2 Year “Interest Only” Funding Program!
Refinance – Purchase – Cash Out!
$75,000 Minimum Loan Amount – No Maximum Loan Amount!
660+ Minimum Credit Score!
Single Family Residential & 2-4 Units!
SHORT TERM – 2 Year Interest Only Funding Program Highlights:
– Minimum 660+ Credit Required By All Individual Members Of The Business Entity!
– Funding available for single family residential and 2-4 units!
– Up To Maximum 75% LTV!
– For Refinance Cash Out: Must be on title minimum 6 previous months to use current appraised value!
– Minimum Loan Amount Of $75,000.00!
– Must currently own primary residence!
– No Maximum Loan Amount!
– Vacant Properties OK!
– Homes currently listed for sale OK!
– Close In 10-12 Business Days From Receipt Of All Required Documents!
– Foreign Nationals OK!
2 YEAR INTEREST ONLY FUNDING PROGRAM
2 Year Interest Only Funding Program Available NATIONWIDE except:
Arizona, California, Hawaii, Idaho, Maine, Montana, Nevada, North Dakota, South Dakota, Utah and Vermont
All loan transactions must close in the name of a business entity!
2 YEAR INTEREST ONLY PROGRAM – FUNDING GUIDELINES
Credit Score Requirement
MINIMUM 660+ CREDIT SCORE REQUIRED – All individual members of the business entity must meet the minimum credit score requirement of 660+ to qualify for funding approval.
Required Documentation – See bottom of this page for list of required documents
Qualifying Types Of Properties
Single Family residences and 2-4 units. Non owner-occupied only. No primary residence or vacation homes. No condo’s.
All Transactions Must Close In A Business Entity Name
Funding can only be approved in a business entity name. There is no seasoning requirement on the age of the business entity. Entities include: LLC, LLP, S-Corp, C-Corp.
Days To Close
On average we can close in about 10-12 business days from the time we receive ALL REQUIRED DOCUMENTATION. Delays in closing are normally due to appraisal/property value, title issues, etc.
Minimum And Maximum Loan Amounts
Minimum loan amount is $75,000.00. There is NO MAXIMUM loan amount.
Maximum LTV’s Based On Credit Score
*All loan amounts require a 1.25 rent coverage ratio.
700+ Up to 75% LTV
680 – 699 Up To 70% LTV
660 – 679 Up To 65% LTV
Foreign National: Maximum 65% LTV
*Rent coverage ratio is calculated by dividing gross rents by monthly interest only payment amount.
Adjustments To Above LTV’s
Rate Term Refinance: Reduce LTV by 5%
Cash Out Refinance: Reduce LTV by 10%
Zip Code with 150-200 average days on market: Reduce LTV by 5%
Zip Code with 2-5% decline in market: Reduce LTV by 5%
Full Property Appraisal Required
A traditional full property appraisal is ALWAYS required to underwrite and close a investor loan for this product. We will order an expedited appraisal at time of submission of loan file for underwriting approval. Cost of appraisals range from $375.00 – $575.00. A market rent analysis is required for all properties.
No Verification Of Income Required
No verification or documentation of personal or business income is required. Borrower will have to produce copy of last years personal tax return to document that income taxes are being paid. Income is NOT used as bases for qualifying. There are no borrower debt to income ratio requirements.
Terms of Loan Funding
Single family residences and 2-4 residential units. No condo’s.
Minimum Property Square Footage Requirements
Single family residential: minimum 700 sq ft
2-4 unit: minimum 500 sq ft
Purchase, refinance rate and term, refinance cash out.
Interest rates range on average from 7.50% to 9.50% depending on credit score, final LTV and rent coverage ratio.
Vacant Property(ies) Interest Rate Increase
The interest rate will increase by 2% if the subject property(ies) is/are not leased at closing AND an executed third party lease is not delivered to the originator within three (3) months of closing.
Rent Coverage Ratio Requirement
Minimum rent coverage ratio is: 1.25* or higher. If required, the final loan amount will be reduced to obtain a rent coverage ratio of 1.25 or higher.
Rent coverage ratio is calculated by dividing gross rents by monthly interest only payment amount
Vacant Properties OK
If subject property is currently vacant at time of loan application, we will use the local market rent average as determined by the property appraisal. Rent coverage ratio will be calculated using the market rent average. UNDERWRITER HAS DISCRETIONARY DECISION ON FINAL LTV/LOAN AMOUNT BASED ON LOCAL MARKET CONDITIONS.
3.99% of total loan amount OR $4,500.00, whichever is greater
Other Lenders Fees
Subordinate financing is NOT allowed, which includes 2nd mortgages and seller held financing.
Maximum Loan Amount
There is no maximum loan amount
Borrower can request additional 12 months extension at a cost of 1% of original loan amount.
Fixed monthly payment, interest only.
Business Entity Borrower (Must close in the name of a business entity)
__ Copy of valid identification (all members of business entity)
__ Last 2 month’s business bank statements (must include all pages)
__ Articles Of Organization for LLC Or Articles Of Incorporation for a Corporation
__ Operating Agreement or Corporate Charter/Bylaws
__ Certificate Of Good Standing (Issued By Secretary Of State within 30 days)
__ Copy of last years personal tax return for all members of business entity. This documentation is NOT to verify income but to validate that federal income taxes are being paid and reduces likelihood of unpaid tax liens being filed on subject property.
Note: Terms are subject to change without prior written notice.