Do you have a situation that does not fit the usual lender guidelines?
Perhaps it’s time you looked into one of Sidwell’s Specialty Loan Products. Our
Specialty Loan Products are loans specifically designed for those lending scenarios that are “outside the box.”
Each lender has guidelines that set forth the type of loans they are willing to make. Keep in mind that conventional banks are accountable to regulators and mortgage banks underwrite to investor guidelines (also, in each instance it’s quite likely the loan will be sold on the secondary market and must be “purchasable”). In essence, the vast majority of loans must meet predetermined guidelines.
Sidwell’s Specialty Loan Products are more flexible and are not subject to guidelines as strict as Conventional and Government loans, but focuses more on whether the transaction makes sense overall.
For example, in the San Diego region there’s a scenario we lenders face all the time: A client acquires a specialized skill in the military and upon retirement accepts a job with a government agency doing similar work. At some point the government agency releases them from their duty as a W-2 employee and hires them as an independent contractor. The client is now paid the same or more, but receives a 1099 at yearend instead of a W-2. For the purposes of loan qualification, the client is now self-employed.
If they’ve been receiving the 1099 self-employment income for less than 2 years, under standard underwriting guidelines, they cannot qualify for a loan-there must be a two year history. This is where Sidwell’s Specialty Loan Products come in. A borrower who’s been self-employed for less than two years can get a mortgage loan, if it makes sense. In this instance it’s the same client, same skill set, and same or greater income.
Sidwell has lots of other Specialty Loan Products. Take a look below and see if you can find yourself in any of the scenarios listed. If not, fill out the form at then of the page and tell us about your scenario. Odds are, we have a loan product that will fit your needs.
Assume you’re a young couple wanting to buy your first home, but have nothing saved for a down payment. For the property and payment you want the lender says you need 20% down. Instead of asking your parents to give you a 20% down payment, you can ask them to pledge that amount from an investment account. The money remains in their account and continues to grow, but the portion pledged for your down payment can’t be removed until the home is sold, refinanced, or paid down to an 80% loan-to value.
Asset Depletion (great alternative to Stated Income)
Asset Depletion is a misnomer because under this program no assets have to be depleted, it’s simply assumed for qualifying purposes. For example, let’s say you have $500,000 in an investment account and your job pays $3,500 per month. You’d like to buy a home, but the payment on the home you want is $2,500 per month.
You don’t earn enough from your job to qualify for a home with a $2,500 payment, but Sidwell can calculate “income” from the investment asset to help you qualify. And with the exception of down payment and closing costs you aren’t required to liquidate any portion of the asset. This program is also ideal for those who need to lower their debt-to-income ratio.
If you have no Green Card, VISA (and usually no FICO score), conventional banks, and most mortgage banks will not make a mortgage loan. Sidwell can arrange financing for Foreign Nationals.
Recent Housing Events (Bankruptcy, Foreclosure or Short Sale)
Recent Bankruptcy, Foreclosure or Short Sale
If you’ve had a major recent housing event such as foreclosure, deed in lieu of foreclosure, short sale or bankruptcy you DO NOT have to wait the typical 2 to 7 years as required by FHA, VA Conventional and USDA. Sidwell can arrange financing on your new home 1 day out of Foreclosure, DIL, Bankruptcy or Short Sale.
W2s Only (no Tax Returns)
This product is ideal for clients who have businesses on the side on which they report losses. For example, we had a recent client who earns $60,000 annually. She also sells Mary K and Tupperware. The client took a Schedule C $20,000 loss on her Mary Kay and
Tupperware businesses (first year start up cost). The $20,000 loss would have been offset against her $60,000 earnings reducing her qualifying income to $40,000. She would not have qualified to refinance. As a solution we used the W-2 only program and got her the cash she needed. Because no tax returns were involved there was no reason to review the Schedule C.
Condominiums That Do Not Qualify For Conventional Financing
(aka non-warrantable condominiums)
If you’re seeking to buy a condominium and have run into difficulties because of any of the following, Sidwell can help:
- The complex is not Fannie Mae or HUD Approved-that’s okay
- Owner-occupancy is less than 51% – that’s okay
- It’s an investment property and the owner-occupancy is less than 51% – that too is okay
- One owner owns more than 10% of the units – that’s okay
- Pending litigation – considered on a case-by-case basis
- Over 15% delinquency on HOA dues – considered on a case-by-case basis
- HOA still controlled by the builder/developer – that’s okay
Self Employed Less Than Two Years
We’re not restricted like traditional lenders. If the scenario makes sense the deal is probably doable. If the borrower is self-employed, in the same industry where they previously worked, using the same skill set, same or similar income and they’ve got good credit, odds are, we can make it work. If one of these conditions is not met, we may still be able to get it done. Contact us.
If you’ve got a Trust, Partnership, Corporation or LLC and want to vest the property in the name of the entity, this can be done. Please note that the borrower must be a natural person and is personally responsible for the debt. However, the deed of trust is recorded in the entity’s name. Ideal for high profile couples or individuals who want to maintain their privacy.
Closing The Loan With Business Funds
Sidwell permits the use of business funds for closing a loan assuming certain requirements are met (for example, the assets used must be in proportion the borrower’s ownership interest and must not adversely impact the business).
Recently Listed Properties
Typically, properties that were recently listed are subject to loan-to-value and cash-out
restrictions if the listing was within the past 6 months. Sidwell can get exceptions to this on a case-by-case basis and there are certain caveats. Please reach out to us.
Number of Financed Properties
Sidwell does not restrict the number of properties currently financed as a condition of financing another investment property or principal residence. There is no limit.
Co-Signors Who Don’t Live In The Home
(aka non-occupant co-borrowers)
Sidwell has a number of products that permit individuals to co-sign on the mortgage without occupying the residence.
Bank Statement Income
Income from Bank Statements is permissible for self-employed borrowers, even when one borrower is salaried and one is self-employed.
No FICO Scores or Low FICO Scores
These products allow borrowers with no or low credit scores to obtain financing, and are underwritten with a common sense approach.
If you’re looking to buy land and build a home, our Construction Loan Programs are
competitive-and some even provide contruction to perm financing. The land can be
purchased through the transaction or land already owned by the borrower Please note: The borrower cannot manage their own construction project, even if they’re a licensed contractor-no exceptions.
Low or No Down Payment Loans
See our Low or No Down Payment Loan page for a full discussion of these products.
Stated Income Loans (No Income Documentation)
Stated income loans require no income documentation and are designed for our self employed borrowers. At Sidwell our Stated products are subject to common sense
underwriting and require no 4506 or income tax returns. (If a restaurant owner adds a
bar, and writes off a one time $100,000 expense to obtain a liquor license, we think it’s
reasonable to add the $100,000 back to her income). Sidwell also has bank statement programs. Please note that this is not “Hard Money” lending. In fact, many self-employed clients are pleasantly surprised by our rates and terms.
Sidwell Mortgage offers an array of products for premier borrowers with credit scores of 760 or higher. This includes premium interest rates for both Conventional and Government loans, along with Conventional loan mortgage insurance that’s among the lowest in the nation.