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Update on Financing Options… New Tools of the Trade

Mark James
Mark James

Mark James
Sales Manager
NMLS 247356
Guild Mortgage Company
(808) 744-6420

In addition to the Conventional, FHA, VA and USDA financing commonly offered by lending institutions in Hawaii, there are also a few unique financing tools and programs you may be able to qualify for and use to your advantage.

Non-Warrantable Condos

Guild now has in-house lending capability for this type of condominium property. Highrise and lowrise condo projects that are not eligible for purchase loans under Fannie Mae or Freddie Mac guidelines may be financeable with Guild Mortgage. Lending on nonwarrantable condos is often called “portfolio lending.”

Rebuild or Add an ADU with Cash-Out Refinance

If you want the flexibility of having sufficient cash available in your account to add an Accessory Dwelling Unit (ADU) to your property or to remodel your home, consider a cash-out refinance. Guild Mortgage has teamed with Homeworks Construction over the last 10 months to provide free seminars on the topic of building an ADU, as well as renovating your home for multi-generational living. An ADU can supply income as a rental or serve as additional accommodations for family members. But first, you will need to find out if your property is eligible for ADU construction. As the representative of Guild Mortgage at the seminars, I am available to discuss your building and remodeling projects and suggest the most appropriate form of financing…including the traditional construction-to-permanent-mortgage financing option. The seminars are held on the first Tuesday of the month from 6 to 8 p.m. at the Homeworks Construction Showroom.

Asset Depletion as Part of Qualifying Income

Using savings, inheritance, and IRA/401K withdrawals as a source of income can help certain applicants qualify. This normally works best at age 59. Please call your Guild Mortgage Company Loan Officer for details. Every situation is personal and unique.

Gift of Equity to Cover Down-Payment Requirements

As one generation hands over the reins to the next, a gift of equity can be used in the right circumstances to avoid a large down-payment. Passing property from one generation to the next involves planning and good real estate and tax advice. With the right team of advisors in place, your Guild Mortgage Loan Officer can assist in this process.

Single Premium Mortgage Insurance

For buyers with less than 20% down, choosing single premium mortgage insurance at closing will eliminate the need to add mortgage insurance to the borrower’s monthly payment. This helps reduce the amount of the borrower’s monthly payment and generally lowers the total debt-to-income ratio. Guild Mortgage can assist with structuring this option for the benefit of the buyer.

Our Guild Mortgage loan officers can update you on other unique financing options and programs that are available and could prove to be beneficial in furthering your personal financial goals.

For more information, please contact our Honolulu Branch at 808-744-6420, Kailua Branch at 808-263-4622, or our Waikele Branch at 808-369-7153.

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