Election years always have the potential to inject uncertainty into investment and securities markets… this year has been particularly interesting and it should be fair to say that the result of this election ties an enormous “?” to the end of 2016. Market uncertainty has been reflected in recent rate rises for investor mortgages.
Elysia Stobbe, NMLS# 146751 is not deterred by uncertainty. Elysia is not only a mortgage expert with NFM Lending, but with over 30 properties in her personal portfolio, she is also an experienced investor. She has shared her expert advice on numerous radio and television broadcasts and has authored a book on getting the best investor mortgages. She has been following changes to investor mortgages closely and is finding flexibility and continued promise for real estate investing.
3 Changes to Investor Mortgages
.5% hike in mortgage rates driven 10 year treasury bonds post-election
e.g. $300k loan sees monthly increase of $90
Fannie Mae (FNMA) loan-to-value down-payment requirement 25% up from 20%
Multi-property SFR (up to 4 units) investors can hold up to 10 mortgages if purpose is to purchase investment properties
Cash-out options have been increased for investment properties
Shows improved confidence in property equities
Return of bank statement programs to bank portfolio loans
Recent rise of investor rehab loans
Investors can save cash while making properties rent-ready
While they may not be offer as much community banks generally offer better terms than national banks
Alt. options: seller-financing; hard-money
Contacts & Resources
Call NFM Lending for more info on investor mortgages toll-free 888-574-7770
How to Get Approved for the Best Mortgage Without Sticking a Fork In Your Eye
Normally, our episodes focus on making strong, equitable real estate investments but as investors feel the restraints of a tightening lending market, they are looking for alternative financing options. Mortgage notes represent a secure and a stable income market. Buying and selling mortgage papers can yield sizable returns that can supplement an investor’s income-base.
David Campbell is a jack-of-all-trades in real estate investing. He is an experienced real estate investor and developer, he handles property management, and he buys and sells mortgage notes and offers private financing options. David, who made the transition from high school band director to real estate investor in 2001, began buying and selling mortgage papers in 2012 and has manged an increasingly profitable debt portfolio since. This episode, David discusses his multi-transitional career in real estate and how buying mortgage notes can be a great way to invest in real estate.
Market demands alternative financing options
Private lenders + Seller financing
Self-Directed IRAs – about 60% of alt. lending market
Used for non tax-efficient assets like mortgage notes
A significant mortgage/debt portfolio can be stable and lucrative income-base
Happy to make $ on deal by end term?
Deal still profitable w/ out loan payment?
Predatory loan claims risks?
Mortgage notes and Dodd-Frank
Work with Registered Loan Mortgage Originator – creates ‘Qualified Mortgage’ papers
Loan can be guaranteed against inconsistencies with Dodd-Frank regulations
Ensure notes are good before buying
Borrowers – debt-to income ratio 45% or lower; no higher than 6.5% above average prime offer rate; 15 + 30 year terms (9.5% rates)
David’s website www.hasslefreecashflowinvesting.com is loaded with materials and resources for real estate investing, development and financing. Visitors can find out more about David’s enterprises as well as check out his blog for even more information! For other inquiries, David can be reached directly by email: firstname.lastname@example.org