Rehabber · Corona, CA · Member since 2009 · 59 posts · 21 votes
Well maybe not. I just noticed Homepath.com is stating this under their financing
http://www.homepath.com/financing.html
HomePath financing, available only on Fannie Mae-owned properties, offers great benefits — low down payment, no mortgage insurance, expanded seller contributions, and more. HomePath Mortgage is available for move-in ready properties for both owner occupants and investors — a limited number of HomePath lenders also now offer HomePath Mortgage for the LLC borrower
I spoke with a loan officer from Prospect Mortgage a few days ago. They will finance up to 20 properties per borrower which is a new guideline for them (it was 10). These are full documentation 30% down loans. I think they can do 10% down for the first 4 properties. They can loan to a LLC but the LLC must have income, reserves, etc. it cannot just be a shell in which properties are placed. Hope this helps.
Interesting find, Tony Salazar. I had not heard this. I'm also curious, so I'll bump this message and see if anyone has some more knowledge about this.
I did speak to somebody from that lender yesterday. This is something he first heard about just a few weeks back, so it seems relatively new. I specifically wanted to be certain that renovation loans would be covered, since as investors we tend to get fixers. He said he would look into this further and get back to me.
Ok, well if there putting terms on # of properties can't one simple take a package of properties, wrap them together and place them into a single commercial mortgage wholly under a S.Corp there in being in now way attached individually, opening the door to do as many as one chooses????
I have repeatedly been told if one packages same/ similar properties into a corp., for example SFR in one, duplexs in another, C4D's in another, etc etc, or even by geographic region, renter class suchs as sect 8 vs non sect 8, that it is rock solid for seperation and can not have the vail pierced.
I spoke with a loan officer from Prospect Mortgage a few days ago. They will finance up to 20 properties per borrower which is a new guideline for them (it was 10). These are full documentation 30% down loans. I think they can do 10% down for the first 4 properties. They can loan to a LLC but the LLC must have income, reserves, etc. it cannot just be a shell in which properties are placed. Hope this helps.
I went on the Homepath site and it said that Prospect was nationwide. When I clicked on the link that took me to the Prospect site to get more information, it listed a bunch of states (including mine) that they are not lending in. I wish these clowns would get on the same page.
I spoke to a Prospect broker today as well, the terms are pretty appealing to me as I have only two properties under mortgage, one being my primary residence, and the others free and clear.
The terms I was told were:
Up to 4 loans:
10% down
No appraisal
Conventional underwriting guidelines
6 months reserves
max 45% DTI
Didn't ask about lending to a LLC or S Corp. Still weighing the benefits of going that route or getting an umbrella policy.
I'll probably pursue this after my taxes have been filed for this year. Anyone else closing with these types of loans?