Need a loan on 8 contingous town homes, with a partial relea

rstevegay · Joined: 28 Sep 2007 Posts: 1 1.41 Dollars($)

Customer purchased 8 town homes in various stages of completion for $1.2 MM. He completed them for about $700K, and now has CO's on all units. Their value now is $2.4 MM and he wants to payoff the construction/renovation loan of $1.2 MM and get about $400K of his money in cash out, for a total of $1.6 MM loan at 70% CLTV and a 675 FICO with large assets. Limited doc or SIVA program.

Prepay ok for one year, but....

MOST IMPORTANT - partial releases imperitive!!!!!

ckalvesmaki · Posted: Fri Sep 28, 2007 4:04 pm Post subject:

Are you a mortgage broker?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Rstevegay,

Limited doc or SIVA (Stated Income Verified Assets) loan – both will require a reduced level of income documentation. But the limited doc loan will also require a borrower to have more than 40 per cent equity or deposit for the loan, whereas a SIVA loan does not require such condition as a qualifying factor. The negative side to a SIVA loan is that it usually offers very high interest rates and terms.

ezmortgageloanz · Posted: Sat Sep 29, 2007 8:45 pm Post subject:

You are seeking what is known as a residential blanket loan---I'm aware of such a program that has the following guidelines:

- Must have => 5 properties to qualify.
- Loan amounts Up To 3,000,000
- Loan program can be used for purchase, rate & term and cash out refinance transactions.
- LTVs up to 80% will be considered (60% for residential properties)
- Program allows for properties to be located in different towns.
- Partial releases are permissible (Releases will be granted but the LTV must be low enough after the release to keep the portfolio performing).
- Properties must cash flow in order to be considered---a minimum of 1.2 DCR is allowed.
- Borrower’s Income is not a qualifying factor for loan approval (cash flow of property portfolio is)
- Financing as a LLC is allowed

Regards,

Scott Miller

Guest 0.10 Dollars($)

This looks like it could work. What is the program and lender you are referring to? Thanks. Steve Gay - Assurity

Samantha

Hi Steve,

I agree with Scott in the sense that blanket mortgage can be a good option for your customer. The best thing about such loans is that, one can sell some of the properties without having paid off the mortgage entirely.

What can be done here is, you can look out for lenders in our community itself. There are a number of lenders in our community offering a variety of loans to homeowners of different levels. So, if you are interested, either you or your customer can Request us for mortgage quotes and then we shall forward your information to the communtiy lenders and the lenders shall contact you if they are able to offer you such a loan as per their portfolio of loans on offer.

Hope this helps...

God bless you.

Samantha

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