Investors are always looking to expand their real estate portfolios. Traditional financing options often fall short for a myriad of reasons, leaving many to find alternative routes.
This is where Non-QM loans come into play.
By adding these alternative investor mortgage financing options to your loan toolkit, you can give your clients more ways to secure their next investment property.
What Is an Investor Property Loan?
An investor property loan is a type of mortgage designed specifically for purchasing investment properties. Unlike primary residence loans, these loans typically have different eligibility criteria, interest rates, and stricter qualification standards.
Investors often use these loans to buy:
- Rental Properties
- Fix and Flip Projects
- Multi-Family Units
- Condos
- Mobile Homes
Benefits of Non-QM Loans
Non-QM loans are a great alternative for investors who can’t quite fit into the conforming loan box. Here’s why:
- Flexibility in Underwriting: More relaxed guidelines allow for various income documentation methods, such as bank statements, asset depletion, or rental income. This is helpful for self-employed individuals or those with irregular income.
- Fast Approval and Funding: Non-QM lenders like LendSure can approve and fund loans quickly, which is crucial for closing deals in competitive markets.
- Broader Property Eligibility: Investors can finance unique properties like non-warrantable condos and condotels through these financing options.
LendSure’s Investor Loan Programs
LendSure offers a range of Non-QM loan programs tailored to meet the needs of investors:
1. Fix and Flip Loans
For your clients looking to renovate and resell properties, LendSure provides Fix and Flip loans. These loans offer quick decisions and term sheets issued typically in hours, not days, and welcome any level of investor experience with credit scores as low as 660. They cover non-owner-occupied Single Family and Multi-Family properties up to four units, with flexible purchase and construction loan amounts, and a 12-month loan term with Interest Only payments. This allows you to support your clients’ fast project turnovers.
2. Bank Statement Loans
Bank Statement loans are perfect for self-employed investors with fluctuating incomes. Instead of traditional income verification, these loans examine monthly bank statements. LendSure’s program offers competitive rates, LTV up to 90%, and loan amounts up to $3,000,000. It accommodates both business and personal bank statements without requiring P&L statements.
3. Debt-Service Coverage Ratio (DSCR) Loans
DSCR loans, also known as Investor Cash Flow loans, are perfect for property investors who want to use rental income to qualify for the loan. They focus on the cash flow generated by the investment property rather than the borrower’s personal income. LendSure’s DSCR loans offer fast closings with minimal conditions, covering 1-4 unit and 5-8 unit properties with LTVs up to 85% for purchases and substantial loan amounts.
4. Non-Warrantable Condo Loans
Many conventional lenders shy away from non-warrantable condos, but LendSure provides flexible financing options for these properties. This program allows for up to 50% commercial space, new construction buildings, and is compatible with our other Non-QM loan programs like our DSCR and Bank Statement solutions. With LTVs as high as 80% and loan amounts up to $3,000,000, investors can take advantage of opportunities that others might miss.
5. Condotel Loans
Condotels, or condominium hotels, combine the features of a condo and a hotel. While they can be lucrative investments, they often don’t qualify for traditional mortgages. Our Condotel program offers an easy solution for investors looking to finance these unique properties, and it includes LendSure’s industry-leading bank statement program that provides quick pre-qualification typically within 24 hours. Investors can benefit from LTVs up to 75% for purchase loans and competitive terms for refinances and cash-out scenarios.
6. Foreign National Loans
For international investors, LendSure’s Foreign National loan program makes it easy to invest in U.S. real estate without needing a U.S. credit history, providing solutions for investment properties up to 1-4 units. Accepting income verification letters from employers or CPAs, foreign credit reports, and competitive rates—making the funding process smooth and efficient.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
