INVESTORS AND FINANCING IN THESE TROUBLED TIMES

In light of the difficult times in the financing market, I thought it would be helpful to provide some information that I think could be of great assistance to investors. Here is some great information in bullet point format. No editorial info. Just good stuff

1.    Credit scores above 720 are critical for 95% funding and interest rates that allow for purchases that can make sense. Get your credit repaired!
2.    In conjunction with the 720 credit score you will be required to provide full docs. Have or obtain a business and be able to provide financial. There are ways to do this if you have been doing business for a couple of years. As an investor, learn this critical strategy and use it.
3.    Mortgage brokers are being forced now to conform to Fannie and Freddie’s guidelines. There is basically nobody to buy their paper now except for them. Fannie and Freddie are introducing new packages to help out with the sub-prime borrowers. If your broker doesn’t know about these products then find one who does or get your broker to look into them.
4.    Higher fees and rates are the norm now. Be sensitive to what you are going to have to pay for the money. Shop around for the best overall package for you.
5.    620 credit scores can get conforming loans (Freddie and Fannie) with full documentation but rates are high and you will need 10% down and reserves that can be verified.
6.    Your Debt to income ratio should not exceed 50%. Work on keeping this down.
7.    Keep 3 to 6 months liquidity. Banks are requiring this on most loans now.
8.    Look into business credit. Lenders need to keep loaning money out. Business credit is a big push right now.

Probably the most effective information I can pass along is:

FIND THE RIGHT MORTGAGE BROKER! PUT THEM ON YOUR TEAM! USE THEIR EXPERTISE FOR YOUR BENEFIT!