Basic Georgia Florida Investment property financing options : (Mortgage, portfolio or private -non bank)
Hard money - Non Bank Loans
Short Term Flips - 70% ARV
long term (630 credit min.) loans for rental property - rates rom 7.5
Investment loans……What is your strategy?
THESE ARE ALSO CALLED NON-OWNER OCCUPIED LOANS
Below is a brief summary of how to finance Florida investment property.
1. The 3 basic sources of funding for investors (Investment Property Loans-Florida ) and solutions
a. Bank (Portfolio) financing: (for this conversation, we refer to local banks as community and state based banks that portfolio/keep loans on their books). A good source for Blanket Loans
These Bank loans can be used to finance purchase of property that may be in state of neglect or “fixer-uppers” and also convert to long term holds. Generally banks(local -portfolio) will amortize 15-20 years with 3-5 year balloons and ARMS.
b. Private/ hard money(again, short term for rehab or quick acquisitions)**(DB Capital and Florida Investor loan specialty)
These are loans made generally without any bank involved or bank money. Many times (our loans) are made by private individuals or small funds from cash accounts or some sort of self directed retirement account. These loans can be used for any transaction type but are generally used for quick acquisition of property in need of repair. (many times banks, especially long term-fannie mae) will not finance property that is not “move in” ready. Terms are shorter ) 6 months to 3 years and rates are higher 12-15% is average in Florida.
c. Long term financing/ Govt. insured mortgages: (for purchase of currently occupied or move in condition properties)Apply for
These are primarily Fannie Mae /Freddy Mac loans. The only lender making 30 year type mortgages. There is no common sense underwriting, its approved using guidelines that involve DTI(debt to income, credit -660+, and property that is move in condition. Down payment is 20% minimum and more for 3-4 unit properties (25% min.) .
Borrowers will need verifiable income per tax returns and some sort of w2/1099 or if self employed for 2 years – tax returns.
2. How we can help overcome common problems associated with investment property financing.
Some problems you may have faced in the past for investment property loans:
No limit on number of properties (you have more than 10, more than 20) bank (local bank or hard money)
seller carried 2nds to 100% CLTV (you want 0 down) hard money
no landlord experience (new investors)
no reserve requirements (lender stated you lacked proper reserves)
no job verification ( we have no documentation investment loans)
COMMERCIAL LOAN OPTIONS FROM 250,000 - 3 MILLION
SAME 3 SOURCES