No Doc Fix And Flip Financing For Real Estate Investors

This ARTICLE On Financing For Real Estate Investors Was Written By Gustan Cho NMLS 873293

The recovery of the 2008 Real Estate and Credit Collapse has been a long journey. Part of the reason why it took such a long time for the real estate market to recover was due to lack of financing for real estate investors. Fannie Mae set strict lending guidelines for financing for real estate investors where it limited the number of financed properties to a maximum of 10. Real Estate Investors who had 5 to 10 financed properties, they needed to have a minimum of 720 credit scores and had to qualify with personal debt to income ratios not greater than 45% DTI. Construction and bridge financing became obsolete where very few lenders offered it. Everything was income based and real estate investors who did not show positive income could not qualify for investment property loans. Very few investors could meet the minimum Fannie Mae 5 to 10 properties mortgage guidelines. Great news is that financing for real estate investors is now back where they can now purchase investment properties with no personal tax returns, no income verification, and no limits on the amount of properties they want in their investment portfolio. Investors do not need to meet a certain credit score either. NON-QM Loans are now back where there is no waiting period after bankruptcy and foreclosure. Bank Statement Loans are back as well as no income verification loan programs. Real estate value is appreciating 10% in many parts of the country with no sign of slowdown. With loan programs such as investment property loans and non-qm mortgages, property values is expected to increase in the years to come. Fix and flip mortgage loan programs are being offered by many lenders nationwide.

Single Property Fix And Flip Loans

Single property fix and flip mortgages are a bridge loan program where a real estate investor can purchase a property with the acquisition PLUS the rehab costs of an investment home.

Here are the bullet points of single property fix and flip financing for real estate investors

  • 15% down payment on the property purchase or 85% Loan To Value
  • 90% of the construction/rehab costs can be financed
  • The after completed value needs to be at 75% Loan To Value
  • The Single Property Fix And Flip Financing Program are interest only loans with a 9 month term
  • There is no income requirements for borrowers: No tax returns, no W2s, no paycheck stubs required
  • The subject property is underwritten and is based on the property itself

Line Of Credit For Fix And Flip Properties

Real Estate investors with multiple properties with equity can qualify for a blanket fix and flip loan program where they can get multiple draws until completion of one or more properties at the same time. The terms are the same as the single property fix and flip financing program. This line of credit is available up to $100 Million.

Single Rental Property Financing

The housing market is hot and there are shortages of not just homes for home buyers, but rental units. With the demand for rentals, real estate investors are aggressively buying up homes and apartment buildings. Many investors can easily handle to manager more rental units, however, they are restricted due to limited financing for real estate investors. Now, these investors who want to expand their property investment process portfolio can do so with the new financing for real estate investors lending program offered by The Gustan Cho Team.

Highlights Of Single Rental Property Loans

Here are the basic qualification requirements of the Single Rental Property Finance Program:

  • No personal income or debt requirements
  • No tax returns required
  • No W2s required
  • No paycheck stubs required
  • 30 year fully amortized fixed rate loans
  • Property can close in either individual or LLC
  • 20% down payment with credit scores of 700 FICO
  • 25% down payment with 680-699 credit scores
  • 30% down payment with 660 FICO
  • Minimum credit scores required is 660

Portfolio Rental And Investment Property Loans

Investors with 7 or more rental units can qualify for the Rental Income And Investment Property Loan Program, also known as the Blanket Portfolio Loan program. Investors with at least 7 properties can qualify for investment property loans which is also called a blanket loan where all of the properties are cross collateralized and a line of credit is granted to the investors. With the line of credit, the investor can use it for any purposes such as rehabbing units, buying more properties, other investments, or personal use.

Features And Terms Of Portfolio Investment Property Loans

  • Need a minimum of 7 investment units and/or properties
  • No tax returns, W2s, paycheck stubs required. Solely underwritten based on the properties
  • Can close under the name of borrower and/or name of an LLC
  • Line of credit can be used for any purposesĀ 
  • 5 or 10 year term

Qualifying For Investment And Rental Home Financing

Real estate investors, especially fix and flip property investors, needing more information on our fix and flip and investment property loan programs, please contact Gustan Cho at 262-878-1965 or text Gustan for faster response on his cell at 262-716-8151. You can also email us at gcho@gustancho.com. We are available 7 days a week, late evenings, weekends, and holidays. Our commercial fix and flip and rental property loan program is available in most of the 50 states.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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