Texas investment property loans - acquiring rental propertyAs of midnight march 13ths I lost 2 deals due to Wall Street. Yes Wall Street has drastically cut back on 2nd liens , particularly the high LTV loans (90-100%) that I have been doing for investors for several years. What does this mean? It means that the days of the 0 down investment property mortgage is probably over, at least for now.I want to talk about one strategy that I personally use to acquire rental property. I never really thought it was a great idea to buy rental property with a 0 down loan, unless you were purchasing at a minimum of 80% of market value, which most buyers fell short.When buying rental property how do you eliminate 98% of buyers (not hard to do these days with subprime fallout?) Find properties that are not lendable by conventional Wall Street mortgages. Properties that the appraisal would read below average or have any roof or foundation damage are good candidates. Bottom line, if you would move your … [Read more...] about Texas Investment Property Loans – Changes on the Way
Refinance investment property 80 ltv
HARP 2.0 is the latest version of the home affordable refinance program. This program was created primarily to assist homeowners to refinance and take advantage of lower interest rates who have lost equity in their homes, and who have continued to make their mortgage payments on time. HARP 2.0 is the latest version of the home affordable refinance program. This program was created primarily to assist homeowners to refinance and take advantage of lower interest rates. It is most often for those who lost equity in their homes, but continued to make all their mortgage payments on time. To qualify for a HARP loan you must have no more than 1 30 day late payment in the last 12 months and the late payment cannot have been within the last 6 months. Also, you can only do one HARP refinance, so if you have already refinanced through the program before, you cannot do it again.The home affordable refinance program continues to change and hopefully when the next revision comes out (HARP 3) there … [Read more...] about Home Affordable Refinance Program
The changes in financing options available for residential investment properties over the last 5 years are staggering. Lenders have relaxed the credit and income guidelines for qualification that formerly deterred many would-be investors from entering the real estate. In addition, the down payment requirement has been eliminated for borrowers who qualify. This article surveys the landscape for lenders offering residential investment financing products.Types of Lenders:The lender landscape can be broken into the following broad categories:Conforming Alt-A Non-Conforming or Sub prime Hard MoneyEach of these offers loans for residential investment properties ( 1-4 unit properties).Conforming Conforming lenders are the A-Paper mortgage banks that cater to borrowers with excellent credit history and the ability to document income. Conforming banks offer loan products that can be considered “plain vanilla” in today’s world of interest-only ARMs and low down payment … [Read more...] about Real Estate Investing 101 – Understanding the Different Types of Lenders
Should I use cash or credit? ARM loan or fixed rate? Ten percent down or twenty percent? Should I pay down debt or keep a cash reserve? These are all good questions, and here's some of the answers.Cash vs. Credit: The Concept of Leverage In order to understand real estate financing, it is important that you understand the time value of money. Because of inflation, a dollar today is generally worth less in the future. Thus, while real estate values may increase, an all-cash purchase may not be economically feasible, since the investor's cash may be utilized in more effective ways.Leverage is the concept of using borrowed money to make a return on an investment. Let's say you bought a house using all of your cash for $100,000. If the property were to increase in value 10% over 12 months, it would now be worth $110,000. Your return on investment would 10% annually (of course, you would actually net less, since you would incur costs in selling the property).If you purchased a property … [Read more...] about Be a Smart Investor – Do The Math
It's not very often that a borrower takes into heavy consideration what his loan to value is when shopping for a loan. In fact, if the subject is brought up by the customer, it's mostly in relation to avoiding paying monthly mortgage insurance. But sometimes, a loan to value can affect even more aspects of your loan - like pricing and approval!What is loan to value? Well, it's exactly what it says. The loan amount compared to the value of the home you are buying or refinancing. For example, if you are buying a $100,000 home, and your loan amount is only $50,000, your loan to value or "LTV" is 50%. It's also very common to refinance a home to obtain a lower LTV and drop mortgage insurance that was before required.Different types of loans have different minimum requirements for LTV's. With primary residence purchases, for instance, an FHA loan can have as high as a 97.75% LTV (soon to change to 96.5% in 2009). A conventional loan can have as high as a 97% LTV (but more common is 95% … [Read more...] about What’s the Low Down on Loan to Value?
Rest assured, there are more people just like you. Financing can be frightening.The goal of this article is to show you some real life examples of people just like you who found the success they dreamed of, by selecting the financing option best for them.All of the following are true stories.A HELOC is a mortgage loan, usually in a subordinate position, that allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion up to an amount that represents a specified percentage of the borrower's equity in a property.Owning your own home provides you with your first source of creative financing via a home equity line of credit.Case StudyWhen Greg first thought of investing in real estate, his first order of business was to buy a home. Greg knew that this was a huge first step in unlocking his investment potential. He found a home that he knew had great rental cash flow potential. Because he intended to use this home as his primary residence … [Read more...] about Financing Your Way To Retirement