Here’s what you need to know about investor loans these days.
Today we’re going to talk about something that’s become very popular here in Las Vegas and around the country: investor loans. I remember back during the housing crisis when NINJA loans were popular—loans that were issued with no attempt to verify income or credit. Are investor loans like that? No, investor loans are different.
Right now, if you’re self-employed, it’s extremely painful to go through the underwriting process, in part due to the COVID shutdown, but also because of all sorts of guidelines from Fannie Mae and Freddie Mac. If you’re self-employed and trying to buy an investment property, it’s even worse.
“This loan opens up a lot of avenues for people who have assets that fit these criteria.”
Our investor loan is a no-income, no-employment loan that isn’t backed by Fannie Mae or Freddie Mac. To qualify, applicants must have owned at least one property that they’ve rented out for at least six months. You also need to have a FICO score of at least 680 and the ability to put down no less than 20%. If you can meet those standards, then you can get a great rate.
If, for example, the house rents for $2,000 a month, then the mortgage payment (principal, interest, taxes, and HOA fees) must be $2,000 or less. If the mortgage payment is more than the monthly rent, then the applicant must have six months’ worth of the difference in reserves. If they don’t have the extra in reserves, then they probably have no business investing anyway.
If you have any questions or are interested in buying an investment property using an investor loan, don’t hesitate to reach out to us via phone or email. We’d love to help you better understand your options.
