Charleston SC Investment Home Loans Mortgage Lending

INVESTMENT PROPERTIES FINANCING CHARLESTON SC

Prior to the real estate crash that began in 2007 it was hard enough to get good mortgage loans for special real estates sales like: Charleston, SC jumbo loans, mortgages for investment properties, and fractional ownership home loans. Now after the economic and banking crash banks willing to lend money on riskier assets has become all but impossible without giving up your first born. Below are the basics with getting started with financing investment properties in the Charleston, SC area. I am a local Charleston SC real estate broker with over 13 yrs mortgage experience and once founder/CEO of Mortgage Professionals, LLC wholesale mortgage firm. Please feel free to contact me to discuss your home buying plans in Charleston so we can figure out the best method to achieve your goal. Although I do not write mortgage loans any longer I know and work with the best mortgage lenders in the country and still know what I am doing with regards to how to get financing. Mortgage Loans for second homes is different from that of purchasing homes for investment purposes only. Reserve requirements vary depending on the number of financed properties owned (including primary residence): 1-4 financed properties owned:

2 months of reserves on the subject property if it’s a second home.
6 months reserves on subj. property if it’s an investment property plus 2 months reserves on each other second home or investment property.

5-10 financed properties owned:

2 months of reserves on the subject property if it’s a second home.
6 months of reserves on the subject property if it’s an investment property plus 6 months reserves on each other financed second home or investment property.

Note: Freddie Mac’s guidelines are *currently* 6 months PITI. Other underwriting changes for investment properties include:

70% LTV for purchase of 1-unit and 70% for 2-4 units.
720 minimum low-mid credit score.
No history bankruptcy or foreclosure in the past 7 years.
Rental income must be documented with two years tax returns.
Borrowers required to sign form 4506 (which you can expect on ALL loans these days–including owner occupied).

Don’t forget that there is a significant price hit of 0.75% to fee from Fannie and Freddie with investment properties on top of the credit score/loan to value adds (LLPA). Seller contribution is limited to 2% of the sales price with investment property. Underwriters will be very strict on investment properties in today’s real estate climate so be prepared.

If you are thinking of buying investment property contact me and we can discuss your options before we go house hunting.