NO SEASONING ON A REFINANCE RENTAL PROGRAM!
Fico: 680+
Loan Terms: 15-year term (balloons after that). After every 5 years, the rate is fixed again (prime +1). Interest rates are tied to prime. Loan amortized for 25 years.
Loan Size: $100K to No MAX!
Max LTV: 75% for 1-4 unit. 80% for commercial properties!
Debt Service Ratio: 1.25 + Lender does factor in a vacancy rate.
Interest Rate: 4.00% - 6.25%
Property Types: 1-4 UNIT INVESTMENT PROPERTIES! The lender also lends on pure commercial properties as well. No gas stations. Can do hotels if they are flagged.
Pre-Payment Penalty: NONE!
Use of Funds: Purchase, Refinance, Cash-Out Refinance as well! No renovations or ground-up construction! The lender wants the property to be fully renovated and rented or have leases signed with tenants ready to move in. Not big on paying off liens if that is what the investor needs the cash out for.
Seasoning Requirement: NONE ON A REFINANCE!
Asset verification: 3 months of bank statements (last bank statement must show down money, closing costs, and reserves)
Closing Timeframe: 30-45 days!
Territory: DE, PA, Pittsburgh, MD (like Baltimore), Washington DC, Texas (Houston Area and borrowers home must be there too), Alabama, Georgia, Florida, and some areas of NJ for now. Eventually, the program will expand to be nationwide. The lender does not lend in lower populated areas for now
Lender Fee: Once the lender has a good feeling then can do the deal a non-refundable $450 application fee is taken. At closing the lender then only charges 1 point Liquidity Requirement: Does not have an exact requirement but they want the borrower to still have cash on hand after the closing
Special: All principles over 20% need to personally guarantee the loan. Can consider working with foreign nationals as long as they are legally in the US and they must have US credit.
Required Loan Docs:
To analyze the deal the lender needs upfront:
- 3 years tax returns (personal & business)
- PFS
- Purchase and sales contract
- past appraisals (if applicable)
- current leases
- rent roll
- Income and expense reports (Year to Date & Past 2 years)
- The lender does a global DTI
- Property and tax returns need to debt service
To Find out More Contact Fred Shatzoff 551-272-9066 or [email protected]