Luxury Real Estate Financing – How it can Benefit You

​You’ve worked hard for your money and you deserve to be treated as such. Conventional loan programs treat borrowers as a ‘number’ and if you don’t fit the mold, they deny your loan application even when it’s obvious you can afford and deserve the loan. 

If you’ve built up a successful portfolio, started your own business, and are financially independent but don’t check all the boxes traditional loans require, consider our Private Client Portfolio Program and put the days of loan denials behind you. 

What the Program Entails 

Our Private Client Portfolio Program is one of our newer programs and is designed for people of wealth such as yourself. While it’s a full-doc program, it’s as flexible as you’ll see in any loan program, allowing you to leverage your investment in real estate without depleting all your assets at once. 

We work with people of all statures, including borrowers who just started their own business, recently became a partner in a law firm, athletes, entertainers, and anyone else with high-income levels but varying qualifying factors. 

While we use standard income documentation, we are much more flexible than a traditional Conventional, Jumbo home loans, and we do allow the opportunity to use asset depletion to qualify for the loan too. This helps our high net-worth borrowers secure the financing they deserve. 

How to Qualify 

Our Private Client Portfolio Program works differently than your standard mortgage program. We don’t use computers to make a decision. This often leads to unnecessary denials when it’s clear you can afford the mortgage. Our Private Client Portfolio Program loans are all hand underwritten and looked at by a human. We get to know everything about your financial situation to make a determination as we can clearly see who can and cannot afford the loan. 

While there’s no one-size-fits-all approach, these guidelines will help you determine if you might qualify. 

Credit Score Requirements 

Our Private Client Portfolio Program doesn’t have a minimum credit score requirement. While we do our own credit evaluation, we look at the big picture to ensure you can afford the loan. We don’t let a credit score stop you if we can tell you handle your finances responsibly and can easily cover your monthly obligations. 

Income Requirements 

We use the applicant's total income picture, not just the tax returns. The program allows the applicant to use their liquid assets as income using a proprietary asset-based approach. This means we amortize your current liquid asset portfolio, using that as your monthly income, and blending it with any other sources of income you bring in on a regular basis from your tax returns.  

Down Payment Requirements 

Most loans require just 20% down, but we do sometimes require a 25% down payment if your loan amount jumps into the larger jumbo loan limits. Currently in most of Florida, Jumbo loans are considered any loan size that exceeds $647,200. 

Escrow Requirements 

Unlike traditional Conventional loans (and honestly many other rigid & restrictive ‘cookie cutter loans’ like Jumbo home loans) we don’t require an escrow account. We trust that our borrowers will handle their real estate taxes and homeowner’s insurance properly. The only exception to this rule is if the home is in a FEMA-designated flood zone. In this case, we would require an escrow to ensure the flood insurance premium is paid as that’s a high-risk situation. 

Benefits of the Private Client Portfolio Program 

As this is one of our newer programs, we would love for you to understand the benefits of the program to see if it’s right for you. 

To start, our largest benefit is every borrower gets the same interest rate. You don’t have to worry about difficult to understand credit score tiers or wonder how many different ways the lender will adjust your interest rate. If you qualify, you get the same (low) interest rate all other qualified borrowers receive. In addition, you’ll get the following benefits:

• Low down payment requirements compared to other loans for high net worth individuals. Starting at 20% down payments
• No specific credit score requirement
• Opportunities for newly self-employed borrowers or individuals in high-paying careers that are just starting out       
• No PMI
• Our proprietary Asset-Based approach allows applicants to use their liquid assets as income for greater qualifying opportunities (most programs stop at 360 months--meaning that this program allows our applicants to show 133% more income from the same liquid asset--making qualification much easier)
• Loan amounts available up to $20 million for well-qualified applicants
• You can close in the name of a trust or LLC - Yes, subject to conditions and including a nominal fee for the legal review of the trust or LLC.  Consult your loan originator for details
• Most importantly, our underwriters use common sense. We don’t use a pre-calculated algorithm that is black-or-white. With us, each application as unique, just like you. 

Our underwriters look at the big picture to determine if you’re a good candidate, rather than shutting the door on an applicant because he/she doesn’t have ‘perfect’ credit or the right debt-to-income ratio. 

We know high net worth individuals have different streams of income and their tax returns may not look as straightforward as an average borrower. That’s why we created this program, to cater to people in this situation who might frustratingly lose their loan approvals even though they can clearly demonstrate that they can afford the loan. 

See if you Qualify Today

If you’re tired of being turned down for loans because your lender's asset depletion calculation doesn’t cover the loan or you have good credit but your credit score is less-than-perfect, or because you just started a business, let’s talk. 

We have a simple, 3-step pre-qualification process that tells you right away if you’re a good candidate. We work with high net worth individuals for all walks of life and are happy to help you too. We work closely with each borrower, not treating you like a number, but instead, focusing on the big picture and what makes you unique. 

If you’re ready to look at your chances of owning a home anywhere in Florida, but have a unique income situation, let’s see if the Private Client Portfolio Program is for you.  For more information on our Private Client Portfolio Program, CLICK HERE.

WRAPPING UP...

As always, if you’re looking to purchase, refinance or get preapproved to purchase a home anywhere in the state of Florida, we’d love to help.  Simply give us a call so we run some numbers for you and answer all your questions! 

You can also drop us a line HERE »

Yours in successful homeownership,

Derek Bissen
Loan Originator
NMLS#365627
Unconventional Lending Program Director