Home buyers and real estate investing professionals continue to hear about innovative mortgage programs. Options made available to these individuals can have a significant impact on the way their business operates. More often than not, the more options that are made available, the better it is for investors. So what are some of the best new loan products investors should look into? What are some of the lessons real estate professionals can learn from this?
Liquidity and access to mortgage credit has continued to be one of the biggest hurdles for regular home buyers and ambitious real estate investing pros. Fortunately, these challenges may be a thing of the past. New mortgage loan programs can really help investors that are aware of them.
By now, most are familiar with the mortgage products being introduced. These programs are designed to help with bulk deals and release pent up liquidity among buy-and-hold investors with multiple properties. These programs can be advantageous to those who take advantage of them. However, many believe they ask for too much in return.
Many are begging for the return of stated income or ‘no doc’ style loans that accommodate self-employed and investor borrowers. However, the ‘Depletion of Assets’ program could be as close as we get to such a program. Using a formula based on age and cash assets, underwriters credit loan applicants with monthly income in order to satisfy regulators’ requirements. Even those with no documented income can qualify for loans, despite having been turned down by banks in the past.
This is great news, not just for home buyers, but for sellers and real estate investors. It can potentially allow investors to take on more homes than they would have in the past. This opens up a myriad of opportunities that were otherwise unavailable.
The new array of mortgage products coming to the market are going to provide fuel to help the housing market make even bigger leaps. This will enable great growth for those familiar with them. The ability to fully capitalize on those opportunities will depend on the extent investors understand them. Do yourself a favor and become familiar with all of the mortgage programs that are made available to investors. There may be a specific program that is tailor made to your business strategy. You are only hurting yourself if you neglect to look at the options out there.