It’s a hot real estate market right now, but we all remember the real estate “crash era” that began in 2008. That real estate downturn brought about many changes in financing and how loans are approved. It essentially removed the “no-doc” loan, which is a mortgage that is granted without collecting tax returns and other documents usually required.
But, with the market much healthier now, and a low rate of default due to changes in lending—some mortgage companies are re-introducing a more streamlined loan product. One example is local Embrace Home Loans Doc-Lite loan.
Branch manager, Jason Cook, says, "This loan product is a huge boost to our portfolio of loans to offer, and an important one for our resort area where many business owners purchase rental properties for a variety of reasons—but find it onerous to continually have to provide updated profit and loss statements and multiple tax returns. With Doc Lite, buyers do not have to supply tax returns or W-2’s and the approval turnaround time is lightning fast."
The Doc Lite program is offers:
- Easy process—tax returns and W-2’s not required
- Quicker closing than most other investment properties
- Typically lower rates and fees than hard money loans
- Up to 20 financed properties allowed- many programs limit to six
- 30-year loan option – hard money loans average 10 years or less
- Loans for business purposes only- may not be used for personal, family or household purposes
- Title can be vested in the name of an LLC
These loans are also known as Debt Service Coverage Ratio loans, these new loans require no personal income documentation. You qualify with the income from your rental property instead.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
