No Tax Return Investment Property Loan

The no tax return investment property loan is back. It went away for a few months and it is not the same as it was before but it is the perfect program for the real estate investor who is looking to:

• buy and hold
• Refinance into long term financing out of your short term bridge
• Cash out purpose to buy additional or improvement investment properties. 

If you are not familiar, this loan is specifically catered to the real estate investor and there are no personal income verification of any kind.  That said, here are some program updates.

No Tax Return Investment Property Update:

Maximum loan amount: $4,000,000

The maximum available loan amounts for this program will vary depending on the lender you are working with and is currently no higher than $4,000,000.  At Valor lending group we specialize in this type of program and have kept our finger on the pulse of the market.  That said, we will fit you with the specific lender to accommodate your needs.

Maximum LTV: 80%

LTV or Loan to value has a few determining factors of its own.  It can be effected by the credit score or loan purpose (Purchase, rate and term refinance or cash out) for the most part. 80% is great news because it shows the investors have confidence in the product and it is as high of leverage as it was prior to the Covid-19 pandemic

Minimum credit score: 620

The current minimum credit score is 620.  The importance of that is knowing how that will effect your financing.  For instance if you have the minimum credit score, you would want to consider the effect on the allowed loan amount, interest rate and allowable loan to value.

Minimum debt coverage: No Ratio

The debt service is the most important factor when considering the no tax return investment property loan.  The great part about this financing option is it does not have to debt service. For best rate, the property has to cover its own monthly principal, interest, taxes and insurance (HOA as well if there is one) obligation.  As an easy example, if the PITI is $1,000/mo. the monthly rental income must be a minimum of $1,150 for best pricing.

Bottom Line:

These programs are changing frequently and are moving back towards where things were prior to the Coronavirus effects on the economy. If you would like to receive updates on the upcoming improvements, please email or call me and I can add you to my weekly program updates.

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Recap of our Loan Products:

1. Hard Money Loans (20% down / minimal documentation) Typically Fund in 7-10 days.
2. Stated Income Loans (Great for business owners and self employed ) No tax returns!
3. 100% financing is available (we can cross collateralize other properties if there is enough equity)
4. Valor VA Home Loan 100% financing up to $1.5MM
5. Investment property Loan – No tax returns or DTI calculation! Based on subject property cash flow – No Coverage needed DSCR!
6. Flipper & Rehab Loans (Flip a property with one of our many options)
7. 2nd Position Loans up to $5mm
8. Raw Land & Lot Loans
9. Ground up Construction for spec homes, custom homes and commercial ground up.
10. Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
11. 10% down Jumbo’s with NO MI up to $2mm
12. Manufactured Housing / Mobile Homes (20% down / 600+ credit score)
13. Acreage Properties
14. Commercial Loans up to $500mm
15. 3% & 5% down Conventional Loans– LPMI (Lender paid mortgage insurance)
16. Foreign Nationals Loans (no social security or residency required)

We also offer:

1. 10, 15, 20, 25, 30 year Fixed, Conventional Conforming Loans (under $510,400)
2. High Balance Conforming aka Super Conforming (from $510,400-$765,600)
3. Jumbo’s to $10 Million / Super low rates! / 10% down Jumbo to $3mm
4. FHA, USDA
5. Reverse mortgages up to $1 Million Value
6. Refinance including Cash Out