80/10 Stated Cash Out Option Arm

This loan is used by Real Estate investors in more situations than any other loan currently available on the market.  It is considered the #1 loan on the list because it allows you to cash out up to 90% of your primary residence or investment property without proving income.

Loan:  This loan includes a 1st and a 2nd mortgage.  The 1st mortgage is an 80% LTV Option Arm with a 10% LTV HELOC 2nd mortgage. 

Qualifications:  To qualify for this loan you must have a 660 FICO for a primary residence or a 720 FICO for investment properties.  You need at least 10% equity in your home, have 2-3 months of monthly income reserves and the ability to verify your income. 

Review:  If you are an investor, you can use this loan to cash flow just about any Real Estate Investment as this loan allows you get access to large amounts of cash while simultaneously decreasing your monthly payments.  The draw back on this loan is that you have to put 10% down at purchase, and we generally recommend using as little down as possible.  However, if you can buy the property using any one of the easy 100% financing loans, then refinance the property using this loan option within a few months.  Just make sure your original loan does not carry a prepayment penalty.      

1. 100% Stated Investment Property

For new Real Estate Investors this might be a good way to get started and maybe your only option.  This is a 100% stated loan for an investment property, so before using loan make sure you can cash flow the property or flip it quickly.

Loan:  This is a 100% stated income mortgage on a 30-year fully amortized schedule for investment properties.

Qualifications:  To qualify for this investment property loan, you must have at least a 720 FICO score, have at least 2-3 months of monthly income reserves and the ability to verify your income. 

Review:  Because this is a stated loan and does not require documentation, you will pay a higher interest rate.  This loan is based on a fully amortized 30-year payment, so your payments will be higher than what you can collect from say rent alone.  If possible, go with a full documentation loan to get the rate down or find a property with lots of built in equity.

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