What are you guys seeing in the market right now? I know there are always threads on this but I went two pages back and came up empty.

Thanks!

4.25-4.85/ 20 year amortization on 5/1s. The market is definitely swinging in favor of investors and competition amongst banks has been high as rates have stayed low. One thing a banker told me is to always go back and check back with them every so often. Its very common for upper management to make changes that allow for things that may not have been possible a year ago. Having a relationship with multiple small banks tends to give you a lot more freedom and options to make a deal work.

Assuming single family, you can put down as little as 15% but your terms would be the best with 25% down. Rates are about a half a percent higher then owner occupied properties, so right now for a 30 year fixed 3.875%-4.00%. With 20% down looking at about 4.25% and with 15% down looking at 4% on a 75% first lien and higher rate second lien for the remaining 10%.

And the above would be with no origination.

Our portfolio ARMS on investment properties are 3.375% on a 5/1 and 3.75% on a 10/1, 20% down, either 15 or 30 year amortization, borrower's call.

Depends. Small local bank commercial products (really the only product to use if you want to scale and own a good sized portfolio) are ARMs fully ammortized for 15 or 20 years with adjustments at every 5 with initial rates between 4.5% and 5%

You can get conventional loans for your first 10 investment mortgages (Primary does not count in that count) with 30 year fixed rates if you plan on long term holds. After the 10, portfolio loans do offer more options like interest only, putting less down, qualifying with only the cash flow of the subject property (no debt to income), vesting in an LLC but your best terms (assuming long term hold and for most people of course not 100% of the time) for the first 10 are conventional options.

Some lenders make it difficult to get to 10, and they are credit and DTI based loans to my knowledge. Small local banks will underwrite more based on cash flow of the asset (DSCR) than your debt to income ratio.

And that is why I qualified it with those wanting to scale and make a big business out of it. IMO guys wanting to have 10 or less loans or properties are more doing it on the side than trying to make it a full time business.

But yes fannie loans have more favorable terms, but I would much rather deal with a small local bank that is actually holding the mortgage.

Venture with someone who does and save.

What area are you in?

quote:

---

Small local banks will underwrite more based on cash flow of the asset (DSCR) than your debt to income ratio.

---

We are doing a lot of these loans. Great product. No limit on properties owned or financed.

Didn't the Savings And Loans do a lot of this type of lending back in the late 70's and early 80's?

quote:

---

Didn't the Savings And Loans do a lot of this type of lending back in the late 70's and early 80's?

---

Too small for S&Ls in the 80's. In the 70's the did home loans and improvement loans. By the 80's tiny S&Ls in places like Gatesville and Mexia were financing high rise condos in Las Vegas, Key West, San Francisco.......

We originate only non bank loans
rates from 6.5 - 9
stated income type and borrower credit score

I look for "just missed " qualifiers