Re: question on no doc loans - Posted by SCook85
Posted by SCook85 on February 20, 1999 at 09:19:04:
It is a good idea to put your equity to work for you. Just sitting there as equity does nothing as far as income is concerned.
I would caution you on a couple of things. First you don’t want to overleverage your properties. If you owe to much on them there may be no cash flow left. Once you do leverage your properties to the maximum if for some reason or another you HAD to sell you may find yourself in a situation where you can’t. Secondly, banks generally will not lend anything above 80% LTV on your second and third and … homes. Talk to your mortgage broker about the programs available, make sure that these programs will work with non owner occupied properties and see if there is a limit on the number of loans you can get. You will find that what works today in this industry may not work next week so you will have to stay on top of the programs available and tailor your deals to meet these programs.