Credit 620 & Up, Investor Financing! Cash Out, Rate & Term, Buy!

[Jerry Padilla]

Jerry Padilla - At MB Financial 

Freddie Mac is now allowing for 6 properties, with no further over lays as previously determined with 1-4 mortgaged properties!! This includes;

• Minimum 620 credit score
• Cash reserves are still required. 
• Cash out financing
• Delayed financing
• Rate and term refinancing
• Conventional Purchase financing
• Investor Purchase financing
• Primary residence

At MB Financial we are a small local bank on a National level. We Lender offering conventional financing, with very little overlays,  that goes above and beyond for our clients. We have some of the lowest fees and rates in the industry. I personally am an investor myself and can relate to your financing needs. I personally cater to assisting investors with all of their financing needs:

A credit tool to assist with improving your (or your clients) credit score to qualify for financing (Free of Charge)

Investor loans - Financing for up to 10 investment properties, with Conventional Financing, backed by Fannie Mae, or Freddie Mac
Conventional or Refinance

Cash Out Financing on the first four investment property's

Delayed financing with up to ten mortgages

Credit scores down to 600 on FHA/VA/USDA loans - primary residence only
National lender!

Streamline refinance programs for FHA/VA/Conventional - Save money with less documentation

Low rates & Low closing costs

I am available extended hours
Opportunity to increase your business to have more capital available for purchasing and rehabbing

Lender credit available for purchases

Automated approval system

Rate and Term Refinancing

Freddie Mac and Fannie Mae are both conventional lenders. They each have their own set of guidelines to be followed. There are investor friendly lenders that are able to specifically follow just one of the guidelines below. Below are the required LTV for Rate and Term Refinances.

Freddie Mac - min credit score : 620 - up to 6 mortgaged properties

Fannie Mae - min credit score: 620 - up to 6 mortgaged properties,

Min credit score: 720 - 5-10 mortgaged properties

THESE ARE FOR MORTGAGED Properties 1-6; For Freddie Mac, a Rate and Term Refinance for a Primary Residence;

95% for 1 unit

80% LTV for 2-4 units

THESE ARE FOR MORTGAGED Properties 1-4; For Fannie Mae, a Rate and Term Refinance for a Primary Residence;

1 unit - 95%

2 unit - 85%

3-4 unit is 75%

THESE ARE FOR MORTGAGED Properties 1-6; For Freddie Mac, a Rate and Term Refinance for an Investment Residence;

75% for 1-4 Units..... Up to 6 mortgaged properties allowed.

THESE ARE FOR MORTGAGED Properties 1-4; For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

7-10 Mortgaged Properties; For Fannie Mae, a Rate and Term Refinance for an Investment Residence;

75% for 1 Units

70% for 2-4 Units

COVENTIONAL PURCHASE

Sub $30k, Sub $50k, Sub $100k - Maximum loan limits in your county! 

Financing can be obtained with loan limits down to $10k. You can do up to 10 sub $100k, sub 50k loans, sub 30k,  with the option of a 15, 20 or 30 year term.

For A Fixed Rate Purchase, Investment properties, Mortgaged Properties 1-6;

• 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, Mortgaged properties 7-10;

• A SFR requires a LTV of 75%
• A MFR requires a LTV of 70%
• Minimum credit score of 720

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 1-6;

• 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 7-10;

• 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 six mortgaged properties 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 mortgaged properties #1-6. 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 #1-6 mortgaged properties 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 #7-10 mortgaged properties, including subject 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 mortgaged property #7-10 and do a rate and term refinance with conventional to pull money out on them.

For mortgaged properties 7-10 - 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. 1. SFR mortgage #1-6 - 75% LTV
2. 2. Duplex mortgage #1-6 70% LTV
3. 1. SFR mortgage #7-10 -70% LTV
4. 2. Duplex mortgage #7-10 - 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

Some of the Sub $50k properties are commonly found in these areas;

Los Angeles, Baltimore, Philadelphia, Fort Lauderdale, Houston, Atlanta, Detroit, Minneapolis, Cleveland, Denver, Orlando, Daytona Beach, Tampa, Pittsburgh, Charlotte, Kansas City Overland Park Kansas City, Columbus, Indianapolis, Cincinnati, Milwaukee, Raleigh, Nashville, Jacksonville, New Orleans, Memphis, Oklahoma City, Birmingham, Buffalo, Rochester, Albany, Albuquerque, Tulsa, El Paso, Cleveland, Omaha, Asheville, Little Rock, Baton Rouge, Syracuse, Akron, Charleston, Toledo, Winston Salem, Mobile, Lancaster, Savannah, Rochelle

BRRR....... Buy Rent Rehab Refinance

CASH OUT FINANCING

A cash out refinance is exactly what it sounds like. It is when you refinance your property and pull equity out of a property. The mortgage can either be paid off free and clear or can have enough equity in the property to make it worth refinancing and pulling equity out. Cash out refinances are available on primary and investment properties.

• The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgaged properties #1-6. 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 #1-6 mortgages you can pull out up to 75% of the equity and a 2-4 units is up to 70% equity.
• On an investment property; If you have 7-10 mortgages, including subject 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 2-4 units 65% LTV) You can take out up to the purchase price plus closing costs on the property.
• RATE and TERM REFINANCE - PROPERTY 7-10 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 #7-10 and do a rate and term refinance with conventional to pull money out on them.

• PROPERTIES LISTED FOR SALE
  For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
  For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
• 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 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.

DELAYED FINANCING EXCEPTION

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. 1. SFR mortgage #1-6 - 75% LTV
2. 2. 2-4 unit MFR mortgage #1-6 70% LTV
3. 1. SFR mortgage #7-10 -70% LTV
4. 2. 2-4 unit MFR mortgage #7-10 - 65% LTV

• The purchase transaction was an arm’s length transaction
• The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
• The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

  Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.

• All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines.
  • Ineligible Transactions
    The following transaction types are not eligible as cash-out refinances:
    
    • The subject property was purchased by the borrower within the six months preceding the application for new financing except if delayed financing guidelines are met.
    • Investor and second home borrowers with 7-10 properties are ineligible for cash-out refinance transactions unless all of the delayed financing guidelines are met.
    • The subject property is currently listed for sale
    • The existing mortgage is a “restructured mortgage”
    • Transactions in which a portion of the proceeds of the refinance is used to pay off the outstanding balance on an installment land contract regardless of the date the installment land
      contract was executed.
    • The new loan amount includes the financing of real estate taxes that are more than 60 days delinquent and an escrow account is not established.