Primary Contact: Josh Kaplan | C: 573-999-1604 | Email: [email protected]
Uses For This Unsecured Loan: We Can Provide Solutions For These Scenarios With This Program:
- VA closing costs on a purchase transaction.
- VA escrow balance advances on a refinance transaction
- Debt Consolidation should the client need to extend the term and reduce the payment to get the DTI inline.
- Closing cost assistance of up to 2% on a Freddie Mac Loan.
- USDA closing cost assistance for all the closing costs.
- FHA escrow balance advances on an FHA refinance. (Planet Home will allow an unsecured second to be part of the closing to fund the escrow balance)
How This Works:
Josh has an approved consumer lending company established. He is approved in TX, KS, MO, KS & OK.
His company will lend your borrower any amount of money they need to cover their closing costs.
The borrower will execute a consumer note payable to Josh's company and they will receive their funds in advance of the closing date so we can verify they have the funds and use the loan terms in the credit qualifying of the VA loan.
There is no pre-payment penalty should the borrower want to repay those funds.
Rates and payments can be found here: https://closing-cost-help.web.app/
The borrower can borrow the full amount of the closing costs or a portion.
You can use seller contributions, lender contributions as well as funds from ClosingCostHelp.com
What are the options to fund the closing costs in addition to ClosingCostHelp.com:
- -VA Borrower can pay them out of pocket.
- -Negotiate them to come from a seller contribution.
- -Increase your interest rate to cover them as a lender credit.
- -Get a gift from a family member to cover the closing costs.
What Does This Mean To Red Diamond:
We have one investor today, Penny Mac that has agreed to purchase loans where the borrower received a loan from ClosingCostHelp.com
We will be reaching out to additional investors to determine if they will purchase loans with ClosingCostHelp.com loans.
Currently do not originate a loan that is outside of the Penny Mac Guidelines.
These will be for Purchase Money Loans only.
PennyMac's minimum Fico score for a VA loan is 620.
Call Mike Porter or Mike Rogers for additional answers, or feel free to reach out to Josh for his assistance.
Borrower Information Required:
Name | Phone # | Email Address | Credit Report | 1 Year of Income Documentation | Wiring Instructions To Borrowers Bank Account
Income Documentation: 1 paystub if W-2 borrower; most recent years tax return if self-employed borrower; social security awards letter if receiving social security income primarily or the most recent tax return if multiple sources of income are being used.
Process Flow:
- The borrower will provide Red Diamond with a full VA Loan Application.
- We will receive the authority to share the borrowers information with ClosingCostHelp.com.
- We will send the required information above to ClosingCostHelp.com
- The Red Diamond Loan Officer will run the rate calculation on the site: http://www.closingcosthelp.com
- The Red Diamond Loan Officer will communicate the rate and payment information to the borrower to confirm the client wants to proceed with the loan for their closing costs.
- ClosingCostHelp will communicate directly with the borrower and will send closing documents to the borrower via DocuSign.
- After the documents are executed ClosingCostHelp.com will sire the funds to the borrowers account.
- Red Diamond will need to document the large deposit and include the loan in the clients total debt ratio.
- At closing the borrower writes a check from their account for the closing costs.
Post Closing:
- Josh's company will service all of these second liens. The borrower will make their payment directly to his company.
- Red Diamond's VA loan will be sold to Penny Mac today and we will look for other investors as well.
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