I was wondering if anyone has heard of a ( no-doc) loan? It was mentioned at a seminar , it was the first time ever heard of it. I am new to this game and would appreciate any advice. Thank you
Howdy Leverage:
No-doc loans are loans where the borrower has little or no documents. For example if they own rent property they need not provide copies of leases. If you have 100 or so properties it can get crazy just applying for a loan. Some are no-doc and some are low doc and each program is different and you usually pay a higher rate for the lenders extra risk. I am sure they are no interested in saving trees by reducing the documents.
There are also no income verification loans if self employed also at a higher rate.
Hope this helps
Leverage,
I’ve done 2 no-doc loans in the last year, and am in the process of doing a third. The first was for my “interim” res (which I occupied, rehabed and sold in less than 12 months), the second was for my permanent res, and the third is for a non-owner occupied that I will rehab and sell. My loans are credit score driven, low 700s I think, and non-conforming. I do not have to provide any documentation re employment, income sources/amounts, or assets. My lender calls it a “ninja”…no income, no job, no assets. :
I do, however, provide the the lender with an estimate of the value of my RE holdings, which I suspect seals the deal. Since I’m in and out in less than a year, I don’t worry about int rates, though I’m much better off than with either PIs or HMLs.
LofL,
TDH
No doc loans generaly have to worst rate. Try to avoid it at all costs. If thats your only option buy, buy, buy.
NO DOC Loans are an awesome way of getting loans if you have limited time on a job or you don’t want to verify any thing
If you are self employed or been employed but dont make enough money or have enough assets you might be better to get a Stated Stated loan. With this loan you typically get a better interest rate and Loan to Value.
You don’t have to do no doc unless you have no other chose. It has high rate but you provide little or no documents unlike full doc or stated. Just like the word, no documents. But have prove you can repay
No doc loans are Awesome if they are you only and last choice of getting a loan.
They have their fair share of draw backs through higher rate, Lower LTV which mean you have to tie up more of your money for a down payment, and because of the first two reason may make the deal not a deal at all (interest rate to high for possitive cash flow)
Stated income and stated assets as well as no income and no assets are also available in small commercial loans as well. There are awsome programs with low leverage, which I am utilizing often. Increased my net worth four fold in twelve months.
How do you find out in what instances the no doc loans can be used?
Also very confused.
AVOID IT AT ALL COST WHAAAT? NO WAY, GO FOR IT AT ALL COST !!!
What are you talking about, You obviously do not understand investing and leveraging money like OPM
No Doc loans are a good option to HML and can be just as fast as some HML too!
Yes they do have high interest rates but not as high as HML and
NO Doc loans are HIGHER LTV then HML too.
I tell all investors USE ALL OPM you can find as long as the terms and the NUMBERS work!!!
No Docs are a great tool if your situation calls for it. If you cant or dont want to provide income, asset, or employment information. If you have good credit and large down( or a partner who provides the down) you can get rates close to full documentation. In fact , with a 30% downs, you can get the same rate as full documentation. Just get a partner or line of credit to provide the down and close the deal!
You go to a mortgage broker that understands what you are working on like a loan broker that invests and does just investors loans.
Also, just ask questions we are licensed professionals and we need to be utilised more for questions and answers just like you would use your CPA or financial advisors.(just don’t abuse it and not do a loan with them we work on commision unlike a CPA or other advisors that are paid via time.)
I tell my clients that your mortgage broker is one of the most important people in your team because they get you to the money whether you are buying or selling !!!
whats your opinion on no money down loans? can you do a no doc on that? esp with a credit score of about 650? or even 550?
I just got a person who has alot of apartment notes for sale, I would like to buy some that will have high profit margins or positive cash flow.
Just curious but whats the average mortgage loan on a full 64 unit apartment? via lets say, that 64 unit pays about 750 a month in positive cash flow and worth about 1.5 M?
would the mortgage payments be too high to invest?
Can’t you buy two properties at the same time and get the first property by refinancing it with no money down and use the first property as a down payment on the second property?
Most tell me that investment property loans are NEVER no money down.
How do you people do it??? ???
I want to invest but know that three things will tie almost any property up.
Title, appraisal, and insurance, that most hard money lenders want first, before they talk terms.
Can’t you roll that stuff into all of it? with the taxes and points and while your on a roll, throw in the closing? (fees) retainers or points???
I can’t wait to get an income property, does anyone know where they are for sale?
and how can you buy land for $47… dollars, does anyone know average tax rate per month for about 100 acres of land?
:-\seasoned investor
whats your opinion on no money down loans? can you do a no doc on that? esp with a credit score of about 650? or even 550?
Well No doc loans are considered the highest risk of all loans thus, because of that risk most lenders want the highest credit score usually around 680 and there are a few that go down to 620.
550 score would be too low for a no doc loan but you could do other creative no money down 100% cltv with that score.
see for expample this thread.
http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=4002
just got a person who has alot of apartment notes for sale, I would like to buy some that will have high profit margins or positive cash flow.
When you buy notes just know what you are doing and you must do your due dillegence. This can be a good cash flow.
Just curious but whats the average mortgage loan on a full 64 unit apartment? via lets say, that 64 unit pays about 750 a month in positive cash flow and worth about 1.5 M?
This is not enough info for me to give you any intelligent answer.
would the mortgage payments be too high to invest?
Can’t you buy two properties at the same time and get the first property by refinancing it with no money down and use the first property as a down payment on the second property?
Yes, It is called Cross Collateralizing usually done in the commerial realm and not in the residential lending arena
when it comes to getting bank loans
You can cross collateralize when you are doing seller financing or private financing and other creative ideas in the residential arena when you are not using bank loans,
Most tell me that investment property loans are NEVER no money down.
This is FALSE you can get NOO homes with no money down again refer to the thread mentioned above.
How do you people do it???
See my thread as an example mentioned above
I want to invest but know that three things will tie almost any property up.
Title, appraisal, and insurance, that most hard money lenders want first, before they talk terms.
Can’t you roll that stuff into all of it? with the taxes and points and while your on a roll, throw in the closing? (fees) retainers or points???
[color=Teal]Yes with some hard money lenders you can and with some banks they will alow the seller to pay for these it just in how you structure the deal[/color
]I can’t wait to get an income property, does anyone know where they are for sale?
EVERY WHERE in EVERY STATE and EVERY CITY
and how can you buy land for $47… dollars, does anyone know average tax rate per month for about 100 acres of land?
Well how about seller financing for a start.
I will need all the details on this for me to give you more advise.
Like is it for cattle or to build residential homes on?
Or are you going to build a Big mall with a big parking lot?
No Doc loans are for Investors.
I am moving one buyer through 14 sales contracts with no documentation… all loan amounts 80k-200k. in IOWA.
I just closed 1.5 million no doc 90%CLTV with 10% down TEXAS property.
If you can’t go no doc; you might try stated income/ verified assets… Another deal I just closed, 2.6 million California Property.