Real estate investment can be very lucrative, and now may be a great time to start taking advantage of new properties on the market. Certain investors have non-traditional sources of income and will not qualify for a traditional mortgage program. Luckily, there are streamlined investment property loans to help close deal quickly and make documentation easy. This could truly be the best way to qualify for a mortgage, especially in light of recent global events. Professional Mortgage Solutions helps real estate investors get the leading edge on property loans, contact our staff today in Rego Park, NY for details.
Applying for an Investment Property Loan
Applying for an investment property loan will differ from the process of getting an FHA or conventional loan. However, if you have good financials, you can qualify quickly for a loan if you have a stable credit score and financial strength. Investment property loans are for people who can show ability to pay through other means than employment income. When you go to qualify, a variety of documents will be reviewed by underwriters to calculate your average monthly payment and cash flow.
If you get income primarily through investments, using a tax statement or a W2 will not get you approved for financing. This is where many turn to “no income” mortgages. Usually, with this type of mortgage, cash flow and funds from investments, businesses, or interest is used to certify the income. Many lenders will review your financial data to determine how much you can afford to pay a mortgage from dividends, profit and loss statements, etc. Occasionally, an investor will have a large amount of cash to put a down payment, and therefore, less financing is needed. There are many commercial programs for multi-unit properties if you prefer to go this route, as well.
Bank Statement Loans are Great for Investors
Many other investors and entrepreneurs will need to use bank statements to show income. This is exactly why the bank statement loan program was invented, there are many benefits in this program, including:
- Ability to secure a loan for a high-value home, with high limits;
- Ability to secure a loan without providing W2s or tax returns;
- Ability to show a debt-to-income ratio that can sometimes reach up to 50%;
- Ability to secure decent rates, with some investors securing loans in the 5% range;
- Ability to use equity-based financing;
- Ability to get rental, vacation, or owner-occupied homes;
- Ability to use personal or business bank statements; and
- Ability to secure flexible financing terms (fixed or adjustable rate).
One of the most challenging ways to show your potential future income is through any owned stocks and other investments. Fortunately, staff at Professional Mortgage Solutions can help you find the best lenders and experts to work with. Our Rego Park, NY office makes the underwriting and closing process fast and easy. With prices falling, get ready to purchase an investment property to fix and flip. Be sure to talk to an accountant about assembling any financials be for you go in to qualify. Finding a home in the Rego Park, NY has rarely ever been easier. We are here to show you all the hot new properties coming on the market.
