Many agents and buyers have asked "How can I get financing for my investor clients if they want to buy BOARDED & ABANDONED properties in the Twin Cities Metro" and "I know about the FHA 203K program for owner occupants but what can I offer my investors for rehab and construction financing"?
My answers:
The FHA 203K program is awesome for owner occupants in the Twin Cities, MN Metro and we offer it but that is not the only solution.
Not many finance people in the Twin Cities really understand rehab & constuction mortgage financing!
Here are the basic guidelines for our Residential Rehab and Construction Mortgage Financing for both investors and owner occupants:
• Minimum 660 FICO score
• If rental, Minimum 1.25 DSCR
• If using DTI, Maximum 45%
• Can blend both with global calculation
• If DTI and DSCR do not work we can use marketing plan and pledge payment reserves to bank
• 6 Months reserves
• Purchase plus Construction = X
• Loan amount = 80% of X
These loans are more common sense underwriting. It is important to get accurate rent rolls, PFS, operating statements and proof of ALL assets. Once we have that we need to sit down with the borrower and work out the solution.
These loans are available for everything from Spec Homes to the Boarded and Abandoned bank owned properties in the Twin Cities, MN area!
612-578-9898
Our team in located in the Minneapolis / St Paul , MN Metro
Learn more about commercial mortgage loan programs available in the Minneapolis & St Paul, MN Metro area that can help those looking to secure purchase rehab mortgage loans for properties that do not qualify for programs like private/hard money loans or the FHA 203K rehab mortgage loan.
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