2008-01-25

Investor Financing in this Crazy Real Estate Market (2)

1. Stated Income and Stated Assets (SISA) Loan:

This loan does not require documentation (bank statements or tax returns) to support income and asset numbers.

With a credit score above 720, you may still qualify for this type of loan as an investor with as little as 10% down.

The loan amount must be below $417,000.

Rates for a 30 year fixed loan are going to be in the low 7% range without paying points.

ARM rates are in the low 6% range, however, most lenders are requiring discount and origination points to purchase these loans.

2. Full Documentation Loan:

These loans provide the most favorable rates, terms and allow a lower credit score.

The minimum down payment is still 10%.

You must show tax records, liquid asset records and income statements (P&L if business owner) to qualify.

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