PROGRAMS FOR REAL ESTATE INVESTORS
Experienced real estate investors have different needs than most borrowers.
The purpose of the specialty loans we offer is to help property investors access capital to purchase properties without loan contingenciesfinance rehab or fix and flip opportunitiesmaximize cash flow and tap equity for improvements or acquisitions. More experienced investors may wish to foray into development opportunities or spec houses for maximum returns.
DIFFERENT TYPES OF FINANCING AVAILABLE FOR INVESTORS:
Featured Product: DSCR Loans/Debt Service Coverage Ratio (Rental Cash Flow/Investor Advantage Loans): ARMs, Fixed, and interest only available, can qualify with interest only payment. 30 year term.
*Excellent alternative to hard money or for payoff of hard money on properties to be kept as rentals with lower points and lower rates than hard money. As long as rents cover expenses, loan can be approved.
These loans are for non owner occupied properties ONLY and cash out may only be used for business purposes. They treat the property being financed as a standalone entity, and use ONLY rents from the property being financed to qualify for the mortgage. Negative cash flow can even be allowed at a slightly higher rate. All personal income and liabilities are ignored, although verification of on-time mortgage payments is performed during underwriting. This is an excellent option for investors with multiple properties, little documented income, 1031 exchanges, or anyone wishing to purchase or refinance with minimal income verification. Prepayment penalties are optional, but worth considering as they can lower the rate substantially vs. waiving the prepayment penalty.
Full documentation "agency" or regular "jumbo" loans ARMs, Fixed. 15, 20, 30 year term most common.
Qualify by providing tax returns, proof of credit, income and assets, and meeting strict debt-to-income requirements. These are the loans offered by most big banks: they have some of the lowest rates, but they require the most documentation and the most aggressively priced products will require monthly payment of principal and interest. High write-offs or low new taxable rental income can make it difficult to qualify for investors with multiple properties or properties under development.
Portfolio/Nonconforming/Jumbo loans, ARMs, Fixed, and interest only available. 30 year term.
Similar to full doc loans, but with some flexibility for credit and income anomalies. These loans are usually provided through a local bank who partners with mortgage brokers. Good rates are available to well qualified borrowers and interest only options can improve monthly operating cash flow.
Fix N Flip, Spec House Construction.
For construction loans where an after renovation value is used, the borrower must provide a summary of experience, detailed budget to renovate, timeline, and approximate after renovation value. Funds for construction loans must be held in an escrow account and allocated to the contractor as work is completed. The loan amount must be sufficient to finish the entire project. Renovation loans usually require the borrower have experience with prior rehabs or fix & flip projects. Most of our fix & flip loans require 25% down minimum.
If you are seeking a Fannie Mae HomeStyle Renovation Loan or FHA 203k loan, we recommend you work with a large national lender who specializes in low downpayment construction or rehab loans.
Are you in the middle of a project and need additional funds to complete your project? We can do this with a construction completion loan. Typically if the property is in unfinished condition/mid-construction, we must use more than one property as collateral to protect our lender/investor. Funds for construction completion must be adequate to complete the project to final occupancy standard, and will be held in a construction account, with draws of funds direct to contractor until the project is complete.
Bridge Loans, Private Money Loans & Hard Money, Short Term, Interest Only payments with balloon payment at 11-36 months.
Private money loans are the true acrobats of the lending world. Non owner occupied or business purpose cash out, 1st position, 2nd position, even 3rd position when enough equity is present. NO income documentation is used to qualify. These loans are made based on the value of the property or multiple properties being used as collateral for the loan. More than one property may be used as collateral to increase borrowing power, making it possible to borrow 100% of a purchase price. Even properties not owned by the borrower can be used as collateral, as long as the property owner agrees to the lien on their property.
Loan amounts are typically up to 70-75% of the value of all properties added together, minus any existing mortgages on them.