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!
I was referred to Chad by my Realtor for a purchase of a new house. The experience with Chad and the team (I mainly worked with Juliann) was nothing short of outstanding. From start to finish there were always quick to respond and when needed, notify me of any new documentation that was required. There were very helpful explaining to me the pros and cons of different financing options as well as some other loan related issues, such as termite clearance outside the purchase contact and septic tank certification process. Overall, very knowledgeable and processional team. Loan preapproval was done in a single day and loan documents were ready for signing in 21 days, which was 9 days ahead of schedule. That never happened to me before.
Incredible Turnaround and Stellar Customer Service. Chad and his team helped us get into our first home here in San Diego. When we first started the process we were skeptical it would even be worth applying. But Chad and his team walked us through the whole lending process with integrity and know how that surpassed our expectations. After helping us to pull together our pre-qualification, he and his team stayed at the ready. Before we even walked up to a home we were seriously interested in he had the data we needed over to us and our realtor. After finding the home we wanted to place a bid on, we were able to place a bid with a matter of a few hours. Then, after having our offer accepted, he had our loan package completed and the keys in our hands in under a month — I am pretty sure it was less than. Like I said, incredibly fast and professional turnaround. if you are looking for a motivated lender who can walk you though every detail and have your back every step of the way, Chad and his team at HomePoint Financial is your best decision. Recommend them highly!”
An ‘A’ Team!
We just closed on our second transaction with the Chad Baker team. They are very well organized and I can attest that they are looking out for their clients’ best needs. A special shout-out for Juliann B. who was our guide through the painful loan process. We found Juliann to be very responsive, kind, patient, and diligent in getting both our refis closed well.”