Investment Properties
What is an Investment Property?
An investment property is:
- Non-owner occupied
- Used for earning a return
- Common practice is renting and/or flipping
Email:
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FAQ:
Why should I use WCCU?
- Lower Closing Costs
- No intangible taxes
- In house underwriting and decision making
What will you need from me?
- 2 most recent years tax returns
- Personal Financial Statement (provided by a loan processor)
What will get me approved?
We make our decision based on the 3 C’s:
- Character (Credit Score)
- Collateral (Loan to Value)
- Capacity (Income /Expenses)
How Much Can I Finance?
75% of Purchase or Appraisal Price (Whichever isless)
Example:
$75,000.00 loan for a $100,000.00 house.
What Makes Us Different
- Closing Fees:
- ½ point origination fee
- $12.00 flood fee
- $30.00 wire fee
- Exemption from intangible taxes
- In house underwriting and decision making
Example of lower closing cost
Also, the industry average loan origination on a $200,000.00 property is 1 point which equals $2,000.00. WCCU charges a ½ point loan origination which equals $1,000.00.
Intangible Taxes
Members of credit unions, such as WCCU, do not pay intangible taxes on their loan amount. This saves the members $3/dollars per thousand of their loan amount from closing cost. Why do bank
customers have to pay i
ntangible taxes on their loan amount but credit unions members do not
have to pay intangible taxes. It is because credit unions are considered non
-
profits and are
therefore tax exempt. This savings is passed on to the member. So. If the
loan amount is
$200
,000, the members saves $600 in intangible fees versus a bank customer.
Balloon Notes
Banks can avoid intangible taxes by ballooning your mortgage loan every 35 months. WCCU
shortest balloon period is 60 months
with
no intangible taxes. With WCCU, you ca
n extend the
period
of not having to go thru the cost and aggravation of a mortgage closing by 25 months
versus a bank.