Once dubbed the Crypto Capital, Miami continues to attract wealthy homebuyers whose income streams aren’t reflected on a W-2.
These non-traditional buyers often boast healthy net worths and an appetite for residential real estate. However, when a buyer is a crypto investor, an OnlyFans creator or a foreign national, navigating the lending process can be difficult. That’s why an increasing number of non-traditional borrowers are turning to Cornerstone First Mortgage, a national lender built from the ground up to service these non-traditional borrowers. TRD spoke with the Cornerstone team for an inside look at how they’re helping the next wave of entrepreneurs become homeowners.
The Miami appeal
Thanks to the lack of personal income tax, Florida is the number one state for self-employed borrowers, according to Emmanuel Fajardo, National Manager at Cornerstone First Mortgage. Many of those borrowers are drawn to Miami for its lifestyle and real estate opportunities. Fajardo also notes an influx of foreign buyers to the Miami market from countries such as Colombia and Bolivia.
However, these eager borrowers can encounter issues as they attempt to secure financing.
“Traditionally, they will go to a bank, and the bank does not understand the structure of their business,” says Fajardo. “Then they get denied, and they get discouraged.”
That’s when Cornerstone First Mortgage can step in to help borrowers understand their options.
“I think that the information about this type of financing is not out there and people are just not educated well yet,” he says. “We give that education.”
While traditional lenders are slowly catching on to the opportunities non-traditional borrowers present, Cornerstone First Mortgage has a well-established track record serving this population.
“We were actually one of the first to enter into that market after the crash,” says Sean Cahan, President of Cornerstone First Mortgage. “We did our first bank statement loan in 2015. While most companies just recently, in the past three years, started dipping their toes into it, I jumped in with both feet right away.”
Tailored lending solutions
With over 500 loan programs available, Cornerstone First Mortgage can find the right fit for each client no matter their situation.
“I have buyers who have their money in a crypto wallet, and they’re not going to take it out until the day of the closing. And the problem is that the crypto wallet doesn’t show their name,” says Fajardo. “We have a program where we’ll ask you for a screenshot to verify the money. That’s another thing that not a lot of lenders take.”
For YouTube stars, OnlyFans creators and other entrepreneurs, Cornerstone First Mortgage offers programs that use 1099s and bank statements to verify income, rather than W-2s and tax statements.
“We go into a very in-depth interview to find out exactly what type of business it is and how the money comes in,” says Fajardo, adding that the company also has a program for businesses that receive large deposits of cash.
Sandra Priscal, a Sales Manager at Cornerstone First Mortgage specializing in new construction condominiums, says that foreign national borrowers gravitate toward the company. In fact, these borrowers account for 80% of her business.
“What we want to tell people, especially the foreign nationals, is that the process is simple,” says Priscal. “They just need a CPA letter and to show me money, a passport or a visa, and sometimes they don’t even have to come to closing. We can do a remote closing.”
But what truly sets Cornerstone First Mortgage apart is its lending power.
“We’re selling to 32 different investors. The average bank our size only has five or six,” says Cahan.
So, while a borrower might have to start from scratch if a loan falls through with a traditional bank, Cahan designed Cornerstone First Mortgage to be more flexible.
“I hold all delegated underwriting authority,” he says. “You don’t have to start over. Cornerstone is known for making the impossible possible.”
This structure also enables Cahan and his team to manage large volumes of loans and support developers.
“The great thing about the way that I’m structured for the loan officer, for the broker, and for the developer is that I don’t have any concentration issues,” says Cahan. “I will fund them all.”
A reputation for excellence
In addition to the company’s deep knowledge of programs to help borrowers with unique financial situations or occupations, Cornerstone First Mortgage is also an expert on the Miami market and its specific challenges.
For Andres Asion, a real estate broker who frequently works with Cornerstone First Mortgage, that level of knowledge makes the company an invaluable partner.
“Cornerstone is an expert in making sure that the buildings get pre-qualified prior to anyone closing,” says Asion, who emphasizes that the company has a strong reputation with developers, contract administrators and closing coordinators for their smooth process. “They know that [Cornerstone] is going to get the job done.”
Industry insiders can learn more about Cornerstone’s approach by stopping by the company’s booth at The Real Deal Miami Forum, November 5-6, at Mana Wynwood.
When we asked Fajardo what Cornerstone had up its sleeve for their booth, he wouldn’t spoil the surprise but hinted, “It’s gonna be the center of attention, for sure.”
To find out more about Cornerstone First Mortgage’s programs, visit cfmtg.com.