Investment Financing for Seasoned Investors
When the “credit crunch” hit back in 2006, lenders became very leary of borrowers who were highly leveraged with investment properties. Nearly all banks instituted guidelines limiting the number of mortgage loans an individual could have on non-owner occupied properties. They also developed rules which demanded that a person must have significant equity in an existing property before they could be approved for a new non-owner loan.
Most lenders will not grant new financing to an individual if they already own four or more mortgages on investment properties. I’m happy to report that we have been able to achieve “exceptions” on some of these guidelines, specifically this 4-property restriction for investors.
One of the advantages of working with a Mortgage Broker rather than a specific bank is that brokers can often get access to lenders with guidelines that are more flexible than those of one of the major banks. This applies not only to guidelines involving investment properties but also guidelines for many different types of loans.
If you or one of your friends, family members, or clients has a situation where a bank may have said “No”, please contact me. I may be able to explore options for financing that they can not find elsewhere. Lenders are lending, but sometimes the trick is having access to many of them!
Comments are closed.