Posted on: 28th Sep, 2007 02:14 pm
Customer purchased 8 town homes in various stages of completion for $1.2 MM. He completed them for about $700K, and now has CO's on all units. Their value now is $2.4 MM and he wants to payoff the construction/renovation loan of $1.2 MM and get about $400K of his money in cash out, for a total of $1.6 MM loan at 70% CLTV and a 675 FICO with large assets. Limited doc or SIVA program.
Prepay ok for one year, but....
MOST IMPORTANT - partial releases imperitive!!!!!
Prepay ok for one year, but....
MOST IMPORTANT - partial releases imperitive!!!!!
Are you a mortgage broker?
Hi Rstevegay,
Limited doc or SIVA (Stated Income Verified Assets) loan – both will require a reduced level of income documentation. But the limited doc loan will also require a borrower to have more than 40 per cent equity or deposit for the loan, whereas a SIVA loan does not require such condition as a qualifying factor. The negative side to a SIVA loan is that it usually offers very high interest rates and terms.
Limited doc or SIVA (Stated Income Verified Assets) loan – both will require a reduced level of income documentation. But the limited doc loan will also require a borrower to have more than 40 per cent equity or deposit for the loan, whereas a SIVA loan does not require such condition as a qualifying factor. The negative side to a SIVA loan is that it usually offers very high interest rates and terms.
you are seeking what is known as a residential blanket loan---i'm aware of such a program that has the following guidelines:
- must have => 5 properties to qualify.
- loan amounts up to 3,000,000
- loan program can be used for purchase, rate & term and cash out refinance transactions.
- ltvs up to 80% will be considered (60% for residential properties)
- program allows for properties to be located in different towns.
- partial releases are permissible (releases will be granted but the ltv must be low enough after the release to keep the portfolio performing).
- properties must cash flow in order to be considered---a minimum of 1.2 dcr is allowed.
- borrower’s income is not a qualifying factor for loan approval (cash flow of property portfolio is)
- financing as a llc is allowed
regards,
scott miller
- must have => 5 properties to qualify.
- loan amounts up to 3,000,000
- loan program can be used for purchase, rate & term and cash out refinance transactions.
- ltvs up to 80% will be considered (60% for residential properties)
- program allows for properties to be located in different towns.
- partial releases are permissible (releases will be granted but the ltv must be low enough after the release to keep the portfolio performing).
- properties must cash flow in order to be considered---a minimum of 1.2 dcr is allowed.
- borrower’s income is not a qualifying factor for loan approval (cash flow of property portfolio is)
- financing as a llc is allowed
regards,
scott miller
This looks like it could work. What is the program and lender you are referring to? Thanks. Steve Gay - Assurity