Investor Advantage Program

[Kate B.]

Has anyone gone through one of these loans? How did it work out for you? Any specifics the lender requested?

INVESTOR ADVANTAGE PROGRAM HIGHLIGHTS

• No personal income used to qualify**
• Qualification based on property cash flow**
• 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
• Up to 80% LTV, no DTI restrictions
• No limit on number of properties financed (5 with CMS)
• Loan amounts up to $2 million
• Seller concessions to 2%
• First-time investors allowed
• Escrow waiver permitted
• No reserve requirement for the Investor Advantage Program
• 1x30 in last 12 month on housing history acceptable
• FICO down to 620
• Non-warrantable condominium OK

[Albert Bui]

Originally posted by @Eldon Hongo:

Greetings Kate! I have no experience with this loan but it looks like it could work in many applications. It seems similar to a non recourse loan. Do they require larger down payment and charge higher interest with shorter duration? Can you disclose contact info and more details on this loan please? thank you and good luck.

Eldon Hongo

 These programs are all over and they are called non QM (qualified mortgage) or non agency (non fannie freddie) loan programs. 

The pros are that you will not need to order tax transcripts or have to qualify with your personal income however the downsides are bit higher rate and you may be limited in your loan amount despite the program saying 80% LTV.

The reason for this is because your mortgage monthly payment or PITI (prin/int/taxes/insurance monthly) cannot be more than 100-110% of your monthly rent.

These programs are based on cashflow.

In areas where the rent to price/value of the property is too low you'll see that you may only get up to 50-60% LTV despite the program stating 80% LTV.

So that is something to look out for. I had these issues when connecting borrowers with products similar to this is seattle core areas, bellevue, orange county, and some higher end areas of LA or San Diego counties.