High LTV Purchase Program
FNBA has turned away many high quality loans in the past year because of negative equity. CoreLogic reports that total mortgage debt on properties in negative equity has increased to $2.8 trillion. Many sellers tell us that they want to sell these assets and use the proceeds for investments with higher potential returns but the market is illiquid. Our program aims to provide liquidity to the High LTV market so that you can stop clipping coupons and move on to more attractive opportunities! Here are the basic parameters of the program:
• Single family owner occupied homes
• LTVs from 105% to 125%
• Credit scores of 675+
• No recent 30 day late payments
• Each package is unique but FNBA expects to pay an attractive price resulting in an investment to cumulative property values in the low 80s.
• The majority of the proceeds are paid at closing and FNBA will hold back a reserve account (roughly 6 to 7% of the purchase price) for losses
• The reserve account is paid to the seller after a term that will be set prior to closing
Contact FNBA to get more info or to get a quote!