estate cannot be used toward these reserves.

A Payment Option Arm can be a viable loan program for investors. One feature of the program is four repayment options. Many times the lower interest rate choice may have a pre-payment penalty. Make sure to ask your lender to explain the repercussions that might occur with a pre-payment penalty. You decide to amortize the loan for 30 or 15 years, a minimum amount, or interest only. You can have the flexibility to manage cash flow as never before. Payment Option ARM products are good for managing monthly inco

There are many factors that a lender will assess in determining whether to loan to an individual or on a particular property. The lending industry has changed rapidly over the last ten years. In the past in order to purchase an investment property a borrower needed a substantial down payment. That is no longer the case. Investor loans sold to Fannie Mae or Freddie Mac require a down payment ranging from 10% to 25%. However, there are portfolio investor loan programs that allow investment purchases with either no down payment or 5% down. The interest rate for investor loans will usually be .5% to 1.5% higher than owner occupied property loans and Portfolio loans may be slightly higher than conventional investor loans because they are willing to accept loans with higher risk factors.

These conforming loans are available as either fixed rate or an ARM. Either can be a good choice if your goals are to maximize cash flow and you plan to hold the property for a 3 to 5 year period. Ratios are normally 28/36, but with automated underwriting, excellent credit and some liquid reserves the ratios can go higher. Rental income is decreased by a 25% vacancy factor but there are underwriting methods that eliminate this issue for experienced investors.

Interest rates are completely risk score driven. The lower the risk the lower the interest rate and the better the terms. The lender will look at the following various risk factors to determine the rate and program type:

Credit score - The higher your score the lower your rate or you have more loan options. Most programs have minimum credit scores in order to qualify.

Loan to Value (LTV) (amount of down payment) - The higher the loan risk to the lender the more down payment they will require.

Debt to Income (DTI) - The lower your DTI the easier it is to qualify. Most lenders have maximum ratios that are allowable. Each program has different requirements.

Reserves - Most lenders require that in addition to the down payment and funds to close that the borrower have funds in reserve in case of emergencies. These reserves can be in checking & savings, retirement accounts or stock accounts. The value of currently owned real estate cannot be used toward these reserves.

A Payment Option Arm can be a viable loan program for investors. One feature of the program is four repayment options. Many times the lower interest rate choice may have a pre-payment penalty. Make sure to ask your lender to explain the repercussions that might occur with a pre-payment penalty. You decide to amortize the loan for 30 or 15 years, a minimum amount, or interest only. You can have the flexibility to manage cash flow as never before. Payment Option ARM products are good for managing monthly incom

r investor loans will usually be .5% to 1.5% higher than owner occupied property loans and Portfolio loans may be slightly higher than conventional investor loans because they are willing to accept loans with higher risk factors.

These conforming loans are available as either fixed rate or an ARM. Either can be a good choice if your goals are to maximize cash flow and you plan to hold the property for a 3 to 5 year period. Ratios are normally 28/36, but with automated underwriting, excellent credit and some liquid reserves the ratios can go higher. Rental income is decreased by a 25% vacancy factor but there are underwriting methods that eliminate this issue for experienced investors.

Interest rates are completely risk score driven. The lower the risk the lower the interest rate and the better the terms. The lender will look at the following various risk factors to determine the rate and program type:

Credit score - The higher your score the lower your rate or you have more loan options. Most programs have minimum credit scores in order to qualify.

Loan to Value (LTV) (amount of down payment) - The higher the loan risk to the lender the more down payment they will require.

Debt to Income (DTI) - The lower your DTI the easier it is to qualify. Most lenders have maximum ratios that are allowable. Each program has different requirements.

Reserves - Most lenders require that in addition to the down payment and funds to close that the borrower have funds in reserve in case of emergencies. These reserves can be in checking & savings, retirement accounts or stock accounts. The value of currently owned real estate cannot be used toward these reserves.

A Payment Option Arm can be a viable loan program for investors. One feature of the program is four repayment options. Many times the lower interest rate choice may have a pre-payment penalty. Make sure to ask your lender to explain the repercussions that might occur with a pre-payment penalty. You decide to amortize the loan for 30 or 15 years, a minimum amount, or interest only. You can have the flexibility to manage cash flow as never before. Payment Option ARM products are good for managing monthly inco

tal income is decreased by a 25% vacancy factor but there are underwriting methods that eliminate this issue for experienced investors.

Interest rates are completely risk score driven. The lower the risk the lower the interest rate and the better the terms. The lender will look at the following various risk factors to determine the rate and program type:

Credit score - The higher your score the lower your rate or you have more loan options. Most programs have minimum credit scores in order to qualify.

Loan to Value (LTV) (amount of down payment) - The higher the loan risk to the lender the more down payment they will require.

Debt to Income (DTI) - The lower your DTI the easier it is to qualify. Most lenders have maximum ratios that are allowable. Each program has different requirements.

Reserves - Most lenders require that in addition to the down payment and funds to close that the borrower have funds in reserve in case of emergencies. These reserves can be in checking & savings, retirement accounts or stock accounts. The value of currently owned real estate cannot be used toward these reserves.

A Payment Option Arm can be a viable loan program for investors. One feature of the program is four repayment options. Many times the lower interest rate choice may have a pre-payment penalty. Make sure to ask your lender to explain the repercussions that might occur with a pre-payment penalty. You decide to amortize the loan for 30 or 15 years, a minimum amount, or interest only. You can have the flexibility to manage cash flow as never before. Payment Option ARM products are good for managing monthly inco

of down payment) - The higher the loan risk to the lender the more down payment they will require.

Debt to Income (DTI) - The lower your DTI the easier it is to qualify. Most lenders have maximum ratios that are allowable. Each program has different requirements.

Reserves - Most lenders require that in addition to the down payment and funds to close that the borrower have funds in reserve in case of emergencies. These reserves can be in checking & savings, retirement accounts or stock accounts. The value of currently owned real estate cannot be used toward these reserves.

A Payment Option Arm can be a viable loan program for investors. One feature of the program is four repayment options. Many times the lower interest rate choice may have a pre-payment penalty. Make sure to ask your lender to explain the repercussions that might occur with a pre-payment penalty. You decide to amortize the loan for 30 or 15 years, a minimum amount, or interest only. You can have the flexibility to manage cash flow as never before. Payment Option ARM products are good for managing monthly inco

estate cannot be used toward these reserves.

A Payment Option Arm can be a viable loan program for investors. One feature of the program is four repayment options. Many times the lower interest rate choice may have a pre-payment penalty. Make sure to ask your lender to explain the repercussions that might occur with a pre-payment penalty. You decide to amortize the loan for 30 or 15 years, a minimum amount, or interest only. You can have the flexibility to manage cash flow as never before. Payment Option ARM products are good for managing monthly income and expenses, or "cash flow". Income varies monthly for many reasons and unplanned expenses come up when least expected. The Payment Option ARM was designed to give you greater control over your mortgage payments. You can choose one of three payment options each month based on your cash flow needs.