Q&A with Uri Nathanson from A&D Mortgage on their new 12/24 bank statement program

When an interesting loan product lands on our desk, we like to share it. Uri Nathanson, our long time client from A&D Mortgage, has a new loan program that is attractive for non-traditional borrowers seeking great rates using bank statements (business or personal). Our interest was piqued, so we sent Uri a Q&A to get more information on how this works for borrowers

WHAT TYPE OF PROPERTY DOES THIS WORK BEST FOR? It works best for single family residence, condo (warrantable and non-warrantable), two to four units

DOES TITLE HAVE TO BE HELD IN A COMPANY NAME? It does not have to be held in a Company name. The title can be held in personal name or in a Company name.

CAN THIS BE USED FOR PRIMARY HOME OR ONLY INVESTMENT PROPERTIES? It can be used for primary home, second home or investment properties.

WHAT IS A SAMPLE INTEREST RATE FOR THIS PROGRAM? Primary residence, single family home with 20% down, with 24 months bank statements, with credit over 760 – 4.875%
Investment property, single family home, with 680 credit, with 30% down, with 12 months bank statements – 5.75%

IS THIS A BALLON MORTGAGE? It is not a balloon mortgage. It could be 5/1 arm, 7/1 arm or 30 year fixed.

HOW LONG DOES THE COMPANY HAVE TO HAD BEEN IN BUSINESS? 24 months in business or self-employed applicants have to prove that they have been in business for a minimum of 24 months. In other words, the program is not limited to registered companies.

IS THERE A PREPAYMENT PENALTY? For primary residence or secondary home, there is no prepayment penalty. For investment property, there is a 3 years prepayment penalty, in the amount of 6 months of interest. It can be bought down by adding ¼ of a point per year to the rate.

HOW LONG FROM CONTRACT TO CLOSE IF BORROWER CHECKS OUT? Approximately 30 days

MAXIMUM LOAN AMOUNT? $5 million dollars. It can be more, on a case by case basis.

WHAT DO YOU LIKE BEST ABOUT THIS PROGRAM? Since qualification for this program is based on gross income, it allows self-employed business owners to get mortgage where they will not qualify for a mortgage based on net income.

ADDITIONAL POINTS

• This program can be based on 12 or 24 months of bank statements. It can be used for owners of a Company or self-employed borrowers.
• Even if you are a part owner of the Company, you qualify for the program.
• For primary residence (single family home), if your credit is over 680, you make a 10% down payment, with no PMI.
• For investment property, if your credit is over 680, you make a 20% down payment, with no PMI.
• You can use this program for purchase, rate and term refinance, or cash out refinance.
• Minimum credit score for 24 months bank statements (primary or investment) is 560.
• Minimum credit score for 12 months bank statements (primary or investment) is 620.

Need more info? Please contact Uri below.

URI NATHANSON
VP OF SALES & BRANCH MANAGER
NMLS#1148814
URI.NATHANSON@ADMORTGAGE.COM
D: 954.608.0882 | F: 305.397.2575
1040 South Federal Highway, Hollywood, FL 33020

For a title quote on your loan closing, please contact info@theclosingcompany.net or call 305-271-0100