Investor mortgage products: are these loans dead?

Financing, Hard Money Lenders, Private Money
1

Does anyone have market knowledge to say whether this animal can be reasonably found in today’s market?

  1. LTV 90% (fixed rate for at least a few years)
  2. No cash out
  3. Credit score 680+
  4. No or low-doc
  5. SFH rental currently not occupied

Does this exist? If so, for whom?

2

Paul,

All of those products currently exist, but they may not exist concurrently. For example I don’t think you will find a 90% No Doc but you can certainly find 90% and you can certainly find low/no doc. You will need to contact your broker to find you these products though. Hope this helps.

3

Find yourself a good broker as available programs, parameters and Lenders are literally changing everyday. Find someone that is well versed in investment financing.

4

Yes a 90% no doc investor loan is available, and of course a 90% stated… both with a 660fico minimum. Pricing will be quite high though.

5

Paul,

Several quetions immediatley come to mind.

  1. What type of documentation do you really require? I’d assume from your past post that you have done deals. What doc type was done under those tranactions. Remember to that reduced doc loans will be scrutinized even more by lenders now. You dont want to get caught up in anything fraudulent.

  2. How long have you owned the property? The vacancy makes me think that this may have been a recent rehab that you finished up. If owership time is short then you may run into seaoning issue. Most likely not as your only needing rate/term, but your broker needs to be cautious as even these guidelines may change.

  3. How many properties do you own that are financed?

Just some basic options I noticed still out there. There’s only 1 lender out there doing no doc, stated you may havemore options.

No Doc at 80/10% with 660
No Doc at 90% with 700

Problems you’ll run into with this lender is the ownership time you’ve had all your properties and also the cash flow of the property. The lender will determine the cash flow based upon the operating income statement. If negative, you must have owned the property for at least 12 months.

Rates on anthing up to 90% for NOO may be a bit more than your expecting. Also expect that the lender will have discount points due just to even get a rate with them.

6

Not mentioned, but just as critical to # of properties owned/mortgaged & title seasoning is cash reserves required—you can expect to asked to have between 6-12 months in reserves…

There are NIVA, No Ratio and a variety Stated programs available to 90 LTV.

Regards,

Scott Miller