First,
some new “soft money” for rental properties is available.
Rates from 9- 10.5%
15 – 30 years fixed
For the “just missed” the bank loan candidates (bk , foreclosures, low 600’s scores….) Perfect for investors who are building a portfolio of rentals or using our hard money and rehab 2 rental ideas
1. The 3 basic sources of funding for investor loans in Texas (Investment Property Loans-Texas) and solutions
Our group handles all 3 of these basic types of financing for investors.
a. Bank (Portfolio) financing: (for this conversation, we refer to local banks as community and state based banks that portfolio/keep loans on their books). A good source for Blanket Loans(EXPLANATION)
These Bank loans can be used to finance purchase of property that may be in state of neglect or “fixer-uppers” and also convert to long term holds. Generally banks(local -portfolio) will amortize 15-20 years with 3-5 year balloons and ARMS.
b. Private/ hard money (again, short term for rehab or quick acquisitions)
These are loans made generally without any bank involved or bank money. Many times (our loans) are made by private individuals or small funds from cash accounts or some sort of self directed IRA facility. These loans can be used for any transaction type but are generally used for quick acquisition of property in need of repair. (many times banks, especially long term-fannie mae) will not finance property that is not “move in” ready. Terms are shorter ) 6 months to 3 years and rates are higher 12-15% is average in Texas.
***NEW – SOFT MONEY LOANS FOR INVESTORS – FROM 8% CALL OR EMAIL. 75% LTV , MIN LOAN 60K, 30 YEAR LOANS
c. Long term financing/ Govt. insuredmortgages: (for purchase of currently occupied or move in condition properties)Apply for Texas Investor loans (click our application site)
These are primarily Fannie Mae /Freddy Mac loans. The only lender making 30 year type mortgages. There is no common sense underwriting, its approved using guidelines that involve DTI(debt to income, credit -660+, and property that is move in condition. Down payment is 20% minimum and more for 3-4 unit properties (25% min.) .
Borrowers will need verifiable income per tax returns and some sort of w2/1099 or if self employed for 2 years – tax returns.
2. How we can help overcome common problems associated with investment property financing.
Some problems you may have faced in the past for investment property loans:
No limit on number of properties (you have more than 10, more than 20) bank (local bank or hard money)
seller carried 2nds to 100% CLTV (you want 0 down) hard money
no landlord experience (new investors)
no reserve requirements (lender stated you lacked proper reserves)
no job verification ( we have no documentation investment loans)
credit score (we have funded loans with scores under 600)
recent foreclosure and bankruptcy
LLC and Non Recourse Financing for our investors and landlords