Investor Financing for Real Estate

Investor financing for real estate is my specialty. I have developed extensive knowledge of the underwriting requirements of investor financing for real estate. For experienced real estate investors, there are depreciation methods which improve your ratios. For new investors, there are investor financing programs allowing investment in real estate with lower down payments.

I am an active real estate investor myself, and much of my knowledge of these investor financing for real estate programs comes from research I have done for my own investment real estate. As an active investor, I understand that each deal is different and may require a different real estate financing solution. I will need to know your anticipated hold period, anticipated cash flow, current rate of appreciation in your market, and whether your needs are for a reduced down payment or to maximize cash flow (OK, I know you want both, don't we all!) Email investor financing for real estate questions.

Investor financing for real estate programs fall into two categories: Fannie & Freddie and our Investor Financing Specialty Programs.

Investor loans sold to Fannie Mae or Freddie Mac require a down payment ranging from 10% to 25% with a financing fee ranging from 1.5 to 3 points. Please understand that these financing fees are imposed by Fannie and Freddie and are not charges from either your lender or your broker. However, the financing fee allows using conventional rates and loan limits. These conforming investor loans are available as either fixed rate or an ARM. Even with the financing fees, these loans can be a good choice if your goals are to maximize cash flow and you plan to hold the investor 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 Financing Specialty program (actually a growing group of investor loan programs) allows investor purchases 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. A No Documentation program is available.

NEW! 100% investor financing for real estate is now available with fairly reasonable rates. These 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.

In 2008, Short Sales are where most of the action in real estate is. Learn more about Short Sales

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

I have a page on documentation requirements.

Limited and No Documentation loans are now available.

If your interest is in foreclosure property, visit my foreclosure page for information and links to other resources.

If the building you are looking at contains 5 or more units, you need commercial loans

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

If you need to maximize your cash flow, you may want to consider using one of the new interest only loans.

For the the greatest flexibility and maximum loan qualifying ratios, you may be interested in the Cash Flow ARM. This may be the very best option for an investor.

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

Rehab programs for non owner occupied units

Learn about closing in an LLC

Learn Advanced Techniques from a Foreclosure Expert right from your home with foreclosureS.com!

As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service.

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I hope the information on this page was useful to you. Please scroll down to view my Mortgage Market Guide. It is a weekly publication explaining the financial markets from a consumer's perspective that is available on this website or by email subscription. I have nearly 8,000 subscribers today and would be happy to have you as well. Your email address will never be used for any other purpose.

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