With these specialized loan products, you can get the right financing for unique situations, including expensive investment property purchases, homes for foreign nationals, and lines of credit on your investment portfolio.
If you are purchasing an owner-occupied property, which basically means buying your personal home, you can get up to $2.5 million with only a 5% downpayment. 5% on such a large purchase is a hefty total, but this percentage is smaller than many other program requirements, which sometimes go as high as 10% or even 20%.
With this specialized loan product, you will have the buying power to purchase a wonderful home with the features and amenities you desire, in the neighborhood where you want to live.
Second homes can be difficult to finance, as they come with greater risk than typical houses. This is because in the event of a financial emergency people tend to protect their primary home over their second property. Imagine you have two mortgaged properties: your first house, which is the home where you and your family live, and a beach-front vacation house. If you were to loose your job and could only afford to make one loan payment, which would you pay, and which would you allow to go into default? Like most people, you would likely protect your family’s home and let the vacation house be at risk.
Lenders understand this reality, so loans on second homes come with tighter restrictions, including downpayment requirements. However, you can work with our team to secure up to $2 million on a second home with only a 5% downpayment.
Downpayments can be difficult to build. Even on homes worth less than $500,000, a downpayment can equal tens of thousands of dollars, making it extremely difficult to enter into home buying. With a cash gift, you can get the money you need, but many loan programs make it difficult to use a cash gift for downpayments and closing costs.
We proudly offer a program that allows for up to $3 million with only a 10% downpayment that can be funded by a cash gift. This is for an owner-occupied property only, but it provides you with a clear avenue to purchasing the fantastic home you desire.
As we discussed earlier, any property that is not a primary residence comes with a higher level of risk. This is true for second homes as well as investment properties. For this reason, finding high-quality financing on an investment property can be tough, but we offer a program that lets you purchase up to $2.5 million with only a 15% downpayment. On properties this large, you may be required to bring 20% or more, so this program allows you to keep more of your available capital while still expanding your portfolio.
If you want to reduce your monthly payments while still purchasing a top-quality investment property, this could be the program for you. By extending the loan out to 40 years, you significantly reduce the monthly payments, thereby increasing your monthly cashflow. Of course, you’ll pay more in total interest, but with interest-only payments for the first ten years, you can count on lower payments during the initial decade.
If you want to take advantage of interest-only payments, but you don’t want to extend the loan out to 40 years, you can reduce it to a 30-year program. With this type of loan, you’ll have higher monthly payments, but you will also build equity faster and, if you keep the investment, will own the property outright in a shorter period. (Three decades, but still shorter than four!)
You can work with our team to get a loan that has no debt-to-income ratio requirements for an investment property. This loan usually requires a market assessment of the property itself, which will give a clear picture of how much you could generate from rental payments. If the possible rent payment is large enough in comparison to the loan total, you can avoid the need to document your ratios.
A HELOC (Home Equity Line Of Credit) is a useful way to use your home’s value as a source of financing. Essentially, you get a line of credit (much like a credit card) that uses your home as collateral, allowing you to finance repairs, upgrades, or other purchases.
HELOCs are usually available for a homeowner’s primary residence, but this program allows you to take advantage of equity in your investment properties, further increasing your borrowing potential.
Foreign nationals are one of the most important groups in the country, bringing in top-quality investment in properties and businesses across the country. Getting approval for a loan can be tough, but with the right team it is possible to secure a loan for either an investment property or your primary residence.
This is essentially using an asset that is already marked as collateral on one loan and using it for collateral on another loan. In real estate, it helps with the need to sell a departing property, and it’s a highly useful option that relieves some of the stress that comes with purchasing a home and selling your current property.
This a program offered by our team, and it can help make the transition from one program to another more efficient while reducing overall hassles and worry.
If you are interested in any of these specialized loan products, contact our team today. We’ll provide more details on each program so you can make an informed decision for your financial future.
Whether you want a large loan for an investment or a moderate loan for your personal home, our staff is ready to make it happen.
“I was amazed how quickly Chad was able to knocked out our refinance!. I highly recommend Chad he & his team did an incredible job! I had 3 others I was working with, including a Credit Union. Chad was able to offer me a lower rate with no fees! Based on the other 3 top financial bids I had for this refinance. ”
“An ‘A’ Team! We just closed on our second transaction with the Chad Baker team. They are very well organized and I can attest that they are looking out for their clients’ best needs. A special shout-out for Juliann B. who was our guide through the painful loan process. We found Juliann to be very responsive, kind, patient, and diligent in getting both our refis closed well.”
I hope you enjoyed reading this article. It’s my goal to keep you updated with the latest real estate mortgage news. I’m proud to provide you with 100% original and unique content. Subscribe now to get high quality real estate mortgage content and articles delivered directly to your inbox. Chad Baker is Regional Manager for LendUS. Chad is consistently recognized in the top 1% of mortgage originators in the United States 2011-2017. Got a question for Chad? Call (858) 353-8331 or submit your question online