We are proud to offer a unique program that is available to investors who need mortgage loans for their properties. Traditionally, a loan product will require the documentation of income, which is usually tax returns or bank statements, and can include future and current rent payments. For many, this will work just fine, but some investors will still be unable to qualify.
As an added bonus, this program allows for up to 20 financed properties!
No-Income Investment Property Loans from San Diego Purchase Loans
Income used to qualify for this program is done in one of two ways:
- First, the loan can be qualified using future rent payments if a monthly payment would represent 1.1% of the total property value. This allows for all other debts to be ignored, as long as the rent is confirmed by a market survey. With this option, you can finance up to 80% of the property value with an amount up to $1 million. If you finance only 70% of the property value, you can get up to $2 million in financing!
- If a monthly rent payment does not cover 1.1% of the property value, you can use a system that does not require the documentation of income, but there will be a slightly higher interest rate than if you were to use the other amount. This no-ratio program will finance up to 75% of the value, with a loan as high as $1 million. If you finance only 65%, you can get up to $2 million in financing. One of the main requirements is the documentation of at least six months worth of reserves. This is the only program we can find that allows an investor with an inability to document income or reserves to secure a loan for an investment-property purchase.
Advantages of Our No-Income Investment-Property Loans
There are some important distinctions between this loan product and other options. With more choices for the terms, more eligible properties, and more qualifying borrowers, these loans can be tailored to your exact needs, and it can all be done with no income qualifications.
Multiple Options Available
Other no-income investment-property loans can be fairly limited, allowing for only typical loans on an investment purchase. At San Diego Purchase Loans, we understand that each borrower has different needs and different preferences; some may need to make a purchase, while others need to refinance or do a cash-out on their equity.
With this in mind, we offer a wide variety of terms on these loans. For example, you can use the loan for the purchase of a new investment property that can be added to your financial portfolio. However, you can also use the program for a refinance to get a better interest rate on your mortgage, or you can refinance and extend the terms to have lower payment, which allows for greater month-to-month cash flow. You can even use a cash-out refinance to take advantage of non-liquid equity, turning it into yet another investment-property purchase.
Programs available include:
- Purchase loans
- Refinance for lower interest rate
- Refinance for extended terms
- Cash-out refinancing
Many Types of Properties Available for Purchase
Using this option for your investment-property purchase, you can choose from a wide variety of properties, including single-family homes and multi-unit properties up to four units. This gives you added flexibility when searching for new properties to add to your portfolio, as well as greater diversity of properties after you make the purchase.
One of the most unique options for this loan product is the chance to get financing for a non-warrantable condo. “Warrantable” simply means condos that are eligible for a loan that can be purchased by Fannie Mae or Freddie Mac, and having this option available is important for lenders, as it reduces risk. Some lenders avoid making loans on condos that are non- warrantable, but we offer these loans to increase your borrowing options.
Eligible properties include:
- Single-unit properties (single-family home)
- Three-unit properties
- Four-unit properties
- Planned unit developments (PUDs)
- Warrantable condos
- Non-warrantable condos
Foreign Nationals Can Utilize the Program
Foreign nationals often have trouble finding financing for many different purchases, including personal homes and investment properties. This difficulty often stems from the fact that they don’t have the same credit profile that other people enjoy; their credit may be well established in another country, but many American lenders won’t honor this history.
Despite the challenges involved, we proudly help foreign nationals who want to enhance their financial picture through investment property. These no-income loans can help increase financial stability and prosperity, and we’ll work with foreign nationals through the entire process.
Borrowers Can Close Under an LLC
While some borrowers may prefer to close the loan under their personal profile, we offer the opportunity to close the no-income investment loan under an LLC. With this loan program, you’ll be able to close in the name of an LLC, as long as there is a personal guarantee. This is a wonderful solution for a borrower who is using a 1031 exchange.
Using an LLC to close the loan limits your personal liability and helps keep your rental properties separated from each other, as well as separating them from your personal finances. If you own a rental that is not under an LLC and someone sues you, your personal assets could be at stake. Likewise, an LLC keeps a suit from harming your investments in other properties. Many investors prefer to have their properties under an LLC, and this loan option allows you to close the loan in this manner.
Allows Rent from Property to Be Used for Qualification
Let’s say you are just slightly under the income level for the investment-property loan that will help you purchase a new duplex. Does that mean you can’t get the loan? Not necessarily, as long as you work with our knowledgeable team. Using this no-income loan program, we can actually work the future rental payments into the income we use to qualify the loan.
This loan product is a smart way to save an investment-property loan if there are challenges with income, because the program will allow for rent checks from the property to qualify at a ratio of 1.1% or, if the rents are below 1.1%, the program will allow for zero documentation of income to qualify.
Talk with an expert at San Diego Purchase Loans for more information on this program.
“This is the second time that I have worked with Chad (home purchase & refinance). He has become my subject matter expert and someone I depend on for all finance needs related to our home and real estate investments. My favorite things about Chad are his depth of knowledge, responsiveness, honesty and the great service he provides. I have referred countless friends and family of mine to work with him for no other reason than I know that he will treat them well and equip them for the best possible outcome. Chad will add tremendous value to any real estate transaction that you have and I am grateful to have him as a resource.”
Everything about our transaction with this lender was perfectly explained to us, easy to do, and they were able to help us get our loan closed ahead of schedule. It was a perfect 10 and we couldn’t have been happier with the whole thing
A very responsible and experienced professional with his highly effective team
I really enjoyed working with Chad Baker and the rest of the team. This was our first time buying a home in California and we started with unnecessary assumptions based on our previous experience as home-owners in a different state. Chad and his team were available throughout the whole process, explaining the state differences, answering all our phone calls and emails quickly and directly, and providing detailed weekly status reports so that all parties including agents knew exactly where we were in the process. Chad was very experienced and provided customized loan products for us to consider, which definitely facilitated our transaction. I recommend the Chad Baker team! ”