Mary Beth Harrison: Hi, this is Mary Beth Harrison with Dallas Native Voice, and I’m with Jason Browning today with Academy Mortgage. Today I want to talk about different loan programs, because people think there’s really only two ways to buy a house. It’s a 30 year loan, it’s a 15 year loan, it’s a jumbo, it’s not, it’s FHA. There’s more than one way to buy a house, and I know you’ve certainly saved several of our clients from weird situations that you’ve been able to work around. So tell me, what are some things that are available that I might not even know about?
Jason Browning: Well thank you, thank you for having me, Mary Beth. Yeah, we do offer the standard loans. We have our Fannie Mae, we have our FHA, all the government loans, VA, USDA. Those are what you call the standard loans. When you really start jumping into, pulling back the curtain on some of the other loans that people can find challenging, or just not a whole lot of folks do-
Mary Beth Harrison: Not all our people fit into this wonderful box. Wish they did, but-
Jason Browning: Yes, absolutely right. Some of the things that are more popular right now with lack of inventory, or just wanting to live in a certain neighborhood, is the renovation team. We have renovation loans that go through government loans or conventional loans. That’s where you can find the home of your dreams on the block of your dreams and make it what you want.
Mary Beth Harrison: So, let me understand. I go in and I buy a house, let’s just use easy numbers, for $100000, and I know that it’s going to take me $30000 to get this house a new kitchen, new bath, carpet, whatever. Right?
Jason Browning: Yes.
Mary Beth Harrison: So I do the loan for $100000?
Jason Browning: Well, actually what you’ll do is you’ll take the improvements that you’re going to potentially do, then add that to the value of the home. So instead of what you’re thinking the value’s $100, the value’s actually $130. Then you take your 5% down payment off the $130, you’re not out of pocket that $30. You’re not doing a separate loan for the $30, it’s all in the one loan.
Mary Beth Harrison: So the seller gets their $100000, they go down the road, and then I have so many days, or months, whatever the size of the project is to get that done, to get that $30000 spent that I guess you all keep in your hands, and we dole it out little bits at a time.
Jason Browning: Right, little disbursements. Usually the longest that you’ll have a loan like that is six months, and then it’s done.
Mary Beth Harrison: Well, that’s plenty of time to do really a major renovation.
Jason Browning: That’s what they consider a major [crosstalk 00:02:05]-
Mary Beth Harrison: That’s a great loan, especially trying to get into a specific neighborhood and just can’t quite find that house that’s done like they want it. Wow, what else do you have? That’s a good one.
Jason Browning: Yeah, we also have a great condo team here, too. Especially within the Dallas area. There’s a lot of condos coming up, a lot of condos that are not warrantable. So we have a team that will allow us to do condos, and non-warrantable condos for those that wouldn’t qualify for standing financing.
Mary Beth Harrison: Okay, define a non-warrantable condo for me. What does that mean? That means not livable? What does that mean?
Jason Browning: That’s a very good question as well. A lot of people are confused by that. Basically warrantability means that it’s not going to fit into the box, as you said a moment ago, of this many people own it as an owner-occupied.
Mary Beth Harrison: Oh, okay.
Jason Browning: It’s not an investment. One person owns more than 10% of the units, things of that nature.
Mary Beth Harrison: Okay, got it. So, I totally get that, then. Because there’s a whole owner occupancy ratio that needs to be met for you guys, for most lenders to do a condo. So that’s a really valuable loan to have, because it’s really hard to get a condo done if it’s not everyone living there that owns it and lives there.
Jason Browning: Right, and you know most condos are not the cookie cutter condos that they used to be.
Mary Beth Harrison: No, they’re not. Gosh, what else do you have? Okay, this is great. Let’s keep going.
Jason Browning: We have a doctor’s program that will help these doctors that are just coming into the workforce.
Mary Beth Harrison: Right.
Jason Browning: A lot of the times, they haven’t started making the money that they’re going to be making.
Mary Beth Harrison: No, and their student loans are out the roof.
Jason Browning: Absolutely.
Mary Beth Harrison: They’ve got the potential of income, but in the beginning they’ve got some serious loans stuffed up there.
Jason Browning: That’s right. We basically just put them into the marketplace as if they’re going to be making the money that they should be making. It allows them to qualify for a great loan.
Mary Beth Harrison: So would you do that for me, being a realtor? You’ll just give me a loan on what I might be able to make?
Jason Browning: Absolutely. Potential, just on potential.
Mary Beth Harrison: We’ll call it a realtor line. Okay, add that one to your list, okay. Okay, thanks.
Jason Browning: Sure.
Mary Beth Harrison: Okay, what else do we have?
Jason Browning: Then we also have construction lending. Like the one time close, or the construction where you close and then it turns into a permanent financing. So, again with some of the tear-downs and things of that nature they’re opening in the downtown area.
Mary Beth Harrison: Right.
Jason Browning: It allows you to do one loan, close on that, and then the construction piece starts. You don’t have to go back and pay two sets of closing costs, worry about rates changing, things of that nature from the time of close.
Mary Beth Harrison: Right, that’s huge because we find the house that they want that’s going to be torn down. They go find the builder, and then they can pull the whole thing together in one big loan.
Jason Browning: That’s right.
Mary Beth Harrison: That is a great loan. Wow, you’ve got all kinds of things there. So, basically we just need to know that it’s not a one size fits all, and if you’re having a problem out there, give Jason a call at Academy Mortgage and he can figure out how to fit you in. I know you’ve really helped a lot of our clients fit a niche that they totally didn’t fit into before.
Jason Browning: I’ve got one more for you.
Mary Beth Harrison: Okay.
Jason Browning: This is on that I would say that really people don’t know about this loan. It’s the loan for someone that they don’t have credit, or no credit score. A lot of the times people think that, “Well, I don’t use credit, I don’t qualify for a loan.” We actually have a program out there, a couple actually, that can get you into a home as if you were paying your credit cards like normal.
Mary Beth Harrison: Wow. You know, we do a lot with Dave Ramsey, we’re one of his ELP advisors. Dave of course believes in no credit.
Jason Browning: That’s right.
Mary Beth Harrison: In paying cash for as much as you possibly can. So a lot of our clients from that program come in, and they don’t really have a lot of credit, because they don’t use their credit cards. Bravo for them, but when it comes time to get a loan, it’s really, really difficult. So that’s really interesting that you can … I guess you still do credit check, you still do all of that.
Jason Browning: Right.
Mary Beth Harrison: But there’s not a lot of credit to check, because …
Jason Browning: Exactly. It’s almost a verification that you don’t have credit.
Mary Beth Harrison: Okay.
Jason Browning: It’s not going to be the person that had credit in the past, that let everything go, charge-off collections. That’s bad credit.
Mary Beth Harrison: Okay.
Jason Browning: No credit is if you just don’t use credit. Like you don’t have a home loan, you don’t have a car loan, you don’t have a credit card. It will come back as a zero score, or not reporting, and then I’m basically going to give you like a 640 credit score, and you’re going to qualify for several loan products.
Mary Beth Harrison: Interesting, wow. You’ve got a lot of really good things there. All right. Well, thanks for gosh, giving us all that great information. Thanks for listening. As you know, we are one of Dave Ramsey’s ELPs and we’re always glad to help that group as well. You can find us at DallasNative.com, on social media, and thanks for listening.