Here are some general frameworks for terms and rates of several of the different programs I have.   There are of course others that may be available based on the client’s needs.  I will also caution the terms are subject to change based on client, property type, loan scenario like all loans are.  Let me know if you have any questions.

 

New purchase for 2nd home 

 

--Up to 70% LTV…this will depend on the clients strength and whether it will be a true 2nd home or if the client intends on renting it while they are not using it.

--Rates 5 year term around 3%...7 year term around 3.75%

--Amortization 30 years

--Bank Fee 1% plus $950 UW fee…there are no bank fee options.

--Broker fee of 1.5% normally 2% but discounted for our referral relationship.

--Client pays appraisal and title

--Close time 35-45 days

--No prepayment penalty

--Min loan amount 100k

 

Cash out Investment or 2nd home

 

--LTV for cash out deals, does not matter 2nd home or investment. Lender will go to 65% (off purchase plus documented improvements) if owned for less than 2 years.  If owned for more than 2 years the lesser of 65% or new appraised value.

--Rates 5 year term around 3.5%...7 year term around 3.875%-4%

--30 year amortization

--Bank fee 1.5% plus $950 UW Fee

--Broker fee 1.5% discounted from 2%

--Client to pay appraisal and title

--close time 35-45 days

--No prepayment penalty

--Min Loan amount 100k

 

Other type cash out investment loans-blanket loans over multiple investment properties

 

--Typically max LTV is 65% but the true loan amount is calculated off the income vs the expenses and debt.

--Rates 3 year terms around4.5%-4.75%…5 year terms around 4.99%-5.5%

--Amortization normally 20 years

--Clients to close in an entity name or have an itin#

--Prepayments vary per lender normally 0-1%...3,2,1 step down.

--Min loan amount 100k…good to use if the client has multiple smaller properties.

--Bank fee $295-1.5%

--Broker fee 1.5% discounted from the 2%

--client pays for appraisal and title

--Close time 35-45 days

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