This loan program bridges the financing between Hard Money and Conventional Financing and eliminates the 4-10 property limit.

For buy and hold investors – No Limit to number of properties:

30 Year Fixed Rate Loan – 85% of Appraised Value
Full doc
620 FICO (stated income available for 720+)
55% debt to income ratio
6 months reserves
1-4 units only

Minimum loan amount is $100,000

In some cases you can actually receive money back at closing.

Here is an example:

Purchase Price – $98,000
Appraised Value – $150,000
Cosmetic Repairs – $10,000
Loan Amount – $127,500
Est. Total Loan Cost – $11,475
Est. Cash at Closing – $18,000

This is great for a cosmetic rehab as the loan is based on current appraised value, not purchase price.

There are also loan programs available for 3-4 units, the self-employed investor and even a 75% refi for investors with equity in their properties.

This is Private Money Mortgage Financing.

For consideration, application or just more information please contact:

Kathy Gray
FCCI
817-228-4415
kathy@fccinvest.com

Let me give you a few examples of what I mean.

A few years ago, I saw the writing on the wall with regard to stated income loans. I just knew that they were going away. (If you’re thinking, “What? Whaddya mean no more stated income loans?” then you especially need to keep reading).

I had several self-employed residential mortgage clients that were going to be affected by that so I contacted them all two years in advance and told them that if they wanted to be able to continue to use conventional loans to finance their properties they needed to start showing income on their taxes. What was the response?

“Yeah, but then I’ll have to pay more taxes.”

Last week one of the investors contacted me and was desperate for a refinance of one of his properties to pay off a private lender. Yep, you guessed it.  He had no income on his taxes to document his income and owns more than 4 properties so he is unfinanceable.

He asked, “What should I do now?”

I told him that he could start working with portfolio lenders to refinance his properties into his LLC so he can pull them off of his personal credit. They also may be a little more lenient in the income qualification – using deposits and business income.

He said, “Yeah, but the rates are higher than what I have right now.”

People, the “yeah, but” is lethal.

Real estate investing (like a good marriage) is a series of compromises. You have to weigh the consequences of your decisions. Pay taxes and remain financeable or don’t. Lose a little cash flow to become financeable or don’t. It’s your decision. But that decision will have consequences.

The investor in this example is stuck. He has “yeah, butted” his way right into failure.  He is still trying to do business the same way he has always done it and he is so entrenched in his ways that he is losing tons of opportunity.

What about you? Are you still trying to run your business using outdated strategies? Or are you flexible enough to pay attention and take the advice of the ones who are doing their best to advise you?

Be smart enough to immerse yourself in “what’s working now” because I guarantee you it isn’t the same stuff that worked a few years ago.

Max Number of Financed Properties

Effective December 1st, Fannie Mae’s maximum number of financed properties allowed when the loan is secured by an investment property is 4. If you own more than that and have a hope of buying or refinancing an investment property using a Fannie Mae lender, you must have the loan package submitted no later than October 1st.

If you have more than 4 financed properties and you want to continue to buy or refinance properties using conventional loans, you are sunk. I’ve been preaching a “portfolio loan strategy” to anyone who will listen and I am working on an instructional product that will guide you through the process. ETA is October 1st.

Stated Income

Countrywide was our last conventional lender allowing stated income loans for investors and we got word yesterday that their SIVA (stated income verified asset) program is being discontinued September 17th. This means that conventional lenders are accepting only fully documented (income, employment and assets) loans.

What Do We Do Now?

1.  Show some income on your tax returns if you are self-employed because the stated income loans are going, going, gone.

2. If you have more than three financed properties, you must begin your Portfolio Loan Strategy immediately. I have walked a few subscribers through this process with success so I am working on a course to walk you through the process.

I should have it ready by October 1st.

Visit http://www.getaportfolioloan.com to join the VIP CLUB (ie BIG DISCOUNT and lots of BONUSES) notification list.

3. Keep your head up! We will get through this together. And the conventional lenders can kiss our #%*.