Seller Owned Converted Mortgages

Seller-owned converted mortgages can help you transfer from an adjustable rate mortgage to a fixed rate. This program may only be used when occupancy has not changed. Stability is another feature the seller-owned converted mortgages offer.

For lenders, this can easily and effectively manage their mortgage portfolio even at the situations of market changes.

As a borrower, this will be a convenient way for you to convert your ARMs and switch to the more secure type of mortgages. You will have an easier way of doing this as the documentation requirements would be less that the usual. For you to see if a seller-owned converted mortgage is for you, kindly check the following question and answers:

1. What state is this program available in? All states.
2. Is there income limitations (if yes how much)? Yes, $45,000 per year.
3. What is the maximum LTV (loan to value)? 95%
4. What is the minimum credit score required? 620 FICO.
5. What is the minimum DTI (debt to income) ratio? 40%
6. Are you required to be any of the following: Civil servant, Fire fighter, Teacher, Military? No.
7. Is this program for primary residence’s only? No.
8. Can this program be used to buy a home? No.
9. Can this program be used to refinance a home? Yes.
10. Can this program be used for a manufactured home? No.
11. Can this program be used for a Condo? No.

The seller-owned converted mortgages have the following execution options: servicing retained cash, fixed rate guarantor and multi lender swap. This may be used for primary residences (1 to 4 units), investment properties (1 to 4 units) and single homes (1 unit) properties. Manually underwrite your mortgages and must meet all mortgage eligibility on the delivery date. In seller-owned converted mortgages, a seller must attain a new appraisal having an effective date that is not beyond 120 days before the conversion date. You must also represent and warrant that there is no property decline since the effective date of the latest appraisal.