Residential Warehouse Lending

Agency loans are mortgages backed by government-sponsored entities like Freddie Mac and Fannie Mae. These loans offer a variety of options with relatively lower risk, making them a popular choice for many homeowners.

Unlike agency loans, non-agency loans are not backed by government-sponsored entities. These loans offer greater flexibility in terms and conditions, allowing for unique solutions tailored to individual borrower circumstances.

Non-Qualified Mortgages (Non-QM) do not meet the Consumer Financial Protection Bureau's (CFPB) guidelines for a Qualified Mortgage. These loans types like DSCR, pledged assets, and more, cater to borrowers with unconventional income documentation, offering a more inclusive lending solution.

Government loans are backed by federal agencies such as the FHA, VA, or USDA. These loans often have lower down payment requirements and more lenient credit score guidelines, making homeownership more accessible to a wider demographic.

Jumbo loans exceed the maximum loan limits set by government-sponsored entities. They are designed to finance luxury properties and homes in highly competitive local real estate markets.

Super Jumbo Loans are for amounts that greatly exceed the standard Jumbo loan limits. These loans are typically used for high-value real estate transactions in affluent areas.

Axos Portfolio Loans allow us to offer innovative borrowing solutions outside the traditional lending scope. The bank retains these loans in its own portfolio, providing a more personalized borrowing experience.

Mortgage warehouse lending is a specific type of warehouse lending that provides temporary funds for mortgage bankers to cover the gap between issuing a mortgage to a home buyer and selling the mortgage on the secondary market.

Warehouse lines are credit facilities provided by financial institutions to mortgage bankers or lenders. These loans enable lenders to fund the mortgage loans they originate before selling them in the secondary market. Warehouse loans play a crucial role in ensuring a steady flow of mortgage funds, which ultimately benefits homebuyers by providing them access to mortgage financing.

Warehouse lines work by providing short-term financing to mortgage bankers or lenders. The lenders use these funds to originate mortgage loans and hold them in their warehouse facilities until they are sold to investors in the secondary market. Once the loans are sold, the proceeds are used to repay the warehouse loan.

Wet funding and dry funding are terms used in the context of real estate transactions, including mortgage lending. Wet funding refers to the practice of disbursing loan funds to the parties involved simultaneously with the loan closing. Dry funding, on the other hand, occurs when loan funds are disbursed after the loan closing, usually the next business day.

Warehouse lines are important for mortgage bankers or lenders, as they provide the necessary liquidity to fund mortgage loans before they are sold in the secondary market. These loans enable lenders to efficiently manage their cash flow, maintain a steady supply of mortgage funds, and support the overall functioning of the mortgage market.

Warehouse lending offers several benefits to mortgage bankers or lenders. It allows lenders to originate mortgage loans without tying up their own capital, as they can use the warehouse line of credit to fund the loans. Warehouse lending also provides flexibility in terms of loan origination and enables lenders to take advantage of market opportunities by quickly funding and selling loans. Additionally, warehouse lending helps to diversify funding sources.

To obtain a warehouse line of credit, a mortgage lender would typically need to submit a detailed application to a financial institution offering such services, like Axos Bank. The application process often involves a thorough review of the lender's financial stability, operational efficiency, and industry experience. Call 888-764-7080 to talk with the Axos Warehouse Lending team.

A Government-Sponsored Enterprise (or GSE) buys mortgage loans. Axos has relationships among GSEs, so contact us at 888-764-7080 to find the right fit.