Blanket Mortgage

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Investors...Financing Designed For Your Needs

The Investor Blanket Loans for Residential Properties is FINALLY HERE!

This is probably the most important loan to come out since the '08 financial crash. This loan allows investors in residential properties (Single family, duplex, condo) to combine them into ONE loan that is put in an LLC name and, can even be NON-RECOURSE! The program all but, disappeared by 2009.  Some private money guys have tiptoed into this type of loan with rates in the 5's with 30 year amortizations.

What does this mean to the market and to you?

- In the old days, the blanket loan requirement was the properties had to be located within miles of one another. Today's blanket loan products allow the properties to be located nationwide. This is huge!

- Investors can now pull cash out, consolidate and, clear out all their properties into one LLC. This frees them up to get regular conventional FNMA financing for new purchases again (currently, few lenders will allow an investor to get this financing if they already have 4 FNMA loans.). This can re-energize the purchase market.

- People who have renovated homes can tap that equity up to 75% to invest in other wealth creation vehicles including buying more real estate, stocks, whatever they want.

Basic product guidelines:

• Fixed Rate is designed for buy and hold investors.
• Interest Only is designed for short term investors.
• The property is underwritten, not the borrower. No person income verification is required. The property is underwritten on property cash flow. So you can show losses on your tax return and, still qualify as long as the properties cash flow at 1.25 times the new mortgage payment (known as DSCR).
• Must be 5 doors or more because this is a COMMERCIAL loan, the loan will be to a business entity.
• It can be a combination of single family, condo, duplex, etc.
• No commercial properties in this mix.
• Credit is important; a 680 credit score is generally required
• LTV up to 75% of purchase price or appraised value, whichever is less.
• Properties must be leased up.
• Foreign Nationals are allowed at 50% but, if they include a US citizen in the mix, they can get 75% Financing as well!
• Loan amounts are $100,000 minimum
• Minimum Property Value/Purchase Price: $100K
• Maximum units 100
• Must have Liquid Cash Reserves
• Full recourse is required up to $3 million but, non-recourse is available above $3 Million.

Terms Available:

Interest Only Term

• 1 year, 2 years or 4 years
• Prepay Penalty/ minimum interest requirement: None (1yr), minimum of 8 mos. interest paid on the 2yr and minimum of 18 months interest paid on 4 year

Fixed Rate Term

• 5-year fix, a prepayment penalty is for 5 years
• 7-year fix, a prepayment penalty is for 7 years
• 10-year fix, a prepayment penalty is for 10 years
• 30-year amortization

If you have any questions about your deal, please feel free to contact me at 512-650-8630 or complete the form for me to contact you.