A MESSAGE TO MORTGAGE PROFESSIONALS

Over the last couple of years, tightening of mortgage lending rules and regulations have increased the challenges to mortgage brokers and, probably negatively affected your income. Some of the changes you are most familiar with include:

  • Lenders rejecting applicants that would previously have been approved.
  • Lenders not willing to renew mortgages or provide refinancing.
  • Increasing the minimum amount of down payment.
  • Reverting to a maximum of 25 years amortization.
  • Qualification based on 5-year fixed rates.

WHO WE ARE

Grand River REI Inc. is a real estate investment company whose target niche is Residential Lease Purchase (frequently referred to as Rent-to-Own). We currently have a portfolio of more than twenty properties which we are diligently seeking to increase.

Grand River REI Inc. may provide a way for you to still get financial benefit for the efforts you have expended on behalf of clients who been turned down due to some of the reasons listed above. We offer an opportunity for such clients, who meet our qualification criteria, to participate in our Residential Lease Purchase (RLP) program. They can then find a home of their choosing, and earn you the income you would have earned had they been able to get a mortgage through your efforts.

Helping Hands Transparent

We see great potential to work with experienced Brokers and Agents by helping families achieve home ownership that are turned down by traditional lenders.

  • A remedy for individuals with poor credit or those whom would like to refinance and have been turned down by lenders.
  • Carefully planned budgeting, debt resolution and credit improvement for our clients.
  • Earn immediate referral fees and broker the mortgage after the RLP Program.(1-4 years)
  • Our clients build equity in the home to help mitigate the risk of a negative market shift in housing.

WE ARE READY TO REVIEW AND QUALIFY CURRENT HOMEOWNERS WHO ARE

  • facing a Power of Sale or foreclosure, or
  • who will have difficulty getting a mortgage renewal or refinancing at the end of their term.
In such cases, these home owners must have a minimum of 10% equity between the appraised value of their home and the amount required to discharge their current property obligations. Our solution may offer assistance to help them remain in their current home.
Should you have clients with whom you have worked diligently and who, from your perspective, should have been granted a mortgage but were not, with their permission, refer them to us. We are seeking prospects who, at minimum:
  • Are ready to buy their own home, or want to remain in their current one.
  • Have a serious commitment to doing what is financially necessary to do so.
  • The main income earner has an annual minimum gross income of $60,000.
  • Have a deposit of at least 5% of the affordable home they are seeking.
  • Are looking for a property not exceeding 3.5 times their annual gross income.
  • Can qualify for conventional mortgage financing in less than 5 years.
This may include individuals who are self-employed, poor credit or no credit, new to the country, have little time remaining on discharge from bankruptcy, consumer proposal, or pre-foreclosure
We believe each situation is sufficiently different to warrant its own tailored solution. For example, in the case of a current home owner with sufficient equity, it may be possible to extract some of that equity to eliminate existing high interest obligations that may have caused the potential loss of the property. Similarly, with sufficient equity, it may be realistic to significantly reduce housing payments to be more in line with income.

Grand River will undertake extensive due diligence to qualify such referrals within our program; the key criteria are:

  • Stable income – a minimum of $60,000 annually for the main income generator.
  • GDS ratio of 30% – some flexibility to 32% can be considered.
  • TDS ratio of 38% – again some flexibility to 40% may be considered.
  • Commitment to a credit improvement strategy.
  • Minimum of at least 10% equity if already a home owner.
Monthly housing cost
Based on the above GDS/TDS ratios, Grand River will strive to ensure the clients’ monthly housing costs do not exceed their income based ratios. For example, for someone earning $85,000./year, or about $7,085./month, we would target monthly housing costs at about $2,125.

Grand River offers mortgage brokers another opportunity to earn referral fees. Since our business model is fueled by joint venture funding, as well as providers of secondary financing, we also welcome referrals of individuals seeking better returns than those available from conventional sources such as T-bills, GIC’s, etc.

Mortgage brokers who can provide such referrals can earn fees averaging 2% of the amount invested – some minor adjustments are made in the percentage as a function of the amount. Once the individual referred to Grand River has worked out an arrangement and provided us the funds to be applied to property acquisitions. These fees are payable immediately.

SUMMARY

Should the opportunity to earn referral fees from Grand River by providing us with solid prospects who need a home, or those seeking better investment returns, be of interest please give us a call at 289.442.3560, or email us at [email protected]. We will be happy to work with you and help you recapture foregone income!

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