New The Webinar Will Be Starting Shortly · 2019. 8. 15. · NONI IS NOT YOUR TYPICAL NON -QM LOAN...

NMLS# 133519 Hometown Equity Mortgage, LLC dba theLender. This material is intended solely for the use of licensed mortgage professionals. Distribution to consumers is strictly prohibited. Program and rates are subject to change without notice. Not available in all states. Terms subject to qualification.

The Webinar Will Be Starting Shortly


BECOME A COMMERCIAL BUSINESS PURPOSE BROKER ASAPROLL OUT 9/2/2019

FUND LOANS IN 5 DAYS!


TODAYS AGENDA

1. What is a NONI?2. Do you grasp the Non-Owner market opportunity?3. NONI –Why its crucial you make it part of your long term business plan4. What is DSCR? How do I calculate DSCR of 1.00% -NONI calculator does all the work for you5. What if you don’t NONI? What if rents on 1007/rental agreement is less than ITIA? Less than 1.00%

DSCR product 6. What is a Super NONI Broker? What does it take to qualify to be Superfly? Free leads/free

appraisals/reduced fees7. NONI gone Wild- How to become a Commercial business purpose broker and all the perks that come

with it 8. Examples of NONI funding’s – Big Commissions!


WHAT IS A NONI?

Designed for business purpose 1-4 unit commercial loans• No income or employment collected on the loan application• No 4506T, Transcripts, W2s, or Tax Returns

Qualification is based on property cash-flow NOT borrower income• Rental income is taken from an existing lease or the rent survey from the

appraisal and compared to the mortgage payment to determine debt coverage ratio – We take 100% of rents not 75%

• Will use higher of rents off 1007 or rental agreement

You’ve got a NONI when the rental income/(P)ITIA ≥ 1.0

Easiest NON-QM Loan in the market place• Closings in 5 days or less/No income/No reserves/No TRID disclosures

• No waiting on ordering appraisal

• Rates in the 5% range

• Why clog your processing teams with Bank Statements when you can do a no income loan at a lower rate or same rate as a bank statement loan


NONI HIGHLIGHTS


ARE ALL CASH FLOW PROGRAMS CREATED EQUAL?


DO YOU GRASP THE NON-OWNER MARKET OPPORTUNITY?ARE YOU SETTING YOURSELF UP FOR THE FUTURE?

• Talks of Fannie/Freddie moving away from Non-Owner loans

• Make sure you have a long term business plan in place to benefit from this opportunity

• 45% of California deals are Non-Owner Properties

• With approximately 1 in 12 taxpayers owning, on average, 2 units each. There is a tremendous marketplace for business purpose loans

In California alone, there are nearly 6 million NOO units representing 45% of all units in the state.

With many investors turning to hard money for financing solutions, the NONI is poised to be the fastest growing segment of the non-GSE home lending market. With no limitations on the number of financed properties and with interest rates several hundred bps lower than private money loans, the value proposition of the NONI is unparalleled.


MARKET OPPORTUNITY FOR NONI LOANS VERSUS BANK STATEMENT LOANS

There are approximately 16mm self employed Bank statement borrowers in the United States

More than 50% can use their W2 income and qualify traditionally

NONI value proposition

Yet there are 24mm Non Owner 1-4 unit properties in the United States

Non-Owner market opportunity is larger

Investors buy/sell/refi more often/refi cash-out to buy more real estate–Giving you recurring revenue

A lot more recurring loans in Investor Channels


SURE RATES ARE LOW!!IS LOW HANGING FRUIT THE MOST PROFITABLE OPTION FOR YOUR COMPANY AND LOAN OFFICERS?

What if I told you that a NONI loan could close faster than your staple products?Would you put a business plan around it?

• FHA loan closes in 21 Days? • Agency Loan closes in 15 to 21 Days?• Jumbo Agency loan closes in ?? Days?

• NONI loans closing in 5 days or less- No Bank Statements/No TRID disclosures


NONI IS NOT YOUR TYPICAL NON-QM LOAN

NONI should be part of your long-term business plan

• You get much larger loan amounts• Close in half the time- 10 days or less• You could close 4 times the volume• Your loan amounts are twice as big as FHA

Mr. Broker your commissions are based on a percentage of loan amounts.Lets get you fishing for bigger fish!

Important to remember! When rates rise this product is just as attractive


NONI MATRICES


A RATE SHEET DESIGNED WITH YOU IN MIND

You can now make front and back end comp!

You can buy rate down to 5.50% on a 5/1 Arm Int only!


WHEN YOUR RENT DOES NOT COVER YOUR ITIA

Remember:No first time investors allowed

When rent does not meet 1.00% DSCR


NONI CALCULATION IS EASY RENTS/ITIA$3225/$3092.63

Example of a $525K NONI


THIS LOAN ALMOST WENT TO A HARD MONEY LENDERAT A 7.99% RATE AT A 2 POINTS

NONI SAVES THIS INVESTOR A LOT OF MONEY

ObstacleLoan did not DSCR at 1.00%

SolutionLowered rate

Buydown of .75 bps to 5.50% rate and loan met 1.00 DSCR

700 credit score75% LTV-Cash-out refinance

Cash-out $700kAllowed DSCR of 1.00% with a vacant property Exception made due to strong LOE for Vacant

property


NONI CLOSING IN 11 DAYS

Loan amount $380,000LTV 80%Purpose Purchase Prop SFRNoni 1.00% DSCR5.75 5/1 arm interest only

Closed in 11 DaysBroker comp 1.50% = $5700.00



Loan amount $384,000

• LTV 80%• Purpose Purchase • Prop SFR• Noni 1.00% DSCR•• How fast we closed it 20 Days

• Broker comp 2.50% = $9600.00



Loan amount $920,000LTV 80%Purpose Purchase Prop SFRNoni 1.00% DSCR

14 Day closeBroker comp 1.0% = $9200.00



Loan amount $320,242LTV 75%Purpose Purchase Prop SFRNONI 1.00% DSCR

Comp 1% = $3204.42


ANOTHER AIRBNB NONI FUNDED LAST MONTH

Loan amount $787,500LTV 75%Purpose Cash-out RefinanceProp Air BNB TownhouseNoni 1.00 DSCRBroker comp 2.00 = $15,750.00


NONI GONE WILD! COMING SOON! 9/2/2019

REASONS TO BECOME A COMMERCIAL/BIZ PURPOSE BROKER

1. No LE, 1003, CD, GFE, or TIL 2. No more TRID cures for undisclosed fees 3. Borrower can pay for Appraisal prior to submission! 4. Ability to originate loans in states across the country that you are not currently licensed (some restrictions

may apply) • 5. YOUR LLC is not required to have a NMLS license to fund NONI loans6. Simplified disclosure process with no waiting periods (close loan in 3 days) 7. No more Borrower Paid vs Lender paid comp plans. 8. Ability to earn comp on the front and on the back. Yes! Earn both origination and lender credit on 1 loan!


BUSINESS-COMMERCIAL BROKERSDON’T HAVE TO WAIT ON DISCLOSURES TO ORDER THEIR APPRAISAL

Get your Commercial Broker package from your AE today!

You can do cash-out in Texas!


BUSINESS-COMMERCIAL BROKERS GET TO FUND NONIS IN SO MANY MORE STATES

EXPAND YOUR HORIZONS TO INCLUDE BORROWERS IN OTHER STATES THAT HAVE BEEN OFF LIMITS FOR SO LONG.

Get your Commercial Broker package from your AE today!

With NONI gone WildYou can do cash-out in

Texas!


FILL OUT YOUR COMMERCIAL/BUSINESS PURPOSE BROKER APPLICATION TODAY

.


EVERYTHING NONICHECK OUT THE LANDING PAGE


WHY BECOME A COMMERCIAL BUSINESS PURPOSE BROKER

TRID disclosures gone- No waiting to order appraisals!Close loans in states you are not NMLS licensed inYOUR LLC is not required to have a NMLS license to fund NONI loansGet extensive on why and that its safe


www.theLender.com/superNONI

http://www.thelender.com/superNONI


YOUR TAKE FROM TODAYS WEBINAR:SET YOUR MIND TO FUNDING NONI LOANS IN

10 DAYS OR LESS

• We give you the NONI product/ low rate 5.75% rate- High LTV up to 80% LTV- No income no reserves• Disclosures same day• Approvals in 24 to 48 hours• Free Leads and Free appraisals

• Under new process if you get the below right! You can close NONI loans in 5 days or less • Rents• Collateral• Equity• Occupancy• 1st time investor • Cash-out purpose• Watch your condo max 75 % LTV 70% LTV in Florida• Vacant property reduce 5% LTV


WHAT NONI CONSIDERS RATE AND TERM THE COMPETITION CONSIDERS CASH-OUT

• Here is what NONI considers a rate and term refinance:• Recoupment of funds from recent purchase of subject property: • Property Acquired for cash within the 6 months prior to application date• Max proceeds not to exceed the borrowers documented investment • Recoupment of funds used to rehab

recent property purchased - Improvements must have been completed in the previous 6 months - Funds must have been 100% applicants own funds - Cash out amount not to exceed documented improvement costs, or transaction will be deemed a cash-out loan •

• A refinance of a prior cash-out loan regardless of seasoning timeline • Payoff of closed end 2nd seasoned at least 3 months or the new loan amount is greater than conforming loan limits

• Payoff of an unseasoned PACE Loan and/or other lien used for energy-related improvements • Payoff of an equity line of credit seasoned more than 6 months that has not had draws of more than $5000.00 in the past 6 months


INCREDIBLE NICHESNONI FUN FACTS

• NONI allows Gift Funds

• NONI allows 20 acres • NONI doesn’t care how many properties a borrower owns• You can still DSCR at 1.00% on a vacant property with a strong Letter of explanation- You simply reduce max LTV by 5%

• No seasoning on Appraised value as long as no more than 20% appreciation first 6 months – GO NONI!


• Don’t send us primary Residence loans for NONI

• Use our NONI Diligence checklist which our Account Executives will provide

Example:• Borrower doesn’t own a primary and buying

a home to rent close to where he works and plays

• Investor buying a larger home - higher value than his current primary home - In their backyard!


WE LOOK FORWARD TO WORKING WITH YOU!

QUESTIONS?For employment opportunities contact: [email protected]

Contact your AE for more details, if you don’t have an AE contact Mike McCarthy.

mailto:[email protected]

New The Webinar Will Be Starting Shortly · 2019. 8. 15. · NONI IS NOT YOUR TYPICAL NON -QM LOAN...

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