Verus Mortgage Capital Expands Investor Solutions and Renovation Loan Program

Washington, D.C. – June 6, 2019 – Verus Mortgage Capital (VMC), a full-service correspondent investor offering residential non-QM, investor rental and fix-and-flip loan programs, has announced updates to its short-term business purpose that will simplify processes for lenders substantially.

Verus’ expanded RTL program has several new benefits:

  • Clarity for lenders on what the exact upfront loan (Day 1 as-is LTB) amount will be without any complex loan to cost metrics
  • Up to 100% financing for construction costs up to the properties as repaired value (ARV)limit
  • Financing available for ground-up construction projects up to 18 months
  • Bridge loan programs available
  • Longer term rental take out loans based upon property debt service (DSCR) program up to 30-year loans

“Our simplified programs make it easier for lenders to do business with us,” says Ketan Parekh, Managing Director at Verus. “We now offer an easier to understand credit box review without changing the risk tolerance of our loans.”

 

For example, a highly experienced borrower with good credit score can get 85% financing on their purchase (if purchase price is 100,000 then initial loan would be 85,000. If the after-repair value of a fix-and-flip property is $200,000, Verus will finance a total loan of $150,000 leaving up to $65,000 in financeable construction costs.

“We also buy loans in bulk or one at a time,” Parekh adds, “thus enabling us to serve lenders large and small.”

About Verus Mortgage Capital

Founded in 2015, Verus Mortgage Capital (VMC) is a non-QM correspondent investor backed by Invictus Capital Partners, a leading investment firm. VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-agency market. It offers correspondent lenders a wide range of home financing products for creditworthy borrowers.

The Washington, D.C.-based company, with operations located in Minneapolis, has purchased in excess of $5 billion in expanded, non-agency loans since its inception. In addition, through its affiliates, VMC has completed 11 rated securitizations. Mortgage bankers can learn more about VMC’s investor products by visiting www.verusmc.com.

###

 

Are declined conventional/agency loan applicants eligible for a non-qm loan?

While the lower interest rates have been a surprise for mortgage lenders, there are still borrowers who do not qualify for conventional loans through the agencies (Fannie Mae/Freddie Mac). But are these prospective borrowers just out of luck or is there a responsible alternative for these creditworthy applicants? Let’s examine two common situations: Self-Employed –Read More

What exactly is Non-QM and what should I look for in an investor partner?

Conference season is upon us and it is expected that non-QM will be one of the hottest topics at shows. The non-QM market is likely to grow by as much as 400% during 2019, a year in which overall originations were predicted to be flat, highlighting their necessity in the current market environment. When scoresRead More

Uniform Residential Loan Applications Delayed and Will Not Begin July 1, 2019

At the direction of the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) are communicating that the optional use period for the redesigned Uniform Residential Loan Application (URLA) form and corresponding datasets will not begin on July 1, 2019 as previously scheduled. Download pdf version.

comment-alt-dotsflipgeometric-patternmoreverus-logoverus-mverus-v-purple-bgverus-v-purple-bgverus-vverus-v-red-bgverus-v