We had a product change that I found very interesting this week. Well, it wasn’t really a change, but we can now qualifying on the interest only payment on our investor loan program. So here is how the program works and then I will show you how it changed. Mr. and Mrs. Buyers own a home. They want to buy an investment property but they don’t make enough money, because they are self-employed, unemployed, in between jobs, work for weed instead of $$. Whatever the case! So they have money in the bank and they want to buy this investment property and we can get them a loan for the property as long as the Principal, Interest, Taxes and Insurance are less than the rental income. So we back into the loan that way! Easy enough! Mr. and Mrs. Buyers find a house for $600,000.00 and they put $200,000.00 down and their payment is exactly where the rent is at $3100.00 and they qualify with a few months of reserves…
Here is the new twist! We can do the same on an interest only loan now and QUALIFY BASED ON THE INTEREST ONLY PAYMENT! So instead of having to put $200,000.00 down to have a payment of $3100.00, the Buyers only have to put down $110,000.00 and their payment is still $3100.00. So someone who is self-employed or unemployed can purchase almost twice as many houses with the same amount of money! Many of you are going to think, ooh interest only is baaad! I do not love interest only but a lot of these people who can’t qualify for a mortgage have a lot of extra $$$ and will pay down the loans over time. We are not putting a school teacher and her husband who is on disability in this type of loan. This is for the want to be an investor, but I hate getting loans because I never qualify because I don’t show enough income buyer! Like Mr. and Mrs. Buyers!
Interest rates are hanging in there today and most are exactly where they were on Tuesday! Rates could go either way at any time. Here are rates as of this moment:
- 30-year fixed conventional 1st Mortgage with 25% down – 3.875% (3.930 APR). Loan amounts up to $484,350.00 = $2277.59
- 15-year fixed conventional 1st Mortgage with 25% – 3.250% (3.350 APR). Loan amounts up to $484,350.00 = $3403.38
- 5/1 ARM 1st Mortgage – 25% down – Fixed for 5 years and then becomes variable – 3.250% – (3.2605 APR) Loan amounts up to $3,000,000.00 = $13,056.19
- 7/1 ARM 1st Mortgage – 25% Fixed for 7 years and then becomes variable – 3.375% – (3.385 APR) Loan amounts up to $3,000,000.00 = $13,262.89
- 10/1 ARM 1st Mortgage – 25% Fixed for 10 years and then becomes variable – 3.500% – (3.510 APR) Loan amounts up to $3,000.,000.00 = $13,471.34
- 30-year fixed 1st Mortgage FHA loan 3.50% down – 3.500% (4.914 APR). Loan amounts up to $484,350.00 = $2213.01 + $349.08 PMI = $2562.09
- 30-year fixed 1st Mortgage VA loan 0% – 3.500% (3.681 APR). Loan amounts up to $484,350.00 = $2174.95
- 30 Year Fixed rate 1st Mortgage Jumbo Loan 25% down – 4.375% (4.399 APR). loan amounts up to $3,000,000.00 =14,978.56
All of the above are based on a 740 credit score with 25% down on conventional and Jumbo Loans. Rates are subject to change without notice, your mileage may vary!
I will be in and out of the office all weekend and ready for your calls. My cell # is 661-714-6258 and my office # is 661-260-2970. Have a great day and a better weekend!