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Nevada Million Mortgage Loan
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Nevada Million Mortgage Loan - Nevada homeowners may qualify for $2MM to $40 Million Mortgage loan financing options to help purchase or refinance residential property, even investment properties and second homes.Home values in the Lake Tahoe area of Nevada make it one of the nation's most popular markets for $3 and $4+ Million Mortgage loans.
Due to the large number of mortgage options, it is important to consult with a professional regarding your Nevada mortgage loan to ensure that you have a mortgage loan that is suited for your individual needs.
Million Mortgage Loan - $1 Million Mortgage Loan to $40 Million Mortgage Loan programs are referred to in the lending industry by the terms "super jumbo mortgage" or even "mega jumbo loan"
Jumbo mortgages are loans which exceed the Fannie Mae and Freddie Mac conforming loan amount limits. This is why Jumbo loans and super jumbo mortgages are often referred to as "non-conforming" jumbo loans or super jumbo mortgages. The jumbo mortgage limits for residential properties are as follows:
2007 Fannie Mae Conforming (non - Jumbo) Loan limits are as follows:
$417,000 Single Family Residence (SFR or 1-unit, most homes fall under this category)
$533,850 Two Family Residence (Duplex or 2-unit)
$645,300 Three Family Residence (Triplex or 3-unit)
$801,950 Four Family Residence (Quadplex or 4-unit)
Properties exceeding the abovementioned conforming loan limits are considered non conforming or Jumbo, super jumbo or mega jumbo for the purposes of the lending industry.
So what does this Jumbo Loan thing mean for $1 Million to $40 Million Mortgage Applicants?
Traditional, conventional lenders can write conforming, non-jumbo loans all day with relative impunity as Fannie Mae and Freddie Mac, large public/private-type institutional investors, will buy these loans so long as they meet very basic underwriting guidelines. So its very easy to get a non-Jumbo loan.
Regular Jumbo loans, from the conforming loan limit for the respective property type to about a $1 Million mortgage loan amount, are also relatively easy to sell toother banks and typical investors, and banks undertake more risk than they would on a conforming loan but not so much that they cannot efficiently underwrite these mortgages.
Where banks and other traditional, conventional mortgage lenders fall apart is on $1 Million to $40 Million mortgages. Because the traditional mortgage loan business requires lenders to be able to find a market to sell their mortgages so they can get back more money to write more loans, these banks and conventional institutions are very hesitant to undertake large loans unless the loan to value ratios are exceptionally low (meaning you borrow 50% or less of the value of the home). By virtue of this reluctance to write $1+ Million Mortgage Loans, these same lenders have very little experience executing these transactions, resulting in even more conservative loan qualifying criteria for Super jumbo mortgages. Add to that the fact that conventional lenders are set up primarily to serve the needs of "conforming" loan customers, which means they lack the personnel to handle complex multi million dollar real estate financing, and you can see why it is so hard to get an average mortgage broker, direct lender or bank to successfully execute a $1MM to $40 Million Mortgage loan.
So Who Handles Multi Million Dollar Mortgage Loan Financing?
$1MM to $1.5 Million Mortgage loan programs have some availability in the broader markets, however $2MM to $40 Million Mortgage loan products are almost exclusively the province of super jumbo mortgage specialists. Often drawn from the investment banking and hedge fund industries, these private firms handle the overwhelming majority of real estate financing for high net worth / high income borrowers. By bypassing the traditional lenders and banks and going straight to the underlying investors on Wall Street and otherwise, these private mortgage bankers and real estate financiers are capable of orchestrating complex transactions with significantly higher loan to value ratios than would otherwise be possible. A few are even able to allow 70%, 80%, 90% and even 100% financing (no money down) on $2MM to $40+ Million Mortgage Loans, by allowing you to use income producing assets which you retain control of in lieu of a down payment.
$1MM to $40 Million Mortgage Loan programs are available to borrowers in the following states:
Million Dollar Mortgages are available for the high net worth borrowers such as, but not limited to business executives, celebrities, professional sports stars, etc.
The average interest rates on jumbo mortgages are typically greater than is normal for conforming mortgages, and vary depending on property types and mortgage amount.
Loans over a 1 million dollars or super jumbo loans may require more verifications than smaller loan amounts. The higher the loan amount the higher the risk. More reserves may be required as well as higher fico scores.
One reason lenders prefer to have a higher down payment from jumbo loan seekers is the higher risk involved. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan.
Super Jumbo Mortgage - Super Jumbo Mortgages are mortgage loans of $650,000 or more. While conventional banks and mainsteam, conforming lenders traditionally underserve borrowers of super jumbo mortgages, a few mortgage companies specialize in arranging super jumbo financing up to multi million dollar loan amounts.
Lenders specializing in super jumbo loans particularly like to see liquid assets in reserve after closing. It is much easier to qualify for lower super jumbo mortgage rates with a minimum of 6 months mortgage payments in reserves. Consult your mortgage professional about what asset reserve requirements you must meet to get optimal financing terms.
Super Jumbo Mortgages are provided by niche lenders and a few of the Top lenders in the country. Borrowers should consult a Mortgage Broker to find the best Super Jumbo Mortgage program available to them.
Some Super Jumbo Loans originally thought to be unwriteable can be obtained by cross-colaterlization. In fact many more lenders will be open to doing more of this business if the borrower(s) are willing to do this.
Interest rates on Super Jumbo Mortgages are relatively higher than a regular conventional mortgage.
Super Jumbo mortgages are considered non-conforming mortgage loans
Option ARM - Option ARM is a general term used to describe mortgages which allow borrowers to choose from multiple payment options every month. While Option ARM mortgages go by many names, they have one feature in common:
The Minimum Payment Option
By including a Minimum Payment Option on the borrowers monthly payment coupon, Option ARM-type mortgages allow you to actually defer mortgage interest until a later date by making a lower payment than would otherwise be required. Minimum payment options can be as low as one percent or even lower. In fact start rates of 0.25% are available.
Option ARM may increase your principal balance if your minimum payment is less that your interest only payment. The difference between the interest only payment and minimum payment will be added to your principal balance causing your principal to increase.
Option ARM loans are widely cited in the media as causing negative amortization, or the increase in the borrower's loan balance. In fact, the mortgage itself is not what causes negative amortization, it is the choice of a borrower in any given month whether or not to defer interest or make a larger payment to the principal balance of the loan. Understanding that interest which you are permitted to defer must eventually be paid is the key to understanding how to effectively utilize an Option ARM mortgage to improve your financial situation.
Deferring Interest by selecting the minimum payment option of an Option ARM mortgage is a popular way to effectively increase cash flow by tapping into the equity in your home. Unlike Home Equity Line of Credit and Home Equity Loan mortgages, deferring interest on an option ARM does not mean a higher payment today. Instead, interest which is unpaid is deferred until the option ARM loan recasts, which is generally after 5 to 10 years or when the loan balance increases past a pre-defined negative amortization limit.
Option ARM loans are not in fact all pure ARM loans, or Adjustable Rate Mortgages. In fact, we now offer loans with all of the minimum payment flexibility and ability to defer interest that an Option ARM offers, but with fixed rates for 3, 5, 7 or 10 years. There is a even a Fixed Rate Cash Flow loan available which has a fixed rate for a full 30 years.
Option ARM mortgages are not ideally suited for borrowers who cannot afford to make anything more than the minimum payment except in cases of temporary emergency or lifestyle change. While you may be qualified for an option ARM mortgage, it is important to determine whether or not you will be able to make more than the minimum payment once the initial start rate expires or the loan recasts in 5 or 10 years. If you are using an Option ARM to purchase real estate which would otherwise be outside of your price range, you may wish to reconsider use of an Option ARM mortgage.
Typically Option ARM loans allow borrowers to defer from 115% to 125% of the balance of the loan over the course of the initial "minim payment" period which may last from 5 to 10 years. In California and Florida along with a handful of additional states we offer certain loan products which allow up 135% to be deferred, and in New York nearly all option ARMs are limited to a negative amortization cap of 110%.
The more interest you are permitted to defer, the more equity you are able to tap over the course of the initial period in exchange for enhanced cash flow.
Option ARM minimum payments are typically 40% to 50% lower than a normal mortgage payment for the same loan amount, which means you can defer up to half the interest due on your Option ARM mortgage during the initial period. Because of the extremely low minimum payment rates, Option ARMs have been the favorite mortgage of the self employed, business owners, high net worth individuals, and real estate investors for several years.
Negative Amortization Loan - Negative Amortization Loan programs, which were once available to only the wealthiest of a banks customers due to their ability to allow borrowers to defer interest, are now being marketed to more "conventional" self employed borrowers, business owners, and beneficiaries of passive income, investment income, rental income or even substantial bonus or commission income.
When they were originally introduced, negative amortization loan programs were marketed under names such as "deferred interest mortgage" or "payment cap ARM", which very accurately reflect the nature of these "neg-am" mortgages, which are very powerful tools intended for homeowners with a certain degree of financial sophistication. While reverse mortgages are one type of negative amortization loan, the sort which have received the most press and the widest number of names are the so called "pay option" negative amortization loan program, which allows borrowers to choose each month whether or not they will defer or pay down the interest due on their mortgage.
As negative amortization loans have entered the mainstream in recent years, they have shed their "technical" sounding names and have been marketed to consumers under a nearly countless number of different monikers.
Here is a list of some of the most popular names for negative amortization loan programs, compiled by mortgage professionals from across the industry, although no opinions are expressed or implied about these loans or the companies who market them. This is just a list of names for nagative amortization loan programs:
The negative amortization loan may increase your principal balance when your monthly payment is below the interest accrued on your loan that month.
Minimum Payment Option
Investor Loan
Minimum Payment Option ARM
Deferred Interest Loan.
GPM
Fixed Negative Amortization Loan
Graduated Payment Mortgage
OptPay ARM
1% Loan
1-1 Buydown (no negative amortization if buy down account is fully funded)
Option Payment
Scheduled Negative Amortization Loan
Fixed Rate Pick a Pay
Equity Builder
Neg-Am Loan
0.25% Option ARM
Interest Only (misnomer)
Quicken Smart Loan
Fixed Pick a Pay
Pick Your Payment
Secure Advantage
Deferred Interest Mortgage
Minimum Payment Loan
Pay Option
Negative Mortgage
1% Mortgage
Cash Flow Advantage
Cash Flow Construction Loan
Pay Option ARM
Fixed Option ARM
Power Option ARM
Flex Option
Flex Pay Option
Negative Amortization Mortgage
NegAm Home Loan
Cash Flow ARM
Flex 5
Secure Advantage
Payment Cap ARM
5 Year Fixed Pay Option
30 Year Fixed Rate Option ARM
Pick a Pay
Pick a Payment
Smart Choice
Smart 30 Mortgage
1 Month MTA
1 Month ARM
Self Employed Cash Flow Loan
Investor ARM
12 MAT Mortgage
Lower Than Interest Only
Managed Mortgage Amortization Loan
Pay Advantage Plus
MTA Option ARM
Fixed Rate Option ARM
Fixed Pay Option
Power Fixed 30
COSI ARM
One Percent Mortgage
Payment Advantage Mortgage
Deferred Interest Home Loan
3-2-1 Buydown (no negative amortization if buy down account is fully funded)
Reverse Mortgage
Monthly Adjustable Rate Mortgage
FlexPay
2-1 Buydown (no negative amortization if buy down account is fully funded)
Flexible Payment Loan
Negative Equity Loan
5 Year Cashflow Loan
Option ARM Loan - Option ARM mortgages, which allow borrows to defer or prepay interest at will by offering four monthly payment options, are known and marketed under a variety of names:
The following is an attempt to assemble a rather exhaustive list of all the names by which Option ARM mortgages and other mortgages with payment options are known:
5 Yr Hybrid Option Arm
5 Yr Fixed Option Arm
1 Month Option ARM
Flex 5
Neg Am Loan / NegAm Mortgage
Adjustable Rate Option ARM
Option Plus Loan
An Option ARM Loan may increase your principal owed due to negative amortization when the monthly payment is less than the interest accrued for the month. The loan will usually be recast when the pricipal rises to 110% of the beginning principal balance.
GPM
NegAm
Pay-Option ARM
If you are considering one of these loans, make sure you are living in an area with moderate gains and not using the minimum payment option every month because if you are making only a minimum payment you could possibly lose some of your equity due to negative amortization.
Hybrid ARM
Quicken loans smart choice loan
Pick A Payment
Flex Pay Option
Minimum Payment Option Mortgage
Pick Your Payment
Fixed Rate Pay Option
Power Option
Payment Advantage Mortgage
Cash Flow ARM
Cash Flow Option Loan
Negative Amortization Mortgage
Fixed Option ARM
COFI ARM
30 Year Fixed Option ARM
Quicken buyers advantage loan
Hybrid Option Arm
The Secure Option Arm
PayOption
Negative Mortgage
1 Month MTA Option ARM
Payment Option ARM
Secure Advantage Loan
Smart 30 Mortgage
Investor ARM or Investment ARM
COSI ARM
Deferred Interest Mortgage
Pay Option ARM
Option ARM
Fixed Rate Pick a Pay
1% Mortgage
One Percent Mortgage Solution
COFI, COSI, CODI ARM
Even thought the option ARM mortgage has many different names it is still essentially the same product from lender to lender.
Pick A Pay
30 Year Flex Pay Plus
FHA Lending in the State of Nevada - FHA mortgage loans are an excellent source of financing in the State of Nevada. FHA loans are a government insured loan that tends to be a little more lenient credit-wise than traditional Fannie Mae financing. With purchase money financing with just 2.25% down and cash-out refinancing up to 95% of the value of your home, FHA mortgage financing may be your best bet. FHA financing also allows gift funds as the down payment for purchase money transactions. Contact your mortgage professional at (800)515-8443 or via e-mail at PrivateClient@RefinanceOne.net.
FHA allows for financing just 2 years after the discharge of a Chapter 7 Bankruptcy, provided you have re-established good credit. You may refinance out of a Current Chapter 13 Bankruptcy payment plan provided you have the trustee's permission, a timely mortgage history, and a timely payment history on your bankruptcy. You must have had the payment plan for at least 1 year.
If you own a mobile home on a permanent foundation in the State of Nevada you may be eligible for FHA Financing. You must own the land as well and the mobile home must been constructed after June 15, 1976. FHA financing allows for singlewide, doublewide, and triplewide financing.
Maximum FHA loan limits in Nevada for single family homes range from $200,160 to $362,790, depending on the county in which the property is located. FHA Loan limits are higher for mult-family properties. Consult your mortgage professional at (800)515-8443 for more details.
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