(go to previous page) (go to beginning)
Commonly asked questions
What lending guidelines are required in this program?
Specific lending guidelines will vary for different participants. Generally accepted collateral includes:
Stated-income, stated-asset and equity-based loans
Loans originated outside of investor guidelines
Loans lacking mortgage insurance, Federal Housing Administration insurance or U.S. Veterans Administration guaranty
Multifamily or mixed-use-property loans
High loan-to-value loans
Land loans, seasoned loans and private notes
Real-estate-owned (REO) property
What costs will my company incur? Will I be required to pay transaction costs?
The permanent warehouse program typically covers all transaction costs, leaving the mortgage company with only the cost of its legal counsel. In addition, using a legal counsel experienced in these transactions will expedite the process and allow most lenders to use the program in 30 days.
Are there limits to the volume of loans originated under this program?
There are no limits to the volume of loans the lender can originate. As a program participant, the lender can fund for an unlimited loan volume, on- or off-balance sheet.
Permanent warehouse financing can be effective as a supplemental or primary funding source for an origination program. In addition, because it enables lenders to originate an unlimited loan volume, permanent warehouse financing eliminates the need to manage multiple sources of capital. This helps lenders to focus on core business.
As with any financial strategy, the right decision demands careful consideration. For mortgage companies seeking to grow while stabilizing their business model or looking for better financing options, this approach could be just the solution they need.
Page: 1 2 3 Previous