Compass Mortgage - Income Property Loans

Income Property Loan Programs for New Hampshire

There is no one mortgage that is the right answer for every situation. Each deal is different and will require a different mortgage solution – that’s why there are so many programs.

Conforming (Fannie & Freddie) programs are sponsored by quasi-government agencies for the most favorable interest rates. These programs are also the most difficult to qualify for.

Good for: borrowers with 10% to 25% down, good credit, plenty of documentable income.

Non-Conforming / Alt A or A- programs are sponsored by mortgage investors that do the same thing as Fannie and Freddie: they sell mortgage backed securities on the bond market. These mortgage investors sponsor programs that are outside of Fannie and Freddie guides, due to their relaxed down-payment and documentation requirements. This is the most popular category of investment financing.

Good for: investors with reasonably good credit who want to save cash for other investments with or without documentable income.

Hard Money / Sub-Prime Lending programs are from mortgage investors who will take a chance on you when no one else will. When your financial circumstances deviate substantially from traditional underwriting guidelines and you don’t mind paying an interest rate that is commensurate with your risk profile.

Good for: borrowers who have damaged credit.

Where you fit in will be a function of your credit score, down payment, and the number of living units. The interest rate formula works as follows:

High Credit Score + One- or Two-Unit Property = Lower Interest Rate
High Credit Score + Three- or Four-Unit Property = Mid-Range Interest Rate
Lower Credit Score + One- or Two-Unit Property = Mid-Range Interest Rate
Lower Credit Score + Three- or Four-Unit Property = Higher Interest Rate

I have personally originated more than 1/2 billion in real estate loans for NH property owners and have a practical working knowledge of what works and what doesn’t.

If you have questions about financing investment property, call Charley Farley at (603) 471-9300 or e-mail charley.farley@weloannh.com.

Compass Mortgage Inc. - 172 Route 101 - Bedford, NH 03110-5416
Office Phone: (603) 471-9300 Fax: (603) 472-8811 Toll Free Phone: (877) 211-5300

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