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NON-OWNER OCCUPIED MORTGAGE LOAN PROGRAM
TERMS & CONDITIONS
One to four-family residential. No commercial use such as store front on first floor (cottage or vacation home is acceptable). Cannot be primary residence of borrower.
- Maximum Amount of Loan: 70% of sales price or appraised value, whichever is less, with a maximum loan of $100,000. Cash out refinance maximum LTV 50%
- Loan Interest Rate: Variable; contact credit union for current rate
- Points: Contact any loan representative at the credit union for current points
- Frequency of Interest Rate & Payment Changes: Every three years
- Minimum Rate Change: Rounded to nearest 1/8 of 1% (if change is necessary)
- Maximum Rate Change per Interval: 2% (increase or decrease)
- Maximum Maturity: 15 years
- Prepayment Penalty: None
- Property Qualification Requirement for Refinances and Purchases:
- The property must be fully rented and show a rental income in order for rental income to be used in D/I calculations. Only 75% of the rental unit's income will be used to account for expenses.
- If subject property has a negative cashflow after allowing for 75% of rental income, the deficiency of the income shall be considered an installment obligation to the member and calculated into the D/I ratio. If the units are not rented, the member must qualify by other reported uncome. There will be no projection of rental income.
- The following will be required at the time of application:
- Copy of leases
- Income and expense report for last two years
- Last two years tax returns (if applicable)
- Escrow Account: Not required
- Payment Options: Bi-weekly and monthly