I own an investment property in Ohio that currently appraises in the 30-40k range. Would like to see it renovated and get a tenant into it. I would prefer a long term lender but am willing to go short term if needed. Does anyone know of a lender out there that would finance an investment property such as this?
You should not have a problem getting this done as long as you are going full doc. Ohio recently passed legislation that does not allow for any stated or no doc loans.
Could you point us to a website where we can read more about these changes in Ohio? Is this for investment properties only or all property types?
Do a search on Ohio Senate Bill 185. Basically what it says is that stated, no doc, and no ratio products originated by non-bank entities in the state of Ohio cannot be included in securitized pools. I know one of the loan officers who participates in thise forum is from Ohio so hopefully he will read this and be able to shed more light on the subject.
This is being matched on the lender side as well; i.e. Wells Fargo pulled the plug on low and no doc in OH 6-7 weeks ago.
It says non-banking institutions. Any idea why Wells pulled the plug?
For the same reason why lenders pulled out of GA, MD (until the laws were overturned) and now OH; politics and lending don’t mix well.
Here is a cut and paste for the message I have:
Stated Income, No Ratio and No Doc Loans Discontinued in the State of Ohio
[i]Recent action by investors in mortgage-backed securities in response to the recently enacted Ohio Senate Bill 185 suggests that certain mortgage products originated in Ohio by non-bank entities may not be acceptable for inclusion in securitization pools. In response to this liquidity concern, effective today, February 26, 2007, at 5:00 p.m. Central Time, Wells Fargo will no longer accept reduced documentation loans secured by properties located in Ohio, as outlined below.
Wells Fargo will no longer accept stated income, no ratio and no doc loans for all programs and products for properties located in Ohio including those submitted through Direct ExpressSM. This applies to borrower selected and system selected loans. These include, but are not limited to:
• Wells Fargo Mortgage ExpressSM
• Limited Doc/VOA
• Stated Income/Stated Asset
• No Ratio with VOA Option
• No Doc
• LP “Accept Plus” doc class
• DU Findings not requiring verification of income
Regardless of the documentation requirements of the DU/LP findings, income and asset verification is required on all loans.[/i]