About Sean La Rue

Sean lives in the Palm Desert area and works with Franklin Loan Center as the Senior Vice President. Sean is ready to provide you the concierge level-of-service experience in purchasing or refinancing a home in Palm Springs, Palm Desert, La Quinta, Rancho Mirage, Coachella, Indio, or anywhere in California. His commitment is to treat your home loan like his own because he cares about your family.

Private Money Loans- MMM S2E9

Let’s talk about private money loans and what are the benefits and disadvantages that they may have.

These loans are backed by the value of the property and since the property itself is used as the only protection against default by the borrower, hard money loans have usually lower loan-to-value (LTV) ratios than traditional loans.

We need to keep in mind that private money loans are not made by banks, but by individuals who are probably aiming to make some business. Who is their target? People who are looking for short term financing and borrowers with poor credit but great equity in their property.

In Real Estate it’s very common the case of property flippers who get properties with private money loans, renovate them and resell them in a short period of time for a price that pays off the loan easily.

When it comes to apply for a Private Money Loan, it can be much quicker than with traditional loans, as private investors who back the loan usually make faster decisions than banks based on the value of the property. Lenders love these type of loans, as it’s a win-win for them. In case the borrowers defaults, there may be a better opportunity to resell a property. They don’t need to be afraid about not receiving their payment.

Private money lenders might not use traditional underwriting process, which can allow for adjustments to be negotiated regarding the repayment schedule for the loan. This could afford the borrower more opportunities to pay back the loan during the window of time available to them.

The costs of hard money loans to the borrower are traditionally higher compared with financing available through banks or government lending programs. The increased cost is a tradeoff for faster access to capital, less stringent approval process and the higher risk that the lender is taking by offering up the financing.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Home possible and home ready programs- MMM S2E7


In addition to having similar names, HomeReady and Home Possible are two of the most popular low down payment mortgage programs. Both programs offer unique features that improve your ability to qualify for a mortgage. They also  share the common goal of making homeownership more achievable for borrowers with lower income and less resources.

One of the unique elements of the HomeReady program is that it allows borrowers to qualify using non-traditional income sources. Borrowers can include income from a non-occupant co-borrower, such as a parent, rental income from boarders and income from a non-borrower household member to help qualify for the loan. The ability to use these additional income sources is a key differentiator compared to other mortgage programs.

The program also permits the use of non-traditional credit profiles for borrowers with a limited credit history or no credit score. If you are a borrower with higher credit score you may have the option of paying a lower mortgage rate and potentially reduced private mortgage insurance (PMI) fees relative to standard loan programs. HomeReady applies more flexible qualification guidelines to enable more borrowers to participate in the program.

The Home Possible program also enables borrowers to incorporate non-traditional income sources in their loan application. Applicants can include rental income from boarders as well as income from the units in a multifamily property that you do not occupy. This feature is especially helpful for multi-generational families where the children may live in one unit of a property and the parents live in another unit.

Another great point to pick  the Home Possible program is that borrowers with lower incomes and borrowers that purchase properties in designated low income census tracts may pay a lower mortgage rate.

Both HomeReady and Home Possible  programs enable you to purchase a single family home with a 3% down payment and no minimum borrower financial contribution.

Home Possible and HomeReady mortgages are provided by traditional lenders including national, regional and local banks, mortgage brokers and credit unions. In Sean La Rue Home Loans we recommend that you compare the loan terms and eligibility guidelines for both programs to find the mortgage that is right for you.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Fee land vs lease land- WW S2 E2


What’s a fee land?

A fee land is a form of freehold ownership where real estate and land can be owned in common law countries. When it comes to the fee land owner’s rights, we need to know that they are limited by government powers as well as by certain encumbrances or conditions in the deed.

What’s a lease land?

A lease land allows you to use a piece of land owned by the landlord in exchange for rent. We see often land leases being used for commercial purposes, as they are usually vacant and the tenant can build a structure that will stay temporarily or permanently.

Lease Land vs. Fee Land

The main difference between buying land and leasing is that by going with leasing you reduce the cost of a home compared to a Fee Land, which you own.   So, by owning on leased land, the homeowner gets the use of the land without spending a certain amount of capital, which will allow to afford a larger home for less money.  

However, keep in mind that you won’t technically own a home until the loan is paid off.

Good luck, and I hope you enjoy your new home for many years to come.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Occupancy for Loans- S2 E2 MMM


Welcome to a new article in seanloans.com!

Let’s dive in today’s topic: occupancy for loans.

When applying for a loan it is necessary to determine the borrower’s ability and willingness to repay a loan in accordance with its terms and to determine if the subject property provides and maintains sufficient value to regain the investment.

A loan’s occupancy type indicates the occupancy status of the mortgaged property.

Property Type
  • Investment – Indicates that the borrower does have the property for personal use and most likely offers the property for rental.
  • Primary Residence – usage property type where the borrower lives in the property.
  • Vacation Home/ Second Home – Here the borrower maintains the property for personal use and does not offer the property for rental.

    Let’s go more in depth about these 3 property types based on the usage

Investment Properties

If a home is used as a rental property, which you earn income from, it’s considered an investment property. Any type of property, such as single-family homes, multi-unit properties or condos, can be an investment property. If you simply act as the owner and landlord of a rental home, it’s considered non-owner occupied. However, if you physically live at the property, it’s classified as owner-occupied. This type of situation can occur if you own a multi-unit home such as a duplex — you live on one side, and your tenant lives on the other.

Primary Residence

We defined properties as “primary residences” when you live there for the majority of the year and you don’t ever rent it out, even during the time you’re not living there. It’s common to see that the lender asks for some legal proof that shows your intention to occupy the property.

Vacation Home/Second Home

On the vacation home, the owner usually stays in the property for just a small period of time every year. it has the same requirement than the primary residence, as it can’t be rent out to be considered a second home in the eyes of the lender.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Using credit cards while in escrow-Good or Bad?- MMM S1E13

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When people are buying a house, selling another house or making a major move, they usually tend to have unusual expenses, which in Sean La Rue Home Loans we do not recommend. Let’s see why in this article!


These people may normally spend only a few hundred dollars a month on their credit cards, perhaps even paying it off by the end of every billing cycle. However, when their credit score needs to look its best, they start to spend much more than a few hundred with their credit cards on furniture, moving expenses, home repairs,etc..

Some find it very unfair when their lender tells them that they have a high debt ratio on their credit story, but what we need to keep in mind is that the balance is reported at a specific time, so even if we pay off our debt every month, our credit score may be highly affected if we just spent some thousands all of a sudden for our new home.

What’s our piece of advice?

The common mistake is to think that once the credit reports have been pulled out, we can start spending on stuff for our future home because what’s the matter of buying furniture before closing on a property? Well, let me tell you It is actually a big matter, as it can make a big difference that can result in you losing the house of your dreams.


In Sean La Rue Home Loans we can tell you that when you are in the final stages of getting a mortgage, it’s a good idea to stop using your credit cards, or at least cut way back on credit card spending. Pick out the furniture, but don’t buy it yet. If you do buy a large item, consider paying down your card immediately online, so you’re not caught with a high balance just on the day your bank reports to the credit bureaus.

Good luck, and I hope you enjoy your new home for many years to come.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Jumbo Loans- MMM S1 E12

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FULL VIDEO: https://www.youtube.com/watch?v=grX0fjCt2wY&t=117s&list=PLwDXba_ZgjWxgzgVoKQgkLIKTzkvPT6ix&index=15

A Jumbo Loan is a very particular type of loan that is unlike any other conventional, as it’s designed for luxury properties in very competitive markets, which has big tax implications to take under consideration before making any decisions.

Should I qualify for a jumbo loan?

If you are aiming to purchase a home that costs around half a million dollars or more and you don’t have a big initial capital to afford it, a jumbo loan is perfect for you. However, get ready for much more rigorous requirements than in a conventional loan. Why’s that? The reason is because these are operations that involve a much higher risk for the lender, as there is a big amount of money involved and the risk increases.

Here are some of the minimum requirements: you’ re going to need to have a remarkable credit score that’s around 700 and above, as well as a low debt-to-income ratio(between 36%-43%).

Another common requirement is that you need to give proof of that you have cash on hand to afford the payments, which will probably be very high if you for example opt for a 30 year fixed-rate mortgage. Also remember, that for sure you’ll have to present 30 days of pay stubs and W2 tax Forms for the last two years.

In case you’re self-employed, the requirements will be even tougher, as you’ll have to proportionate two years of tax returns and at least 60 days of current bank statements. You’ll need to prove as well provable liquid assets and that you have enough cash reserves to afford 6 months of the mortgage payments.

Jumbo Loan Rates

But not all are bad news when it comes to the jumbo loans’ requirements, as the interest rates have been closing the gap to the conventional loans’ rates and nowadays they can be even lower.

Jumbo loans are often backed by other financial institutions; since these securities carry more risk, they trade at a yield premium to conventional securitized mortgages. However, this spread has been reduced, with the interest rate of the loans themselves.

What’s the down payment like in jumbo loans?

In the recent times, down payments have been going lower in jumbo loans, as it was used to be around a 30% of down payment and now it has fallen all the way down to 10% to 15%. A big reason for this, is that banks are always looking to find new customers that apply for jumbo loans, as jumbo loans borrowers are usually high profile individuals that institutions always love to sign up for long-term deals.

So, who should apply for Jumbo Loan?

As we mentioned in the beginning, these are very particular type of loans, which are made for high-income earners that make at least $150,000 to $500,000 a year but it all depends on how much monthly minimum payment debt a person is carrying and how much they have for reserves as well.  

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/

Over Improving Property and Rehab Loans- Woke Wednesdays In Real Estate S1E9

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Full Video: https://www.youtube.com/watch?v=uVVIg1DXNXw&t=6s

Sometimes we purchase a new property and we over improve it to the point where we may not get our investment back. We have to consider how the potential buyer is going to value those improvements and see if it’s worth it for us as potential sellers. The key to find success in Real Estate is to make sure that the buyers get a property they want with the improvements they want.

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So here it’s a tip for today’s episode: before making any improvements in your property, find a buyer that’s interested in purchasing it and adapt the home improvements to the buyer’s desires to assure you get a great deal!

 

 

Do you want to upgrade your property? Then do it the right way, let’s see how!

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We’re going to go over rehab loans and what they can offer to homebuyers or homeowners. Rehab loans are a great way to help you create your own home equity fast by bringing your home up to date with the necessary improvements. They are a great way to finance these home improvements without having to put much of a down payments or high interest rates.

 

Are you a homeowner?

Great! You have the perfect chance to upgrade your property and improve its value by bringing it up to date with all the latest trends based on your specific market. You will first get to know the potential buyers and you’ll see what they’re looking for and once you have that information you’ll know what changes your property needs to get a higher return for it. You don’t have that much savings? No problem, as rehab loans require a minimum down payment of just 3,5%, so that you don’t have to save money forever to pay the down payment.

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Are you a homebuyer?

 

Excellent! A rehab loan will enable you to get a cheap property and improve its value drastically to then sell it for a much higher price. As we said, you barely have to pay down payment but there aren’t also high interests, so instead of trying to purchase a property and apply for a 30 year loan, you could always consider this option along with a rehab loan, where the investment could be smaller and the return higher.

 

Good luck, and I hope you enjoy your new home for many years to come.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

 

Stay hungry and stay positive!

Make it a great day,

Sean La Rue

 

Facebook: https://www.facebook.com/SeanLaRueHomeLoans/

Instagram: @seanlaruehomeloans

Linkedin: https://www.linkedin.com/company/sean-la-rue-sr-vice-president-franklin-loan-center/