Nonbanks Target Single-Family Rental Investors
Here is a story from http://www.nytimes.com/ By
“Mr. Herbert described the company’s underwriting criteria as fairly
conservative. The property income flow must “more than support” the mortgage,
he said. The average loan-to-value is 62 percent (meaning financing for
up to 62 percent of a property’s value). The company plans this year to
expand well beyond the 13 states in which it currently lends.”
Though the Loan to value ratio is lower it is a great start for investors that already have rentals and need to leverage them for other ventures.
This story also mentioned that the down payment was a minimum of 35% down.
” Visio will also lend, with a minimum of 35 percent down, on properties
in need of significant repair. Banks usually balk at providing such
financing, not wanting to end up with a problem property in the event of
a default. But because Visio was created by the top managers at Econohomes,
which bought and sold some 11,000 distressed single-family homes during
the recession, it has ready access to a large pool of existing home
buyers in the 34 states in which it lends, Mr. Ball said.”
So as you can see the market is changing for the rental investors though slowly it is changing.
If you need a home in Northern Ohio call Brett 216-703-5740 Coldwell Banker
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