Financing investment property  

Working With Real Estate Investors – We Know The Rules

With prices at record lows, the opportunities for investors are incredible. To benefit from the opportunities in today’s market, it is important to have a solid understanding of the options available for investor clients.

Highlights

• Fannie Mae limit is now 10 properties financed in total.  This includes your primary residence and any other properties.  (Freddie Mac Limit is 4.)
• Commercial properties or properties with 4+ units do not count toward the 10 property rule.
• Properties titled to and financed by an entity (LLC, etc.) do not count toward the 10 property rule.
• Down payment options vary depending on number of units and number of properties financed.

Qualifying

• It's easier to qualify than what most people realize.
• The entire down payment must come from borrower's own funds, no gifts allowed.
• Seller contributions cannot exced 2% of the sales price.
• Cash reserves are required, depending on number of properties owned.
• The anticipated cash flow can often be used to offset the new payment, making it easier to qualify.
• Borrowers with multiple rental units can use rent to offset payments, making it easier to qualify.

Benefits

• Tax benefits associated with owning rental properties can be significant.
• Prices are at record lows, creating great buying opportunities.
• Rental property buyers don't have a home to sell, giving them a negotiating advantage.
• Lower prices = lower down payment requirements and lower monthly payments
• Lower monthly payments = better cash flow. 

Don’t miss out on an investment buying opportunity by working with a lender who may not be familiar with investment property lending.

"The information provided has been based on rules and regulations issued by Federal Agencies and

interpreted for you by MortgageCurrentcy.com.  Interpretations are not guaranteed but we attempt

to make them easy to understand in order to help you buy/sell more real estate.  Check with your

local and state authorities to ensure that you meet all requirements and disclosures."