Redefining Mortgage
Lending for Over 35 Years
Essex Link Loan
THINGS TO KNOW
This product allows originators to work with consumers who do not qualify for traditional financing and still get them into a home with the opportunity to obtain equitable title and enjoy all the benefits of ownership today. It allows your real estate agent partners to close their sale immediately as part of the process.
We expect this product to do a significant volume, as it can tap into 10's of millions of underbanked or otherwise underserved consumers including those that lack the 15-20% down typically needed. The typical downpayment for this product is 3.5%.
How This Product Increases Closings Today
Today when a potential borrower comes to your loan officer and you determine that they are not qualified for any of the financing options you offer, you would typically give them a "To Do" list of things they must improve on to qualify for a home loan. While this may result in a transaction 6 months to several years down the road, often they either never qualify, or they end up closing elsewhere down the road.
Our product allows qualified consumers to identify a home within their monthly affordability range and you will facilitate purchase financing to a Governmental Entity.
Who Are These Entities?
These Entities are one of several Indian Tribes that are qualified under a HUD program to purchase properties on an investment basis, allowing consumers the right to enjoy most of the benefits of homeownership through a 40-year Financing agreement they execute with the Tribe.
How Does Your Company Use This Product?
You would use guidelines set by Trio for prequalification for their programs. Trio's program has more flexibility on typical requirements for income verification, legal status and credit score. Once qualified, you will issue a letter to the consumer indicating the maximum payment/purchase price they can afford. The consumer will then identify and execute a purchase contract with a seller on a property that they qualify for. This contract must then be assigned to the Entity who will be the actual purchaser of the property.
Once the purchase assignment is signed by all parties, you will create 2 loans to the Government Entity to finance the purchase as well as create a file for the 40-year financing agreement to the consumer. You will make a 96.5% FHA 1st and a 1% Forgivable deferred 2nd to finance the purchase.
The FHA 1st and 40-year financing files are locked and delivered to Essex per standard procedures. The 2nd requires no registration or lock and is not delivered to Essex but reimbursed by IHFC through Trio post close. The FHA 1st is sold to Essex servicing released. This product will positively impact your company's Compare Ratio as the performance is 100% on time. Essex securitizes this product and is the master servicer as well.
PRODUCTS AND PROGRAMS
Link Loan Program Overview & Matrix
Link Loan Product Flow Chart
This is meant for business to business communication only and is subject to review and approval by the Correspondent's Compliance Department.
