We are proud to offer one of the best no-income investment-property loans available on the market. This loan program offers clear advantages that make it one of the most popular options for borrowers looking to create or expand their portfolio of investment properties.
Top 9 Advantages of Our No-Income Investment-Property Loan
No Tax Returns Required
For a vast majority of loan products, tax returns are one of the fundamental documents used for qualification. Unfortunately, some people either don’t have the right documents on hand or, because of business complications and tax details, don’t have tax returns that accurately reflect their true income.
With these loans, however, you can get through the qualification without your tax returns. This can expedite the approval process and allow you to receive the loan much faster, which means more investment opportunities for your portfolio.
No Bank Statements Required
Bank statements are another document used widely to verify a person’s income, but once again we see that this form or qualification can be flawed. As with tax returns, a bank statement may not accurately reflect a person’s total worth. For example, you may not have a large amount of cash in a bank account, and instead keep most of your income in non-liquid assets such as stock portfolios and retirement accounts. If this is the case, your bank statement may not be adequate for qualification.
With these loans, you can get the ideal funding for your investment purchase without having to deal with the complexities, hassle, and potential limitations of bank statements.
Future Rent Can Be Used Towards Qualification
With these loans, you’ll have the chance to use future rent towards the purchase of your rental property. Whether or not you can use the rent money is dependent on the monthly rent compared to the overall amount of the loan.
If the rent equals 1.1% of the total loan, the loan will be qualified using future rent. This means that for every $100,000 in mortgage, you need to get $1,100 or more in rent every month. If using this option, all of your other debts are ignored and you will be able to qualify with the rent as part of your income. If it does not cover 1.1%, there is a secondary option that does not require the documentation of income but does come with a slightly higher interest rate.
Only Six Months of Payment Reserves Required
Many investment-property lending options will require a significant amount of cash reserves. Reserve cash, which is intended to reduce risk to the lender, is simply money, held usually in a bank account, that is saved in case the borrower comes across financial trouble. Basically, the lender wants to see that if the borrower were to lose his or her job for whatever reason, they would still be able to make the payments for at least a short period.
In some cases, you may need cash reserves equivalent to a year’s worth of mortgage payments or more, but with this program you only need six months in cash reserves to qualify.
Multiple Terms, Loan Types Available
No two borrowers are the same, and people are often looking for a wide variety of different lending options for their investment-property purchase. Many will want a simple 30-year fixed-rate mortgage for a purchase, but other will need a term refinance or a rate refinance, while others still will want to take advantage of equity through a cash-out refinance.
This no-income investment-property loan gives you options, allowing you to select the loan that perfectly fits your specific needs.
Many Different Properties Can Be Purchased
Do you want to purchase a single-family residence as an investment property? This loan program, along with many others, allows you to do so. Want to purchase a multi-unit property? How about a non-warrantable condo? With others loans, you might have trouble securing financing for these purchases, but it’s possible with these no-income investment-property loans.
Properties available through this program include:
- Single-family residences
- Three-unit properties
- Four-unit properties
- Planned unit developments (PUDs)
- Warrantable condos
- Non-warrantable condos
Foreign Nationals Can Use the Program as Well
Because of a lack or American credit history and uncertainties with immigration statuses, it can be extremely difficult for foreign nationals to secure mortgages, especially no-income mortgages for investment properties. However, with this program, even foreign nationals are able to increase their investment-property portfolio.
This opens new opportunities for investors who come from different countries, and allows people from a wide range of backgrounds to create a strong financial foundation with property investments.
Can Be Closed in the Name of an LLC
For many investors, there are clear advantages for closing a loan under an LLC, which can’t be done with all loan products. By closing under an LLC, you reduce the overall risk to your company and to your personal finances.
You also get a few tax benefits that come from being involved in a “pass-through” entity, and protect your privacy by filing the purchase under a company, not your personal name. For these reasons and more, many investors prefer using an LLC to secure the loan, which is possible with our program.
Can Create an Investment Opportunity When Other Loans Can’t
As an overarching result of all the factors we’ve discussed above, this loan program allows you to create investment opportunities when other loans can’t. It gives you the chance to save a loan that might otherwise be rejected, and allows you to purchase properties that would be unavailable with other programs. When other programs fail, this program creates investment opportunities, which is perhaps the most important advantage for this no-income investment-property loan!
Helping Create a Strong Future with Investment Properties
If you want to expand your investment-property portfolio, contact the team at San Diego Purchase Loans. We’ll walk you through the details of our no-income loans for investment properties so you can make a fully informed decision on your financial future.