Income Property Loan Programs for New Hampshire
There is no one mortgage that is the right answer for every situation. Each deal is different and will require a different mortgage solution – that’s why there are so many programs.
Conforming (Fannie & Freddie) programs are sponsored by quasi-government agencies for the most favorable interest rates. These programs are also the most difficult to qualify for.
Good for: borrowers with 10% to 25% down, good credit, plenty of documentable income.
Non-Conforming / Alt A or A- programs are sponsored by mortgage investors that do the same thing as Fannie and Freddie: they sell mortgage backed securities on the bond market. These mortgage investors sponsor programs that are outside of Fannie and Freddie guides, due to their relaxed down-payment and documentation requirements. This has been a popular category of investment financing but because of high default rates, most of these programs are no longer offered.
Good for: investors with good credit who want to save cash for other investments.
Hard Money / Sub-Prime Lending programs are from mortgage investors who will take a chance on you when no one else will. When your financial circumstances deviate substantially from traditional underwriting guidelines and you don't mind paying an interest rate that is commensurate with your risk profile.
Good for: borrowers who have damaged credit.
Where you fit in will be a function of your credit score, down payment, and the number of living units. The interest rate formula works as follows:
- High Credit Score + One- or Two-Unit Property = Lower Interest Rate
- High Credit Score + Three- or Four-Unit Property = Mid-Range Interest Rate
- Lower Credit Score + One- or Two-Unit Property = Mid-Range Interest Rate
- Lower Credit Score + Three- or Four-Unit Property = Higher Interest Rate
Caution: This type of mortgage lending has become very unpopular due to the high default rates. Under circumstances when available, these programs are very expensive.
If you have questions about financing investment property, call Charley Farley at (603) 471-9300 or e-mail charley@charleyfarleyhomeloans.com.