We specialize in helping investors like you maximize their real estate portfolios through innovative mortgage solutions. One of the most powerful tools we offer is the Closed-End Second Loan, which allows you to leverage the equity in your existing properties to fund new investments.
Scenario: Expanding Your Investment Portfolio
Imagine this: You’re a self-employed investor with an impressive portfolio of 10 investment properties, and you’re ready to purchase your 11th. However, with a 61% debt-to-income (DTI) ratio based on your tax returns and a 700 FICO score, traditional financing options may not be enough to secure the deal.
By using a Closed-End Second Loan, you can tap into the equity of your existing properties to fund the new purchase. With a 75% combined loan-to-value (CLTV) on the subject property, this solution allows you to achieve your investment goals without the hurdles of conventional financing.
The Non-QM Solution: Closed-End Loan
Our Closed-End Loan program is designed specifically for investors like you. Here’s how it helped this borrower:
- Alternative Income Documentation: Using one-year profit and loss (P&L) statements, we qualified the borrower with a more favorable 46% DTI—well within the program’s maximum allowable 50% DTI.
- Flexible CLTV Options: The program offers up to 80% CLTV for second homes and investment properties and up to 85% CLTV for primary residences.
- FICO Flexibility: With a minimum 660 FICO for the primary wage earner and 620 FICO for additional borrowers, this program is accessible to many investors.
- 5% CLTV Reduction for P&L Feature: By utilizing the one-year P&L feature, the borrower benefited from a 5% reduction in CLTV, making the loan even more advantageous.
Ready to Take the Next Step?
We are your trusted partner if you’re an investor looking to leverage your equity and expand your real estate portfolio. Contact us to learn more about our Closed-End Second Loan mortgage program.
