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Investment Property Mortgage Requirements                                                                                                                     

Investment property mortgage products are my specialty. I have developed extensive knowledge of Investment Property Mortgage requirements. For experienced investors, there are depreciation and expense treatment methods which improve your ratios. For new investors, there are investment property mortgage programs allowing investment in real estate with lower down payment requirements. Email questions about investment property mortgage requirements

Investment property mortgage requirements and products fall into two categories: Fannie & Freddie and our Investor Specialty Programs. 

Investment property mortgages sold to Fannie Mae or Freddie Mac have a requirement for a down payment ranging from 10% to 25% with an investment property mortgage fee ranging from 1.5 to 3 points. Please understand that these investment property mortgage fees are a requirement imposed by Fannie and Freddie and are not charges from either your lender or your broker. However, the investment property mortgage fee allows using conventional rates and loan limits. These conforming investment property loans are available as either fixed rate or an Investment Property ARM. Even with the delivery fees, these investment property loans can be a good choice if your goals are to maximize cash flow and you plan to hold the property for a 3 to 5 year period. Ratios are normally 28/36, but with automated underwriting, excellent credit and some liquid reserves, it is not uncommon to see back 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 Investor Loan Specialty program (actually a growing group of investment property loan 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 and a No Documentation program is available. Available as a fixed or adjustable rate in many reduced down payment scenarios.. 

NEW! 100% investment property financing is now available with fairly reasonable rates. These investment property mortgage programs have been available for a while, but at extremely high rates compared to market rates. We finally have a source of financing that will allow you to acquire property with limited out of pocket costs.

 

I have a page on how to calculate your qualification ratios.

Limited and No Documentation loans are now available for investment properties.

If the building you are looking at contains 5 or more units, you need commercial loans. We can still help you with your financing needs.

If you are looking at foreclosure property, I have a free report available by email.

Here are my thoughts on the difficulty of "flipping" investor properties.

For the the greatest flexibility, you may be interested in the Cash Flow Investment property mortgage.

New! I have added a page on how to properly compare different investment property that may be helpful to you

Learn more about investing

Learn about closing in an LLC

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.

Investment Property Mortgage Requirements Prequalify for your Investment Property Mortgage.
 

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Extensive consumer information on construction,remodeling, first time homebuyer,and no documentation mortgages.