I’m Here to Help You

  • Be clear.
  • Be specific.
  • Reduce uncertainty.
  • Speak to the most pressing need.
  • Keep running. You still have a long way to go.

No, I did not just come down off the mountain of some Tony Robbins motivational speech. No, I did not use the featureless timescape of shelter-in-place to read all of the self-help books heretofore exerting their gravitational force on my office’s shelves. Instead, I am recalling one long night in June of 2019.

Some of you know I dabble in the sport of ultramarathon. These are (usually) trail races that exceed a distance of 26.2 miles. The sport’s Super Bowl is the Western States Endurance Run. One hundred miles on foot, from Squaw Valley to Auburn, CA, mostly following the trail of the historic Tevis Cup horse ride. This might be a good place to remind readers that horses are generally not as bright as humans, but back to the story. You might be surprised to know that there are so many applicants for entry each year that, for most, a lottery provides the only remote shot at toeing the start line.

Like with many things in life, there are exceptions. Since it takes even trained ultra runners almost, if not more than, 24 hours to cover 100 rugged miles, let’s say you volunteer to pull an overnight shift at one of the aid stations that service the course? You might then be eligible for one of the few spots reserved for and assigned to aid station captains, to dole out at their discretion. Now, when I say “aid station” I don’t mean a folding table lined with cups of warm Gatorade. At “States,” we’re talking huge productions with food, medical, HAM radio operators, spectators and pacers. One, in particular and to which I had access through my running club, Tamalpa Runners, sits at “Rucky Chucky.” Here, at just under Mile 80, runners traverse the American River, sometimes by wading via guide rope or, in high-water years like 2019, they are shuttled across on rafts.

So it was that I found myself on “the Far Side.” There, on its sandy and overgrown bank, we would help runners out of the rafts, undo their life vests, and send most of them on their way up into the darkness of the summer night via headlamp. It was a surreal scene. At one point shortly after midnight, I found myself working alongside another volunteer. This individual, a young man who clearly had some first responder experience, stood prominently at the front of the line and enthusiastically directed the runners in a clear, loud voice as they clambered off the rafts in various states of exhaustion and quasi-delirium. Here’s a paraphrased smattering of what was hitting their ears:

  • “Runner 146, I am here for you. You are doing great. Come directly up and I will help you take off your life jacket!”
  • “Runner 318, I have been waiting for you. Keep up the great work! Look right at me. I will take care of everything for you.”
  • “You are looking great, Runner 212. I will assist you from here. Proceed to me, watch your step and don’t worry about anything else.”

I could not believe what I was hearing and experiencing. The comfort I — the guy who was NOT running — felt each time he directed an athlete in this manner was palpable. Ah, the sweet relief of not having to make another decision in my tired state! The reassurance the runners must have experienced in the dead of that night may have touched them for just an instant, but isn’t that what execution of all imposing tasks requires? They are almost always a series of individual moments where doubt must be quashed and the spark to continue must be ignited yet again, and again, and again.

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The 2020 Western States Endurance Run has been canceled due to COVID-19. There will be no race this June, no Rucky Chucky support crew, and my own dream to someday run will have to be postponed. But upon hearing the news of the cancellation, I recalled my experience volunteering. In this uncertain, weary, stressful time, I was encouraged to revisit my communication strategy with my clients and referral partners. Am I clear? Do I project certainty, optimism and offer a beacon of help? Do I help eliminate the stress of unnecessary choices and do I help get them on their way to their own success, even if my role will not necessarily be remembered in the chaos of all else going on? We, in many of our professional roles, are ultimately in a service business. How we go about assisting others in the toughest of times, in the dark of night, when we least feel like doing it, says the most about what we’re made of and who we really are. And that…that can never be canceled.

One day, 100 miles,

 

Rob Spinosa
Vice President of Mortgage Lending
Guaranteed Rate
NMLS: 22343
Cell/Text: 415-367-5959
rob.spinosa@rate.com

Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283

The Yin and Yang of Mortgages for Business Owners

It is no secret that the self-employed have their share of challenges when it comes to getting a home loan. And why wouldn’t they? On one hand, their tax professionals spend hours maximizing their deductions and helping them “write off” every allowable expense and on the other hand, their mortgage loan advisor tells them they have to show more income in order to qualify.

But can these seemingly opposite or contrary objectives actually be complementary, interconnected and interdependent and come together to allow a business owner to get a great mortgage?  Is there a yin and yang relationship somewhere in this puzzle?

Indeed, there may be a solution for some of these borrowers. On both the purchase and refinance side, we have a jumbo mortgage program that allows the self-employed to qualify with bank statements instead of tax return income. We’ll look at 12 months of business and personal bank statements but we won’t request pay stubs, W-2 forms or personal or business tax returns. Here are the key points:

Who is Eligible for a Bank Statement Mortgage?

This program is a match for the self-employed business owner with two-year history of operating the sole proprietorship, LLC, S-Corp or C-Corp. We prefer to see 100% ownership of the business but we can make some exceptions to this guideline. We do not allow any major derogatory events (bankruptcy, foreclosure, short sale, etc.) within the last five years. Realtors, independent contractors and other professionals who receive a 1099 are also ideal candidates for this bank statement loan.

How Does a Bank Statement Mortgage Work?

We’re next going to look at 12 months’ worth of business bank statements and we’re going to get a sense of the business deposits over that period of time. We’ll apply a 50% expense ratio to derive our qualifying income. So, for example, if the business shows $40K of monthly deposits on average, our business owner and borrower now has $20K per month of qualifying income. Simple as that, except we exclude any windfall deposits, transfers to and from accounts or anything other than legitimate business deposits.

What Else Do I Need to Know?

We will permit all occupancy types (primary, vacation and rentals) and we’ll allow loan-to-values (LTV) up to 75%. Interest-only payment options exist and our maximum debt-to-income (DTI) ratio is 47%, because this is a non-QM program. Simply, you have more flexibility under these guidelines than under the stricter qualifying parameters of a qualified mortgage (QM). Best of all, and worth repeating, we will not request your tax returns and we don’t need to see a profit and loss (P&L) statement for the business — the bank statements are our path to inner peace and harmony.

Bank statement qualification mortgages can open the door for the hard working business owner who has heretofore had little luck getting a hefty mortgage payment to fit into his skinny tax returns. If you’d like to know more about this program today, get your ticket at the station, get in touch and I’ll be happy to help.

Confucius say, 

 

Robert J. Spinosa
Vice President of Mortgage Lending
Guaranteed Rate
NMLS: 22343
Cell/Text: 415-367-5959
rob.spinosa@rate.com

Marin Office: 324 Sir Francis Drake Blvd., San Anselmo, CA 94960
Berkeley Office: 1400 Shattuck Ave., Suite 1, Berkeley, CA 94709

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate. In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283