Categories
Mortgage Process

Investors Need Help Getting a Mortgage

Obtaining mortgages for Investors that own numerous properties has become a challenge. Most of the time it’s their tax returns that present the biggest obstacle. Like all small business persons, Investors take advantage of legitimate tax laws to minimize their tax liability and maximize the return on their investments.

Now I’ve been analyzing tax returns from a lending view point for some 30 years and have a pretty good Income Tax returnhandle on how this creative tax accounting (and I don’t mean that in a bad way) works. Most tax returns show losses on these investment properties such that bottom line income does not show the income lenders need to qualify them for a mortgage on the next property. It’s a matter of ripping apart the returns and adding certain items back into income, such as depreciation. These depreciation numbers can be some serious dollars. They can take someone from not being able to get a mortgage to someone that qualifies with very little difficulty. 

In addition, most lenders have guidelines that prevent them from doing a new mortgage for anyone thatinvestment property owns more than 4 properties. I get referrals from business partners all the time seeking help. They know that I am fortunate to work with a number of lenders that will do mortgages for folks that own 10 properties.

It’s this combination of experience and resources that have helped many investors expand their real estate portfolio.

Categories
Mortgage Process

Investors Need Help Getting a Mortgage

Obtaining mortgages for Investors that own numerous properties has become a challenge. Most of the time it’s their tax returns that present the biggest obstacle. Like all small business persons, Investors take advantage of legitimate tax laws to minimize their tax liability and maximize the return on their investments.

Now I’ve been analyzing tax returns from a lending view point for some 30 years and have a pretty good Income Tax returnhandle on how this creative tax accounting (and I don’t mean that in a bad way) works. Most tax returns show losses on these investment properties such that bottom line income does not show the income lenders need to qualify them for a mortgage on the next property. It’s a matter of ripping apart the returns and adding certain items back into income, such as depreciation. These depreciation numbers can be some serious dollars. They can take someone from not being able to get a mortgage to someone that qualifies with very little difficulty. 

In addition, most lenders have guidelines that prevent them from doing a new mortgage for anyone thatinvestment property owns more than 4 properties. I get referrals from business partners all the time seeking help. They know that I am fortunate to work with a number of lenders that will do mortgages for folks that own 10 properties.

It’s this combination of experience and resources that have helped many investors expand their real estate portfolio.

Categories
Market Updates

Senator Blumenthal Supports Mortgage Interest Tax Deduction for CT Home Owners

Here is Senator Richard Blumenthal’s response to my request that he must Support the Mortgage Interest Tax Deduduction in the upcoming budget debates.

Dear Mr. Cignoli,
Thank you for your message regarding the mortgage interest deduction. I appreciate hearing from you.
I strongly support the mortgage interest deduction, which promotes homeownership by allowing income tax deductions of interest paid on a mortgage loan that finances a primary or secondary residence. I understand that several advocacy organizations and members of Congress have released proposals to eliminate or curtail this deduction as part of a broader reform of the tax code. To do so at this time would undermine our still fragile housing market and have a harmful impact on our economy. I will fight against any proposal that would harm Connecticut homeowners.
Thank you again for your message. I will be sure to keep your thoughts in mind on this important issue. Please feel free to contact me with any other questions or concerns.
Sincerely,
Richard Blumenthal
United States Senate

P.S. Call Me at 860.945.9284 to discuss your mortgage options and to take advantage of my FREE Mortgage Pre-Approval service.
With today’s attractive rates, and my direct relationships with trusted lenders who offer a wide range of affordable mortgage programs, you just might be able to move in to a new home with a minimal down payment and low closing costs.

Categories
Market Updates

Real Estate Provisions in “Fiscal Cliff” Bill Benefits Housing!

The Cliff at Dieppe
Good News for Home Owners, Home Buyers and Sellers too!

Here is a summary of the Real Estate related issues included in the recent legislation to avert the “Fiscal Cliff.” 

•   The Home Mortgage-Interest Tax Deduction survived (for now).         
          ◊   This deduction could be back on the table once budget talks resume
          ◊   Real Estate Taxes continue to be deductible as well. 
•   Homeowners will be able to deduct their Private Mortgage Insurance (PMI) premiums on their income tax returns.
           ◊   This tax break expired in 2011. The new legislation extends the break through 2013 and makes it retroactive for 2012.  
•   The tax credit for Home-Energy Improvements (up to $500) was restored and retroactive to 2012.  
•   Congress preserved the $250,000/$500,000 Capital Gains Tax Exemption on home sales. 
•   Extended the 15-year straight-line cost recovery for Leasehold Improvements on commercial properties through 2013 and made retroactive to cover 2012.
•   The Mortgage Forgiveness Debt Relief Act was extended for one year.
          ◊   Homeowners who had part of their mortgage debt forgiven as a result of a foreclosure, short sale or mortgage modification won’t have to pay federal taxes on the forgiven portion of the debt.

Tax Advice Disclaimer: The information in this blog should not be used in any actual transaction without the advice and guidance of a professional Tax Adviser who is familiar with all the relevant facts.

Call Me @ 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my FREE  Mortgage Pre-Approval service. We’re licensed in all 6 New England states; NY & FL too. I’m here to help.