B-Lenders are an approach that can be used for the short term to get into something that you really want and your income is going to improve in the near future. The Idea is to have a plan to get into or graduate into mainstream “A lending in the near future”
There are several unique lenders and programs allowing more flexibility outside the standard lending allowing for a larger purchase price
Key highlights will include:
No Stress Test to prequalify
Amortization period up to 45 years
Interest only payments
Pure Equity Deals, no income docs required for pre qualification
Higher Total Debt Servicing or higher allowable overall debt
Of course each individual circumstance is reviewed on its merits
At the time of this post, the 1 year and 2 year fixed rates were only .5% and .6% above a 5 year fixed rate.
With B lending there is a 1% upfront fee that is paid so using such an approach has to make sense.
Allows you to get into something sooner and stop paying rent
Allows you to get your dream home now
Allows you to hold on to a pre-sale or an investment you really wanted
Allows you to get in to a single family dwelling sooner skipping the step of a townhouse along with all the fees associated with an extra sale and purchase
Purchase a 2nd property to flip with less income