DS News

DS News December 2022

DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.

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Page 42 of 99

41 Follow Us At: @DSNewsDaily Industry Updates GO MORTGAGE LAUNCHES NON-QM SINGLE CLOSE CONSTRUCTION LOAN GO Mortgage, a nationwide, independent mortgage bank licensed in 36 states and the District of Columbia and a subsidiary of GO Companies, has launched a non-QM construc- tion loan program designed to provide greater options and a smoother financing experience for self-employed borrowers and real estate investors seeking to build a home. e new Non-QM Single Close Construc- tion Loan can be used to finance up to 90% of a borrower's home construction for loans up to $2 million. e program is perfect for borrowers who do not qualify for new construction financing through standard income qualifications. Instead, a borrower's income can be qualified through 12 to 24 months of bank statements, or on a debt ser- vice credit ratio (DSCR) basis using the expected rents on an investment property. e program was designed to give more borrowers the green light to financing that fits their needs, while providing simplicity, speed, and flexibility, GO Mortgage CEO Michael Isaacs says. "Too often, our loan officers were encoun- tering clients who could afford to build, but do not qualify through conventional means or were discouraged by the complicated nature of construction lending," Isaacs said. "Our new program solves both of these issues, so that any self-employed borrower, business owner. or private investor can achieve their homebuilding goals and isn't left standing on the sidelines." e Non-QM Single Close Construction Loan can be used for primary residences, second homes, or investment properties, including du- plexes, non-warrantable condos, and manufactured housing. While the program offers the ability to put down as little as 10% toward new home costs, bor- rowers can also qualify 80% financing and pay no mortgage insurance with a minimum 680 FICO score. With a 720 score or higher, they can qualify for up to 85% LTV and pay no mortgage insurance. During the construction phase, GO Mort- gage will provide financing at an interest-only rate. After construction is complete, borrowers do not have to refinance their construction loan into a permanent loan and then encounter a second closing, which is typical of most construction loan products. e program allows a maximum build time of 24 months. Borrowers can lock their permanent loan rate within 60 days of the construction's completion. GO Mortgage is an experienced home con- struction lender and one of the largest sellers of construction loans to Fannie Mae. e company handles the entire financing process in house, including builder approvals, inspection services, and funding draws, so the company can better control costs compared to lenders that outsource these processes. "Our mantra is 'no loan left behind,'" Isaacs said. "It's demoralizing to miss any opportunity to help someone achieve their homeownership goals, so our job is to make sure we have every product under the sun that a client may need. And when borrowers can't find the financing they're looking for, we'll create it for them."

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