Our no-income investment-property loans are a useful option for many borrowers in the San Diego area and beyond. With reasonable terms and plenty of options, these loans can be used for borrowers who come from many backgrounds and have different goals for their future.
Why Use Our No-Income Investment Property Loans?
You Already Have Many Properties with Loans
Using rental property to build a strong financial future is a stable and reliable technique, and many investors will have multiple properties under their ownership. It’s certainly not uncommon for an investor to have 10 or even 15 properties, and 20 or more is certainly not unheard of. Unfortunately, as you start to accumulate properties with mortgages, lenders will become less enthusiastic about making loans, and if you have 20, finding financing can become extremely difficult.
With this program, however, you can get approval on a no-income property loan for up to 20 financed properties. This allows you to build a strong portfolio with a diverse range of properties.
The Rent Will Equal 1.1% of the Total Purchase Price
With this loan product, approval is determined in one of two ways, the first of which uses future rent for income qualification. If a monthly rental check will cover at least 1.1% of the total purchase price, your loan will be qualified using the future rent checks as income. This is a unique way to qualify, as all of your other debt obligations can be ignored. However, the rental amount will need to be verified by a market survey. Using the 1.1% method, you can get financing for up to 80% of the property value on a loan up to $1,000,000!
You Have Reserves Available
One of the qualifications for this loan is that you will need to bring at least some reserve requirements. Verifying reserves is a way of protecting lenders from default on the loan, as it increases the chances that a borrower will be able to deal with a financial downturn. This program will require the documentation of at least six months of reserve requirements to qualify. However, this will equal tens of thousands of dollars, so if you don’t have the reserves in cash, there are ways to meet the requirements.
If you are refinancing, for example, you can use equity in the property as your reserve requirement. This is the only program that we are aware of that allows the investor to qualify for a loan even if they can’t verify traditional sources of reserves.
You Want to Use Cash-Out Refinancing With No-Income Qualification
If you need to gain liquid capital through cash-out refinancing, this no-income qualification loan is a great option. With this loan, you’ll have the ability to use equity in the property if you don’t have reserves on hand. So if you are looking to do a cash-out refinancing, this loan option might be the ideal choice for your needs.
You Need to Refinance to Enhance Monthly Capital
Many investors rely on a steady flow of monthly income to support their properties, lifestyle, and future purchases. Unfortunately, some loans can severely limit your available capital. 15-year mortgages, for example, are excellent for bringing a low total cost (when the mortgage is said and done) but you will be paying a larger amount while you still have the loan. By paying more monthly, your available capital can be limited, so it may be useful to refinance to a longer mortgage, such as a 30-year loan. Again, you can use equity towards your reserve requirements, increasing the benefits of using this loan.
You Want to Purchase a PUD
Another reason for using this loan option is that you want to purchase a Planned Unit Development, or “PUD.” These are community homes that look like single-family residences but are very similar to condos. With a PUD, you take ownership of the lot but common areas are owned collectively or by the HOA. Similar to condos, they usually have association dues, but they often include amenities beyond the typical scope of a condo building, including tennis courts, playgrounds, and other recreational areas.
Getting a no-income loan for a PUD can be difficult, but this loan option allows for a wide variety of choices, including these properties.
You Want to Purchase a Multi-Unit Property
Purchasing multi-unit property is a great way to build your financial future, but many investors have difficulty finding no-income loans for properties with two, three, or four units. With this loan option, however, you’ll be able to get the financing you need even if you want to purchase a multi-family home. Once again, you can add to your portfolio with a diverse range of properties.
You Are a Foreign National
Because of credit requirements, some foreign nationals who have not established a domestic credit history have difficulty finding approval for a loan. This is even more true for no-income loans, which often rely heavily on a borrower’s credit score. Our program is designed to help foreign nationals, allowing you to enhance your financial footing even if you don’t have the extensive American credit profile required by other lenders.
You Need to Use an LLC to Close the No-Income Loan
To reduce risk to personal assets, many investors choose to close the loan under an LLC. This is a perfectly acceptable way to increase your portfolio of investment properties, but some loan products have limits on using LLCs. With our program, you’ll be able to finalize the loan under an LLC, reducing your financial risk. A personal guarantee is required, but this still remains an excellent solution for any borrower who is 1031 exchanging into a property when the previous property was in the name of an LLC.
Make the Right Choice on Your No-Income Investment Property Loan
Want to learn more about no-income loans for investment properties? Contact the staff at San Diego Purchase Loans and we’ll make sure you have all the information to make a fully informed decision. From no-income loans for large investments to small loans for a starter home, we are proud to help you find an affordable, reliable mortgage!
“Chad and his entire team were over the top amazing, professional, and attentive throughout the entire home loan/buying process. I could not have asked for a better team to have on my side through what could be one of the most challenging and stressful processes one experiences. From the first conversation I had with Chad, I felt comfortable with him. He helped guide us through the process without ever once making us feel uneasy, unimportant, or uninformed. I never felt silly or stupid for asking the same questions over and over until I fully understood what we were getting into, or until something made total sense to me. The home loan world is fast paced, overwhelming, and confusing, and Chad and his team held our hands and helped us to feel comfortable and confident about our choices. He and his team were always there for us day or evenings, weekdays, or weekend and never made you feel like you were a bother if you had a burning question you had to get answered at 8pm Saturday night. I will use them again and again, and suggest them to any friend, family, or acquaintance. Seriously, they are rock stars. They work hard for you to get you into your dream home, we could not be happier with their hard work, dedication, and kindness.”
“Chad Baker is THE BEST, most professional, understanding, HONEST person I’ve ever worked in the mortgage industry. He knows exactly what he’s talking about, will never promise something he can’t deliver, and will bend over backwards to get you what you need. I had a very unique problem qualifying and every other mortgage company I worked with assured me from the beginning that they could get me financed, and then it would all fall apart once we hit underwriting. Chad understood my circumstance from the beginning and patiently explained every step of the way. I can’t thank you enough Chad! Juliann has been great keeping me updated and making sure that everything comes together in a timely fashion. She also appreciates my sense of humor, which gives personality to a boring funding process. Thanks Juliann! I HIGHLY recommend Home Point and if I ever buy another home, will absolutely use them again.”
“Chad and his team are exactly who you want handling the financing of your home. Whether it be a new purchase or refinance, he and his team are one of the most professional, responsive group of people I’ve worked with. Buying a home can be very stressful and Chad and his team took all of the necessary steps to make the process as painless and as quick as possible. They are extremely knowledgeable, organized and have great follow through. You won’t ever be left wondering what the next steps are. I highly recommend him and will use him in all of our real estate transactions moving forward.”