Residential

Loan Options and Eligible Properties
Mortgage Broker Wholesale Option

 

Loan options and eligible properties

  1-4 Family Multifamily
Product 3/1, 5/1, 10/1 ARM and 10, 15, 20-year fixed 5/1 ARM and 20-year fixed
Max LTV 70% SFR and 60% condo/2-4 family 60%
Max Term 25 years SFR/condo and 20 years 2-4 family 20 years
DSCR** 1.25x 1.3x
Min. Loan Amt. $50,000 $50,000

 

Ineligible Properties: Speculative purchases, short term rentals, residential with large acreage, raw land, farms, manufactured or log homes, non-warrantable condos, Condo-Hotels, Co-ops, Time Shares, hotels, senior or assisted living facilities, non-franchise restaurants, entertainment properties, mini-storage, and commercial property. Square footage must be 750+ (per unit) for Condos and 900+ (per unit) for all other properties.

*Condominiums: Loan to Value for Condos will be between 50%-60% and the net operating income must exceed the annual debt service (annual principal and interest mortgage payment) by 20%. Condos must meet the following minimum criteria to be considered Warrantable. The project building must be 100% complete, including common areas. The units within the building must be 60% sold and 33% of all building units must be owner occupied or 2nd homes (versus tenant occupied). Condos not meeting these criteria are not eligible under our non-recourse program. IRA Condo Questionnaire. Please complete before signing purchase contract.

*Price appreciation: If the real estate has sold within the past 3 years and the property has appreciated more than 10% annually, the DSCR must be 1.2 times and the LTV will be 50-65%.

**DSCR: Debt service coverage ratio = net operating income / annual debt service

Requirements for IRA Debt Financing:

  • Purchase transactions for investment property only;
  • IRA assets to be managed by a custodian in a self directed IRA or SEP.
  • IRA assets must be verified for purchase and reserves. IRA reserve requirement may be up to 20% of the loan amount, to be available in the event of insufficient cash flow to pay operating expenses and mortgage payments;
  • No employment or income verification required;

Documentation Required for Loan Approval:

  1. Completed NASB loan application (application)
  2. Current detailed Rent Roll or copies of signed leases;
  3. Most recent asset statement verifying IRA assets for purchase and reserves;
  4. Purchase/Sale contract, signed by the IRA account holder and the custodian. The contract must show the buyer to be in the name of the IRA;
  5. Appraisal fee required at the time of loan application for 1-4 family;

 

Mortgage Broker Wholesale Option

Please read the information below and call us at 1-866-735-6272 for more details.

Broker Application Requirements

  1. NASB Loan Application. (consumer application)
  2. Non-Refundable Appraisal fee, actual cost for 1-4 Unit Residential Property with Rent Comps.
  3. Current Investment Account statements for IRA funds, sufficient to verify funds for closing and reserve requirement. Fund statement should be no more than 30 days old.
  4. Real Estate Contract executed by Account holder or IRA Custodian or administrator.
  5. Broker Fee Disclosure between IRA account holder (borrower) and Broker. Submit a copy of the Broker Fee Disclosure to NASB and the original to the title company or escrow agent to ensure payment of your fee. Broker is responsible for compliance with all applicable state and federal laws.
  6. Provide initial copy of Brokers State Mortgage Brokers License.
  7. NASB Loan Application. (consumer application)
  8. Non-Refundable Appraisal fee, actual cost for 1-4 Unit Residential Property with Rent Comps.
  9. Current Investment Account statements for IRA funds, sufficient to verify funds for closing and reserve requirement. Fund statement should be no more than 30 days old.
  10. Real Estate Contract executed by Account holder or IRA Custodian or administrator.
  11. Broker Fee Disclosure between IRA account holder (borrower) and Broker. Submit a copy of the Broker Fee Disclosure to NASB and the original to the title company or escrow agent to ensure payment of your fee. Broker is responsible for compliance with all applicable state and federal laws.
  12. Provide initial copy of Brokers State Mortgage Brokers License.
  13. For Multi-family and Commercial purchases, a non-refundable commitment fee of 1% of the loan amount will be collected at the time of any issuance of a commitment letter outlining the loan terms and conditions. The account holder (borrower) will be given a written commitment letter with the loan terms. For 1-4 Unit investment, the non-refundable appraisal fee will be the actual cost of the appraisal charged by the appraiser. The appraisal fee will be returned to the account holder after closing. The appraisal fee will be collected at closing and included in the funds required from the IRA.
  14. Down payment, appraisal fee and closing costs will be funded from the IRA. The account holder (borrower) should be prepared to provide enough funding from IRA funds to cover the minimum NASB down payment, closing costs and reserve requirements.
  15. NASB will complete the processing, order the real estate appraisal, underwrite the loan and coordinate the closing between the account holder (borrower) and the title company/escrow agent.

NASB will quote interest rates on a case by case basis, on the basis of the collateral type and down payment. The following fees and costs apply:

  1. 1% Origination fee to NASB (based on the loan amount) *
  2. $385 Underwriting fee to NASB
  3. $310 Processing fee to NASB
  4. $16 Flood Certification fee
  5. $510-$600 Appraisal fee (including rent Comps) Due at time of application
  6. $_____Settlement/Escrow fee
  7. $_____Title Insurance
  8. $_____Recording fees
  9. $_____Mortgage Registration or other state fees (if applicable)
  10. $_____Prepaid Interest and taxes**
  11. $_____Initial Hazard Insurance Premium**

*1/2% increase for cash out refinances (if application taken is taken 6 months from original purchase).
** Escrows for taxes and hazard insurance are required.