Investment Property Financing for Investors

1 - 4 Unit Investor Financing, and 2nd home financing.

10+ Investment Properties are o.k.

1 - 4 Unit Financing (Typical Bank Loan Products)

Just for the Investor who purchases multiple properties and needs low interest rate financing for Purchase, or Refinancing (Rate and Term, or Cash-Out).

Mortgage interest rates and loan products overlap typical residential Home and Second Home Owner lending criteria

• Conforming fixed-rate mortgage / Term: 10, 15, 20, 25, and 30 years (full and alt. doc's)
• Conforming 30/7 Year Balloon Mortgage with a 23-Year Refinance Option
• Conforming 3/1, 5/1, 7/1, 10/1 ARMs
  
• Home Equity Options: 1st Lien HELOC & Fixed Rate 2nds
  
• Non-Conforming fixed-rate 80/20 Option (100% financing - conforming Loan Balance)
• Non-Conforming fixed-rate 80/20 Option (100% financing - non-conforming Loan Balance)
• Non-Conforming COFI, MTA, or LIBOR Pay-Option ARMs ($3,000,000 +)
• Non-Conforming 1 YEAR NO CONVERSION OPTION U.S. TREASURY SECURITIES to $1,500,000
  
• SUBPRIME PROGRAMS (Expanded Approval allows Borrowers with slightly impaired credit to obtain conventional financing with interest rates and costs that are less than those offered by the SubPrime market)

Investors are Typically Allowed:

• Non Owner Occupied Mortgages
• Multiple Properties
• No Minimum Loan Amount
• Prepayment Penalty/Reduced Rate Option: for 30-year term mortgages
  (can reduce typical lender fees)
• Temporary Buy-downs (restrictions may apply)
• Minimum Credit Score 620 (generally)
• Avoid Rent Loss Insurance (if income from subject investment property is not used to qualify the Investor)

Typical Eligible Properties

• Attached SFR's
• Detached SFR's
• Attached PUD's
• Detached PUD's
• Low-rise condos
• High-rise condos
• 2-4 units
• Manufactured homes (Restrictions Apply)
• Cooperatives (Restrictions may Apply)
• Log Cabin (Pending Lender)

LTV/CLTV:

N/O/O (Non Owner Occupied) range from 75% - 85% LTV

• Allowed only one late mortgage payment over last 12 mo. period
• 55% Debt Ratio (50% for SISA - Stated Income, Stated Assets)
• Have at least a 24 mo credit history and One Active Account within 12 mo.
• 24 months since Chap. 7, liquidation date and chap.13 filing date and no
• 120 day lates within this time period
• No adverse credit reported within 24 mo. greater than $5,000

• 75% SISA
• 80% Lite Doc
• 85% Limited Doc
• 85% Full Doc
  

Combo Options:

Below is based on Full Doc. Loans from National Lenders that have
Prime, B/C, and Subprime lending groups.
40% D/R (debt ratio)

• 80/10 mortgage with PRIME Lender (90% CLTV)
  • for a conforming 30 yr fixed investor occupant (NOO), and
  • Investor as property type (not primary residence or 2nd home for vacations).

Providing for One 30 day late... you qualify for best rates B/C but things get tight with rates for borrowers under 640 Credit Score ( 660 - 680 get best rates because borrowers with 700+ may be playing the bankruptcy game so reserves are typically up to 6mo. verifiable opposed to 2 months verified.)

• B/C Lender fixed 30 yr Investor 80/15 financing or 95% CLTV.
  45% - 55% D/R (debt ratio)
  
• Subprime Lenders (D/E) (exceeding B/C requirements)
  50% - 55% D/R (debt ratio)
  • Same as B/C CLTV (95%).
    
    

Notes:

LTV's may be overlooked for a borrower

• in same line of profession greater than 10 years (20yrs best)
• same employer 5 years or greater, or
• high (positive) net worth with 3x collateralized assets,
• demonstrated ability as investor
• or with over 720 score (all pending underwriter evaluation)
  

also note:

• Proof of 2 year rental management requirements is waived for 80% LTV and below.
• Scores between 680 and 720 or 80% LTV or less gives you a bonus with all lenders
  • the typical 6 mo. reserves are reduced to 2 mo. provided no unusual credit discrepancies exist. (Reserves can be liquid 401k, bonds etc...)

Ineligible Properties: Properties that are normally ineligible in all cases: Rural Property is defined as a property having a lot size greater than ten (10) acres. Restrictions apply if the property is equal to or less than ten (10) acres, but the appraisal identifies the property as rural. (non-prime lenders may disallow 5 acres)

Construction Modification: Generally Allowed with Owner-occupied only (not approved for all loans)

Energy Efficient Mortgages: Generally Allowed with Owner-occupied only (not approved for all loans)

Six (6) months Reserves typically required

Rental Management 2-year history usually verified if LTV is greater than 80% with Non Owner Occupied Properties

Rates for the investor are the same as for a first time home buyer and mortgage insurance is typically less, however, down-payments are typically 20% without creative financing.

Plus: Accelerated Appraisal Waiver Program.

Investment Lender Specials

1. Residential Construction Loan Program
2. Private Lender Options
3. Renovation Special
4. Construction / Perm One-Time Close
5. NonPrime Products 100% LTV
   Non-Owner Occupied 100% LTV
6. Land Only
7. 10+ properties are A.O.K. (no limitation lenders)

Also See See Fix-N-Flip for 1-19 unit investment financing

See our Commercial programs for non-fix and flip type investment property financing

and see the Commercial Glossary
 
 For Commercial Mortgage industry...
see our page on CMBS (Commercial Mortgage Backed Securities)
2nd mortgages not allowed...we show a way around this


see Mezzanine Loans ...for Commercial Mortgage Loan Financing
How to get a Junior Lien (similar to second mortgage)