Interest Only Home Loans For Investment Properties Chicago
This Article Is About Interest Only Home Loans For Investment Properties
Short Term Fix And Flip Interest Only Loans Chicago are now back in full swing.
Real estate investors do not have to rely on Hard Money Loans at over 10% mortgage interest rates. The No Doc Fix And Flip Loans is available for property investors of one to four-unit non-owner occupant residential properties in Chicago and the rest of the country.
In this article, we will discuss and cover loan programs for investment properties.
How Does The Short Term Fix And Flip Interest Only Home Loans Work
The best part of the short-term fix and flip home loans is that the borrower’s debt-to-income ratios do not matter. This investment loan program is based on the property. However, we do require a 660 FICO credit score to qualify for the fix and flip interest-only loans. The debt to income ratio of the borrower does not matter.
Here is how the short term fix and flip interest-only home loans work:
- Non-owner occupant properties only
- One to four-unit residential properties
No maximum financed properties:
- Unlimited amount of properties unlike Fannie Mae 5 to 10 Financed Properties
- Fix and Flip Rehab Loans require a 15% down payment on the acquisition
- 10% down payment on rehab portion on fix and flip loans
- Minimum loan amount $100,000
- Property can be under the name of Limited Liability Company, LLC
- The term is 9 months interest only but can be extended
- Closing in 2 to 3 weeks
Benefits Of Short Term Fix And Flip Interest Only Home Loans
Interest Only Home Loans are very popular for real estate investors and property rehabbers:
- It is a great alternative financing option because of less paperwork and fast closings
- Interest Only Home Loans are no doc loans
- Lenders do not take the borrower’s income
- Rather just underwrite the subject property
Short-term interest-only home loans offer real estate investors a streamlined investment property purchase process with increased cash flow, no DTI requirements, no tax returns, and no financials.
How Does Interest Only Home Loans Work?
Interest Only Home Loans are short-term bridge loans where investors use it to purchase the property and finance both the acquisition and construction costs. Most traditional commercial lenders will not finance properties that are not habitable nor cash flowing. Fix and Flip Interest Only Home Loans are for 9-month interest-only terms but can be extended in the event if the developer runs into delays. Fast two to three-week closings. There are no maximum number of properties financed requirements like Fannie Mae’s 5 to 10 financed properties rules.
Pros Short Term Fix And Flip Interest Only Home Loans
The positive aspects of short term fix and flip interest-only home loans are the following:
- Fix and Flip Interest Only Home Loans are great for real estate investors who cannot show income
- 15% down payment requirements on the home purchase
- This is unlike 30% or more down payment on hard money loans
- Rehab costs can be financed up to 90% Loan To Value
Ability to refinance to a conventional loan or other types of investment property loans after the property has been rehabbed without any prepayment penalty.
Negatives of Interest Only Home Loans
As with every mortgage loan program, are always negatives versus positives:
- No principal reduction since these loans interest only
- Positive is that investors can always make extra monthly payments and the principal will be paid down
- Mortgage interest rates are generally higher than traditional commercial financing
- This is due to these loans being no-doc fix and flip loans
No Doc Investment Property Loans
Gustan Cho Associates are experts in originating and funding no doc investment property loans. No tax returns, no income verification is required.
Here is how the no-doc investment property loan program works:
- 20% down payment on a property purchase for borrowers with at least 700 credit scores
- 25% down payment on a property purchase for borrowers with 680 credit scores
- 30% down payment on a property purchase for borrowers with 660 credit scores
- No income verification
- This is a no doc investment property loan program
- Available for single-family homes, condos, townhomes, and apartment buildings
- No pre-payment penalty
- 30 year fixed rate mortgages
Blanket Lines Of Credit On Investment Property Loans
We also have a blanket line of credit for real estate investors with at least 7 doors. It can be a combination of a six-unit apartment building plus a single-family home or 7 condos, or a combination of any. A blanket line of credit up to 75% Loan To Value can be issued to the real estate investor where they can use the line for any purpose they like. Can be used for rehabs, property purchases, or personal reasons.
To learn more about our short-term fix and flip interest-only home loans or investment property loans, please contact Gustan Cho Associates at 262-716-8151 or text us for a faster response. Real estate investors can also email us at [email protected] We are available 7 days a week, evenings, weekends, and holidays to take your loan inquiries.