Investor “Cash Flow” Loan Solves the Problem of Income Qualification

This is for people who want to buy a rental property, but cannot qualify based on their pexels-photo-206673.jpegpersonal income.

“Why are you turning me down based on my income when the property I am buying will have a positive cash flow?” they ask.

Good question. And now someone who is thinking outside of the Fannie Mae box has a solution.

Here are the details for the Investor Cash Flow Loan:

  • No personal income used to qualify (No W2s, no tax returns).
  • Qualify based on the rental income you will receive (verified by a rent appraisal).
  • 75% of the rental income is used (25% set aside for possible future repairs or time between renters).
  • Must have six months’ mortgage payments in savings or other reserve account as a safety net.

Credit score required: 660 or better (middle of three scores).

Down payment: 20%

The property can be a detached home or a condo. Non-warrantable condo is okay. There is no limit on the number of properties you can own (unlike Fannie Mae that caps at 10 properties).

How to Get the Cash Flow Loan

This program is available through a mortgage broker. If your property is in CA or WA, I am licensed in those two states. Otherwise, contact a local mortgage broker and ask for the Investor Cash Flow Loan. If your broker is not familiar with it, he or she can email me.

Get pre-approved, then ask your Realtor to show you some properties!

Thank you for reading this post.



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