100% US Finance

Hi Richard

is this finance available to our investors, we have about 30 Texan properties to close in the next month/s. These properties are purchased well below appraised value, is your finance available for these properties ? Your financier will have no problem with the equity we have.

Regards westan

USA deals, cash flow equity and capital growth all in one property.
International Property Consulting Pty/Ltd.
Property Investing New Zealand Ltd
http://www.iproperty.net.au

Hi Richard

thanks anyway.

I gather this money is for deals where people are paying full retail for properties through your business contacts and not open to people bringing deals to you ?

regards westan

USA deals, cash flow equity and capital growth all in one property.
International Property Consulting Pty/Ltd.
Property Investing New Zealand Ltd
http://www.iproperty.net.au

Have u actually settled any of the 90% USA loans to Ozzie foreign nationals Ben or are u going off what u have been told?
Because I have spoken to alot of lenders that initially say it will be fine but then when they try , they realise its not as easy as fiirst thought.
It would be great for us ozzies if u have!

We’ve got 70 yrs on planet earth,Lets make the most of every day!

Ok,

Now I’ll speak for myself and attempt not to care of how seemingly rude Richard’s last reply was. (That’s ok Richard, I’ll forgive you but wont be able to help get that shoe out of your mouth.)

Simple fact is that 90% is available to Australian investors looking to purchase in the US. Just because someone has never presented this option does not meen it does not exist.

New programs and changing guidelines are a constant in the mortgage world. Here in the US, the big market is 100% financing and cash out immediately after purchases. You wouldn’t believe how many brokers tell their clients it can’t be done.

Ben Carmona
Mortgage Planning Consultant
“Specializing In Investment Loans”
First National Mortgage Sources
314-914-6052 c
866-226-6309 f
[email protected]
http://www.BenCarmona.com

Lending Nationwide Throughout the US

That’s a great opportunity you have for your clients that need or want 100% financing. I’m sure you’ve worked hard to build that relationship. Is this the loan that is only available in San Antonio and Buffalo? How about documentation – can they do that with no credit score, no employment, no income, and no assets?

Thank you for clarifying the minimum for those who are targeting lower valued properties. Actually the minimum purchase price would be $100,000. If the majority of the investors on this board are purchasing for under $100,000 then it makes sense to add this in here. Who know’s, now that 90% is availble, maybe the median purchase prices will increase.

Rates on 2nd mortgages are of course higher; as with any loan the risk to the lender will dictate rates. A high ltv (lvr) loan scenario and 2nd mortgage would be considered higher risks.

As you can imagine there are many caviats within loan requirements no matter who the lender is. For simplicity it would be best for those who are interested to contact me directly for additional details.

I should have mentioned also that I do have a private lender who said they would consider doing 100% rehab loans for foreign nationals. The loans are based upon the after repaired value. Normally they will loan up to 70%. This loan can cover the cost, payments, fix up money, and purchase. So 100% of everything if it fits within the 70% (arv -after repaired value). These are short term loans, 6 months, and the terms are generally higher based upon the risk and loan type. $50k is the minimum loan amount. For those that are interested, I can discuss through email. These can also be done on properties that dont need to be rehabbed but are just available for purchase well below market value. Since these are short term loans, I do have several lenders that will do refinances immediately based upon the new value.

Ben Carmona
Mortgage Planning Consultant
“Specializing In Investment Loans”
First National Mortgage Sources
314-914-6052 c
866-226-6309 f
[email protected]
http://www.BenCarmona.com

Lending Nationwide Throughout the US

Luke,

Thank you for your interest. After I had been contacted by several investors from Australia, I realized how strong the need was in your country for additional financing options. Not only that, but also having a contact here the US that understands the financing of investment properties. Building strong relationship of those you can depend upon is key in this business.

I have been in the mortgage industry for about 8 years, 5 of these as a consultant for those needing mortgage loans. Over the last couple years my focus has strictly been on investment loans. There are always new programs or enhanced changes to guidelines with the lenders in the US. Staying aware of these and spending time looking for new sources of funds is imperative in staying a head of the pack.

This program was revealed to me just several months back after originally being contacted by a foreign national who needed financing. Unfortunately the property itself didn’t meet the requirements. I took it upon myself to contact the sales rep, manager, and underwriter for the lender so they could answer specific questions. In doing this, I have been made keenly aware of the parameters and guidelines.

I knew right away after hearing from the first Australian investor that this program would match up terrifically.

There are several factors that go in to deterring rates on these conventional mortgages. The investors goal on how long they will hold, term of loan, documentation type, loan size, and property type are just a couple examples. Frankly, I find it unprofessional when quotes are just tossed around open forums such as this. People can read too much into one number and think they will ultimately get that same great rate. When in fact, every lending scenario is unique. What I prefer is to have a consultation with clients to address their goal for the property along with qualification criteria.

In terms of the private financing for the short term rehab loans, that has not been fully worked out for foreign nationals yet. That was a conversation that I had with a private lender that I do business with here in the US. Private (hard money) funds has become a great source here in the US for rehabbers that either do not have the money to purchase and fix up or the credit to qualify for conventional loans. Here in the US, most lenders will only fund a property based upon the current condition. If the appraisal reflects it is below average habitable living conditions they will not make a loan it. Some of those same lenders offer rehab loans but you need 10% down. Financing for foreign nationals is not available on those either. Most local banks in a neighbor also want 15-25% down on rehabs until you build a relationship with them. So for most that only leaves hard money lenders that look more at the deal than credit, income, or assets. They base the loan on the after repaired value which most of the times is enough to get 100% of the funds for the project. I refer many people to this lender and they have closed about 95% of the referrals. So I asked them if they would consider foreign nationals and they said it may be possible. Each transaction is independent from the other. Terms on this loan for the US clients are for the most part set and there are no factors. Rate is usually 14%, they have 5-6 points (1 pt = 1%), ~$1,750 in normal loan fees (title, inspections, draws, processing…etc). I couldn’t say what it may be for a foreign national loan. This can be addressed as we move forward in having them look at deals that may need this type of financing.

Feel free to send me your email if you would like to discuss financing scenarios for the conventional 90% loan.

Ben Carmona
Mortgage Planning Consultant
“Specializing In Investment Loans”
First National Mortgage Sources
314-914-6052 c
866-226-6309 f
[email protected]
http://www.BenCarmona.com

Lending Nationwide Throughout the US