Case StudyOwner Occupied Loan for an Active Real Estate Investor
Loan Amount: $880,000
Loan-To-Value: 65% LTV
Term: 7-Year ARM
Situation & Challenge
Conventional lenders are not a good fit for active investors who need to refinance their primary residence due to the low Adjusted Gross Income (AGI) from rental property interest and deprecation reflected on the tax returns.
We needed to find a lender that would look at the overall cash flow from wages and rental income versus the final number reflected in the AGI on the tax returns.
Solution & Result
FCTD worked with a Non-QM lender that had a program geared towards active real estate investors.
Real estate investors using a Non-QM loan on their primary residence need to be patient and persistent, as it can take 2-3 months to close. After 3.5 months, FCTD closed a 7/1 ARM with excellent pricing, comparable to jumbo bank financing.