What is a Home Select Loan?
It is a mortgage that works like a checking account, a revolutionary alternative to the traditional mortgage that allows funds deposited in the checking account to “Offset” the balance of your home loan, significantly reducing the amount of interest accruing daily. It is a first lien position, 30-year open-ended mortgage (HELOC) tied with an embedded transactional sweep-checking account.
- No balloon payment or pre-payment penalty
- Provides 30 years of draw access to equity money
- Allows for loans to $2 Million without geo-limits
- Can be used for purchases and refinances
- Applies to primary, second and investment properties
- Single family as well as multi-family homes
What are the benefits of Home Select?
It comes with banking access features including online bill-pay management, direct payroll deposit, ACH transferring, ATM-VISA POS cards, personal checks, digital money transferring (wire), automatic bill-pay, mobile check imaging-deposits, all the features of a traditional checking account. This provides borrowers the flexibility to use their income dollars to drastically reduce their mortgage interest costs, without requiring them to change their budget or lifestyle.
What are the guidelines for Home Select?
- 700 min FICO: Primary and Second Home
- 720 min FICO: Investment Property
- 90% max LTV 2: Primary Home, Purchase or R/T Refi
- 75% max LTV 2: Investment Property, Purchase or R/T Refi
- 43% max DTI: Requires up to 15% of LOC in reserves
- Applicants must possess strong positive cash-flow
- 5-year fixed
- 3-year fixed
- 1-month adjustable
- Uses the 1-year CMT index (Maximum rate cap applies)
- Rates are competitive to conventional mortgages