Here’s the deal: These programs are only available for residential real estate owned by Interbank, FSB. The list of eligible properties is less than 100 and spread throughout the Twin Cities Metro area.
Zero Down, Non-Owner Occupied RMG/InterBank REO Program
RMG, in conjunction with our partner InterBank, FSB now offers a unique program for buyers of InterBank’s current REO portfolio. This product is currently being offered exclusively by RMG only, and only on any REO owned by InterBank.
Highlights of the Non-Owner Occupied program are:
1. Zero down payment!
2. 5/1 ARM at 6.95% with No MI (APR of 6.052%)
3. Must have landlord experience.
4. No declining market restrictions.
Zero Down Owner Occupied RMG/InterBank REO Program
This product is also being offered exclusively by RMG on any REO owned by InterBank.
Highlights of the Owner Occupied program are:
1. 80/20 financing.
2. Buyers may finance up to $25,000 in repairs. Repairs may include anything required to bring the property up to code plus cosmetic repairs including new carpeting, paint and appliances.
3. 7/1 ARM for the 80% at 5.875%. You heard that right! 7/1 at 5.875% (APR of 5.703%).
4. 20% as a fixed rate of 7.0% (APR of 7.002%).
5. No declining market restrictions.
How will this work?
1. The borrower will present their offer without the repairs included. Once the offer is accepted, the borrower will have two weeks to provide RMG with the bids on the repairs. Bids will need to be from a licensed contractor. InterBank will then accept an addendum changing the sale price upward to include the cost of the repairs.
2. At closing, InterBank will establish an escrow account for 1x the repair amount. The borrower will have 60 days to complete the repairs. Any amount in the escrow not used will be applied to pay down the principal balance of the loan. Any overages will be the responsibility of the borrower. Draws will be administered through Old Republic Title.
Fine Print: Prospective borrowers must have a 700+ credit score. That is a rule not a goal.
Other specific criteria apply. The displayed annual percentage rates (APRs) include total points and additional prepaid finance charges but do not include other closing costs. On adjustable-rate loans, rates are subject to increase over the life of the loan. This also means your payment might go up, or down, when the rate adjusts.
Questions? Want a list of Interbank’s REO portfolio? Drop me a line or give me a call – all of my contact information is on the right sidebar near the top.