Turnkey Financing at bemortgage

HE RE ’ S A N OVE L I DEA : LEND IN G D E S I G N E D FO R T H E P EOPLE WHO N E E D LO A N S .

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Since bemortgage is at the top of the industry, our perspective let us see what others didn't - that the process of getting a loan has gotten tangled up in red tape. So we created a new kind of lending business that’s nimble, innovative and designed to help our clients take advantage of secure loans that meet their needs.

We call it New Truth in Lending.

What is Turnkey Financing?

"Turnkey" refers to a property being sold as completed. This means that a turnkey provider will purchase and renovate a home with their own cash. A buyer will then purchase it with Turnkey Financing as an investment property.

Turnkey Financing comes in multiple forms - some examples include Conventional Residential Loans, Self-Directed IRA's and Hard Money loans.

The Gold Standard product for Turnkey Financing is the 30yr Fixed Rate, which offers investors long term debt. This is particularly attractive for Turnkey Properties that typically have lower purchase prices and loan amounts that will never be refinanced. Turnkey Investment Property guidelines through Fannie Mae and Freddie Mac for Turnkey Financing are slightly different from the standard primary residence 30yr Fixed Rate. Some of these guidelines are referenced in this booklet.

TH E F I RST STE P O F BU I LD I N G A N E ST E GG? B U I L D I N G A N E S T. NO.

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Our team of experts – lead by Joe McBreen and Maggie Mikaitis, can deliver on their commitments and help you expand your investment portfolio. When you choose bemortgage, you have access to: Full product offering with top lending institutions Fannie Mae and Freddie Mac Direct Pricing Consistent Appraisal Groups in National Turnkey Markets Fast and Transparent Mortgage Process Dedicated in-house underwriting, processing and closing teams 24-48 hour underwriting turn times Lending available in all 50 states

NATIONAL LEADERS IN TURNKEY FINANCING JOE MCBREEN SVP of Mortgage Banking NMLS: 686541 Phone: 312.319.8710 Mobile: 773.203.4843 turnkey@beloan.com www.bemortgage.com/joem Joe McBreen has been originating mortgages for the past sixteen years and currently ranks among the top 200 loan officers nationwide based on volume by Mortgage Executive Magazine’s annual survey. He is a Senior Vice President of Mortgage Banking for bemortgage in Chicago, Illinois. Joe works with first-time homebuyers, real estate investors and past clients looking to refinance. In addition to originating mortgages for consumers in the greater Chicago area, Joe assists residential real estate investors around the United States with their rental property financing.

He is also a frequent speaker at real estate investment conferences educating audiences on financing real estate investments. He is a nationally licensed Loan Officer. Joe was born and raised in Ireland. After graduating from college in Ireland, he moved to the United States in the mid-nineties.

Joe loves to travel, golf and read.

MAGGIE MIKAITIS VP of Mortgage Banking NMLS: 1395394 Phone: 312.319.8711 Mobile: 708.220.0525 turnkey@beloan.com www.bemortgage.com/maggie With 13 years of mortgage experience, Maggie Mikaitis is currently a Senior Loan Officer with bemortgage. Her knowledge of the mortgage industry covers processing, underwriting, sales and management. A motivated self-starter, she has consistently exceeded her own goals every year and continues to grow her business with superior customer service and a conscious eye on the best customer experience. Maggie focuses on Conventional, Jumbo, FHA/VA and Condo financing with expertise in investment property financing, helping clients build and finance their real estate portfolios.

Maggie’s personal strengths and qualities stretch beyond her commitment to her clients and business and she gives back to the community volunteering at homeless shelters and the Red Cross among other charitable organizations.

Maggie is a native of Chicago and currently resides in the South Loop.

MEET OUR TEAM “Thank you for choosing bemortgage as your lender! We appreciate your trust and assure you that our team will execute the loan in a professional and timely manner. You will hear from our team members at each milestone throughout the transaction. Our number one goal is to ensure your complete satisfaction, so Maggie and I stay closely connected with you throughout the loan process.”

– Joe McBreen

PRODUCTION MANAGER

Chua Xiong c.xiong@beloan.com | Direct: 312.319.8707 Chua is our team lead who oversees the entire pipeline while managing our locks and closing timelines.

SALES ASSISTANT Dayanara Leonard d.leonard@beloan.com | Direct: 312.319.8712 Dayanara assists Joe and Maggie in preparing initial loan applications and works with borrowers on their pre-approval documentation.

MORTGAGE LENDING ANALYST Kelsey Wurtz k.wurtz@beloan.com | Direct: 312.319.8650 Emberly Sinclair e.sinclair@beloan.com | Direct: 312.319.8713 Kelsey and Emberly are experts in preparing your loan for a quick and efficient underwriting approval. Once your loan is sent to processing, you will receive our loan application, supporting disclosures, and updated documents checklist for completion.

MORTGAGE CLOSING ANALYST

Alysse McHale a.mchale@beloan.com | Direct: 312.319.8611 Heather Dennehy h.dennehy@beloan.com | Direct: 312.319.8740 Alysse and Heather will work with you once an approval has been issued and will prepare your loan for a smooth closing. Alysse and Heather ensure a stress-free closing for our newer and veteran borrowers.

QUALITY CONTROL SPECIALIST Laura Bolbat l.bolbat@beloan.com | Direct: 312.319.8649 Laura works directly with Heather and Alysse in preparing loans for closing. She is the direct contact with our partner's preferred title companies and insurance agents.

FREQUENTLY ASKED INVESTMENT FINANCING QUESTIONS: What is the minimum credit score needed?

Both Fannie Mae and Freddie Mac loan products require a minimum FICO score of 620 in order to finance the first six properties. For properties 7-10, a minimum score of 720 is required.

Can I do a cash out refinance of my properties?

Absolutely! Fannie Mae will allow for a cash out refinance on the first 10 properties financed. You can always take cash out of your primary residence regardless of how many properties are financed.

Can I finance a primary residence regardless of how many properties I own?

Yes! There is no restriction on financing a primary residence. Cash out and home equity lines are also permitted on a primary residence regardless of the number of properties you own.

Can I use the projected rental income on the property to offset the projected mortgage payment?

Yes, you can! If we are using rental income on the subject property, we would require you to add rent loss insurance to you homeowner’s policy.

Can I finance multiple properties simultaneously?

Yes! Our team specializes in these transactions without issues.

How is my credit score affected by multiple loan applications?

Your score can be negatively impacted by multiple applications with multiple lenders, especially if you are purchasing in multiple states. The fantastic news is that bemortgage lends in all 50 states and your initial credit pull is good for 120 days.

Do I have to go to a title company to close on my loan?

For your convenience, we use a mobile notary service.

Can I use a POA (Power of Attorney)?

Yes, you can. Fannie Mae requires this person to be an attorney or family member. Freddie Mac will allow a family member, attorney, or friend to sign on your behalf. Be sure to let us know if you plan on using a Power of Attorney at the closing.

Can my spouse and I finance 10 properties each?

Yes, however, both spouses need to qualify.

Is it possible to take one loan out for multiple properties?

No, this is not possible with residential financing.

Can I finance my deals through my LLC? No, Fannie Mae and Freddie Mac do not allow for borrowers to close in their LLC. You must close individually on the property.

ONE THING THE MORTGAGE INDUSTRY NEEDED: A LITTLE MORE FLEXIBILITY NO.

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RESERVE REQUIREMENTS What are my reserve requirements?

Reserves are required and differ depending on if your loan is with Fannie Mae and Freddie Mac.

FANNIE MAE RESERVE REQUIREMENTS: the aggregate unpaid principal balance if the borrower has of 2%

one to four financed properties

4%

of the aggregate unpaid principal balance if the borrower has five to six financed properties of the aggregate unpaid principal balance if the borrower has 6% seven to ten financed properties The aggregate unpaid principal balance calculation does not include the mortgages and HELOCs that are on: • the subject property • the borrower’s principal residence • properties that are sold or pending sale

FREDDIE MAC RESERVE REQUIREMENTS: With 1-6 financed properties, you will need to have six months’ reserves for the subject property and two months reserves for each additional financed, second home, or investment property.

INSURANCE REQUIREMENTS What type of insurance is required for investment properties?

Each investment property requires insurance. With many types of insurance available, it’s important to understand the requirements from Fannie Mae and Freddie Mac as outlined below. You will need to have insurance on the subject property when taking out financing for an investment property.

Borrowers are required to have Replacement Cost Insurance on all of their investment properties.

Replacement Cost Insurance must be equal to or more than the original loan amount.

The investor holds bemortgage responsible to make sure that all claims are settled on a replacement cost basis.

Actual Cash Value (ACV) policies are NOT permitted.

PREPARING FOR YOUR CLOSING DAY

DO

DON’T

• Do make your payments on time

• Don’t approve of any new credit inquiries

• Do keep us informed of changes to your contract or income • Do share information on your debts and liabilities so we can plan accordingly

• Don’t make large purchases (i.e. boat, car) • Don’t open new accounts • Don’t close existing accounts • Don’t sign up with a credit repair or consolidation company • Don’t spend money you had set aside for your closing

Notes

This is not a commitment to lend or extend credit. All loans are subject to credit approval. Programs subject to change, without notice. bemortgage (NMLS #484683) is a division of Bridgeview Bank Group. bemortgage is not an agent or, or affiliated with, the U.S. Department of Veterans Affairs or any other government agency. Equal Housing Lender.