Some more info on Sub $50k Financing and Sub $30k Financing, even Sub $20k financing.
Financing can be obtained with loan limits down to $10k. You can do up to 10 sub 50k loans, with the option of a 15, 20 or 30 year term.
For A Fixed Rate Purchase, Investment properties, Mortgages 1-4;
- A SFR requires a LTV of 85%
- A MFR requires a LTV of 75%
- A minimum credit score of 620
For A Fixed Rate Purchase, Investment properties, Mortgages 5-10;
- A SFR requires a LTV of 75%
- A MFR requires a LTV of 70%
- Minimum credit score of 720
Here are some answers to FAQ as well;
1. For all 1- to 4-unit investment property transactions, cash reserves equal to six (6) months PITI for the subject property are required.
Cash Reserves Required For Other Properties Owned by Investor;
- If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required (if >30% equity and six (6) months reserves if not) and additional six (6) months for every other 2-4 unit investment property and second home
- If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.
2. Gift funds are not allowed on Investment property transactions.
3. Escrows for taxes and insurance are required unless otherwise approved by the underwriter.
4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics
5. Investment property transactions cannot close in trust.
6. Maximum 2% sellers concessions is allowed!!
Maximum loan amounts for areas that are not considered high cost are;
1 unit - $417,000
2 unit - $533,850
3 unit - $645,300
4 unit - $801,950
This information is accurate as of the time of posting. Please also verify the accuracy of this information at the time you are considering these options as guidelines change.
If you currently have a private or hard money mortgage, than you have the ability to do a Rate and Term Refinance to lower your interest rate.
For A Fixed Rate, Investment properties, Mortgages 1-4;
- A SFR requires a LTV of 75%
- A MFR requires a LTV of 75%
- A minimum credit score of 620
For A Fixed Rate, Investment properties, Mortgages 5-10;
- A SFR requires a LTV of 75%
- A MFR requires a LTV of 70%
- Minimum credit score of 720
Here is more info on conventional financing.
http://www.biggerpockets.com/blogs/5110/blog_posts...
Cashing out on the first four mortgages, in an individual's name.
- The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
- On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
- On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a duplex is up to 70% equity.
- On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and duplex 65% LTV) You can take out up to the purchase price plus closing costs on the property.
https://www.biggerpockets.com/blogs/5110/blog_post...
- If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties With mortgage #5-10 and do a rate and term refinance with conventional to pull money out on them.
For mortgages 5-10 - if you paid cash for the property, you have the ability to cash out on the property with delayed financing.
Delayed Financing Exception
A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:
- The new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).
- 1. SFR mortgage #1-4 - 75% LTV
- 2. Duplex mortgage #1-4 70% LTV
- 1. SFR mortgage #5-10 -70% LTV
- 2. Duplex mortgage #5-10 - 65% LTV
http://www.biggerpockets.com/blogs/5110/blog_posts...
Here is a guideline from Fannie Mae on the maximum limits for conventional mortgages.
https://www.fanniemae.com/singlefamily/loan-limits
@James Wise
@Engelo Rumora
It would be great to see you two do a video together!
When investing in one of the most profitable parts of the country...... You two are the only ones that investors need to know! With your knowledge and determination together - it doesn't get any better! Future purchases I make will be in OH and no longer in NY - taxes are too high here and I would profit greater even paying the maintenance fees 's and I won't have to be the one to deal with the tenants or contractors. Hehehe I can't wait to see what the new year brings for all of us.
#2 All Forums Contributor
