Does anyone have any info on 12 month MAT loans? Specifically can they be used for investment property and are there any specific requirements ? Thanx,
Ed.

Ed:

I think that MAT stands for "Moving Average Treasury" and it reflects the 12 month average of the average yields of US Treasuries adjusted to a constant maturity of one year. I also think that this is more of an index used in ARM for consumers.

I have not seen it used in commercial real estate loans. Long-term financing for commercial real estate involves prime or the 5-Year T-Bill usually.

I own a couple of houses, 3 family and 4 family and I am in contract to buy another 3 family in which I am undecided if I want to hold on to it or flip it. I was thinking that the MAT is perfect because it is fixed at 1.25% for the first year and then I have 3 decent options for the second year, in case I decided not to flip it. I'm just wondering if this loan is strictly for primary home owners or if investors can also take advantage.

I have never seen it used by a bank-lender in commercial real estate.

Yep, as the admin said, i have never seen in used in commercial lending either. Prime and more recently LIBOR seem to be more prominent.

I thought commercial property is referred to a building consisting of 6 families or more . Or do you mean commercial in the sense that the home will not be occupied by the buyer ?

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I have been gathering information about 12 mat loans for purchase. I recently starting working for a mortgage compay who was giving me the run around and i do not do BS. I am looking to close loan propects and not sit around cold calling a shared list during the week at 2:30 in the after noon when people area t work and i get a message.

The problem i run into is that there are not enough honest people doing loans and thereslot of tricks being played. I know i have seen them.

i want a loan for myself thats 12 mat but i can't get a freaking normal rate because lo's want to load a high margin onto the indexed rate. does it not exist that i can get a 12 mat for 80% ltv and the a second mortgage for 15% and put 5% down. if anyone is an umb upfront mortgage broker that works with indymac bank or other wholesalers and can give me actual normal and not inflated margin plus the fully indexed rate please let me know.
Hermesauthentic@yahoo.com

Our bank doesn't do 12MTAs, but it's just an index. If that index is 2.25 and the other indexes are at 4, the margin will/should reflect most of the difference. There WILL be parity in rates.

As for the BS, the flexibility you're looking for comes at a cost. I'm not saying it's not possible, but the lenders will want to be compensated for their risk and/or inconvenience.

Good luck to you