Here you will find Questions and Answers for the 100% CLTV Program. Read through to find the answers to most if not all of your questions.
If you have any more questions that need answers, submit your questions below and your question along with the answer will be posted on this site within 48hrs.
Q: How much would my Closing Cost be?
A: It can range anywhere from $15,000 to $400,000+. It depends on the Loan Amount, sale’s price, transfer taxes, city taxes, state taxes, county taxes, school taxes, your credit, if you have to put 10% down and credit history. The Title Company will be the one to provide an accurate total.
Q: I found a property that I want to purchase but I don’t make enough money monthly to cover the mortgage payments. Can I still qualify?
A: If the property is already generating monthly income, we’ll go by that income in order to determine if you qualify.
Q: What if a property isn’t generating enough income to cover my monthly payments? Do I ask the Seller to raise the rents prior to closing?
A: You can ask the Seller but it’s not a deal breaker if the Seller doesn’t agree to do so. After settlement, PhoneOps encourage everyone to do the following within the 1st 3 months: 1. Raise 2. Evict those that can’t pay 3. Transition those to subsidy 4. And fill all vacancies with short-term rentals (Airbnb). You may have to come out of pocket to cover your new mortgage for the 1st 1-3 months if the current income from the property doesn’t cover it so doing these steps as quickly as possible will benefit in the long run.
Q: Are there any up-front fees?
A: You will have to pay $45 for PhoneOps to pull your Tri-Merge credit report. Once you get to the part to order the BPO or Appraisal, you will have to pay that fee at that time directly to that company, that’s it! All other fees will be apart of your closing cost and paid at settlement.
Q: Can I get a lower rate?
A: This is a Bridge High Risk loan and all high risk loans have high interest rates. Once you own the property and build some equity, you will be ready to come back to PhoneOps to refinance into a better Rate & Term paying off the current Lender and Seller.
Q: I have a Seller that is willing to do a Seller 2nd but my mid score is 435. Is there anyway I can still qualify and what would the Seller 2nd be?
A: Yes, you can still qualify. However, the Seller 2nd LTV percentage will increase while the Lender LTV percentage will decrease, that is why it’s so important for PhoneOps to pull your credit to determine.
Q: I found a property on my own and the Seller agrees to do a 2nd, can I apply for the 100% CLTV program or do you have to find a property for me?
A: Yes you can apply. We encourage anyone to find a property on their own if the opportunity presents itself. However, it is best to apply first so you’ll know what you are pre-approved for. You don’t want to look for a $10M dollar property and you only get pre-approved for $2M.
Q: Is this program good for people with great credit scores?
A: Yes! This program is great for anyone that doesn’t want to put 25%-35% down and need to close super fast.
Q: What states is this program allowed in?
A: PhoneOps 100% CLTV program is a nationwide program, all 50 states are allowed.
Q: I am in Foreclosure, can I use this program with my Cousin?
A: Yes! If you have enough equity in the property to do a Seller 2nd, simply send your cousin to the website to apply. This would be a great program for you to get out of foreclosure.
Q: If I have bad credit, how will this loan affect me in the long run?
A: As a reminder, this program is for income producing properties; Commercial and Residential. If the property is vacant when you purchased it, you can rent it out quickly. Once you are making money, give yourself some time while building equity to fix your credit then come back to PhoneOps to refinance for a better rate & term. This program is a 12-month term so you have a year to better your credit.