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Stratton Equities

Are You a Candidate for a NO-DOC Loan?

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By Stratton Equities

You might be a candidate for a NO-DOC loan, or No documentation mortgage loan, if you do not meet the strict Consumer Financial Protection Bureau’s (CFPB) mortgage loan conditions. This type of loan is a NON-QM loan and is designed for some rental property investors, borrowers that are self-employed, and those who do not meet conventional loan standards. private lenders can also fit self-employed borrowers into the QM space.

It is also an option for borrowers who have had challenges qualifying for a NO-DOC loan due to credit issues (such as bankruptcy, foreclosures, late payments, or other isolated credit issues) in the past or have an unconventional source of income.

Unlike the traditional income verification mandated for most loans, this type of mortgage loan allows you to be eligible based on alternative methods. NO-DOC loans create real estate investment opportunities for a wider array of people due to their more versatile qualification criteria.

A qualified mortgage loan is an “agency” mortgage-backed security. On the other hand, a No documentation mortgage loan is considered “non-agency” or “private-label”–is suitable for borrowers with exceptional circumstances or those whose incomes differ from month to month.

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Many individuals, including hospitality employees, self-employed business owners, and retirees have fluctuating earnings. This is where NO-DOC loans fill the void by offering dynamic underwriting measures for prudent borrowers with special income conditions.

A prevalent belief is that NO-DOC loans are “bad loans” in disguise, and therefore not recommended. The reality is that these kinds of loans have their own set of rules related to QM loans to ensure that private money lenders and borrowers are protected from a high-risk loan. The process of lending NO-DOC and NON-QM loans are very similar to that of QM loans, only with a different collection of documents during application.

What is the Difference between a QM and NON-QM Mortgage?

The biggest difference between a QM (Qualified mortgage) and NON-QM Mortgage, is that a QM Mortgage loan tends to be traditional government-backed loans and conventional loans.

Because a conventional loan (QM) is usually processed through a bank or traditional financial institution on an owner occupied property, a NON-QM with a private lender is the best solution for a real estate entrepreneur looking to purchase an investment property.

A NON-QM or NON-Qualified mortgage loan is typically portfolio loans for real estate investors that do not conform to the strict government or conventional mortgage guidelines.

Why Should Borrowers Choose NON-QM Loans on their Real Estate Investment?

Unlike conventional investment property loans that max out at 70% LTV, a NON-QM Mortgage Program maxes at 85% LTV and with no PMI with rates starting at 4.375%. This allows the borrower to put less money down on their purchase, typically loan amounts range between $100,000 and $5,000,000.

How can a Real Estate Investor Qualify for a NON-QM Loan?

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If you are a real estate investor that has an investment property and are looking for a quick turnaround without stringent guidelines, NON-QM loans may be better for you — NON-QM loans do not need to abide by these strict guidelines! Bottom line = This means that NON-QM lenders can provide faster service and approval to more types of real estate investment opportunities.

Private lenders who utilize QM loans must first qualify a mortgage borrower’s income, liabilities, and monthly debt payments to determine whether the borrower can successfully pay back the loan in the future. To successfully qualify for a QM loan, real estate investors must fit the strict requirements set by the Consumer Financial Protection Bureau. This approval process requires borrowers to submit extensive documentation concerning their credit history, income, assets, and monthly debt payments, which usually takes well over a month to complete.

NON-QM and Private Money lenders understand that everyone’s situation is different and that to a traditional financial institution (like a bank) some borrowers may not present like a qualified candidate for a loan. This restriction could be due to the borrower’s employment status, income, credit history, and liquid asset requirements – however with a non-qualified mortgage, private lenders focus on; high credit score, investing experience, and liquid assets.

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As a result, NON-QM loans’ lax restrictions make them ideal for these types of real estate investors:

Self-Employed Investors: Especially in light of the unprecedented year, with COVID-19, we completely understand how difficult it is to find steady income. These type of loan programs are based on the value of the property itself or the borrower’s credit score and liquid assets.

Foreign Nationals: Government backed loans typically require proof of a US Social Security number or a W2 (which is a US tax form). Because NON-QM loans don’t have such requirements, they are ideal for foreign nationals who are in the States on a visa and are looking to invest.

NON-QM Loans: The Benefits For Borrowers

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The key benefit of NON-QM loans is that they offer opportunities to borrowers who would not otherwise meet the mortgage requirement. Non-Qualified Mortgage Loans provide much-needed loan financing for millions of hard-working Americans, including self-employed people and small-business owners who have worked hard to achieve success but are not eligible for QM loans.

Below are some of the benefits NON-QM loans for borrowers:

  • Looser, more versatile underwriting and guidelines
  • Ability to close faster than a QM loan
  • Ideal for 1-4 family investment properties
  • NO-DOC Mortgage Loan: Does not require income verification or tax returns
  • Self-employed people are top candidates for NON-QM loans

For specific borrowers with unique income sources or a high DTI, a NON-QM loan will enable them to obtain the money they need. NON-QM lenders also set standards for Non-Qualified Mortgage Loan borrowers and need to determine their potential to repay.

This type of mortgage loan is ideal for a wide variety of potential borrowers and can be used to buy commercial and investment assets. It is advisable to contact a certified loan officer to determine your qualification for a NON-QM loan, so they can review your profile to ascertain if this product is perfect for you.

How to Benefit from a Private Money Loan

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By Stratton Equities

Banks used to be the only option for real estate investors trying to take out loans. Nowadays, private money lenders are allowing investors to borrow money under more flexible conditions. Banks and traditional financial institutions can reject your loan application for multiple reasons—your credit score, your debt-to-income ratio, employment status, etc.— What private money lenders do is implement a framework that makes it easier and more conducive to be a real estate investor.

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The real estate market moves fast, and it is often crucial to act quickly. But the process of getting a traditional loan through a bank can often be lengthy and complicated. Many of the solutions and loan programs from private money lenders are easier and quicker to get than through banks, which is why private money loans are often better options for real estate investors.

Making investing easier

What private money lenders like Stratton Equities do is accommodate real estate investors.

“Real estate investors, as we all know, don’t have the greatest of tax returns,” Stratton Equities’ CEO Michael Mikhail said. “They move money around, have different trusts, and have different accounts. Banks absolutely frown upon that and they actually hate it. Good luck getting a loan through a bank or mortgage company if you’re a hardcore real estate investor.”

The programs offered by private money lenders are designed for investors, who oftentimes can’t show their income and make a lot of monetary transactions. Companies like Stratton Equities have put in place certain standards that make it easier to take out a real estate investment property mortgage. These include no tax returns, no upfront fees, and no junk fees.

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The closing time for loans from private money lenders is much faster. This element can be crucial for investors, as sometimes the faster you close, the better chance you have at securing a transaction. Also, the LTV (loan to value) ratio is higher with private money lenders. Loans from traditional institutions on investment properties usually max out at 70% LTV, while those from private money lender Stratton Equities can go up to 85%. You’ll likely be spending less through private money lenders too. “If you go to a bank, you’re going to have PMI (private mortgage insurance) with those loans, a few extra hundred dollars per month,” Mikhail explained.

The Loan Process

The first thing you’ll want to do to get a private money or NON-QM loan, for example a hard money loan is to contact a private money lender. As the borrower, you should be ready to provide the lender with information like the location of the property, purchase price, and estimated appraised value.

The lender will ask questions to get to know you and your borrowing history. After this, the lender will appraise the property and come up with a loan offer for you. The lender will review the documentation and complete the underwriting process for the loan. This process is usually speedy, but it varies from lender to lender.

Image from Pixabay

After the loan is completed with underwriting it gets moved to the closing department. As a borrower, you’ll have to sign a variety of documents during this phase, but it is relatively straightforward. The lender will then send the funds to the title company so the deal can be completed.

Many real estate investors have found that getting loans from private money lenders is their best option for achieving their investment goals. Be it a hard money or a soft money loan, private money lenders are faster, more understanding, and more lenient than mortgage companies and banks. You have to consider that these companies’ sole purpose is to give loans to real estate investors, so naturally, they’ve found ways to make the process smoother. If you’re thinking of getting into real estate investing, you should definitely take these factors into account.

Contact Stratton Equities, the leading hard money and NON-QM lender, to speak with one of their talented and experienced loan officers at 800-962-6613, email us, or apply for loan pre-qualification today!

Why Are Bridge Loans A Great Choice For Real Estate Investors?

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By Stratton Equities

In the world of private lending, real estate entrepreneurs are building strong careers investing in real estate utilizing asset-based loans.

An asset-based loan product is based on the value of the available equity in the property, it closes faster than a traditional mortgage, and requires less paperwork.

One of the most common asset-based loan products are bridge loans and they are quickly becoming a perfect solution for real estate investors who are looking to grow their investment portfolio.

What are bridge loans?

A bridge loan is defined as a short-term (12-24 months) real estate loan that closes faster than term loans or conventional loans. Real Estate Investors work with lenders who offer bridge loans, because not only do they close quickly, the guidelines are more lax, therefore there is less underwriting and documentation needed.

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​Real Estate Bridge loans are temporary loans, secured by the asset (real estate), the typical property bridge loan has a term of 12-24 months, although many bridge loan lenders will grant the owner the option to extend his loan for six months to one year.

Why should you get a bridge loan?

There are more benefits than you can count for with bridge loans. The greatest benefit is the speedy approval process. As a real estate investor, with a simplified approval process, it becomes quick, which is key to getting a great real estate property before someone else does. However, as a result of the faster process, they have higher interest rates.

If you are a real estate investor that does not have a stable cash flow or if you are self-employed, this is perfect for you. The private lender does not look at your salary or tax returns so you don’t need to worry if you do not have a stable income. Another benefit is how the loan is utilized. It doesn’t need to be solely purchasing a specific property but can be used for a variety of purposes. For example, it can be used for Cashout or Rate & Term programs.

Since it’s a bridge loan, it can give you the flexibility you need to stay afloat and let your real estate business thrive.

Image from Pixabay

Why Should You Use a Bridge Loan?

  • It’s Straightforward & Easy : This type of loan has short-term financing (12-24 months) for real estate investors, who prefer to finance the purchase and/or rehab of their investment property, with a Fix and Flip loan (also a Bridge Loan) or a Cash Out Refinance loan.
  • ​Quick Access to Funds: With conventional loans, there are qualifications that restrict you from getting access to those funds. With a Bridge Loan, there are less guidelines, underwriting, and restrictions that will provide you with quick access to financing.
  • ​For Every Type of Real Estate Investor: A Bridge Loan is a great solution for any real estate investor – at all experience levels.
  • ​Options for all types of Properties: At Stratton Equities, we have Bridge Loans that are tailored to your investment needs. Here are some of our Bridge Loan options for Real Estate Investors; Fix and Flip, Cash Out Refinance, or Purchase Money.

​BRIDGE Loan Summary

  • ​​Investment Properties Only: Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse
  • Rates Starting at 7.25%
  • $100K – $5M
  • Up to 75% LTV
  • Blanket Loan Options Available
  • Fixed rates/Adjustable
  • 9-24 Month Terms
  • Interest Only Payments
  • Purchase, Refinance, or Cash Out
  • Foreign Nationals Eligible
  • No Prepayment Penalty Option Available

How do you apply for a bridge loan?

Image from Pixabay

If you need a quick streamlined process with a repayment phase of 12-24 months, with less underwriting and documentation, these loans can be approved quickly and even extended if you wish. There is also no minimum FICO requirement. These are great loans for real estate investors with any experience level. They also work for the majority of investment properties.

Call us at 800-962-6613 or contact us at [email protected] and apply now at https://www.strattonequities.com/loan-pre-qualification to find out whether you are eligible for loan pre-qualification!

Benefits of NO-DOC Loans for Multi-family Properties

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Special submission by Michael Mikhail, CEO of Stratton Equities

If you’ve ever considered looking into purchasing real estate, it can almost be daunting to decide what time of property to purchase. The most common real estate investments are multi-family properties. These types of buildings, investment homes, and apartments/condos are ideal assets for their ability to increase cash flow for the property owner.

Image from Pixabay

Once you’ve found the multi-family property you’d like to purchase, you can begin the loan application process to determine which type of private money loan program is right for you.

In the world of private money lending, there are several loan programs for multi-family properties, including multi-family bridge loans and NO-DOC multi-family loans. However for self-employed real estate entrepreneurs, NO-DOC multi-family loans have become the ideal choice.

What is a NO-DOC Multi-family Loan?

A NO-DOC multi-family loan is a type of term loan program that does not require a verification of income or tax returns from the borrower. This type of loan product is beneficial for multi-family borrowers who do not have the ability to go to the bank due to their documented income, closing timeline, and employment history.

NO-DOC Term loans are defined as non-qualified (NON-QM) mortgages and are long-term (5/1 ARM, 7/1 ARM, 30 Year Fixed) real estate investment programs.

Unlike conventional investment property loans that max out at 70% LTV, a NO-DOC Multi-family Loan Program maxes at 85% LTV and with no PMI. This allows the borrower to put less money down on their purchase.

Only Real Estate Investors with high credit scores (over 650) are eligible for a NO-DOC Multifamily Mortgage Loans.

NO-DOC Multi-family Loan Overview:

• Investment Properties Only: Multi-Family, Commercial, Mixed Use
• Rates Starting at 4.375%
• $100K – $5M
• Up to 85% LTV
• Blanket Loan Options Available
• Fixed rates/Adjustable
• 5/1 ARM, 7/1 ARM, 30 Year Fixed
• Interest Only Option Available
• Foreign Nationals Eligible
• No Prepayment Penalty Option Available

Why Should Real Estate Investors Use NO-DOC Loans on Multi-family Properties?

Image from Pixabay

The reason why multi-family properties are an ideal purchase for real estate investors is due to the ability to increase cash flow. Multi-family buildings or investment homes have multiple units that can easily be rented out providing passive income to the owner of the property.

If you are a real estate investor hoping to buy a multi-family property, the quick approval process (21-35 Days) of a NO-DOC Mult-family loan is perfect for real estate investing.

They’re especially great for long-term investments because borrowers do not need to show any income verification and can get a multifamily home which is a long-term investment and can provide you with long-term passive income.

How to Apply for a NO-DOC Multi-family Loan?

Although many lenders do not offer this type of loan, those that do are a great option for real estate investors who are unable to provide the stricter guidelines of a traditional loan.

The relationship between the borrower and the lender is based on the idea that the borrower will be able to afford and be able to pay the loan payments. Since they are riskier due to the fact that there is no verification of income or tax returns, you tend to get higher interest rates than other loan programs.

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However, because there is less documentation and underwriting, you do get a quicker approval process and flexibility. In this type of loan, the loan heavily relies on the value of the property.

At Stratton Equities, our mission is to make private money lending easy, efficient, and worry-free. We help first time real estate investors, experienced borrowers, and professionals in the mortgage and real estate industry succeed with a simple 3-step process, including Pre-Approval, Processing & Underwriting, and Funding.

Call us at 800-962-6613 or contact us at [email protected] and apply now at https://www.strattonequities.com/loan-pre-qualification to find out whether you are eligible for loan pre-qualification!

How Soft Money is the Future of Real Estate Lending

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Investor and Brokers, be sure to listen or download our newest podcast today as we focus on the future of “Soft Money”.  On this exciting episode, we speak with Michael Mikhail, Founder and CEO of Stratton Equities, the nation’s leading hard money and NON-QM lender to national real estate investors. Stratton Equities offers the largest variety of mortgage loans and programs under one roof.

Having launched Stratton Equities in early 2017, Michael has always been an entrepreneur and innovator in the real estate market, purchasing his first home at 19 utilizing hard money.

A serial entrepreneur with a foresight for business opportunities, Michael had a slew of small businesses prior to launching Stratton Equities.

One of his most prolific ventures was a car wash connected to a gym, which he was affiliated with in Florida.

Michael officially joined the mortgage industry in 2003. By 2017, Michael noticed how the mortgage industry had transformed after the regulations presented from 2008-2012, and knew it was time to set out something on his own, thus creating Stratton Equities.

Under Michael’s leadership, Stratton Equities has grown into one of the biggest leaders in the Mortgage and Real Estate industry across several genres and platforms. Listen to Realty411’s Invest Wisely Radio segment, click below.

If you enjoyed this podcast, be sure to follow our blogtalk radio segment, CLICK HERE.

Hard Money Loans & Why You Should Work with a Hard Money Lender

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By Michael Mikhail, CEO & Founder, Stratton Equities

Are you looking to finance a real estate investment but cannot get conventional financing due to a recent foreclosure or short sale? A Hard Money Loan might be the right option for you. Working with a Hard Money Lender will allow you to have your loan approved in half the time a traditional bank loan takes, giving you the opportunity to quickly purchase high in demand properties.

What is a Hard Money Loan?

A Hard Money Loan is ideal for the real estate investor who might have issues obtaining a traditional bank loan or a loan with full underwriting, such as a Fix and Flip Loan.

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A Hard Money Loan is an asset-based loan: the financing is based on the Loan to Value (LTV) of the Asset. There are less restrictions than for other types of loans, so full underwriting and no minimum FICO score are required for the borrower, meaning you don’t have to worry about bankruptcies, foreclosures, collections, etc. They are usually capped at 65% LTV or less. Because of high cost regulations and predatory lending, Hard Money Loans are for investment properties only – so if you’re looking for an owner-occupied property, this is not the loan for you. Some states have non-judicial foreclosure laws, which protect lenders and make them more comfortable doing these high-risk loans, as the money is not sold on the secondary market and the lender holds the note.

How can I acquire a Hard Money Loan?

Applying for a Hard Money Loan is a fast and easy process. First, find an investment property and reach out to a direct private money lender to assess your loan scenario.

Direct private money lenders, such as the Nationwide Lender Stratton Equities, can provide a Hard Money Loan for the following property types:

  • Single-Family
  • Mixed-Use
  • Multi-Family
  • Commercial

After applying for a loan, the prospective borrower will work directly with a loan officers to discuss their real estate investment dreams and how a Hard Money Loan can help them achieve their goals. Apply today and close in two weeks or less!

Why should I work with a Hard Money Lender?

Working with a Hard Money Lender gives you the security needed to take on a high-risk loan. With companies like, Stratton Equities, they have years of experience in working with real estate investors to achieve their goals. Direct Private Money Lenders provide loan programs with less underwriting and less guidelines that close within 14 – 25 days.

Stratton Equities is the leading Nationwide Direct Hard Money and NON-QM Lender that specializes in fast and flexible lending processes. The team is owned and operated by experienced Real Estate Investors providing a reliable and knowledgeable team to help all Real Estate investors succeed.

For more information, call Stratton Equities at 800-962-6613, email us, or apply for loan pre-qualification today.