Investment Mortgage Guy » Uncategorized

Cornerstone Mortgage Offers the Best Rehab Loans in the Twin Cities!

admin — Sat, 10 Sep 2011 05:28:59 +0000

I read an article recently starting that 30% of the homes listed today are in need of some type of minor or major repair. Listings are down dramatically in the Twin Cities with total inventory hovering around $24,000. (We were above $40,000 in 2006). This is offically a seller’s market. Buyers in this kind of climate need a competive advantage. At Cornerstone Mortgage, we have a tool in the tool belt not often used by buyers and realtors to get the deals that need renovation. Where most buyers and investors think they need cash, Cornerstone Mortgage offers great rehab financing for both owner occupied buyers and real estate investors. For the owner occupied buyer, Cornerstone likes to utilize the FHA 203k loan. This loan requires only 3.5% down payment and allows a buyer to finance removations with a total project cost up to $365,000. Projects as low as $5000 on up will be considered. Rates for this 30 year fixed product are currently around 4.5%. There are a few lenders in the market that offer this program but I believe Cornerstone is one of the best at it. We close most of these loans in 60 days or less. We also underwrite and fund the loans and draws in-house so the delays are minimized.

For the real estate investor, we have a 6 month rehab contruction loan where the investor can finance 100% of the purchase and rehab cost of an investment property. The investor has to open up a CD account at the bank for 20% of the loan amount to be used as security. Once the property is fully renovated, most investors refinance the property with Fannie Mae or sell the home immedately for a profit. The 20% CD account is then forwarded back to the investor. If the investment property appraises well, investors can buy a property with very little cash out of their pocket….. yes you heard me right! This program works great for the investor with 50k to invest. Instead of buying only one property and being tapped out of money.\ We can ussually get them three properties as long as they qualify. For more information on these products contact Robert J Bonahoom at Cornerstone Mortgage 651-485-3710. NMLS#209013

Need Long-term Apartment Building Financing?

admin — Wed, 08 Jun 2011 20:52:29 +0000

Do you have an apartment building but are concerned about your mortgage? Is your note ballooning some time in the near future? Fannie Mae offers some great long-term solutions for apartment building owners.

Here are the basic terms:

* 80% Loan to Value

* 10 year fixed rates

* 30 year amortization

* 1.25% DCR Coverage

Fannie Mae does lend money to people owning apartment buildings. In this market, they tend to be more liquid and flexible than the local banks. Call us for a quote on your building 651-485-3710.

Robert J Bonahoom

NMLS# 209013

Mortgage Rates Spike on More Signs the Economy is Recovering.

admin — Fri, 04 Feb 2011 20:50:51 +0000

The unemployment rate fell to 9% in January. This is down from 9.8% in November. This is the biggest two month decline since 1958. Is this a sign that the economy is really recovering or another false hope? I guess only time will tell for now, but the positive momentum in the job market has put upward pressure on mortgages rates here in the Twin Cities.

What does the Fed think of this statistic? Here is a comment from Ben Bernanke ““With output growth likely to be moderate for a while and with employers reportedly still reluctant to add to their payrolls, it will be several years before the unemployment rate has returned to a more normal level,”

Today for a 30 year fixed conventional mortgage rates will average 5% depending upon your credit score, down payment and other important factors. Investment properties rates are based in a simillar way and average 5.75% today.

I personally have a cautiously optimistic outlook for 2011. Any comeback will stem from signs of a stronger economy. If your still in the hunt for a new home or investment property, there are a lots of opportunities. As a mortgage banker, I see incredible buys come across my desk every month. If you are in need of a quick mortgage quote or in the market to find that perfect investment opportunity, call me at 651-485-3710 or shoot me an email at rbonahoom@houseloan.com

Robert J Bonahoom

NMLS#209013

Do Not Worry

admin — Sun, 19 Jul 2009 14:21:46 +0000

The Bible commands us not to worry. Luke 12: 22 -26 says “Then Jesus said to his disciples:Therefore I tell you, do not worry about your life, what you will eat or about your body, what you will wear. Life is more than food, the body more than clothes. Consider the ravens, they do not reap or sow, they have no storeroom or barn, yet God feeds them. And how much more valuable are you than the birds. Who of you by worrying can add a single hour to his life? Since you cannot do this very thing, why do you worry about the rest?

The world’s view of worrying however has been made to look a lot different. The world has actually made worrying look like a responsible task. After all, not worrying about your kids, job or family just doesn’t seem like the right thing to do. God, however wants us to be in a place of trust and peace with our responsibiities. This is a not a passive sit back and do nothing approach. In fact, it’s just the opposite. His intention is for us to be on a daily walk and commune with him. When we are, he will guide us moment by moment on the steps and decisions we need to make. Thus if we have HIM, it’s all we need. Everything else will be shown or given to us when he knows we need it.

I recently went on a five-day fast and God revealed to me my issue with this. As I looked at my life, I tend to worry about everything. I worry about what people think of me, my finances, my loans (I’m a Mortgage Banker), and on and on. Worry is fear. Fear is from Satan. Thus if I am living in worry. I am not living in God. The goal for myself and my challenge to you is to take your thoughts captive (as Paul teaches us in 2 Corinthians 10:5) and leave worry behind so you can start to focus on trusting in Him. For everything!

Proverbs 3:5-6 says “Trust the Lord with all your heart, Lean not on your own understanding; in all your ways acknowledge him and he will make your path straight.” (My favorite verse in the Bible)

Make it great day! – No Worries!

Rob Bonahoom

Be Careful about Waiting for Mortgage Rates to Hit 4%

admin — Sat, 20 Dec 2008 05:59:51 +0000

Many people are holding off on the refinance or purchase of their next investment property on hopes that the rumors of the government stepping in and forcing rates into the 4% range become reality.

Instead of simply buying based on the emotional aspect of a great 4% rate, look at the fundamentals of the transaction. If the deal makes sense, don’t wait. Many professionals believe that rates will never reach these unpreceded levels.

Here is an article to support my postion….

Mortgage Rate Article

Rob Bonahoom

Mortgage Coach

3% Interest Rate with Indymac Bank

admin — Wed, 24 Sep 2008 02:15:14 +0000

Indymac Bank has been working hard to keep homeowners in their homes If your mortgage is about to adjust and your with Indymac Bank, you may qualify for a loan modification that could lower your interest rate to 3% Here are some factors that will help you qualify:
1) You need to be at least 60 days late on your mortgage
2) You need to prove you make enough income to afford the payments yet not make so much they can’t justify lowering your rate
3) You will qualify easier if your interest rate is currently adjustable

I think we will see many mortgage companies following suit like this in the near future

Rob Bonahoom
Mortgage Coach
952-808-2820
Rbonahoom@houseloan com

How will the fall of Lehman Brothers affect your morgage?

admin — Thu, 18 Sep 2008 03:37:47 +0000

What does Fannie Mae, Freddie Mac, Lehman Brothers and AIG have in common?

They are all suffering huge unforseen losses from mortgages that are going delinquent. Add a major housing slump, a hint of recession and a dash of credit crunch and you have a recipe for disaster in the mortgage world. For years, borrowers who fell behind on mortgages and bills tapped their good friend Mr Equity to bail them out of trouble. Their homes were turned into ATM machines and coverd up some real fundamenal issues for many Americans and their spending and saving habits.

But the little guy isn’t the only one to blame. Mortgage Brokers bloomed on every street corner helping the average guy tap his Equity Tree, assuring him that the lower payments will definately save him from his troubles.

But then of course we had the wholesale lenders who encouraged the broker to be extremely agressive in originating loans. They created loans products that made no common sense but since everyone was doing it, it seemed ok.

And don’t leave out Wall Street, who rated these bonds very high since they had a low default rate for many years. They cut too many corners on underwiting the true risk of these loans, lining thier pockets with the profits.

So back to my question, how will the bankruptcy of Lehman brothers affect your mortgage? If you have a mortgage now and never get another one. You will be fine. It shouldn’t affect you very much. If you will need another mortgage down the road, don’t get freaked, but be prepard to demonstrate your ability to repay. The loans of the future will require complete background checks and a solid credit rating. Provable income and asset reserves will also be required. You can also expect them to be tough on your collateral. But hey – what do you expect when this mess is going to cost billions and billions to America.

Written by

Rob Bonahoom
Mortgage Coach
952-808-2820
rbonahoom@houseloan.com