Wholesale Program Changes

IndyMac Bank Home Construction Lending is one of a small number of national lenders to launch a rate and term refinance lot loan program — enabling additional time to plan home construction, parent IndyMac Bank announced. Loans up to $1 million can be used for the purchase of land to build a primary residence or vacation home for borrowers with credit scores as low as 660.

Among the loan’s features is the availability of stated income, as little as 6 months PITI Reserves and debt-to-income ratios up to 45 percent, according to IndyMac’s Web site. Among the options available are a 30/5 LIBOR ARM and 30/5 MAT ARM, both of which have a 5-year interest only period, a 30/2 Fixed Rate in which the 2-year period is interest only, and 30/2 Fixed Rate Balloon, according to the site.

A one-time close, construction-to-permanent loan transitions to a pre-approved permanent mortgage without any additional costs or closing documents required.

In February 2006, Countrywide Home Loans Inc. introduced a lot loan program for purchases of properties intended to be owner-occupied or used as second homes. In qualifying for a lot loan, borrowers could also obtain financing for construction of the home and purchase of the completed home. The loan had a two-year term with a one-time, optional six- or 12-month extension. The adjustable rate mortgages are based on the prime rate and require interest-only payments.

Meanwhile, BrooksAmerica Mortgage Corp. announced it now allows 60 percent debt-to-income ratio for alternative and niche loans of up to $1 million on alternative solutions and niche products. The direct wholesale lender’s new program offers a six-month prepay option and is available to loan prospects who have credit scores of at least 640.

Previously unqualified prospects may now qualify under the new program, BrooksAmerica President Tricia Bailey said in the announcement.

Brokers have until the close of business Thursday to lock stand alone home equity line-of-credit loans in process for American Brokers Conduit, according to a message sent to brokers.

The wholesale unit of American Home Mortgage Investment Corp. will stop offering the stand alone HELOCs as of Friday, but will continue to purchase HELOCs as part of a combination loan where both the first and second loan is funded with the company.

“We appreciate your continued business,” the message read.