I have a credit score in the very low 600s with 70k in the bank. I am looking for a no doc for an investment property. I am looking to buy several properties in the 30-40k price range.
2007-10-17 10:16:11 · 2 answers · asked by gtyuool 2 in Business & Finance ➔ Renting & Real Estate
Actually, it's the up front loan costs that's going to kill you, here.
Picking a rate sheet at random, they want 2 points extra for loans under $50k. Add that to the 2 point hit for investment property, and you're looking at 4 points before you sit down at the desk.
NINAs with 30% down are doable down to about at least 600. But you're talking about $2000 plus (roughly) $3000 closing costs per loan.
Here are three serious suggestions: 1) A commercial multi-property loan. There's all kinds of hurdles to jump, but they'll save you a bundle on up-front loan costs.
2) buy them with low cost home equity loans or home equity lines of credit. Qualifications are easier and the closing costs are a fraction of a standard residential loan. Some lenders even have them for zero cost with a small (appx $500 or so) prepayment penalty for three years.
3) What might also work is taking out a loan against your personal residence and buying the units for cash.
2007-10-17 10:49:38 · answer #1 · answered by Searchlight Crusade 5 · 0⤊ 1⤋
Good luck. You really need a score over 720 or so to push a no-doc through at anything close to a sane interest rate today.
2007-10-17 10:30:53 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 1⤋