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100% LTV investment property loans
100% LTV investment property loans
As you have probably heard 100% LOAN TO VALUE (LTV) NON OWNER OCCUPIED MORTGAGE LOANS (Commonly called 0 down investor loans or rental property loans) 100% CONVENTIONAL LOANS ARE NO LONGER POSSIBLE. Many of the investors that were buying such loans and out of business due to the current climate.
How to get 100% LTV commercial loan?
What is an investor looking for good financing to do? There are still ways to get pretty much 100% financing as long as other elements are in place. First, your property needs to be a good investment. The value, Cap rate, borrower's resume are some of the things we look at to make a deal work. Be sure to ask us about this specifically as we can help you structure the right deal for you in terms of financing and cash flow.
Many investors are looking at private money as a way to get 100% financing on a cash flow producing property.
This works by using the money to do rehab work and turning around and refinancing the property for the higher value resulting from the combination of higher rents and higher overall value of the property.
Note that there is a distinct difference between a mortgage and rehab loan. Mortgages are long term solutions used for holding rental property. 0 down investor loans DO NOT fund repair costs nor will they fund on property that is inferior , incomplete or has any structural damage.
The advantage of using private money is the ability to structure 100% loan to cost (loan proceeds include acquisition and repairs) If you then want to hold the property as a rental you then refinance the rehab loan into a long term mortgage after you have made repairs.
Now you are financing typically no more than 75 -80% of market value and capturing a much better interest rate and you have 25% equity the day your renter moves in.
Be sure to do a good cash flow analysis to see if the property is undervalued and can be improved upon by your plan.
Complete the quick loan form and ask us about how to do it right. We will be happy to help you do just that.
