Posted: Thu May 10, 2007 11:22 pm Post subject: RE: Investment property loans
Good question Alex. I've heard that it's harder to obtain mortgage for investment property than for a personal residence. Moreover, if you do not put in any cash as the down payment, then it's even harder. In case of investment properties, some lenders may require to put down 30% of the purchase price of the property while others may allow you to go for 20% down payment.
Anyway, if you're looking for a loan on investment property, then you may try out with lenders in our community.
We have a group of lenders in our community who offer various financing options on different types of properties. So, if you are really interested in availing their service, feel free to send us your request for mortgage quotes. As soon as we receive the request, it will be passed over to those lenders who deal with loans on investment properties. And, if their profiles match with your requirements, they shall contact you soon.
Investment or NOO financing can be likened to my younger brother's hairline---receding...
There are only a handful of lenders/investors that will consider high LTV (>95 LTV/CLTV) NOO financing and this is some highlights on the new playing field:
- Higher FICO requirements (680 FULL/720 STATED)
- No negative cash flow allowances
- Increased reserves requirements (3-6 months the norm)
- Higher rates (it's getting difficult to cash flow with rates ranging from the 8ish to the 10ish depending on documentation format)
- Extended title seasoning guidelines
My personal opinion on the whole lending regression?
We are quickly returning to circa mid-90s lending guidelines (when nobody got a loan about 90 LTV) in the majority of high risk/high LTV loan niches...
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