Irvine, CA, December 31, 2015 --(PR.com
)-- This new financing program is unlike any other that has hit the market in California. Previous programs that required no income verification were limited to investment properties and non-owner occupied properties: this new program caters directly to buyers who plan on living in the property as their primary residence, a paradigm shift from stated income programs available to the general public currently. No income verification financing is back, getting more buyers back in the Southern California housing market.
Greg Steinaker, president of BanCorp Properties was quoted as saying “This is the first legitimate stated income program that has hit the market since the financial crisis of 2007/2008, buyers who have difficulty proving their income, but obviously have the capacity for making recurring payments are now able to own a home again, with a very respectable interest rate.” The lending matrix for this stated income program is fairly straightforward, the maximum loan-to-value is 75% (a 25% down payment is required), the minimum FICO score is 680, the maximum loan amount is $5mm, rates average 4.75%, and the terms are either 5/1 or 7/1. The borrower must verify that they have at least 9 months of mortgage payments saved in the bank, the total costs run approximately 3% and there is no prepayment penalty.
This program is a purchase-money product created for the Realtors and clients of BanCorp Properties who are interested in buying a home. BanCorp also offers a sub-prime product (for those with less-than-perfect credit with FICO scores going all the way down to 500. We do not verify income under this program with tax returns, but rather with bank statements, which makes the pre-approval process much easier, typically qualifying our clients for much higher home value than if using tax returns, where they may not quality at all. The minimum down payment under our subprime program is 25% and the rates average approximately 7%.
The Southern California real estate market is moving a break-neck speed, which makes the selection of a Real Estate Broker all the more important. With over $270,000,000 million in closed transactions, BanCorp has decided to lead from the front in a very competitive real estate market.