Investor Cash-Flow Mortgage Guidelines On Investment Properties

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This BLOG On Investor Cash-Flow Mortgage Guidelines On Investment Properties Was PUBLISHED On March 18th, 2019

Gustan Cho Associates now offers investor cash-flow loan programs on investment properties. One of the requirements on investor cash-flow mortgage programs is the real estate investor own a primary residence. Renters who do not own a primary residence cannot qualify. The way investor cash-flow mortgage loans on investment properties work is lenders will just underwrite the subject property. It’s based on a one-to-one mortgage/income ratio. For example, if the borrowers mortgage payment on the subject property is $1,000, the potential income needs to be $1,000. The income can be less. However, each case scenario is based on a case-by-case basis. 

How Investor Cash-Flow Mortgage Process Work

Borrowers income tax is not required.

  • We do not underwrite the borrower
  • We only underwrite the subject property
  • The subject property needs to be income producing
  • It is a one-to-one match
  • The proposed mortgage payment needs to match the potential rental income
  • So if the proposed PITI is $1,500 per month, the potential rental income needs to be $1,500 per month
  • There is no limit on the amount of property the investor has on their portfolio like Fannie Mae’s 5 to 10 Financed Properties
  • Fannie Mae’s 5 to 10 Financed Property Guidelines limits the amount of property an investor can have to 10
  • Our investor cash-flow mortgage program does not have such limit
  • The maximum amount of property one borrower can have with the Investor Cash-Flow Loan Program is up to 5 investment properties

The maximum loan amount would cap at $2.5 million per borrower.

Borrowers’ Eligibility Requirement

Here are the eligibility requirements and guidelines on our investor cash-flow mortgage program on investment properties:

  • No personal income used to qualify investor cash-flow mortgage loans
  • All income qualification is based on the subject property cash-flow
  • The borrower needs to have a minimum of three active credit tradelines seasoned for 24 months
  • Gift funds are not allowed
  • There is a two year waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short-sale
  • The minimum credit score of borrowers is 660 FICO
  • Mortgage Rates start as low as 6.0%
  • Down payment and credit scores is what determines mortgage rates
  • 20% down payment and/or 80% LTV
  • There is no debt-to-income ratio caps
  • Must own a primary owner-occupant residence with mortgage history
  • On time payments in the past 24 months
  • Types of properties eligible are single-family homes, condos, townhouses, and two to four multi-family unit properties
  • No limitations on the number of properties borrowers has in their real estate portfolio
  • Each loan has a loan limit of $1.5 million
  • Sellers concessions up to 2% is allowed 
  • 7/1 ARM and 30 year fixed rate mortgages available
  • Interest only available

Individual Or Limited Liability Corporation

Our investor cash-flow mortgage program allows properties to be under Limited Liability Company’s name or individual borrower’s name.

If borrowers want to be under LLC’s name, here are the guidelines:

  • Needs to be an LLC that is solely for real estate investments
  • Cannot be another business like a Pizza Shop, Dry Cleaners, etc.
  • If there are multiple members to the LLC, then all members need to be on the loan
  • The lowest credit profile borrower on the LLC will be used for credit qualification

Real estate investors who are interested in our investor cash-flow mortgage program, please contact us at Gustan Cho Associates at 262-716-8151 or email us at gcho@loancabin.com. Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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