Right now, it is a great time to invest in real estate. News reports that home sales are booming, especially in California and Dallas, Texas markets. If you are an investor, entrepreneur, or have nontraditional sources of income, then you may have a hard time securing a standard mortgage. You will not qualify for programs such as FHA Loans or VA Loans. Many lenders have other types of financing for people without regular tax statements and W2s. Stonebriar Mortgage helps real estate and other home speculators learn all the benefits of using Investment Property Loans to purchase homes in Dallas, TX and California.
Obtaining Approval for an Investment Property Loan
Many real estate investors or self-employed may not be able to show income to qualify for a conventional loan. Despite this, many can maintain a good credit score and financial stability, which can get them approved for other types of financing. Some conventional loans or bank statement loans may still be available to you. As you go to obtain approval for a mortgage, seek out an Investment Property Loan that can use variety of documents to prove your ability to pay the mortgage.
“No Income” Mortgages
With a “no income” mortgage, the underwriters will have to prove that you have other financial assets to pay a loan and calculate how much you can afford. Therefore, your documentation must be able to show that cash flow and funds from assets or interest will generate enough funds. Often, they will determine how much you can afford to pay on a mortgage from dividends, profit and loss statements, etc. Alternatively, you may have a hefty sum of cash to put a down payment, and so less financing is needed. There are many commercial programs for multi-unit properties that use Investment Property Loans.
Bank Statement Loans
One great way to obtain approval for an investment property loan is through a bank statement loan, these programs will include:
- Ability to secure a loan for a high-value home, with high limits;
- Ability to secure a loan without providing W2s or tax returns;
- Ability to show a debt-to-income ratio that can sometimes reach up to 50%;
- Ability to secure decent rates, with some investors securing loans in the 5% range;
- Ability to use equity-based financing;
- Ability to get rental, vacation, or owner-occupied homes;
- Ability to use personal or business bank statements; and
- Ability to secure flexible financing terms (fixed or adjustable rate).
As long as you’re able to show thorough accounting, you can apply for investment properties. Stonebriar Mortgage is here to show you more benefits to using other Investment Property Loans, contact our staff today and get started making great investments in the Dallas, TX and California Markets.