Independent Mortgage, L.C.

Home

Products

About Us

FAQ

Independent Mortgage, L.C. Independent Mortgage has correspondent relationships with the finest regional and national mortgage banking companies. This gives you access to a wide range of competitively priced loan programs. We are constantly searching for new loan programs like the recently added 100% 1st mortgage for new home purchases. It is one thing to have the products and pricing, it is quite another to have the expertise and drive to match our product to your individual situation. Mortgage Loan Programs Fixed Rate Loan Programs Balloon Loan Programs Adjustable Rate Loan Programs Jumbo Loan Programs No Income and No Ratio Verification Programs No Down Payment - 100% Financing Bridge Loans Trailing Spouse Programs for applicants with Derogatory Credit Community Homebuyer Program Community Homebuyer Programs - 3% Down Payment FNMA FLEX Loan Program Long Term Lock Programs Buydown Programs Construction Loans Home Equity Line of Credit Fixed Rate Loan Programs - Fixed-rate loan programs feature an interest rate that is fixed at a particular rate over the entire term of the mortgage. Fixed-rate mortgages are typically available with terms of 10, 15, 20 and 30 years. All fixed-rate programs feature no pre-payment penalties and are available for both conventional and jumbo loans. Balloon Programs - Balloon loan programs feature an interest rate that is initially fixed for a period of either 5, 7 years. Most balloon programs permit the borrower to extend the term of the mortgage to a total term of 30 years (e.g. the 5 year balloon loan extends for an additional 25 years) if the borrower is residing in the property at the end of the balloon period and has made his previous 12 mortgage payments within 30 days of the due date. At the time the extension option is exercised the interest rate on the loan will be adjusted to a rate which is commensurate to other fixed rate mortgages being offered at the time the extension is requested. The beginning note rate on the balloon mortgages is typically 3/8 to 5/8 of a percentage point lower than a 30 year fixed-rate mortgage. Thus, these programs are ideal for a borrower who only anticipates having the mortgage for a 5 to 7 year period. Adjustable-Rate Loan Programs - Adjustable-rate loan programs,(commonly called an "ARM"), feature an interest rate that periodically adjusts, usually every 12 months. Hybrid ARMs come with initial fixed rate terms of 3 years, 5 years, 7 years, or 10 years, and then adjusts annually thereafter. Again, another option to consider for the borrower who will hold the mortgage for a short period of time. The interest rate fluctuates up and down, following the movement of the yield of various interest rate indicators. ARM's are ideal for borrowers who anticipate paying the mortgage in full in just 2 or 3 years because the interest rate on the ARM during the first couple of years is very low because of the low teaser rates during the first few years. Thus an ARM is favored by borrowers who relocate every two or three years. For more detailed information on adjustable rate mortgages, review FAQ - Adjustable Rate Mortgages". Jumbo Loans - Jumbo loans are underwritten to the same quidelines as conventional loans except for loan amount which is above the conventional loan limit of $252,700. Our non-conforming lenders offer a wide range of aggressively priced products. Their creativity has produced a very unique offering of niche products with some of the following characteristics: NIV, (Stated Income), 90% LTV to $400,000 NIV cash-out refinances, 70% LTV to $500,000 Investor loans, 90% to $400,000 Interest only jumbo loans Cash-out refinances, 80% LTV to $500,000, no cashout limit Owner-occupied duplexes, 95% LTV to $300,000 Piggyback loan, $252,700 conforming first and a portfolio ARM second, 80% LTV to $500,000 No Income and No ratio - Verification Programs - Independent Mortgage offers a variety of loan programs which do not require verification of employment or income. No Income programs verify employment but qualify an applicant based on the income stated in the loan application. No Ratio programs do not verify neither employment or income, but instead qualify the applicant based on other factors such as credit rating and equity holdings. The purpose of the No Income and No Ratio verification programs is to provide expedited processing for difficult to verify creditworthy borrowers. It is not intended as a means to qualify marginal borrowers or as a "No Qualifier" program. No Income and No Ratio loans are primarily for self-employed and commissioned-only borrowers who for one reason or the other have income and employment questions which are hard to verify. These loans need excellent credit ratings. They can be used for 1-4 family properties, second homes and investment properties. Loan-to-value ratios can be as high as 80 per cent. There is very little paperwork required to apply for these loans. 100% Financing - Independent mortgage offers financing for 100% of the sales price of the home. This financing is available for most borrowers who would qualify for conventional financing. Generally the better a borrowers credit rating the lower the interest rate. There are two types of loan programs; a 100% 1st mortgage, and a 1st and 2nd mortgage combination for 100% of the sales price. 100% 1st Mortgage - This program is reserved for borrowers with the highest credit rating. Borrowers with credit scores above 700 can qualify for a loan that is 103% of the sales price. The extra 3% helps pay for closing costs, enabling the borrower to purchase a home without haveing funds for the down payment or closing costs. This program is on a 5/1 ARM with interest rates fixed for the first 5 years at rates typically lower than thirty year fixed interest rates. Under this program, debt ratios of up to 41% will be acceptable allowing the borrower to purchase a larger home. 1st and 2nd Combo Loan - By using a combination 80% 1st mortgage and a 20% 2nd mortgage, homes can purchases without the usual down payment. It not only allows them to buy a home sooner, they also can qualify for a larger home than under convention guidelines. The liberal underwriting guidelines allow debt ratios to 50% and up to 6% seller concessions. The interest rate is approximately 1% higher than conventional financing, but when you consider the programs carry no mortgage insurance and the additional tax deduction of the 2nd mortgage, the payment compares favorably 97% conventional financing. Bridge Loans - The Equity Bridge Loan is a one-year term interest-only loan and is treated the same as a cash-out refinance to a maximum 80 percent LTV. All existing mortgages are paid off and the balance of funds (less closing costs and six months prepaid interest) are used as the down payment for the new property. The equity bridge loan is used in companion with our purchase money loan and is available for up to 95% financing of your new home. Both fixed rate and ARM products are available. Since you will not have a payment on your old home for 6 months on the equity bridge loan, these bridge loan payments are not used in calculating ratios in the purchase loan of your new home.When you sell your present home, the equity bridge loan is paid off. If it is sold in the first 6 months, any unearned interest is refunded to you. Trailing Spouse - The job transfer or relocation of a Borrower will sometimes result in subsequent job loss for the spouse. The "trailing spouse" may or may not intend to seek employment in the spouse's line of work at the new location. If the intent to secure employment can be established, Conforming Fixed-Rate Loans and ARM Loans are available to the borrower. These programs are only available for owner occupied, single family purchase transactions without secondary financing. The trailing spouse income should not exceed 40 percent of the total qualifying income, and two years of employment history in the same line of work must be provided. When the LTV is 90 per cent or less, borrowers meeting these criteria are eligible for 100 per cent of working spouse income earned in the previous location. When the LTV is over 90 per cent, 75 per cent of the spouse's prior income may be credited towards qualifying income. Programs for Applicants with Derogatory Credit - Independent Mortgage offers special programs for applicants with derogatory credit who cannot qualify for a mortgage under conventional underwriting guidelines, including programs for applicants with recent bankruptcies, late payments on mortgages, and other credit problems. These programs typically require slightly higher downpayments or equity positions and are priced higher than our conventional loan programs. There are as much as six different credit grades and programs for loans applicants who do not qualify for conventional financing. The lower the number of late payments, judgments, chargeoffs, and existence of foreclosure or bankruptcy, the higher the credit grade. Applicants with higher credit grades will be eligible for lower down payments and lower interest rates. Applicants with severe credit issues including recent bankruptcies could require as much as a 40% down payment to qualify, whereas it may only require a 10% down payment for applicants with near perfect credit. It is easy to apply. Before getting very far into the process, we can submit a credit report and an application for a credit grade determination and receive an answer in twenty-four hours or less. At this point it is easy to determine if one of these programs will fit your particular situation, and continue at this point with the rest of the application process. Even though you may end up with a higher interest rate, buying a home with these products will help you reestablish your credit. By making your payments on time each month, your reestablished credit may make you eligible for lower interest rate loans in less than 24 months. PROGRAMS WITH SPECIAL QUALIFICATIONS Community Homebuyer Programs - The Community Homebuyer Programs were created especially for low-to-moderate income homebuyers or homebuyers purchasing homes in Fannie Mae/Freddie Mac targeted neighborhoods. Their mission is to provide products and services that increase the availability and affordability of housing for low-moderate-, and middle income Americans, that have been underserved in the past. These programs reward borrowers who have earned good credit histories but have had difficulty saving a down payment. They offer these families underwriting flexibilities in the amount and source of the down payment, the qualifying ratios, and documentation. Most of these programs enable a homebuyer to purchase a home with a total downpayment, closing costs and prepaid items of as little as 3% of the sales price of the property. Completion of a FNMA/FHLMC approved home study course for new homebuyers and a property inspection may be required on a case by case basis. The following highlights the general features of the various Community Homebuyer Programs: Community Homebuyer Loan Program - 3% Down Payment The Community Homebuyer Loan Program is available to Borrowers with gross income of not more than 100% of median gross income in the county in which the property securing the proposed loan is located. The Program generally follows Fannie Mae underwriting guidelines (28/36 ratios) with the following exceptions: The Down Payment can be as low as 3% of Sales Price. All of the down payment must be from the Applicant's own funds. There is no requirement that the Applicant have been in the same line of work for 2 years as is required under standard and conventional underwriting guidelines. Only one month of reserves for taxes and insurance is required. All closing costs, escrows, and prepaid items (hazard insurance, MI, and interest) can be paid by the Seller (Seller concessions limited to 3% of Sales Price). Thus, a Buyer can buy a home under this program with a total cash outlay of as little as 3%, in comparison to the 4% to 5% typically required with FHA financing. FNMA Flex Loan Program The FNMA Flex Loan Program is similar to the 3% Down Payment Program except that there are no income limitations and the source of down payment is more flexible. The Borrower is required to put at least 3% toward down payment or closing costs. The down payment may come from borrowers own funds or from a gift. The Flex Loan Program does require established good credit. The borrower must have a minimum of four established credit lines that have been open for at least two years. If the Borrower has established credit, this program enables the Borrower to buy more home with less money and qualify at higher 33%/41% ratios for a loan amount of up to $252,700. All down payment, closing costs, escrows, and prepaid items (hazard insurance, MI, and interest) can be paid by premium pricing, grants, gifts, unsecured line of credit, or the Seller (Seller concessions limited to 3% of Sales Price). Thus, a Buyer can buy a home under this program with a total cash outlay of as little as 3% of the Sales Price, comparable to that required under FHA financing, but with easier qualification and higher maximum loan amounts. Long Term Lock Programs Under construction Buydown Programs Under construction Construction Loans Under construction Home Equity Line of Credit Under construction



Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $322,700 with closing costs of $6,454. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $350,000 with closing costs of $7,000. Your actual APR may be different depending upon these factors.