Posted by Michael Morrongiello on February 11, 2001 at 21:22:17:
Yield requirments vary along with the credit worthiness of the payor on the note. There are some “A” credit owner occupied residential deals we are currently purchasing with yields under 9%. Thats right under 9% ! These are VERY strong well secured deals.
However to say that this 9% yield would be a typical required yield for residential owner occupied product would be a misstatement since we don’t see a whole lot of “product” that might ever fit these parameters.
Credit, note rate, seasoning, down payment paid, etc. ALL are issues that invariably will come into play when establishing a return for a note. Also remember that “guidelines” are just that, they are general guidelines and not always carved into stone.