Mortgage for investment property products are my specialty. I have developed extensive knowledge of the underwriting requirements
of these mortgage for investment property products. For
experienced property investors, there are depreciation and expense treatments
which improve your mortgage ratios. For new property investors, there are
mortgage programs allowing lower down payments.
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mortgage for investment property questions
Investment property programs fall into two categories: Fannie & Freddie
and our Investor Specialty Programs.
Mortgages for investment property sold to Fannie Mae or
Freddie Mac require a down payment ranging from 10% to 25% with an investment
property fee
ranging from 1.5 to 3 points. Please understand that these investment property fees are imposed by
Fannie and Freddie and are not charges from either your lender or your broker.
However, the investment property fee allows
using conventional rates and loan limits. These conforming loans are available
as either fixed rate or an ARM. Even with the investment
property
fees, these 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 Investment Property Mortgage Specialty program (actually a growing group of
investor loan programs) allows purchase
or refinances with only 5%
equity. The program allows up to 20 properties plus your home.
100%
investment property financing is now available with reasonable rates. These programs
have been available for a while, but at extremely high rates compared to market
rates.
I have an investment property mortgage based on the LIBOR
Index. The LIBOR (London Interbank Offered Rate) Index is more stable than the
COFI index (Cost of Funds Index). One feature of the program is four repayment options. You
can decide to amortize the loan for 30 or 15 years, a minimum amount, or interest only.
Choose every month and have the flexibility
to manage cash flow as never before!
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.
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