Posted By: Sean Terry | December 18, 2008
Do You Have More Than 4 Properties on Your Credit?
Update: February 7, 2009 – Fannie Mae Policy Change Starting March 1, 2009 Read More
If so you do not qualify for traditional conventional financing through Fannie Mae and Freddie Mac. The “Guideline Change” took effect December 1, 2008. I know, this is absolutely ridiculous!!! I have spoke with seasoned investors that have 800+ credit scores and good income BUT they have 4 or more properties on their credit report and can’t qualify for a conventional loan. Stupid!!!!
I could rant and rave about this change for hours, but I like to focus on solutions. We have searched high and low to find a portfolio lender that will do loans for our clients that have the “4 property rule” issue. Well, we have finally found a lender that will do loans just for Fortress clients.
Just for clarification purposes so their is no confusion:
**This Is Only For Investors That Have 4 or More Properties on His or Her Credit**
This program offered is “out of the box” and only for seasoned investors that want to “get in the game” but can’t because of this new rule. The idea is for an investor to purchase a property from Fortress Investments and hold it until the market recoupes and then sell the property down the road for a substantial profit. So here is the limited time offer from North American Savings Bank.
Loan to Value: 80% of purchase price
Down Payment: 20%
Term: 30 Years
Interest: 7% Interest Only
700+ Credit Score or better
20% Down Payment
Good Debt to Income Ratio
Property Appraised Value: $200,000
Purchase Price From Fortress: $157,500
Loan To Value: 80% – $126,000 (New Loan From North American Savings)
Down Payment: 15% – $31,500
Monthly Payment: $885 (includes Taxes and Insurance)
Rate: 7% Interest Only
Term: 30 Years
Projected Monthly Rental Amount: $1,100
Cash Flow: $215
What’s the Result? You now own a fully renovated property with a tenant in place with 25% equity for only $31,500 down. This is still better than the traditional purchase which requires a 25% down payment plus the renovation cost.
If you would like to learn more about this program please give Sean Terry a call at 888–643–0194 ext 3. To learn more about the Fortress Investor Program please visit us at: Fortress Investor.
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