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Questions and Answers
What types of loan programs are available for real estate investors?
What types of loan programs are available for real estate investors?
Which states are ineligible for the loan program?
Which states are ineligible for the loan program?
Who are eligible borrowers for the loan program?
Who are eligible borrowers for the loan program?
What is the minimum loan size for the loan program?
What is the minimum loan size for the loan program?
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What is the debt service coverage ratio (DSCR) requirement for the loan program?
What is the debt service coverage ratio (DSCR) requirement for the loan program?
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Who are ineligible borrowers for the loan program?
Who are ineligible borrowers for the loan program?
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What is the requirement for experienced investors to be eligible for the loan program?
What is the requirement for experienced investors to be eligible for the loan program?
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Study Notes
Loan Program Requirements for Real Estate Investors
- Loan programs include 30-year fixed rate, 10-year interest-only, 30-year fully amortized, and various adjustable-rate mortgages.
- The loan is available in all states except AK, HI, ND, SD, UT, VT, NV.
- Eligible borrowers include limited liability companies, corporations, limited liability partnerships, individuals, foreign nationals, and revocable trusts.
- Ineligible borrowers include irrevocable trusts, land trusts, borrowers with diplomatic immunity, not-for-profit entities, and those listed on exclusionary lists.
- The minimum loan size is $100,000, and the maximum loan size is $2,000,000.
- The debt service coverage ratio (DSCR) must be greater than or equal to 1.0.
- Maximum loan-to-value (LTV) and combined loan-to-value (CLTV) ratios depend on credit score and type of transaction (purchase, refinance, or cash-out).
- Gross rents are used in the DSCR calculation, and fully executed lease agreements are required.
- Ground leases, cash for deeds, and sale-leaseback options are not permitted.
- The borrower must have a history of owning and managing commercial or non-owner occupied residential real estate for at least 1 year in the last 3 years to be considered an experienced investor.
- First-time investors are eligible with certain restrictions, including a maximum LTV of 75% and no mortgage late payments during the past 36 months.
- The borrower and their immediate family members are not allowed to occupy the property, and borrower-affiliated tenants must be non-borrower affiliated.
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Description
Are you a real estate investor in need of financing? Take our quiz to test your knowledge of the loan program requirements. Learn about eligible and ineligible borrowers, loan sizes, debt service coverage ratio, and more. Improve your chances of getting approved for a loan by understanding the ins and outs of the application process. Don't miss out on this opportunity to expand your real estate portfolio. Take the quiz now!
