FINANCING NEEDS

JUMBO MORTGAGE LOANS — Non Con­form­ing and Asset Based Lending

Pur­chas­ing or refi­nanc­ing a home requir­ing jumbo, non-conforming mort­gage financ­ing requires a del­i­cate bal­ance in today’s mort­gage indus­try.  We pri­mar­ily spe­cial­ize in non-conforming jumbo mort­gage and super-jumbo mort­gage lend­ing.  Our jumbo prod­uct line is secured by the top 18 investor pools on Wall Street to ensure absolute deliv­ery of the lat­est prod­ucts avail­able at the best avail­able price.  We retain the exper­tise and flex­i­bil­ity and guar­an­tee your prod­uct and solu­tion to be right.

Lux­ury home loans and lend­ing require­ments are chang­ing very quickly and abruptly.  Hence, an even greater need for finan­cial lend­ing exper­tise is created…as a one-size-fits-all out­look is not usu­ally suit­able for higher income earn­ers.  Atten­tion to cost of funds is sub­stan­tially more import as wealth man­age­ment, asset preser­va­tion, tax­a­tion and the estate plan must be tied into the home loan financ­ing cor­rectly.  See our EQUITY INVESTMENT STRATEGY page under hotlinks to the right for a com­pre­hen­sive expla­na­tion on which these mort­gage plan­ning con­cepts are centered.

JUMBO MORTGAGE LOAN GUIDELINES

Under­writ­ing guide­lines reflect the dif­fi­culty of financ­ing larger loan amounts in tight credit mar­kets.  Rules that once allowed 100% financ­ing for a $4 Mil­lion pur­chase have gone by the way­side tem­porar­ily.  We still have the abil­ity to pro­vide rea­son­able terms for jumbo loans at a 10% equity posi­tion or bet­ter.  The liq­uid­ity issues cre­ate more expen­sive money over­all and much tighter debt expo­sure, asset and credit his­tory require­ments.  Loan amounts are gen­er­ally cut off at 5 Mil­lion on real estate-secured financ­ing for pri­mary res­i­dences, less for sec­ond homes and invest­ment prop­er­ties.  Larger financ­ing amounts are avail­able but gen­er­ally too expen­sive to be advan­ta­geous lever­ag­ing prop­erty above this amount.  Spreads from con­form­ing prod­ucts to non-conforming jumbo loan prod­ucts gen­er­ally run .750% higher for fixed rates and around .375% higher for jumbo ARMs up to 1 Mil­lion.  Spreads are sen­si­tive to, and a bit wider above $1 Mil­lion and are inter­de­p­dent on LTV (loan to value) per­cent­ages.   Sim­ply putting down a large cash deposit to obtain a bet­ter rate — rather than lever­ag­ing fur­ther with slightly more expen­sive money — is gen­er­ally not advis­able. For exam­ple, sales con­ces­sions can sub­si­dize a sin­gle pre­mium loan struc­ture while retain­ing full tax ben­e­fits lever­aged at 90%.… vs. lever­ag­ing 80% with a larger down-payment.… which oth­er­wise could be uti­lized to invest in some­thing else.  The 90% sce­nario will come out dol­lar for dol­lar well ahead of the 80% sce­nario.  Cer­tainly, down pay­ment require­ments are typ­i­cally larger than con­form­ing loans although 10% down is still viable.

NON-CONFORMING JUMBO LOAN EXPERTISE — BUYER INSIGHT

Chicago’s sophis­ti­cated home own­ers know FIRST that a cor­rect loan struc­ture has every­thing to do with the most sen­si­ble mort­gage plan and LOWEST EFFECTIVE COST.  Their pro­fes­sional banker know­ing where to find the money and hav­ing a process with no prob­lems through clos­ing is a close sec­ond.  Appro­pri­ate home equity strat­egy through the right Mort­gage Plan­ning con­cepts will more safely accom­plish wealth preser­va­tion and allow a free­dom point far in advance of retire­ment.  Our insight and exper­tise on loan prod­uct dif­fer­en­ti­a­tion, IRS rules of tax­a­tion, arbi­trage strat­egy and time value prin­ci­ples is unpar­al­leled in the mort­gage indus­try. (IRS tax­a­tion rules, instru­ment com­bi­na­tions and title vest­ing are the vari­ants in the financ­ing struc­ture equa­tion).  To expand on exam­ples, spe­cific tax­able assets for down pay­ment can be uti­lized and exceed the max­i­mum caps of home equity deductibil­ity allowed — pend­ing the time­line of acquisition-to-refinancing is done cor­rectly to receive the invest­ment deduc­tion there­after.  The bot­tom line is more time and con­sid­er­a­tion are needed when financ­ing high-end homes to avoid all poten­tial pit­falls before, dur­ing and after clos­ing.  The fol­low­ing cri­te­ria are just a few things we care­fully con­sider when out­lin­ing a mort­gage plan: