No Income Doc Financing For Investment Properties.

[Jerry Padilla]

Program Overview

• No personal income used to qualify
• Qualification based on property cash flow
• 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
• Credit scores down to 660
• Rates starting in the 6’s
• Up to 80% LTV
• No DTI restrictions
• Must have current mortgage
• 1-4 units and condos
• No limit on number of properties financed (5 loans or $3,000,000 in aggregate with this program)
• Minimum Loan Amount -$100,000 
• Loans up to $1.5 million
• Seller concessions to 2%
• 7/1 ARM

Eligible Loan Purposes:

• Purchase
• Rate/Term Refinance
  • The loan-to-value will be based off of appraised value.
  • The property cannot be vacant.
• Cash-Out Refinance
• If the property has been owned for more than twelve (12) months, the LTV will be based off of the appraised value.
• If the property has been owned less than twelve (12) months the LTV will be based off the original purchase price.
• The borrower must be on title for a minimum of three (3) months.
• The property cannot be vacant at the time of closing.

Taxes and insurance escrows required for all loans.

Documentation Requirements

Executed lease agreement; and

Copy of the canceled security deposit check; and

Final inspection evidencing the property is occupied

Prepayment PenaltyTwo (2) years – Six (6) months interest on the amount prepaid that exceeds 20% of the original principal balance (unless otherwise restricted by State law) Pre-pay Buyout: 1% fee for one (1) year; 2% fee for no pre-pay penalty. A prepayment penalty is required (unless otherwise restricted by state law) with a two (2) year duration and a payoff.

Eligible Property Types 1-4 Unit investor properties Planned Unit Developments (PUDs), Fannie Mae warrantable Properties with less than or equal to two (2) acres Leaseholds (in areas where leaseholds are common) Condominiums: HOA Delinquency (maximum): 15% Annual Budget Dollar Delinquency (maximum): 10% Investor concentration (maximum): 100% 90% sold and closed All condominium transactions must have a completed Homeowners' Association (HOA) Property: Recent Listings Rate/Term Refinances The property cannot be listed for sale on date of loan application. Cash-Out Refinances The property cannot be listed for sale by the current owner within twelve (12) months from date of loan application.

Fee Simple with Title Vesting as Individual Joint Tenants Tenants in Common Limited Liability Company (LLC) LLC must have been created to manage rental properties only Title may be held in the LLC; however, the loan application must be made in the individual borrower's name. All borrowers must sign the Deed of Trust/Mortgage as individuals and as authorized signers of the LLC. The LLC must be wholly owned directly by the individuals signing the Note Leasehold Estates are allowed in areas where leasehold estates are commonly accepted. Documentation Requirements Copy of the filed articles of organization to evidence the existence of the LLC Copy of the fully executed operating agreement reflecting the borrower is an authorized signer on behalf of the LLC and has the power to first mortgage the security property for the purpose of securing a loan. Organizational meeting minutes may be required if the operating agreement does not clearly identify the powers of the managing partners.