Lindiana Mortgage Co.

Realtors

Realtors, we’re the private mortgage lender you’ve been waiting for!

Whether you’re representing a buyer or seller we can help you close more deals, period.

In case you missed it, we broaden seller financing options for home buyers to any home of their choice.

REALTORS REPRESENTING BUYERS

Here’s the truth you live on a daily basis: many buyers are qualified for a traditional bank mortgage product, you connect them with a mortgage broker, they get their loan. Many buyers are not and they require an owner financed property.

Take a moment to think about how many potential buyers you either couldn’t or didn’t want to represent because they didn’t qualify for a mortgage with a bank? Now think about the dollar amount of commissions you had to forego. Do we have your attention now?

Self employed individuals, contractors, ITIN borrowers, Non-U.S. citizens, buyers with no credit/bad credit, your clients who were denied by the bank/mortgage broker – Lindiana Mortgage Co. exists for them!

Our conversations with realtors always begins with the same two questions:

1

How does this work?

2

What are your terms?

How does this work?

In short, from a ‘process’ perspective it’s almost identical to a traditional mortgage. Where it’s different is HOW we underwrite our borrower and what documents are required from them.

After our initial phone consultation with your client they will complete a straightforward and easy mortgage application with our loan officer who will then provide them with a ‘conditional qualification letter’ and ‘loan estimate’ within 72 hours. This will allow your client the freedom to start shopping for any home that fits within their financial criteria!

Below are the general steps on purchasing a home using Lindiana Mortgage Co. as the lender:

STEP 1

Apply with our licensed loan officer and review loan estimate and conditional qualification letter.

STEP 2

Find dream home

STEP 3

Get dream home under contract with the seller

STEP 4

Close

STEP 5

Move in to dream home!

WHAT ARE YOUR TERMS?

  • 20, 25 or 30 years
  • Fixed interest rate
  • No prepayment penalty
  • No ballon payments
  • No PMI
  • Taxes and insurance escrowed
  • Title insurance is obtained for your peace of mind
  • Warranty Deed in buyer’s name
  • Minimum 12% – 15% down payment
  • Close with registered title company
  • First Lien Position
  • Automatic monthly ACH payments preferred
IF YOU’RE A REALTOR WHO REGULARLY REPRESENTS CLIENTS LIMITED BY OWNER FINANCE INVENTORY PLEASE CONTACT US SO WE CAN STREAMLINE YOUR CLIENT APPLICATION PROCESS!

*At closing, realtors will receive their commission payments as previously negotiated between buyer and seller. Lindiana Mortgage Co. does NOT have an involvement with the amount of realtor commissions.*

REALTORS REPRESENTING SELLERS

By recognizing Lindiana Mortgage Co. as a safe and reliable financing option for owner finance buyers you can stand out from your competitors! How, you ask? It’s simple, you’re offering a home for sale to an entire addtional pool of buyers. But really, HOW can you do this as the home seller’s representative?

After discussion and approval from your client, here’s what we recommend:

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Contact us first to share the address of the home and the listing price. We can let you know immediately if it’s a house that makes sense to offer seller financing on.

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When listing your client’s house for sale on the MLS website you can click “Owner carry available” under the financing options tab. Sometimes it shows up as a different term, such as “seller carry”, “owner financing”, or “seller financing”.

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When listing on Zillow, Realtor.com, etc you can type “Owner Financing Available” in the body of the property description. When a buyer is filtering their search they can type “owner financing” in the keyword box in the filters section. Then, your listings will populate as a viable option for the owner financing buyers. Now you’ve opened the door for more leads and a potentially quick commission!

Why should we call it “owner financing” when the actual seller will not be lending the buyer any money?

This is a great question for seller reps! This terminology can be misleading and that’s not our intention, it’s simply an industry term that is the most known. What really happens when a home seller offers “seller financing” through Lindiana Mortgage Co. is that we will qualify the buyer and fund the mortgage on their behalf. So, at closing the seller will receive their money from the title company as if it were a traditional transaction. Lindiana Mortgage Co. holds the mortgage and receives the mortgage payments from the borrower (the home buyer). The home buyers receives the Warranty Deed and is the new owner of the home. Therefore, by offering seller financing on behalf of the seller, the home seller does not feel any difference in the transaction, nor does the seller have to do ANYTHING different. All that’s happening is the house is being offered for sale to a larger number of buyers.

* At closing, realtors will receive their commission payments as previously negotiated between buyer and seller. Lindiana Mortgage Co. does NOT have an involvement with the amount of realtor commissions.*

FAQ’s

We understand you may have questions that need clarification. Please feel free to contact us directly. We would love to hear from you and share how we can be a trusted partner.

Also, below is a list of our most common FAQ’s

What’s the difference between Lindiana Mortgage Co. and a regular bank or mortgage broker?
  • This is our favorite question. We are not a bank or a mortgage broker! We are a private mortgage lender. This means we are the ones who fund your loan AND collect your monthly payments. It’s why the home buyer is our main focus – because we are lending money directly to the home buyer and then expecting them to make timely payments.
  • Additionally, we are able to set our own underwriting guidelines for our borrowers. For example, many banks and mortgage brokers require specific (high) credit scores, many months of capital reserves, W-2 income, two years of tax returns and higher down payments from their clients. Since we are privately owned and NOT a bank or mortgage broker than means we have the advantage of setting our own lending parameters and documentation requirements.
  • We can be more flexible and move quickly for our homebuyers!
  • All our loans are completely legal and compliant with state and federal regulations. There is nothing “shady” about our business and we are completely transparent with everyone in our ecosystem.
Why do you call it “seller or owner financing”?
  • Because it’s the most familiar industry term that buyers, realtors and sellers know. “Private mortgage lending” is too vague.
  • Just remember, we do not buy the home then re-sell it. At closing, we fund the appropriate amount of money to the title company. The title company makes the correct disbursements to the home seller, realtors and all other parties. Thereafter, the home buyer (borrower) makes their regular monthly mortgage payments Lindiana Mortgage Co.
What documents are required to apply?
  • The most recent 12 consecutive months of bank statements in the name of all borrowers OR form 1099 OR form W-2.
  • A copy of in-force government issued I.D. for each borrower (does not need to be a U.S. government I.D.)
  • Form I.T.I.N in the name of all borrowers (if applicable)
  • Name and contact information of current landlord or lender for a credit reference
How much money do I need to close?
  • We require a 12% – 15% down payment from the borrower.
  • In general, we advise to have a total of 16% – 21% of the total purchase price set aside for your down payment plus closing costs (i.e. “cash to close”). This covers your down payment, closing costs, and all costs associated with completing your purchase.
Are there other fees the borrower needs to pay at closing?
  • Yes. This is true for ALL home purchases. There are underwriting fees, origination fees, escrow amounts for taxes and homeowner’s insurance and title insurance. This is not a full list of fees, but the most common ones.
  • WE DO ALL WE CAN TO KEEP CLOSING COSTS TO A MINIMUM FOR OUR BORROWERS!
  • In general, we advise to have a total of 16% – 21% of the total purchase price set aside for your down payment plus closing costs (i.e. “cash to close”). This covers your down payment, closing costs, and all costs associated with completing your purchase.
What if I don’t qualify?
  • The truth is that this happens sometimes. If you qualify for a home that costs less than your desired home or if you do not qualify at all we promise to give you specific feedback on why. We also will give you actionable steps to take to improve your application and qualify in the future when you’re ready.
How do I apply?
Am I really allowed to choose ANY home I want?
  • Most single family, site built, homes will qualify. They should be within a 45 – 60 minute drive of Texas cities such as San Antonio, Austin, Dallas/Fort Worth, and Houston where it’s easier to determine value. Smaller cities in Texas like Waco, El Paso, Amarillo, etc. will be considered on a case-by-case basis. We prefer to stay away from rural areas where home values are difficult to determine.
  • The actual home must be a “single family, site built” home. That means no mobile/manufactured home or multifamily home (duplex, triplex, quadplex, etc).
  • Also, no vacant land or agricultural ranches.
What are the interest rates?
  • Great question. The honest answer is that it depends on the borrower, down payment, etc. Our current interest rates have been in the range of 10.5% – 12.5% and it’s likely that yours will be too. This is still A LOT less than banks were charging in the early 1980’s!
Why does the interest rate seem high?
  • Interest rates are a measure of risk. The higher the risk, the higher the rate.
  • Our typical buyers are a higher risk such that banks won’t loan to them, regardless of the interest rate they could charge. However, we like to ask, “High, compared to what?”. Compared to current bank rates available to well-qualified borrowers? Yes, ours are higher. Compared to bank rates in the early 1980’s, ours are lower. In the early 1980’s bank interest rates reached 18%!
  • Don’t let comparatively “high” interest rates stop you from becoming a homeowner now and living your dream! It’s more likely that “waiting for a lower rate” will cost you more than buying now because the cost of homes is increasing at such a fast pace.
  • For example, if you have a 30-year, $100,000 mortgage at 12% interest today your monthly payment is $1,028.61. Let’s say you wait 2 – 3 years for “rates to come down”. Well, it’s likely that same house appreciated in value. Now the same house may require a 30-year, $120,000 mortgage at 10% and your monthly payment is $1,053.09. Yes, the interest rate is lower, but your required down payment is higher, monthly payment is higher AND property taxes and insurance cost more. So, is it really worth it to wait?
What if I payoff my mortgage early?
  • This happens all the time when people sell their house or refinance it. You simply pay of your mortgage with Lindiana Mortgage Co and we release the lien on your property.
  • There are no prepayment penalties.
Are there prepayment penalties?
  • No, there are not.
What if I do not have a bank account or do not deposit any money into the bank?
  • This is not ideal. The best way to verify a borrower’s income is to review their deposits into their bank account.
  • We must have a way to verify your income via a third-party. Meaning, a piece of paper created by you with numbers written on it does not qualify as proof of earnings.
  • However, if you receive paper checks, but do not deposit the checks, then as long as you can provide us with copies of the checks we would be able to use those to document your income.
  • A U.S. form 1099 works as well as U.S. Form W-2 (if you have either).
Is the interest rate fixed or adjustable?
  • All our mortgages are fixed interest rates for the entire term of the loan.
Are there balloon payments?
  • No, there are not.
Will this help me build my credit score?
  • Yes! If you’re a good borrower and make all your payments on time then your credit score will increase.
  • We use a third-party loan servicer to collect all mortgage payments and manage the homeowner’s insurance and tax escrow. You may elect to have the servicer report your payment history to the credit bureaus.
  • Additionally, you may elect to not have your payments shared with the credit bureaus. That’s fine too!
What happens if I default on my mortgage?
  • This is handled on a case-by-case basis depending on the actions of the borrower. We prefer to exercise all options with the borrower prior to taking the foreclosure route. The easiest way forward with a default is working on a payment plan or loan modification with the borrower. If neither of those options perform then we prefer a deed-in-lieu of foreclosure (you give us the keys and deed to the house so no one has to go to court).
What if I am not a U.S. citizen?
  • Most of our borrowers are not U.S. citizens. This is perfectly normal as long as you have a valid government issued I.D. (this does NOT have to be a U.S. government I.D.) and a valid Form I.T.I.N in your name.
What if I do not have a social security number?
  • You do not need a U.S. social security number as long as you have a valid Form I.T.I.N in your name and a copy of a government issued photo I.D. (this does NOT have to be a U.S. government I.D.)
What if I have no credit or bad credit?
  • We understand things happen. For that reason, your credit score is NOT the determining factor. We look primarily at how much money you are willing to put towards the purchase price of your home, your current history of making on time payments, and your ability to make your mortgage payment every month.
What if I am self employed?
  • That’s great! We love self employed individuals because they boost the local economy and we believe they deserve the best they can afford. We recognize many self employed individuals are smart and take every advantage of many available tax breaks to infuse working capital into their business. As a result, it might seem they are “poor on paper” (tax returns). We can take income based upon last 12 months of bank statements to determine your real world ability to make payments.
Can I use my own realtor?
  • Yes, of course!
What if I don’t have a realtor, can you help me?
  • Yes! Please submit a contact form on this website and we will reach out to you directly to pair you with a great realtor who we are confident can represent you well. There is no charge for this!
Can I purchase a “fixer upper” home?
  • It depends. The home does not have to be “brand new” or in perfect condition, but the home should be in a condition in which a family could fall in love with and move in. If extensive repairs are needed, the home might not qualify.
Can I purchase an investment property?
  • Yes! If you are looking to purchase an investment property (meaning that it’s not your primary residence) we are happy to help and can offer similar terms as if it were your primary residence.
Who actually makes the loan to the buyer?
  • Lindiana Mortgage Co. is the lender AND we hold all the loans for as long as we viably can.
  • We do reserve the right to sell or transfer your loan which does NOT have any effect or change to the borrower. If we happen to sell or transfer your loan to another party you will be notified ASAP, but your loan terms will NOT change.
What happens after we close?
  • After you close you get to move into your new home!
  • Your monthly mortgage payments will typically commence on the first day of the first month one full month after closing. For example, if you close on March 15th then your first mortgage payment will be due on May 1st.

Let’s Connect

If you want to learn more about our financing options for your clients please send us a message below.

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