Home loan options for borrowers in many situations
The best thing about this lender is their ability to match borrowers with a working home loan. In addition to the usual conventional loan, FHA loan, and jumbo loan, the NASB offers a number of home loan and non-traditional mortgage options that are more difficult to find. Looked.
Low down payment or no down payment
The NASB offers a mortgage called the Zero Down Home Loan program. Eligible borrowers can get a home with no down payment. You don’t have to be a first-time home buyer and there are no income restrictions. You must contribute 1% of the purchase price in one way or another. Closing costs and even cash reserves count towards this requirement. You also need a credit score of 700.
Mortgage for borrowers with past credit problems
The NASB Non-Compliant Loan Program is for borrowers who fail to meet compliant loan guidelines, such as someone who has recently filed for bankruptcy or changed jobs. It is also a good option for self-employed borrowers who have been in the same industry for at least a year.
Another option is the NASB FLEX loan, which has a shorter waiting period after bankruptcy or foreclosure than compliant loans. The NASB says it can count virtually any asset you hold as a source of income to qualify for this loan.
Mortgage loan for self-employed borrowers
The NASB Bank Statement Mortgage is a stated income loan for borrowers who prefer to document their income with bank statements rather than tax returns and pay stubs. This is a great program for self-employed borrowers who have a lot of cash but whose taxable income is too low to qualify for a traditional mortgage. This can happen, for example, when business owners take legitimate deductions to reduce taxes payable.
Likewise, NASB’s portfolio loan options allow the underwriter to look at all income streams and use more flexible guidelines. A âportfolio loanâ is a loan that the lender does not intend to sell in the secondary mortgage market. Since the lender plans to keep the loan, they do not have to check certain boxes that make the loan more salable. A NASB portfolio loan is a good option for foreign nationals, high income but low credit borrowers, and high equity but low income borrowers.
Self-directed IRA loan
If you have a self-directed IRA, you can use it to buy a house. The IRA itself will be the borrower. This type of loan favors you because even if you are the holder of the IRA account, you are not personally responsible for the debt. If the loan is in default, the lender can foreclose the house and sue the assets in the IRA, but cannot sue your other assets. (In a rising market, lenders typically recoup their losses by selling the home. Sometimes, however, selling the home isn’t enough.) A self-directed IRA mortgage is one way to use your IRA to invest directly. in real estate, which is not allowed in a 401 (k).
Good Neighbor Loan
The NASB is making a special effort to help residents of the Kansas City area achieve their dream of homeownership. The Bon Voisin loan requires a minimum credit score of 580, much lower than that required for most conventional loans. Eligible borrowers can obtain credit to help cover closing costs, and there are no lender fees. This is not the same program as the HUD Good Neighbor Next Door program for first-time homebuyers and government officials.
The VA loan is for borrowers who have served in the military and certain military spouses. A few other people may also qualify, such as those who were cadets in a military school. If you qualify, you can get a mortgage with no down payment and no mortgage insurance.
A NASB bridging loan helps you finance your new home before you finalize the sale of your old home.
90 day rate lock-in
For borrowers who opt for a compliant, FHA, or VA loan, the NASB offers a fixed rate foreclosure for up to 90 days. If the rates go up during this time, yours stay the same. If the rates drop, you can request the lower rate.
Exceptional customer service
NASB Mortgage has an excellent reputation. This lender stands firm with a 5 star rating on Zillow and an A + with the Better Business Bureau.
Flat-rate origination costs
Some lenders charge an origination fee equivalent to a percentage of your loan amount. These fees can reach 3%. NASB Mortgage charges a flat fee of $ 995 ($ 0 for VA loans).
What could be improved
No USDA loan
A USDA loan is a government-guaranteed mortgage loan that helps low- and moderate-income borrowers get home without a down payment. Eligible properties are generally rural. This is another route to home ownership for borrowers who are struggling to meet the requirements of a conventional mortgage. The NASB serves a large geographic area where properties are USDA eligible, so it would be helpful to add this option to the menu.
Geographic limits of certain loan programs
NASB’s Good Neighbor program is wonderful, but it’s only available to borrowers in the Kansas City metro area.
No home equity product
The NASB does not currently accept Home Equity Line of Credit (HELOC) applications. When this option opens again, it will likely only be for customers of NASB banks. Bank accounts are only available to residents of Missouri and Kansas.