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
- 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
iswhat determines mortgage rates
- 20% down payment and/or 80% LTV
isno 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
hasin their real estate portfolio
- Each loan has a loan limit of $1.5 million
- Sellers concessions up to 2%
- 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 email@example.com. Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.