10/06/2023

Recently, I saw a post on a forum where a user had his eyes on a property in excellent condition for investment but was unable to secure a regular loan due to a large loan amount and previous negative credit records.

Later, someone recommended him for a hard money loan, the so-called “usury,” resulting in a quite high-interest rate! The interest rate of more than ten percent significantly reduced his final return rate.

In fact, many borrowers encounter this situation, especially those involved in Flipping Houses or BRRRR (Buy, Rehab, Rent, Refinance, Repeat), often resorting to Hard Money Loans for capital turnover. However, we offer a simple and practical loan product that does not require customers to bear such high-interest rates and risks.

Today, let me introduce to you our star product: the ‘No Doc No Credit’ Program, which requires minimal documentation and has a fast closing speed! It is incredibly suitable for those who wish to invest, have a certain amount of capital on hand, but have insufficient or unstable income or credit report flaws. It is a real investment property loan that requires no checks!

Project Introduction
The ‘No Doc No Credit‘ Program is a 4-year fixed Non-QM loan for buying investment properties.
· This program requires no credit report, no bank statement review, and no income verification;
· It allows loans up to $7.5 million, with a loan-to-value ratio of up to 70%, meaning a down payment of only 30% is required;
· As for the fund requirements, the borrower only needs to have the down payment + processing fee + 36 months of reserves (P&I), open an account required by the bank, and deposit 3 years of P&I reserves for subsequent repayments;
· One-year PPP (Prepayment Penalty), more suitable for foreigners;
· Moreover, the project does not require a minimum rental amount, meaning the Debt Service Coverage Ratio (DSCR) is unrestricted.

Q&A
Does this loan project require any proof of funds?
——No, the borrower merely needs to make an asset statement, indicating the assets under their name in the application form. The required funds can directly be transferred to the Escrow company and the specified deposit bank when needed; there is no need to provide bank statements or check income conditions.

What does 36 months of P&I reserves mean?
——P&I refers to principal and interest. Borrowers’ repayments for the first three years will be automatically deducted from the account they opened, without the need for additional repayments. If the borrower repays the loan after a year of PPP, they can withdraw the remaining deposited amount. If there is no prepayment, then after the third year (when the deposited amount is used up), they need to deposit funds again to start making repayments.

How much money do I need to apply approximately?
——For example, if you are buying a one-million-dollar house and paying 30% down payment, you will need to prepare about 45% of the house price in funds, of which 15% needs to be deposited in an investment bank for repayments in the first three years.

What does one year PPP represent?
——PPP stands for Prepayment Penalty, which means the borrower cannot sell the house, pay off or refinance within a year, otherwise, they will have a 1% early repayment penalty based on the remaining loan balance.

Are there any restrictions on identity?
——Both individuals and companies can apply (including foreign companies); as for individual identities, U.S. citizens, green card holders, EAD, and foreigners can all apply.

In which states can I apply for this project?
——You can apply in California, Washington, and Oregon.

Who would find this beneficial?

1. Those with poor credit, bankruptcy history, or low credit scores, unable to secure regular loans. In this situation, they can apply for the ‘No Doc No Credit’ program and refinance once their credit score improves.

2. Those buying million- or even ten-million-dollar luxury homes but lack sufficient down payment. For these houses, the down payment requirement is usually high (around 50%). If you apply for the ‘No Doc No Credit’ program, you only need about 45% of the money to apply.

3. Non-green card holders, citizens, or foreigners who are investing in real estate in the U.S. It usually takes some time to transfer money from abroad, and even after the funds are transferred to the U.S., they need to wait a few months. The ‘No Doc No Credit’ program does not check the source of large assets at all, and all gift money is also unaffected.

4. Those in the process of snapping up a house. If you apply for a regular bank loan, it takes 30-45 days, missing the opportunity to grab a good house. Or if the regular loan fails and you can’t close on time, you might lose a hefty deposit. In this case, apply for the ‘No Doc No Credit’ program, which can close within three weeks, and the loan process is also straightforward.

 

If you have any questions or need any help, feel free to contact us!

Statement: This article was edited by AAA LENDINGS; some of the footage was taken from the Internet, the position of the site is not represented and may not be reprinted without permission. There are risks in the market and investment should be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, opinions or conclusions contained herein are appropriate to their particular situation. Invest accordingly at your own risk.