Right now Fannie Mae still suffers tremendously in many ways from cranial-rectal inversion. Perhaps the worst result of this condition is the hamstringing of worthy real estate investors from having more than four properties on credit. But there are alternatives. Agents I can help you add sales to your month with this program and will help you market it. Call me directly at 866-946-0120 ext 101 nationwide.
One of the alternatives we at Novation have offered for many years is the IRA loan for real estate investors. This allows an investor with an IRA to tap the strength of their IRA to acquire real estate investment properties without using all of the funds in their account. While you certainly may purchase real estate directly into your IRA with all cash does it not make more sense to purchase three or for at today's amazingly low prices using our IRA non-recourse real state investor loans?
Qualifying is really simple. In fact the borrower really does not qualify at all. Because the loan is non-recourse the qualification is mostly incumbent on the property and the holdings in the IRA. It requires a 30% to 35% down payment which must come from the IRA. And additional 10% must remain in retirement funds for reserves. So if you have $120k in your retirement account you can easily require 3 small investment homes.
We show you how to determine rent rates and manage cash flow. In fact I personally have been training conservative investors for nearly 10 years. Call my office but speak with KIM NOBLE who is the national accounts rep for IRA loans. Even if you have already contacted another bank or lender you need to call us because we can likely beat their services and take a lot of the effort out of the transaction for you. The largest national bank will not try to make your deal work - you are either immediately qualified or immediately and permanently not qualified. DO NOT CALL NASB first. Call Novation FIRST. This is not some ploy - we save you money and get deals closed they deny.
We have a no-obligation transaction evaluation package and will work with you to understand the technique. We have closed more investment loans than any other team we know of -nationwide. Literally over 3000 loans since 2001.
IRA loans are available in all states with a short moratorium in Las Vegas and Arizona.
Ken Cook 866-946-0120 extension 101
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THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.
Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
Investors were spoiled and so were agents and loan officers during the peak of the boom. Sure I remember 100% investor financing at 7% - it's gone! When I first entered the business if you did not have at least 20% down and a debt-to-income ratio of 43% or less you were not even getting an investor loan at all at any rate. Additionally the interest rates were about 12% for investors.
Today you can purchase a residential real estate investment property with 20% down and fair credit. The rates really are not bad compared to most every other time in history. In addition to fair rates the availability of properties at quite literally "pennies on the dollar" is smashing! (Just wanted to use that word - I'm not British.)
Effective December 1, 2008 Fannie Mae initiated a whole new set of Loan Level Pricing Adjustments for real estate investment (non-owner occupied) home loans. See the image below:
These amounts are added to the PRICING of the loan. This says if the PAR RATE is 5% (for example) and you are paying all the bank fees and closing costs from pocket to keep the rate at PAR the loan officer or pricing engine will raise the interest rate by enough to cover the LLPA. So if you are getting an investment loan at 85% (good luck on that) the LLPA would be 3.75% just for the fact that it is an investment loan at a higher LTV. There may also be other pricing adjustements such as loan amount, DTI and property type to name a few.
If today's PAR rate is 4.875% (and it is) and you are using the above mentioned loan the LLPA is going to be added to the pricing or you are going to PAY the LLPA to keep the PAR rate.
By the way if you are limited to four properties by Fannie Mae feel free to call me because we can do four more in Georgia, Alabama, Tennessee, Kentucky, Virginia and Michigan. I also do IRA non-recourse loans in every state except Arizona.
Ken Cook 866-946-0120 extension 101
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Seasonal Special 20 articles of 200 words each fully optimized $40 each for ALL
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.
Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
The most important step is to make sure the IRA holder and no linear relatives benefit in any way from the disbursement of funds or proceeds of the loan. Once that little fact is handled it works fairly simply. The IRA custodian (no, Bank of America will not do this for you nor will Fidelity because they really don't offer true self-directed IRA accounts) will put your funds into an LLC created so that you have checkbook control. The IRA's LLC can then borrow up to about 70% of the purchase price and there needs to be 10% reserves left in retirement funds after the down payment.
The IRA actually becomes the borrower and the IRA's LLC holds the title to the property. All funds generated from the IRA need to go back to the IRA's LLC where it can be sequestered or re-invested. There are very few lenders who offer IRA non-recourse loans for small residential investments so don't bother calling your local bank and wasting your time.
Also very important to the IRA non-recourse loan is that all funds used to acquire the property come from your IRA and that you do not intermingle your funds. In other words you cannot purchase a property for cash and then refinance it into your IRA but you can pay the earnest payment from your personal funds and reimburse yourself at closing. The loan also requires the property to be in "move-in" condition. If any rehab needs to be made it must be cosmetic in nature and paid from the IRA funds. Total rehabs can be acquired with IRA funds and once the property is completely rehabbed and rented (cash flowing) the loan can be refinanced using an IRA loan (non-recourse loan) to put the money back into the IRA.
Ken Cook 866-946-0120 extension 101
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Seasonal Special 20 articles of 200 words each fully optimized $40 each for ALL
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.
Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
And the county prosecutor is my defender! It makes about as much sense. Do I think a real estate agent can be a loan officer? Sure. Do I think a loan officer can be a real estate agent? Absolutely. Do I think either can be good at both?
That depends on the quality of understanding and commitment I think I deserve. If I think I deserve a real estate agent who does loans to represent me in either and I'm willing to compromise my desire for quality in either one then sure, let me have a real estate officer ... or is that loan agent.
Look, I know this is offensive to a handful of people. But the truth is real estate laws and regulations are quite voluminous and mortgage regulations and underwriting guidelines change daily. I know you can find mortgage brokers even on AR who are glad to let a real estate agent act as a loan officer to accept applications and pay 20% or more in commissions but how safe and how wise is that? Is that really transparent and good for the industry?
I'm glad my customers know how to separate the two and find and trust the best for both services.
Ken Cook 866-946-0120 extension 101
TWITTER - UTTERLI - BLOGTALKRADIO - EZINE ARTICLES - KEN@NOVATION
-----
SEO SERP and Content Creation for your real estate related online success.
Seasonal Special 20 articles of 200 words each fully optimized $40 each for ALL
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.
Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
BUT! Please don't change historical to hysterical. Before you pick up the phone and start calling around to ask "what's your rate" read this "Is Now A Good Time To Refinance?" and then let's put this into perspective as we have so many times in the past.
The Feds Do Not Set Interest Rates. The Feds set the target rate and in this case for overnight funds. There is no certainty this will affect mortgage interest rates in the next 2 hours or 2 decades. Mortgage interest rates are affected more by the yield on 30 year Fannie Mae MBS's (Mortgage Backed Securities) than any other factor. What sets the price of the FNMA30 MBS? Investor willingness to buy. The more they will pay the higher the yield and the lower the rate.
Look, I know CNN spouted off about "the government setting mortgage interest rates to 4.5%" and I said then and I will say now: the government does not set mortgage interest rates. People getting off the sofa and buying or refinancing homes does. If everyone sets around and waits on the rates to go down they never do.
Ken Cook 866-946-0120 extension 101
TWITTER - UTTERLI - BLOGTALKRADIO - EZINE ARTICLES - KEN@NOVATION
-----
SEO SERP and Content Creation for your real estate related online success.
Seasonal Special 20 articles of 200 words each fully optimized $40 each for ALL
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.
Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
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Now in a city near you! FHA home loans, VA home loans, new home loans, home mortgages and any question about finance from anyone (agent, buyer, seller, builder, investor) answered honestly.
Over 3000 loans closed - if I do not know the answer I know someone who does. FHA, VA, Conventional - home owner or real estate investor. Call me at 678-439-8683 and I'll take your call or email me through this Active Rain system and include your email address and phone number.
I can answer any question about any loan anywhere. Fingers crossed after October I will be able to close loans in all 50 states.
You may also see me writing about using the Internet for your small business and that's my background which I also still teach. As a provider of loans to real estate investors it is important for me to make sure they and their agents are successful so, yes, I have a second hat I wear that I have been wearing since about 1988.
Call or email any time with loan questions, internet questions or just to say hello!
Many people may know me from my years at NovaStar and Novation. As of October 8, 2009 I am no longer in executive management but happily working as a Senior Loan Officer at America Home Key in Marietta, Georgia. It gives me a unique opportunity to spend much quality time getting to know my clients and there needs, wants and desires.
No matter where you are in the nation I will be more than happy to answer your questions about FHA home loans, VA home loans, construction loans, real estate investment loans, and any other real estate finance. Even if I cannot do your loan I will be more than happy to chat with you and help you understand the process.
If you are not currently working with a real estate sales professional I do have agents and brokers who I have known for many years I can connect you with. My area of expertise is single family and small multifamily homes in the Southeast. For many years I did more real estate investor loans than any other broker in Georgia - as many as 450 per year. I owe most of that to a fantastic staff who took care of my clients on the back end after I spoke with them up front. I still have a fantastic staff but I'm keeping the number of loans I am working on to a minumum so I can help each client, agent, builder or seller individually.
If you need to compliment me to my boss (haven't had one of those in many, many years) you can call 770-509-1232
FHA Home Loans - the best loan for the masses on the market today.
FHA Refinances - if you already own a home chances are there is an FHA home loan product to save you a load!
FHA Streamline Refinance - no appraisal needed right now. This could change.
FHA 203k Streamline Rehab - one of my true specialties. Most lenders don't like to mess with them.
VA and VA/IRRRL - purchase and refinance loans. If you have VA benefits you really should use these solutions.
It's easier to point you to iKarma and let you read the recent feedback the clients have peronally posted.
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