Investor real estate strategies are changing

With the pullback in loan to value ratios for stated income investors last week there is a need for new strategies for real estate investors. Many of these investors have been taking advantage of purchase opportunities and leveraging as much as they can to make the deal happen.

However, now that lenders have reduced their tolerance for stated income qualifications those who want to buy with no money down are out of luck unless they are providing full documentation. Stated income investors are going to have to be accustomed to 10% down payment in most cases. There are a few lenders that will allow a 5% down and maybe 3% in seller concessions but these rates will be subprime and the second mortgage will have substantial costs associated with it.

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