How To Select A Mortgage

C2 Financial Century City/Westside – Mortgage Broker

Traditional vs. Non-Traditional Lending.

Mortgage Loans for borrowers in Century City/Westside and Los Angeles are unique in that many are self-employed, freelance, independent contractors, etc. We specialize in pre-underwriting loans for borrowers that fit into this category. Whether you are a Sole Proprietor, LLC or Corporation we have expertise in assessing qualifying income for qualification. And we have a diversity of loan products for outside the box mortgage loans.

In traditional lending, mortgage loans are the most sought after by borrowers with A credit paper. These are typically the low rate loans sold to Fannie Mae and Freddie Mac, or in a Jumbo loan a portfolio of investors.  A loan package will consist of a high credit score, 2-years of tax returns, income verification, asset verification and other supporting documents. The debt to income ratio is generally 43%. Which means after calculating the mortgage payment, taxes and insurance (PITI), and all monthly debts on your credit report, it is then totaled and this figure is divided by your monthly income — you should not be over 43%. Only monthly debts shown on your credit report is computed. Many people pay more than the monthly minimum shown on a credit card statement. The amount you mail in is what shows on the credit report, not the minimum payment. While this strategy is great for paying off debts, it will reduce your borrowing power. Plan ahead 6-12 months prior to applying for a mortgage loan, or prepare to pay off debts to decrease your dti (debt-to-income).

The Good News. Non-Traditional lending is on the rise over the last couple of years since incomes have a risen. A Non-Traditional loan would be a good option for a borrower whose is self-employed, takes a lot of deductions on Schedule C, has less than perfect credit but can afford a mortgage payment. Non-Traditional loans are available in a variety of terms and options. Bank statement loans qualify you on hard income deposits over a 12-24 month period. Personal or business statements may be used. A stated loan is for non-owner (investment) properties and we have some of the best lenders for this type of loan program. Low downs, higher dti, lower credit scores with shorter waiting periods for bankruptcy and foreclosures. *Some owner-occupied loans are available. Below are some examples of what we offer.