Mortgage Investor Report 6 23 2020
Conforming rates are hot, and underwriting is loosening up.
What are other current options available for investors?
Most of these type loans are slowly coming back. Lets hope there is not another countrywide closure so they stay around.
We all need options.
Non-conventional loans for investors.
If you are an investor and your taxes don’t allow you to obtain a traditional standard conventional loan or any loan that requires returns, what do you do?
Look for the two most frequently used options for investors:
- Bank statement programs. These loans base your income on the last 12 to 24 months of personal or business banks statements. Simply put they add up your deposits each month and average them over the number of months. This will be the income they use for your qualifying for the mortgage.
- Rates are 2 to 3 points higher than a conforming loan
- The higher the credit score the better the rate
- The lower the loan to value the better the rate
- Cash out vs rate and term is 5% lower for cash out
- Investor cash flow. These loans use lease payments for the income. They require a minimum of your lease payment covering all your monthly costs for the rental. This includes mortgage payment, taxes, insurance, HOA, property management, utilities, etc…
- Better pricing for better credit scores
- Better pricing when your rent is larger than monthly costs
- Higher ltv based on how much more your rent payments cover your monthly costs
Note: Investor Real Estate Loans doesn’t currently lend in all states, but we are always happy to help and make sure you understand your numbers!
*All non-commercial and construction loans offered by TNS Loans NMLS #1719349