Investment Property Mortgage Guidelines For Real Estate Investors
In this blog, we will cover investment property mortgage loans for real estate investors. We will cover investment property mortgage loans with no income doc or limited income documentation.
We will explain what the basic investment property mortgage guidelines are and the eligibility requirements. In the following paragraphs, we will cover qualifying for investment property mortgage loan options for real estate investors.
Types of Investment Mortgage Loan Options
Non-QM Mortgage Lenders, empowered by NEXA Mortgage, Inc. has lending partnerships with over 190 wholesale mortgage lenders. Not only do we have dozens of lending partnerships of wholesale mortgage lenders of governmental and conventional loans with no lender overlays but we hundreds of traditional and non-QM loan programs for real estate investors.
Real estate values have been skyrocketing for the past several years. Non-QM and alternative financing loan programs have enabled the growth of investors getting into real estate. Many investors could not invest in real estate after the 2008 financial crisis because alternative and non-QM mortgage loan programs did not exist.
Is It Harder To Get a Mortgage For an Investment Property Than For a Primary Residence?
Once non-QM and alternative loan programs hit the market, floods of real estate investors got back into the hot housing market. To this date, there is a shortage of real estate versus the demand for homebuyers. Home prices have been skyrocketing for the past several years due to the strong demand for homes.
With historic low mortgage rates and a strong housing market due to the demand for homebuyers, the housing market forecast is expected to be strong for the next several years. There is absolutely no sign of a housing correction. In this article, we will discuss and cover investment property mortgage guidelines for real estate investors.
Qualifying For Investment Properties With Non-QM Loans
Investment Property Mortgage Guidelines For Real Estate Investors do not require income tax returns. Investment Property Mortgage Programs are now available at Non-QM Mortgage Lenders No income tax returns are required. No debt-to-income ratio requirements. Borrowers do need to have experience as real estate investors for a few years.
The team at Non-QM Mortgage Lenders can help first-time real estate investors who do not qualify for investment property mortgage loans. As long as the property can cash flow and meet monthly housing expenses on the subject investment property, borrowers will qualify. The loan can close under the borrower’s name and/or on a Limited Liability Company (LLC).
Multiple Investment Property Mortgage Loans
Our Investment Property Mortgage Loan Program is for real estate investors with at least two or more years of experience. We are more concerned with the property than the borrower. It is a hybrid non-recourse/recourse investment property mortgage program. The recourse part of this loan program is because our investor wants to make sure the owner of the property has experience.
It is important that the subject property is not the borrower’s first investment property. Borrowers do need a minimum 660 credit score. Three active credit tradelines are required. No debt-to-income ratio requirements. No income verification. No federal income tax returns are required. A 20% to 30% down payment is required.
What Are The Down Payment Guidelines on Investment Property Mortgage Loans?
The down payment depends on the type of property and the borrower’s credit profile. Mortgage rates depend on the down payment and the borrower’s credit scores. Investment Property Mortgage Program is ideal for real estate investors looking to expand and/or build their investment real estate portfolio. There is no maximum amount of loans with our investment property mortgage program like Fannie Mae’s 5-10 financed properties.
Investor Mortgage Program Guidelines
Here are the basic requirements to qualify:
- Our investor cash-flow investment property mortgage program was created to serve real estate investment needs for real estate investors
- Loans to $1.5 million
- There is a minimum loan amount of $150,000
- Normally up to 80% Loan-To-Value
- The borrower’s personal income is not used to qualify
- Qualification on property purchase is solely based on property cash flow
- No federal income tax returns required
- Fully amortized and interest-only mortgage option
Special High Lights On Investment Property Mortgage Loans
This loan program is designed to help real estate investors with little or no income. Income is not important because tax returns are not required. This program is ideal for real estate investors with imperfect credit. With no income verification requirements or employment verification necessary, debt-to-income ratios are not required.
The way our underwriters qualify borrowers is the property only needs to have positive cash flow. The subject property needs to have positive cash flow (expressed as a Debt Coverage Ratio greater than 1.00) to qualify. Dale Elenteny, an expert on investment property non-QM loans and a senior loan officer at Non-QM Mortgage Lenders issued the following statement:
What Are DSCR Investment Property Mortgage Loans
Debt Coverage Ratio (DCR) is the expected Monthly Rent divided by the Total Monthly Payment. For example, if the expected gross rental amount for the property is $1,000, then the total loan payment cannot exceed $1,000. Here are the program highlights:
- Recent mortgage/rental late payments up to 1 time 30 days late in the past 12 months are ok
- Foreclosure, short sale, deed in lieu, and bankruptcy with 24 months seasoning
- Non-warrantable condos and 2-4 units are permitted (max 75% LTV)
- First-time investors and unleased property (refi only) permitted (max 70% LTV)
- No cash reserves required
- No income documentation required
- No mortgage insurance required
- 5/1 and 10/1 ARMs only
- Up to $750,000 cash-out
- Maximum Loan Amount to $2.0MM
- LTV up to 80%
- Investment Properties Only
- Minimum credit score: 620
Qualify For Investment Property Mortgages With Direct Lender With No Overlays
Real Estate Investors who need more information on our investment property mortgage loan programs can contact us at Non-QM Mortgage Lenders at 800-900-8569 or text us for a faster response. Or email your inquiries to gcho@gustancho.com.
Non-QM Mortgage Lenders are mortgage brokers licensed in 48 states with no overlays on government and conventional loans. Non-QM Mortgage Lenders are experts in non-QM and bank statement loans for self-employed borrowers.
Best Non-QM Mortgage Lenders With The Most Non-QM Loan Options
The team at Non-QM Mortgage Lenders are experts in investment property mortgage loans for real estate investors. Non-QM Mortgage Lenders have dozens of lending relationships with wholesale non-QM lenders.
Not only is Non-QM Mortgage Lenders a mortgage company licensed in multiple states with no lender overlays but we have a national reputation of being able to do loans other lenders cannot do due to our lending partnerships with wholesale non-QM lenders.
