Investment Property Mortgage Guidelines For Real Estate Investors


This BLOG On Investment Property Mortgage Guidelines For Real Estate Investors Was PUBLISHED On February 20th, 2019

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

  • Investment Property Mortgage Programs is 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 required
  • 20% to 30% down payment is required
  • The down payment depends on the type of property and borrower’s credit profile
  • Mortgage rates ddependon 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 5-10 financed properties.

Investor Mortgage Program Guidelines

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

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 are 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 at Loan Cabin Inc. 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 lates up to 1 times 30 days late in 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

Min 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 faster response. Or email your inquiries to 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.

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