Markets for investor loans are changing rapidly.
Day by day, the amount of funds available are SHRINKING.
A week ago, it seemed like everyone offered investor loans, and they based those loans on:
- Credit scores
- Lease options
This week, we have seen these same lenders close these lines or reprice them. Furthermore, they’ve made qualification tougher.
Why are lenders doing this? A couple reasons:
- The closing of small businesses such as restaurants, bars, gyms etc., has created THOUSANDS of unemployed tenants. Plus, most governments are not enforcing evictions.
- Resources are stretched thin with the refi boom, and there are divisions in the mortgage industry. For example, some appraisers refuse to work.
What does of this mean for you as a real estate investor?
It means it’s going to be harder to get a loan from these banks. Why? Because the loans are becoming riskier.
When your loan is based on leases and a large portion of your tenants are out of work, that puts strain on rental property owners. Add on the fact that governments are not enforcing evictions, and you have a group of lenders who are not willing to take the risk.
But that doesn’t mean all lenders are pulling the plug. It just means your options are shrinking, and they’re shrinking QUICKLY.
So, what should you do?
Take action NOW!
Get in line with a lender who can help you and is willing to take the risk. Don’t wait for things to blow over. If you do, you’ll be at the end of a line longer than the lines for toilet paper.
Let’s get the process moving TODAY.