compared with regular loans, but that is to be expected with a loan you don't even have to really qualify for.

Please contact Pena Lending Group to check on the availbility of these products and whether they make a good fit for your scenario.