Arkansas investment property financing loans sold to Fannie Mae or Freddie Mac require a down payment ranging from 10% to 25% with an investment property financing fee ranging from 1.5 to 3 points. Please understand that these investment property financing fees are imposed by Fannie and Freddie and are not charges from either your lender or your broker. However, the investment property financing fee allows using conventional rates and loan limits. These conforming investment property loans are available as either fixed rate or an investment property financing ARM. Even with the investment property financing fees, they can be a good choice if your goals are to maximize investment property cash flow and you plan to hold the property for a 3 to 5 year period. Ratios are normally 28/36, but with electronic underwriting, excellent credit and some liquid reserves, it is common to see ratios in the middle 40s. Rental income is decreased by a 25% vacancy factor but there are underwriting methods which eliminates this issue for experienced investors.
The Investment Property Financing Specialty program (actually a growing group of investment property financing programs) allows purchase or refinances with only 5% equity. The program allows up to 20 properties plus your home. Available up to $1,000,000 and 2-4 unit properties are acceptable. Ratios are generally 34/40.
100% investment property financing is available with fairly reasonable rates. These programs have been available for a while, but at extremely high rates compared to market rates.
Read more about Arkansas Investment Property Financing Closing Costs
I have added a page on how to properly compare different Arkansas investment property that may be helpful to you
For the the greatest flexibility and maximum loan qualifying ratios, you may be interested in the Cash Flow Investment property financing.
Here are my thoughts on the difficulty of "flipping" investor properties.
I have a page on how to calculate your qualification ratios.
Learn more about investing
If you have had credit issues in the past, it is absolutely critical in today's market that they be addressed before you try to get a mortgage. I have referred my clients to CreditFX for the past 5 years. Exceptional customer service and I am often stunned at what they have been able to have removed from people's reports, allowing my clients to qualify. Their charge of $199 is one of life's true bargains.
To improve your cash flow, you may consider an interest only mortgage
If the building you are looking at contains 5 or more units, you need commercial loans.
I also offer reduced documentation business equipment leasing
As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service.
Prequalify for your Arkansas Investment