Investment Loans

Use a mortgage consultant who specializes in investment loans. Here's the details on max property info. Let me know if you'd like my help. After residential loans are originated, most are sold off on the secondary market to Fannie Mae and Freddie Mac. This includes loans originated by brokers through wholesale lenders or retail branches of large banks. Fannie Mae and Freddie Mac set guidelines which the lenders must conform to if they plan on selling of their loans (thus you get "conforming loans"). Part of the guidelines restrict clients from owning more than 10 financed 1-4 unit properties. These are the loans that offer the most attractive rates. Although the guidelines allow for up to 10 properties, many lenders will cap their own exposure to 4. Using several lenders may be required to reach your first 10. If you need high ltv financing or have gone over the "10" limit then there are portfolio/alt-a loans offered by those same lenders. AltA loans are not sold off to Fannie or Freddie on the secondary market, instead, they are sold off to other wallstreet investors who have set their own lending guidelines. These are not subprime loans which are typically reserved for credit challenged borrowers. Alt A rates are slightly higher than conforming loans but still will allow for great cash flow. There are a handful of lenders that will allow you to own an unlimited amount of properties and have no maximum that they will do themselves. For AltA products you'll need a minimum of 620, higher if you need high ltv or reduced documentation.

If this is an owner occupied property, then this should not be complicated. Those loans are easily run through an automated underwriting system. However, if this in an investment property then your options tighten up. Most lenders will need you to have at least 6 months of reserves (1 month of reserves = 1 month of principal, interest, taxes, and insurance) verifiable. Those funds need to have been in that account over the last 2 months. In addition most lenders will require that you have a solid 2 year history of employment. An exception would be if you just graduated from college and have been working in the field in which you hold your degree. So this narrows down your options to a NO DOC loan. This means that no employment, no income, and no assets are disclosed on the application so nothing needs to be verified. Your over all credit, not just the score, will play a huge factor on whether or not this program is something that can be done. There are several other questions that need to be addressed before determining if a loan is available.

Actually, you can do a lot better than Brookview. They need a 690 to get 100% financing plus you have to show income/asset statements. For the terms they have, you can do a lot better with a lender that is not score driven or looking for verifications on financials. 70% arv and the rehab money, costs, and payments are all rolled in.

As previously mentioned, there are several lenders that still offer 100% financing. With your score you should be able to qualify for a stated or no ratio loan. This means that you have to have at least a 2 years solid work history and at least 6 months of reserves. 1 month of piti (principal interest taxes insurance) = 1 month of reserves. Those funds have to have been in your account for at least 2 months. One of the biggest issues that comes up with high ltv financing is when a lender sees a negative cashflow. After calculating the vacancy factor, mortgage, and expenses...the rent may not be sufficient enough to qualify. This is due to the higher rates as already mentioned. If you're buying the property substantially below market value then you may be ok. These are the types of deals that mortgage consultants specialing in investment loans handle.

Immediately if you scores are high enough. What is your middle credit score? Value? How much in current loans and how much cash on top? How long on your job? How much in the bank thats been there for 2 months?