Investment Property Mortgage Guidelines For Real Estate Investors

This Article Is About Investment Property Mortgage Guidelines For Real Estate Investors:

What Are The Investment Property Mortgage Guidelines For Real Estate Investors:

This is a very hard question to ask. Gustan Cho Associates has dozens of loan programs for real estate investors. Real estate values have been skyrocketing for the past several years. Non-QM and alternative financing loan programs have enabled the growth of investors getting into real estate. Many investors could not invest in real estate after the 2008 financial crisis because alternative and non-QM mortgage loan programs did not exist.

Once non-QM and alternative loan programs hit the market, floods of real estate investors got back into the hot housing market. To this date, there is a shortage of real estate versus the demand of homebuyers. Home prices have been skyrocketing for the past several years due to the strong demand for homes. With historic low mortgage rates and a strong housing market due to the demand of homebuyers, the housing market forecast is expected to be strong for the next several years. There is absolutely no sign of a housing correction.

In this article, we will discuss and cover investment property mortgage guidelines for real estate investors.

Qualifying For Investment Properties With Non-QM Loans

Investment Property Mortgage Guidelines For Real Estate Investors do not require income tax returns.

Investment Property Mortgage Programs are now available at Gustan Cho Associates. No income tax returns are required. No debt to income ratio requirements. Borrowers do need to have experience as a real estate investor for a few years. First-time real estate investors do not qualify for investment property mortgage loans. As long as the property can cash flow and meet monthly housing expenses on the subject investment property, borrowers will qualify. The loan can close under the borrowers’ name and/or on a Limited Liability Company (LLC)

Multiple Investment Property Mortgage Loans

Our Investment Property Mortgage Loan Program is for real estate investors with at least two or more years of experience.

We are more concerned with the property than the borrower. It is a hybrid non-recourse/recourse investment property mortgage program. The recourse part of this loan program is because our investor wants to make sure the owner of the property has experience. It is important that the subject property is not the borrower’s first investment property. Borrowers do need a minimum 660 credit score. Three active credit tradelines are required. No debt to income ratio requirements. No income verification. No federal income tax returns are required. 20% to 30% down payment is required.

The down payment depends on the type of property and the borrower’s credit profile. Mortgage rates depend on the down payment and borrower’s credit scores. Investment Property Mortgage Program is ideal for real estate investors looking to expand and/or build their investment real estate portfolio. There is no maximum amount of loans with our investment property mortgage program like Fannie Mae’s 5-10 financed properties.

Investor Mortgage Program Guidelines

What are the guidelines for an investor mortgage program

Here are the basic requirements to qualify:

  • Our investor cash-flow investment property mortgage program was created to serve real estate investment needs for real estate investors
  • Loans to $1.5 million
  • There is a  minimum loan amount of $150,000
  • Normally up to 80% Loan-To-Value
  • Borrower’s personal income is not used to qualify
  • Qualification on property purchase is solely based on property cash flow
  • No federal income tax returns required
  • Fully amortized and interest-only mortgage option

Special High Lights On Investment Property Loans

What are the special considerations regarding investment property loans

This loan program is designed to help real estate investors with little or no income. Income is not important because tax returns are not required. This program is ideal for real estate investors with imperfect credit. With no income verification requirements or employment verification necessary, debt-to-income ratios is not required. The way our underwriters qualify borrowers is the property only needs to have positive cash flow. The subject property needs to have positive cash flow (expressed as a Debt Coverage Ratio greater than 1.00) to qualify. Dale Elenteny, an expert on investment property non-QM loans and a Senior Vice President at Gustan Cho Associates issued the following statement:

Debt Coverage Ratio (DCR) is the expected Monthly Rents divided by the Total Monthly Payment. For example, if the expected gross rental amount for the property is $1,000, then the total loan payment cannot exceed $1,000. Here are the program highlights:

  • Recent mortgage/rental late payments up to 1 times 30 days late in the past 12 months are ok
  • Foreclosure, short sale, deed in lieu, and bankruptcy with 24 months seasoning
  • Non-warrantable condos and 2-4 units are permitted (max 75% LTV)
  • First-time investors and unleased property (refi only) permitted (max 70% LTV)
  • No cash reserves required
  • No income documentation required
  • No mortgage insurance required
  • 5/1 and 10/1 ARMs only
  • Up to $750,000 cash-out
  • Maximum Loan Amount to $2.0MM
  • LTV up to 80%
  • Investment Properties Only
  • Minimum credit score: 620

Qualify For Investment Property Mortgages With Direct Lender With No Overlays

Real Estate Investors who need more information on our investment property mortgage programs can contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email your inquiries to [email protected] Gustan Cho Associates is a lender with no overlays on government and conventional loans. Gustan Cho Associates are experts in non-QM and bank statement loans for self-employed borrowers. We are experts in investment property mortgage loans for real estate investors. Gustan Cho Associates has dozens of lending relationships with wholesale non-QM lenders. Not only is Gustan Cho Associates a mortgage company licensed in multiple states with no lender overlays but we have a national reputation of being able to do loans other lenders cannot do due to our lending partnerships with wholesale non-QM lenders.

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