Interest Only Loans for Real Estate Investors
Interest only loans for real estate investors are my specialty. I have
developed extensive knowledge of the underwriting requirements of these
interest only loans for real estate investors. For experienced real estate investors, there are depreciation and
expense treatment methods which improve your ratios. Interest only loans for
real estate investors are flexible.
Many of my interest only loans for real estate
investors are converting from fully amortizing payments to an interest
only approach with a significantly lower monthly payment. I have some
extensive information available. Read more to see if this powerful tool could
work for you.
Programs fall into two categories: Fannie & Freddie
and our Investor Specialty Programs.
Interest only loans for real estate investors sold to Fannie Mae or
Freddie Mac require a down payment ranging from 10% to 25% with a delivery fee
ranging from 1.5 to 3 points. Please understand that these fees are imposed by
Fannie and Freddie and are not charges from either your lender or your broker.
However, the fee allows
using conventional rates and loan limits. These conforming loans are available
as either fixed rate or an ARM. Even with the delivery
fees, these loans can be a good choice if your goals are to maximize cash flow
and you plan to hold the property for a 3 to 5 year period. Ratios are normally
28/36, but with automated underwriting, Excellent credit and some liquid
reserves, it is not uncommon to see back ratios in the middle 40s. Rental income is decreased by a 25% vacancy factor but there are
methods which eliminates this issue for experienced investors.
The Interest Only Loans for Real Estate Investors Specialty program (actually a growing group of
investor loan programs) allows purchase
or refinances with only 5% equity. The program allows up to 20 properties plus your
home. Available up to $1,000,000 and 2-4 unit properties are
acceptable. Ratios are generally 34/40 and a No
Documentation program is available. Available as a fixed or adjustable rate
in many reduced down payment scenarios..
interest only loans for real estate investors are now available with fairly reasonable rates. These programs have been
available for a while, but at extremely high rates compared to market rates. We
finally have a source of financing that will allow you to acquire property with
limited out of pocket costs.
I have an investor loan based on the LIBOR
Index. The LIBOR (London Interbank Offered Rate) Index is more stable than the
COFI index (Cost of Funds Index). Comparison charts between the COFI, LIBOR
and MTA indexes are available. One feature of the program is four repayment options. You
can decide to amortize the loan for 30 or 15 years, a minimum amount, or interest only. You
can choose every month and have the flexibility
to manage cash flow as never before!
In 2008, Short Sales are where most of the action in real estate is. Learn
more about Short Sales
I have a page on how to calculate your qualification ratios.
I have a page on mortgage documentation
Documentation loans are now available for investment properties.
If your interest is in foreclosure property as a real estate
investment, visit my foreclosure page
for information and links to property resources.
If you are looking at foreclosure property as an investment, I
have a free report available by email. Request
a Good Faith Estimate before you
Here are my thoughts on the difficulty of "flipping"
For the the greatest flexibility and maximum loan qualifying ratios, you may
be interested in the Cash Flow ARM. This may be
the very best option for an investor.
New! I have added a page on how to properly
compare different investment
property that may be helpful to you
Read more about Interest Only
Loans for Real Estate Investors Closing Costs
Learn about closing in an LLC
I have an article "Buying
your home in 2008" by email explaining negotiating strategy in today's
Learn Advanced Techniques from a Foreclosure Expert right from your home with foreclosureS.com!
Certified Mortgage Planning
Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
Prequalify for your Interest Only Loans
for Real Estate Investors.