Investment Mortgage Guy

I read an article recently starting that 30% of the homes listed today are in need of some type of minor or major repair.  Listings are down dramatically in the Twin Cities with total inventory hovering around $24,000.  (We were above $40,000 in 2006). This is offically a seller’s market. Buyers in this kind of climate need a competive advantage. At Cornerstone Mortgage, we have a tool in the tool belt not often used by buyers and realtors to get the deals that need renovation. Where most buyers and investors think they need cash, Cornerstone Mortgage offers great rehab financing for both owner occupied buyers and real estate investors. For the owner occupied buyer, Cornerstone likes to utilize the FHA 203k loan. This loan requires only 3.5% down payment and allows a buyer to finance removations with a total project cost up to $365,000. Projects as low as $5000 on up will be considered. Rates for this 30 year fixed product are currently around 4.5%. There are a few lenders in the market that offer this program but I believe Cornerstone is one of the best at it.  We close most of these loans in 60 days or less. We also underwrite and fund the loans and draws in-house so the delays are minimized.

For the real estate investor, we have a 6 month rehab contruction loan where the investor can  finance 100% of the purchase and rehab cost of an investment property. The investor has to open up a CD account at the bank for 20% of the loan amount to be used as security. Once the property is fully renovated, most investors refinance the property with Fannie Mae or sell the home immedately for a profit. The 20% CD account is then forwarded back to the investor. If the investment property appraises well, investors can buy a property with very little cash out of their pocket….. yes you heard me right!   This program works great for the investor with 50k to invest. Instead of buying only one property and being tapped out of money.\ We can ussually get them three properties as long as they qualify. For more information on these products contact Robert J Bonahoom at Cornerstone Mortgage 651-485-3710.  NMLS#209013