Category: Mortgage 101

Mortgage Solutions for 1099 Independent Contractors

Buying a home is a tremendous step in anyone’s life, and the process can sometimes seem overwhelming. This can be especially true for home buyers who don’t fit the typical mold when it comes to getting a mortgage. For buyers with traditional W-2 employment, mortgage solutions are plentiful; however, for 1099 earners, finding the right financing plan can be a challenge. At Luxury Mortgage, we aim to help buyers of all income scenarios achieve homeownership success. That’s why we’re pleased to offer mortgage solutions for 1099 independent contractors, self-employed borrowers and borrowers who own a business.

1099 Independent Contractors

Did you know that nontraditional employment accounts for a large and rapidly growing segment of new jobs? The so-called gig economy, which consists of freelance, contract and contingent employment arrangements, consisted of roughly 60 million workers last year and is still growing. Continue reading Mortgage Solutions for 1099 Independent Contractors


Investor Cash Flow – Helping Real Estate Investors Grow Their Portfolios

Investing in real estate can be an exciting opportunity. It gives motivated buyers the chance to diversify their investment portfolio, build wealth and potentially help them earn a bit of extra cash every month–but becoming a landlord isn’t without its challenges. Fortunately, finding the right type of financing doesn’t have to be one of them.

At Luxury Mortgage Corp, we’re pleased to offer home financing opportunities for real estate investors, including the innovative Investor Cash Flow program. This unique loan product is designed with today’s real estate investor in mind, providing competitive pricing on a mortgage that can help secure the purchase of a residential rental property.

Investor Cash Flow Mortgage – The Basics

Simple, Accessing Financing

The Investor Cash Flow mortgage program is a powerful financing tool that allows the cash flow on the property to be used to qualify for the loan. No tax returns or income verification is required, making it an accessible option, even for new investors.

No Limit to Number Financed

With this program, there is no limit to the number of properties financed, which could make it an ideal solution for established investors with a substantial portfolio.

Cash Flow Qualifier

Unlike other investment property loans, the Investor Cash Flow program allows the borrower to qualify based on the anticipated cash flow from the property once it is rented. There are a few additional guidelines that must be met and the debt service coverage ratio (DSCR) must be used to calculate the funds that may be used to qualify.

The DSCR is defined as the gross rent divided by the qualifying principal, interest, taxes, insurance and association dues (PITIA). The DSCR must be greater than or equal to 1. For example, if the gross rent is $1,000 and the qualifying PITIA is $700, you would calculate the DSCR by dividing $1,000 by $700, which would be roughly 1.43.

If there is already a lease in place on the subject property, the current rent will be used in the DSCR calculation. If there is no lease in place yet, the rent will be the market rental price, determined by an appraisal.

Want to learn more about the Investor Cash Flow program? Click the button below!

Benefits of the Program

Here are just a few great reasons to consider the Investor Cash Flow mortgage:

  • Eligible borrowers can finance up to 80% of the property value
  • Credit scores as low as 580 are acceptable
  • No employment or income documentation required
  • Loan amounts available up to $3,000,000
  • Competitive pricing
  • No limit to the number of financed properties

Expand Your Portfolio Beyond Fannie & Freddie’s Limits

With Fannie Mae, investors with 7-10 financed properties must meet strict credit score requirements as well as additional reserves requirements. Freddie Mac has similar restrictions and requirements for investors. With Luxury Mortgage’s Investor Cash Flow program, eligible borrowers have more freedom to obtain financing, even with an established portfolio of rental properties and/or second homes.

Ready to Learn More?

If the Investor Cash Flow mortgage sounds like a good solution for your investment property loan needs, don’t hesitate to connect with us! Give us a call toll-free at 888-379-0303 or contact us through our website.


Refinancing – Is Now the Time?

Woman researching refinancing

As mortgage rates continue to stay low, many homeowners are giving thoughtful consideration to refinancing–the process of replacing an existing mortgage with a new one, usually giving the homeowner a more affordable rate or more favorable terms. While refinancing a mortgage may not make sense for every homeowner at this time, current market conditions may make it a worthwhile endeavor. In today’s post we’ll cover mortgage refinancing basics and look at the most common benefits. Continue reading Refinancing – Is Now the Time?


Luxury Service – Access to the Program You Need, Delivering on Our Commitment to Customers

When it comes to shopping around, we live in a world of modern, digital convenience. From clothing to meal kits and yes, even mortgages, it’s never been easier to find the things we’re looking for with a few clicks. But with so much convenience at our fingertips, it can be easy to forget about the one thing that sets truly great companies apart from the “other guys.” What is that one, important thing? It’s service. That’s why Luxury Mortgage Corp.® takes tremendous pride in offering luxury service and a commitment to our customers.

Who We Are

Luxury Mortgage Corp.® provides residential mortgage products to borrowers throughout the country. Since 1996 we have offered a wide variety of home financing options, including low money down FHA loans to JUMBO mortgage products and our proprietary Super JUMBO mortgages. But we’re more than just a residential mortgage banking firm that boasts a great selection of products. We are fully committed to providing the highest level of customer service in the industry, making it a priority to build relationships that last.

Our Commitment to Customers

Once we help our borrowers find the loan that works best for their scenario, we keep the lines of communication open and are here to answer questions, provide insight and resolve any potential issues long after the closing process ends. We don’t just give you a list of options and leave you in the dark. We’re here to discuss, compare and help you consider options that will help you reach your homeownership goals.

Access to the Programs You Need

There are a few key reasons we’ve been in the business for over 20 years. Providing a consistently wide range of mortgage programs is one of those reasons. After all, there is no one-size-fits-all mortgage solution, and a successful lender must be able to meet the needs of a variety of clients and scenarios.

We have even been able to successfully service loans for borrowers who have complicated scenarios, such as self-employed borrowers, investors, or borrowers with less-than-ideal credit scores. Our Simple Access home loan solutions have been very effective for our customers in these situations.

Simple Access Home Loans from Luxury Mortgage

Our Simple Access loans are a unique series of mortgage options that serve a whole new set of borrowers. Even those who may not qualify for traditional home loans can likely find a workable solution with one of the following Simple Access programs:

Bank Statement Loans–These mortgages are designed to help borrowers achieve their homeownership goals by allowing them to use deposit bank statements to qualify instead of W-2s or tax returns. This type of Simple Access loan may be ideal for borrowers who have substantial funds in their personal and/or business bank accounts, but may have difficulty documenting steady income.

Asset Qualifier–A Simple Access loan for borrowers who have substantial assets but may not be able to qualify for a traditional loan due to lack of consistent, documentable income.

Investor Cash Flow–This loan product is designed to help real estate investors purchase a rental home using the anticipated or existing cash flow on the property to qualify. This could be an ideal solution for both first-time and seasoned real estate investors.

Discover more benefits and details about Simple Access loans from Luxury Mortgage:

Ready to Learn More?

Contact one of our experienced loan professionals today to discuss your home financing needs. Call toll-free at (888) 379-0303 or click here to contact us electronically.


Mortgage Solutions for Business Owners and 1099 Income Earners

For self-employed home buyers, the process of finding a mortgage can seem like a huge challenge. After all, most traditional home loans require proof of steady employment and a consistent stream of income. But did you know there is an alternative home financing solution that business owners and 1099 income earners can take advantage of?

In today’s post, we’ll introduce you to the Bank Statement Qualifier mortgage, a unique loan product that allows borrowers to use their bank statements to qualify for financing, instead of traditional income and employment documentation. We’ll also offer a few other options for self-employed home buyers looking for a mortgage and give you a few helpful hints on how to find the right loan for your needs. Continue reading Mortgage Solutions for Business Owners and 1099 Income Earners