Short Term Fix And Flip Interest Only Home Loans Chicago

This BLOG On Short Term No Doc Fix And Flip Interest Only Home Loans Chicago

Short Term Fix And Flip Interest Only Home Loans Chicago is 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.

How Does The Short Term Fix And Flip Interest Only Home Loans Work

The best part of the short term fix and flip interest only home loans is that the borrowers debt to income ratios does 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 home 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 15% down payment on acquisition and 10% down payment on rehab
  • Minimum loan amount $100,000
  • Property can be under the name of Limited Liability Company, LLC
  • 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 and a great alternative financing option because of less paperwork and fast closings. Interest Only Home Loans are no doc loans where lenders do not take the borrower’s income but rather just underwrite the subject property. Short term interest only home loans offers 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 and 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 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 type 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 are 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 due to these loans being no doc fix and flip loans

No Doc Investment Property Loans

The Gustan Cho Team at 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 property purchase for borrowers with at least 700 FICO credit scores
  • 25% down payment on property purchase for borrowers with at least 680 credit scores
  • 30% down payment on property purchase for borrowers with at least 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

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 800-900-8569 or text Gustan at 262-716-8151. Real estate investors can also email Gustan Cho at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays to take you loan inquiries.

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.

Comments are closed.