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Author: Harry Panosian

Commercial Refinance Loans

Have you ever met someone in the commercial real estate industry who somehow was successful in growing their portfolio in such a short period of time..

Have you ever met someone in the commercial real estate industry who somehow was successful in growing their portfolio in such a short period of time?

You may have wondered how they coped up with the expensiveness of commercial real estate and how they managed to come up with up-front capital for purchasing the property. On top of that, how do they manage to stay on top of their monthly mortgage payments?

Well, commercial mortgage refinancing may be the answer!

What are Commercial Refinance Loans?

Unlike residential mortgages, commercial loans are either short-term loans of three years or less or long-term varying between 5-20 years.  

The former is usually used for building a property or making significant improvements to it. Long-term loans generally reduce over a period of 30 years, just like residential loans.

Commercial refinance loans mature fast and you’re required to make a balloon payment at the end. Basically, what happens is that you continue to pay incrementally over the 30-year period but at the end of the loan duration, you’ll be done with only a fraction of the principal amount and the rest of the amount will become due. This means that the last round of payment is typically very high.

Refinancing is the Way to Go

When a balloon payment is about to become due, you have the option of refinancing the property. Doing so will help you pay off the old loan, covering you from the upcoming balloon payment. This will also restart the clock on a new loan albeit with new terms and conditions.

Benefits of Refinancing

Here are a few benefits that property owners get to enjoy from refinancing their commercial property.

Extra Cash on Hand

Refinancing commercial property offers property owners some extra cash on their hands – and the best thing is that the cash is tax-free and can be used for any purpose.

Investing in Property Improvements

After you’ve just purchased a commercial property, you probably won’t have the money to make property improvements.

However, after you collect rents and pay down your original mortgage, you may refinance the property to generate cash and then, invest in property improvements.

Now obviously, with all those improvements, you’ll be able to charge more when you rent it out to new tenants. This is a smart trick to improve our cash flow and overall net operating income (NOI).

Favorable Loan Terms

Refinancing your commercial property is a great way to obtain more favorable loan terms. Some investors take this path when they want to dodge their upcoming balloon payment.

Expand Your Investment Portfolio

Many commercial property owners refinance their property when they want to expand their investment portfolio.

Our experts will be happy to assist you in finding the best commercial refinance loan options. If you’re looking to refinance your 1-3 million commercial property that’s spread over 10,000-20,000 square feet and whose balloon payment is due in the next few days with mortgage that is 51% owner-occupied and 49% tenant-occupied, get in touch with us today!

VA Cashout Refinance

The Exciting Possibilities of a VA Cash-Out Refi
If you’re a veteran, you have several options for refinancing –ones that work differently than a streamline refi. With a VA cash-out refi..

The Exciting Possibilities of a VA Cash-Out

If you’re a veteran, you have several options for refinancing –ones that
work differently than a streamline refi. With a VA cash-out refi,
veterans like you can take out some of the equity and use it however you

Just like any other big financial decision, you’ll want to understand
it fully to see if a VA cash-out refi is what you need to reach your
financial goals. Read over this guide for a quick overview and contact
our office for more details.

Not a veteran? No problem! There are many refi programs available.
Contact us today to find out how we can lower your rate or your monthly
payment, or get some cash out from your equity to help pay for those
future college expenses.

Why you should consider a VA cash out refinance

The biggest draw of a VA cash-out refi is the cash, of course! How much
cash depends on how much equity you have on your home. For example, if
your mortgage is $200,000, but you’ve paid off $60,000, then the full
$60,000 is available to you (less closing costs).

It gets even better! Refinancing your loan could also mean getting a
lower rate or even lowering monthly payment. You aren’t required to take
out the full amount with a VA cash-out refi. You can take out much
less. Perhaps 10k is all you need, and that’s okay!

How do veterans use their cash-out equity?

The choice is yours! Everything from remodeling your kitchen to buying a
car to taking a vacation to paying for school expenses is allowed with a
VA refi. If you have a lot of credit card debt and the interest rates
are higher than your refi rate, you may even want to use that cash to
pay off your debt.

Here’s another benefit: if you’re a veteran with a conventional or
FHA loan, a VA cash-out refi can erase the mortgage insurance that is
required with those types of loans. Mortgage insurance isn’t required
with VA loans and veterans are eligible to get a VA cash-out refi
regardless of what their current home loan is.

What if you don’t need the cash?

If you don’t need the cash but are looking to lower your rate, then
take a look at an IRRRL. Interest rates with this type of refi tend to
be lower, potentially saving you money in the short term as well as the
long run.

The goal of an IRRRL is to refi into a lower rate and it’s also a
requirement. So if your current home loan rate is lower than an IRRRL,
then you will not qualify. Note that with a VA cash-out refis don’t have
that “lowered rate” requirement.

Things you’ll need to apply for a VA cash-out refinance:

A VA appraisal may be required as well as a current copy of your credit.
Of course, you’ll also want your VA certificate of eligibility. The
only thing left is to apply! We’ve made it easy. You can get started
right on our website. Click on the “apply now” buttons found throughout
our site, and we’ll take care of the rest!

Doctor Mortgage Loan: How to Buy a Million-Dollar Home without Enough Down Payment

After so many sleepless nights, tiring days, and a plethora of hard work, you’ve finally become a doctor – a neurologist to be specific…

After so many sleepless nights, tiring days, and a plethora of hard work, you’ve finally become a doctor – a neurologist to be specific.

Now, you can finally fulfill your dream of buying that million-dollar property for you and your family! You’ve seen so many physicians who went on to earn a six-figure salary right away, and then in just a few months, they were living in a lavish property.

You can’t wait to see your life taking the same turn, can you?

Well, first of all, congratulations!

Secondly, as much as we hate to say this, here’s a reality check:

Having taken out all of the unsubsidized loans you qualified for as a medical student, you have a little bit of money left. Besides not having a down payment, you also have a huge student loan burden. Even if you have a contract, you may not have proof of your earnings, which makes it even more challenging to secure a conventional mortgage.

So, does it mean you have to delay your dream of buying your own house?

No! Doctor mortgage loan or physician mortgage loan is here to your rescue!

The best way to go about this phase is by focusing on paying off your student debt and starting with a small doctor mortgage loan. It will ensure that you don’t have any burden of debt on your shoulders later on in life.

Consult with Professionals

To eliminate stress, frustration, and risks from the equation when it comes to managing the burden of debt, you should consider working with a Certified Financial Planner and a Certified Mortgage Consultant. Not only will they guide you pay off your student debt fast but also assist you in getting a doctor home loan to purchase a property. The financial professional will thoroughly evaluate your current financial situation and come up with a repayment plan that works best for you.

Always remember, the faster and the more efficient you’re in paying down your student loan, the more secure your financial future will be in the long-term.

The next step is to find funding for your new home. That’s where a doctor mortgage loan comes in!

One of the main benefits of a doctor mortgage loan is that you can put less than 20% down and still avoid Private Mortgage Insurance (PMI).

This loan allows doctors to buy a home sooner than they otherwise would. It is an excellent option for doctors who are in a long-term professional situation and have to pay student loans.

The bank knows that they’re lending money to a high-earning professional who isn’t likely to default on the loan. Moreover, the bank gets an opportunity to build long-term relationships with physicians who may like to use the same bank for their savings, HELOCs, investing, insurance, and real estate needs as well as for future mortgages.

Features of a Doctor Mortgage Loan

The stellar features of a doctor mortgage loan are:

  • No PMI even with a down payment of 0-10%
  • A contract is accepted when you don’t have a paystub as proof of your future earnings, meaning it’ll close before you even start working
  • Special treatment for student loans; only the required payments are taken into consideration

Apart from this, below are some additional features and requirements of doctor mortgage loans.

  • The rate and fees are usually higher than that of a conventional mortgage loan
  • May require the physician to open an account in the bank that’s offering the mortgage
  • Might be restricted from condos but in general, these loans can be used for any types of homes
  • The rate remains competitive whether the loan amount is higher or lower than the ‘jumbo loan’ depending on a specific area
  • Some programs may allow doctors to use gift money for a down payment for closing costs or required reserves
  • Requires cash reserves equal to principal interest, taxes, and insurance, a good credit score, and a loan payment to income ratio below 38%

Where Can You Get a Doctor Mortgage Loan?

Many banks and independent brokers offer doctor mortgage loans.

Blake Mortgage will be happy to assist you in finding the best option for you. You’ve worked so hard to reach where you’re today – you deserve to buy that million-dollar property that you’ve always dreamt of living in!

Bridge Loans: Everything Home Buyers Need to Know

After a long session of visiting different properties, you finally think you’ve found your ‘dream’ home…

After a long session of visiting different properties, you finally think you’ve found your ‘dream’ home.

Congratulations, you’re ready to achieve one of the biggest milestones of your life!

The thought of selling your current property and moving into a new house gets as exciting as ever until you realize that finding a buyer for your property is easier said than done.

Now obviously, you can’t risk losing your dream property to some other buyer just because you can’t find a suitable one for your current house. In the competitive real estate market, the one who snoozes simply loses!     

That’s where bridge loans come in!

What Are Bridge Loans?

As the name suggests, bridge loans are temporary loans that help in ‘bridging’ the gap in your finances.

You may borrow money against your existing property and the new one. This type of financing is secured by a real estate asset and tends to have a floating rate and a relatively higher interest rate than permanent loans.

The Size of the Loan

Typically, the loan size is determined by adding the value of the new property to your current mortgage and then subtracting the value of your existing house.

You’ll be left with the ‘end debt’ i.e. the principal of the entire loan. Please note that the end debt will determine your ability to repay the loan.

The lender will use both properties as security. This means that you’ll have to cover both the existing debt as well as the cost of the new property until you sell your current house with one home loan called the peak debt.

Once your property is sold, you can simply continue repaying the home loan with the added interest of the bridge loan on the new loan. Please note that the interest is compounded monthly. So, the longer it takes to sell the property, the higher the interest amount you’ll have to pay.

Important Things to Consider

You should keep the following things in mind when applying for a bridge loan.

  • Make sure you have a realistic timeline for selling your existing property
  • Have your property assessed professionally so that the selling price you set is realistic

What Are the Advantages of Bridge Loans?

Here are the top five advantages of bridge loans.

  1. Bridge loans are quick. You don’t have to miss out on an opportunity just because the traditional lender (your bank) is slow on closing the deal.  
  2. You don’t have to wait until you sell your current property to buy your new home. A bridge loan will fill the financial gap.
  3. These loans allow you to buy out an investment partner who is no longer interested in the real estate partnership, setting you up for long-term benefits.
  4. There are no strict specifications for getting bridge loans as compared to conventional loans. It mainly depends on the judgment of the lender.
  5. You may get to enjoy the option of flexible payback. While you’ll likely have to give proof of a secure income source, you might be allowed to utilize an interest reserve given there is sufficient equity in the property for a larger loan.

Bridge loans are indeed an easy and convenient option for buying a new home quickly while eliminating stress and frustration from the equation. To learn more about the right financing option for you, schedule a consultation appointment with an expert at Blake Mortgage!     

4 Things You Should Know When Deciding to Get a Home Improvement Loan

Are you ready to take on a home renovation project but don’t have enough savings…

Are you ready to take on a home renovation project but don’t have enough savings?

Whether you want to give your kitchen an ultra-modern makeover or finally get done with your unfinished basement, your finances shouldn’t get in the way! 

It’d take you years to save the cash needed to carry out the remodeling project you have in mind.

This is exactly where a home renovation loan comes in.

Here are a few things to consider when deciding if it’s the best option for you.

Choose the Best Option

Out of a range of options available, you should choose a home renovation loan that aligns with your renovation needs and financial status.  

Typically, if your renovation project falls into the mid-range size category, it’ll require approximately $15,000-$50,000. An unsecured or home improvement loan will be your best bet in such a case!

They are not only easy to apply for but also don’t have any collateral requirements. However, their interest rates are likely to be higher than Home Equity Loans or Home Equity Line of Credit.

Know the Difference between Home Equity Loan and Home Equity Line of Credit

With a Home Equity Loan, you can receive funds all at once.

On the contrary, a Home Equity Line of Credit will allow you to withdraw money as needed. This may be a better option when your home renovation project falls toward the higher end of the mid-range size.

To decide which option will suit your project’s needs best, you should weigh the cost of financing and collateral risks against urgency and the timeline of the project. 

Be Informed

While the Home Equity Line of Credit is an adjustable-rate interest loan, you must know that some lenders offer an attractive promotional rate for a limited time period. This often means that the value offered is lower than a Home Equity Loan.

First Mortgage Cash-out Refinancing

Another option is to refinance your mortgage and cash it out for a home renovation loan.

However, it’s important to note that the closing costs may be significantly higher than those offered by home equity products. Hence, you must have an estimate of the cost of your home improvement project as well as the time it’ll take to repay the amount.

Home equity products usually help save money on short-duration projects as compared to a first mortgage cash-out. A Scottsdale refinance mortgage specialist may help you make the right decision.

Additional Tip

You should always invest in home improvements that will boost the value of your property. It’s best to do some research on which upgrades and renovations will boost property value in your neighborhood and never invest in something that is beyond the scope of the comparable market.

Now, we understand that choosing the best option for a home renovation loan may be overwhelming and confusing. It’s always best to consult with an expert regarding Scottsdale home loans to ensure you make a decision that’s profitable for you in the long run.

Our experts will be happy to assist you in finding the best mortgage option for your home improvement project. It’s certainly a milestone that requires careful investment – allow our specialists to eliminate stress, frustration, and risks out of the equation for a pleasant experience!

Mortgage Myths for Homebuyers

Entering the housing market as a newbie can be intimidating. Even more so when you hear rumors about how “difficult” or “expensive,” it is. But don’t believe it! As the experts in first-time home loans…

Entering the housing market as a newbie can be intimidating. Even more so when you hear rumors about how “difficult” or “expensive,” it is. But don’t believe it! As the experts in first-time home loans, we have all the answers and resources to make your home purchase happen with ease. 

Find out the truth about buying your first home, and for personalized answers, contact us! 

Myth #1:

You need 20% downpayment

While a 20% down payment means you won’t pay private mortgage insurance (PMI), you can buy a home with much less down. In fact, there are loan programs that require as little as 3% down. Are you a veteran, currently enlisted, or a spouse of a member of armed forces? Then you may qualify for zero down! 

20% down has its perks, such as no PMI and building equity a lot sooner. But that doesn’t mean you MUST have 20% now to buy a home. When it comes to how much you can afford to pay every month, an FHA loan with 3% may be the most affordable option.

Myth #2:

You won’t qualify for a home loan if you have student loans

Got student debt! So do most borrowers! Student debt and credit card debt are different “in the eyes of lenders.” So even if you have substantial student debt, buying your first home is still very much possible. 

Myth #3:

Avoid adjustable-rate mortgages like the plague

The 2008 housing crisis is still fresh on many buyer’s minds, and this may make you wary of adjustable-rate mortgages (ARMs). But you shouldn’t be! The bust was more of an issue of too-lax qualifying standards and less about the loan program itself. 

ARM loans are an attractive option because of the low fixed interest rate it offers for the first few years. An ARM is a great option if you plan on refinancing or selling within 10 years. In fact, it could potentially save you thousands.

Myth #4:

You won’t qualify for any government home loan program 

Government-sponsored loans from Fannie Mae and Freddie Mac offer numerous affordable lending options. Eligibility is much easier than other loan programs and could be based on the location of the home, your income, your military status, and even your first-time homebuyer status! 

Curious as to which government loan you qualify for? Contact us today to get started!

Myth #5:

Your pre-approval can be used on ANY home

The property itself may impact how much you’ll ultimately be able to borrow, especially when it comes to the final cost. So even if you were approved for a specific amount, your pre-approval might not be work in that particular property. This is most often the case when it comes to properties like condos and townhomes that may have higher final cost due to property tax rates and homeowners association fees. 

Myth #6:

You don’t need a real estate agent

Searching home listings via the internet is easy but presenting you a list of homes for sale isn’t the only thing a real estate agent does! They work as your advocate. They know the housing market well, know all the right questions to ask, negotiate on your behalf, and make sure that you are absolutely satisfied with your new home purchase. 

Whether you’re a first-time buyer or an experienced “flipper,” real estate agents offer an invaluable service in the homebuying journey. 

So what’s the truth about purchasing a home as a first-time buyer? It’s easier than you think! Contact us today to get matched with a home loan program that fits your budget and lifestyle. For the fastest response, use our contact form located on our site or give us a call. We look forward to serving your mortgage needs.

Should You Buy A Fixer-Upper? How To Tell If It’s Right For You

Buying a home that needs significant renovation sounds like a nightmare to some –and a dream come true to others. With renovation reality TV, America has romanticized the idea of buying a fixer…

Buying a home that needs significant renovation sounds like a nightmare to some –and a dream come true to others. With renovation reality TV, America has romanticized the idea of buying a fixer-upper and making over their home. But as satisfying as it sounds, remodeling shouldn’t be taken so lightly. After all –they don’t call it “sweat equity” for nothing!

There are some questions you should ask yourself and discussions you should have with your spouse before taking on a project home.

Is a fixer-upper really for you? Let’s get the conversations started!

What is it about a home renovation that makes it appealing?

Buying a home to flip because it looks like a fun project on “reality TV” is a big mistake. It takes a large crew, a big budget, and a whole lot of TV magic to make it look like a 30-minute walk in the park.

However, if you’re attracted to the possibility of making a profit, that may work! Having a solid plan, a budget, and wiggle room for surprises, buying a fixer-up for profit is reasonable. A study by ATTOM Data Solutions showed that home-flips in 2018 make an average of $65,000. Not bad!

The most popular reason for purchasing a home that needs renovation is to be able to design your dream home without having to build one from scratch. While costs can add up for significant home makeovers, generally speaking, it’s still more cost-effective than building one from the bottom up. If the home is vintage or is historical, then renovating it is the only way to have your dream home.

Where will you live during renovations?

Depending on how extensive the remodeling is, you may need to find temporary housing while the work is getting completed. Not only can this be an inconvenience, but it can be costly as well. Even rooming with another family for a week or two has its costs. If it turns out that you need to live in a hotel, you may need to factor in the cost of eating out, laundry, and extra storage for your furniture.

Renting instead? Plan on several months of double the utility bills and mortgage/rent payments in addition to your regular financial commitments and cost of renovation. This brings us to the next question…

What’s your budget?

The least expensive “fixer-uppers” are the ones that need cosmetic upgrades. Retiling the bathroom’s walls, refinishing the wooden floors, repairing the siding, or removing old wallpaper are all inexpensive relatively speaking. But still, even then, costs can creep up.

‘For more extensive renovations that require a contractor, get several quotes, and always plan for more. Rare is the renovation that goes as planned or stays in budget.

How will you finance the renovation?

After you’ve gotten several quotes, figured in the cost of supplies, the cost of living, and have added a bit more, it’s time to explore financing. Unless you’ve been planning several years for this remodel, chances are that you don’t have a mountain of cash from which to support your dream remodel.

The good news is that you can make it all possible with a home loan. Here are two of the most popular options:

An FHA 203(k) loan lets you put as little as 3.5% down, and you can pay it back in 15 or 30 years, similar to a traditional FHA loan. There are a few limitations to this loan, however. For example, “luxury” upgrades such as a swimming pool or adding a patio are not allowed. Also, all the work needs to be completed within six months.

The other popular loan is a Fannie Mae HomeStyle loan. It’s similar to a 203(k) loan, but it requires a little more down. There are fewer limitations to this loan. As long as the renovation is permanently attached to the home and it adds value, you’ll be able to finance it with this home loan.

There are more details and many more ways to finance your home remodel, please contact us! Whether you’re a homeowner or are shopping for a fixer-upper, there’s a loan for you. Contact us today to get matched with the home loan that can make your renovation dream come true, at a rate you can afford.

10 Reasons a VA Loan is Right for Your Next Home Purchase

If you are a former or active duty service member looking for a low-stress, low-cost mortgage when buying a home or refinancing, Blake Mortgage, is happy to walk you through the VA loan…

If you are a former or active duty service member looking for a low-stress, low-cost mortgage when buying a home or refinancing, Blake Mortgage, is happy to walk you through the VA loan process to get you the best rate and deal. Contact Blake Mortgage today to learn more about this incredible home loan benefit.

At Blake Mortgage we are thrilled when we can help military families and veterans qualify for a VA loan because of the many advantages this loan program offers over other mortgage options. It’s our honor to assist those who have bravely served our country save money on their home mortgage.

Here are the top 10 reasons to consider a VA loan for your home purchase, plus 2 refinancing benefits:

  • No Down Payment Required

Unlike other borrowing options, in most cases, a VA loan does not require a down payment. Therefore, you can free up your cash to use for other items or move in without saving for a down payment which can be an obstacle for homeownership for many people. 

  • Lower Interest Rates 

VA loans offer consistently lower rates than traditional bank financing loans because the VA home loan program is federally backed by the U.S. Department of Veteran Affairs (VA). 

  • Easy to Qualify 

The good news is to qualify for a VA loan credit and income requirements are much more lenient than conventional loans. You also don’t have to be a first-time buyer to qualify.  

  • No PMI Payments  

Private mortgage insurance, or PMI as it’s commonly known, is required for most types of loans when the buyer does not have 20% down. The PMI protects the lender should one not be able to make a payment on their loan. So not only do you not need a down payment for a loan, you do not need coverage for not having 20% down. Avoiding PMI is a great benefit it can save you anywhere from .5 to 2% of your original loan amount a year. 

  • Federally Guaranteed 

Because the VA guarantees the loan,  lenders are willing to offer more favorable terms than a conventional home loan.

  • Communities are Vetted

The Veteran Affairs Department will even go as far as vetting communities before a buyer moves in so that the community is suitable for servicemen and women with disabilities.

  • Reduced Closing Costs 

A VA loan may also have reduced or no closing costs.

  • No Prepayment Penalties 

Should you choose to make extra payments to reduce your principal balance or pay off your loan early, you will not pay any extra fees or pay a prepayment penalty.

  • Default Protection 

The VA provides insurance to lenders in the case that you cannot make a payment on a loan. Additionally, there are services that may be offered to veterans in danger of defaulting on their loans.

  • Available Across the United States 

No matter where you live in the U.S., you can access a VA loan by contacting a VA-approved lender. 

VA Loans are not just for new homes but can also save money when refinancing. 

  • Interest Rate Reduction Refinance Loan 

An interest rate reduction refinance loan (IRRRL) is an excellent tool for veterans to refinance to lower their monthly mortgage payment with a reduced interest rate. Blake Mortgage can investigate whether we can get you a rate lower than the one you currently have. What is great, is you may not need an appraisal nor credit underwriting to apply for an IRRRL. It’s also possible to refinance without having to bring any money out of pocket to closing. 

  • Cash-Out Refinance Loan 

Need cash from your house? While it’s not possible to get money out from an IRRRL, a VA-backed cash-out refinance loan allows you to take cash out of your home equity. Additionally, it gives you the flexibility to refinance a non-VA loan into a VA-backed loan.

Who is Eligible?

Let us at Blake Mortgage help determine your VA loan eligibility. Or you can get your VA Certificate of Eligibility (COE) here. 

VA home loans are generally available to those who have their Form DD214 and have:

Served more than 180 days during peacetime  OR

Served 90 consecutive days of active service days during wartime   OR

Are active members of the National Guard for at least 6 years OR

Have served in the Gulf War for 24 months

Are surviving spouses of servicemen either killed or missing in action or due to a service-connected disability 

Get Started Now 

Blake Mortgage offers VA backed  loans through various lenders  and can walk you through the process. To see what a monthly payment looks like or to apply for a VA loan, schedule your free one-hour consultation with Harry Panosian, Certified Mortgage Consultant and Certified Financial Planner.

 About Blake Mortgage

Blake Mortgage is a residential and commercial mortgage firm based in Scottsdale, Arizona, that has served the Phoenix Metropolitan market since 2002. We offer comprehensive yet customized mortgage solutions to our clients. Our strength lies in our detailed, personalized, and client-focused approach. Blake Mortgage embraces the core values set forth by the company’s founder, Harry Blake Panosian, and approaches every client and transaction with high standards of professionalism, loyalty, and integrity. We work diligently with our clients and value constant communication with the client as well as their realtor. Blake Mortgage abides by the code of ethics of the National Association of Mortgage Brokers and is transparent in all of its operations.

Photo Credit: Frank McKenna/ blog.frankiefoto.com