First Capital Trust Deeds closed a 7-Year interest-only rental property mortgage in Everett, Washington at 6.875% interest-only for a real estate investor using a relatively simple to qualify for non-bank loan known as Non-QM (non-Qualified Mortgage).
To qualify for the “Non-QM” loan, the owner essentially needed to provide rental agreements and liquid assets showing at least three months of reserves, or three months PITI (Principal, Interest, Taxes, and Insurance). The rental income needed to be able to service the debt on the property and the borrower needed to have enough liquidity to qualify.
Non-QM rental property loans like this are essentially “Stated Income Verified Asset” loans that allow real estate investors the opportunity to pay off their expensive short-term hard money bridge loans used to acquire and stabilize the property and get into a long-term loan. This is an ideal type of loan for the real estate investor with 5+ financed properties that need to stabilize a relatively new acquisition but doesn’t want to go through the rigorous paperwork process of a traditional conventional lender.