* Use the Loan Funds to buy the home/property with NO mortgage
* Use the Loan Funds as a "Down Payment" to
buy a home & Apply for a Mortgage
* Use the Loan Funds as a "Down Payment"
and obtain "Seller" Financing
* Pay Cash for the home and apply later for
a "Cash-Out Refinance" with Mortgage Broker
* Cash can be used for anything, except
purchasing additional securities
* Avoid paying capital gains stock by NOT
selling your securities
As we all well know, the good old days of "Easy Financing" has disappeared.
Today's very restrictive underwriting guidelines apply to both borrowers and
properties, making it very difficult to buy a home and obtain financing.
Fannie, Freddie, FHA allow the borrower to use their Stock Loan funds as a "cash
down payment" to purchase a home. Debt-To-Income ratios (DTI) would be counted.
Prospective Stock Loan Borrowers: Self-Employed, Stated Income, NO DOC,
Stated Assets, Bad Credit or No credit, Foreign Nationals, Retired, Unemployed,
ineligible for Full Doc, Owner-Builder Construction, etc. It's very difficult
for these borrowers to obtain traditional financing today.
Difficult Properties to Finance: Condo Hotels, Condo Conversions, NEW
condo projects, Short-Term Rental homes, unique properties, residential &
commercial land, log homes, modular homes, co-ops, etc.
Mortgage Broker: Your client can apply for a mortgage. The Stock Loan can
be used as a "down payment" for the purchase of the home and the mortgage
financing. You get TWO loans.
Real Estate Broker: If your client is "short" on cash to buy a home, the
Stock Loan is perfect. Or your client can't qualify for a mortgage, but owns
securities that can be used to pay CASH for the home. Seller financing is an
option, because buyer has the Loan Funds to negotiate a successful sales
Securities Owner: Why SELL your securities NOW ? Many of us know, that
eventually most securities will recover and increase in value. KEEP your
securities, and enjoy the appreciation, dividends, value increases, that belong
to you. Pledge your securities as collateral and get the cash you need. Also,
selling your securities may trigger a capital gains tax.