The Non-Owner , No Income ( NONI ) Loan Solution
By Rick Tobin
Are all loans second to NONI ( NonOwner , No Income ) for cash flow purposes ? Does your investment property give you a positive annual cash flow with or without significant vacancy rates , repairs , nonpayment of rents due to tenant moratoriums or other reasons , and costly management expenses ? How many investment property owners are stuck with high 7 % to 10 %+ private money or an expensive 30year fixed mortgage that creates negative monthly cash flow ? The NONI interestonly loan or fully amortizing loan with 7 , 10 , 30 , and 40year fixed terms is an exceptional financial choice .
NONI InterestOnly Loans
First off , can you afford your monthly mortgage payment ? Without positive cash flow and the ability to pay your mortgage payments on time , your investment properties may be at risk for future forbearance , loan modification , or distressed sale situations where you could later lose your positive equity in a future foreclosure . The combination of positive cash flow and compounding equity gains should be the primary goal for investors instead of having unaffordable mortgage payments .
Here ’ s some eyeopening NONI loan products highlights that keep customers coming back for more NONI products ,
Image by ErikaWittlieb from Pixabay
The combination of positive cash flow and compounding equity gains should be the primary goal for investors instead of having unaffordable mortgage payments .
especially if the investor owns 2 , 5 , 10 , or 20 + rental properties :
• Starting interestonly rates as low as 3.875 %*
• Designed for business purpose 14 unit residential loans in most states
• No income or employment collected on the loan application
• Loan amounts to $ 3.5 million for nonowner properties
• No 4506T , tax returns , W2s or pay stubs
• Qualification is based on property cashflow , NOT borrower income
• First time investors allowed
• Multipurpose LLC allowed
• Unlimited cashout up to 75 % LTV
• As little as 0 months reserves ( use cash out for reserve qualifications )
• NONI doesn ’ t care how many properties a borrower owns
• The lower I / O payment ( when I / O option is chosen ) is used when calculating DSCR and cash reserves
• 85 % LTV available for purchase and rate / term transactions ( 680 + FICO )
• Rental income is taken from an existing lease or the rent survey from the appraisal and compared to the mortgage payment to determine debt coverage ratio . ( ALL program guidelines and rates subject to change and qualification .)
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