Our client, a self-employed individual, was looking to lower his interest rate on his primary residence in South Florida, but he was having a difficult time getting approved.
Other lenders required two years of tax returns, but because he just started a new business in 2019, his 2019 tax returns showed little income. He also had a complicated tax structure with various entities, which other lenders did not understand.
We were able to get him approved under a loan program that required only one year of tax returns (personal and for one of his businesses). Using his 2020 tax returns, he was able to qualify for a 30-year fixed conventional loan at a 3.25% interest rate, a savings compared to the 4.875% he was paying his previous lender.
Another nice feature of the loan program was he qualified for an appraisal waiver. This helped speed up his loan process as well as save him from having to pay an appraisal fee. We were also able to roll the vast majority of his closing costs into the loan, so he only had to bring less than $400 to the closing table.
Interested in a rate-and-term or cash-out refinance? Contact us today to discuss your scenario.