Fast & Easy: No Income Verification

This is lending nirvana. With almost no hoops to jump through, this loan requires no verification of employment or income.  First time investors are also welcome.  It also does not, like most other alternative investment products, take the property’s cash-flow into consideration*. This is perfect for self-employed borrowers (particularly those recently self-employed), or commissioned sales people whose income is on the rise.  Not only do we not require you to provide employment or income documentation, we don’t even have your provide such information the loan application.

While you get a higher loan-to-value if your property is currently leased, we don’t care whether your mortgage payment is more than your rental income. This loan also requires no liquid asset reserves, and the only funds that we require you to document as your own are those which may due at closing (such as a down payment).

These loans often close in as little as 10 days from time you sign disclosures and give us permission to work on your loan.

Key Terms of the Fast & Easy loan:

• Personal Income Verification: None
• Property Cash Flow Considered: No**
• Maximum Number of Financed Properties: unlimited (however, we will do up to 5 alternative loans for one borrower)
• Product Types: 3/1 and 7/1 ARMs only
• Minimum Credit Score: 640 (680 for max financing)
• Maximum LTV: 75% on Purchase and No-Cashout Refinance; 70% on Cashout Refinance
• Minimum Loan Amount: $100,000
• Maximum Loan Amount: $1,000,000
• Bankruptcy or Foreclosure Seasoning: 2 years
• Property Ownership History: Borrower must current own a primary residence
• First Time Investors Allowed: Yes
• Debt Coverage Ratio (DCR): 1.0
• Prepayment Penalty: Default is 3 years but can be bought down for a substantive cost****

Just Easy: No Income Verification with a Few More Requirements

We’ve left the “fast” part out on purpose for two reasons: (1) while it also requires no verification of employment or income this loan does have has a few more qualifying criteria than its Fast & Easy counterpart. Furthermore, (2) it takes about 14 days longer on average to close than the Fast & Easy product because it requires a second approval from one of our investors who isn’t known for speed.

However, what it lacks in speed, it makes up for in price:  this product is often 1% cheaper in rate than the Fast & Easy product.  An important feature of this loan is that it qualifies the property based on its cash-flow.  It requires that the property’s monthly payment* be no more than 15% greater than the property’s rental income. In other words, if the rental income on the property were $850.00 then then the monthly payment could be no more than $1,000.00.

Also, the Just Easy product has a higher credit standard than the Fast & Easy. Finally, this product requires that the investor have at least a two year history of owning and managing investment properties.

Key Terms of the Just Easy loan:

• Personal Income Verification: None
• Property Cash Flow Considered: yes
• Maximum Number of Financed Properties: Unlimited (however, we will do up to 8 Just Easy loans or total loans of $2,000,000 for one borrower)
• Product Types: 30 and 15 Year Fixed, and 5/1, 7/1, 10/1 ARMs.
• Minimum Credit Score: 680 (720 for max financing)
• Maximum LTV: 80% on Purchase and No-Cashout Refinance; 75% on Cashout Refinance
• Minimum Loan Amount: $200,000
• Maximum Loan Amount: $1,000,000
• Bankruptcy: 4 years
• Foreclosure Seasoning: 7 years in most cases
• First Time Investors Allowed: No. Borrower must have at least a two year history of owning and managing investment properties.
• Prepayment Penalty: Optional where allowed by state law. May be added to loan to reduce costs****

Property Plus: Full Income Documentation with Some Creativity 

Property Plus is meant for borrowers who can document their income and employment but who have derogatory credit events or own too many financed properties to qualify for traditional financing.  This product also allows one to qualify using 12 consecutive months of personal bank deposits to satisfy income documentation in lieu of tax returns.

Key Terms of the Property Plus:

• Income Verification: Yes.  However, personal bank statements allowed in lieu of tax returns
• Product Types:  30 Year Fixed and 5/1 ARM.
• Maximum Number of Financed Properties: unlimited (however, we will do up to 5 alternative loans for one borrower)
• Minimum Credit Score: 620 (640 for max financing)
• Maximum LTV: 80% on Purchase and No-Cashout Refinance; 75% on Cashout Refinance
• Minimum Loan Amount: $100,000
• Maximum Loan Amount: $1,000,000
• Bankruptcy or Foreclosure Seasoning:  2 years
• Property Ownership History: Borrower must current own a primary residence
• First Time Investors Allowed:  Yes
• Prepayment Penalty: Default is 3 years but can be bought down for a substantive cost****

*Monthly Payment is defined as the monthly Mortgage Payment + Property Taxes, Insurance, Assessments + HOA Dues.

**There is one caveat to this statement. Cash-out refinances loans, where the loan to value (LTV) is greater than 65%. These require that the property have a debt service coverage ratio (DSCR) of 1.25%. To establish the DSCR, do this math:  Property’s Rental Income / Monthly Payment / Property’s Rental income

***Property’s Rental income is defined as the lesser of the current lease contract or the appraiser’s opinion of the fair market rent.

****The Fast & Easy and Property Plus loans contain three-year prepayment penalties where allowed by law. In states where prepayment penalties are not allowed, interest rates and/or costs of the loan are higher.  On the Just Easy product, a prepayment penalty is optional where allowed by law, and can often lower the rate and/or cost of the loan.