Real Estate investment loan products sold to Fannie Mae or Freddie Mac require a down payment ranging from 10% to 25% with a delivery fee ranging from 1.5 to 3 points. Please understand that these fees are imposed by Fannie and Freddie and are not charges from either your lender or your broker. However, the fee allows using conventional rates and loan limits. These conforming investment loans are available as either fixed rate or an ARM. Even with the delivery fees, these real estate investment 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 Real Estate Investor Loan Specialty program (actually a growing group of real estate investor 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% investor financing is now available with fairly reasonable rates. These programs have been available for a while, but at extremely high rates We finally have a source of financing that will allow you to acquire real estate with limited out of pocket costs.
Please email me with any questions about the Real Estate Investment Loan
Learn more about Real Estate Investment Loan Closing Costs
I have a page on how to calculate your qualification ratios.
I have a page on documentation requirements.
If the building you are looking at contains 5 or more units, you will need commercial loans.
If your interest is in foreclosure property, visit my foreclosure page for information and links to property resources.
If you are looking at foreclosure property, I have a free report available by email.
Here is a good article on the difficulty of "flipping" real estate investment properties.
To maximize your cash flow, you may want to consider using one of the new interest only loans.
For the the greatest flexibility, you may be interested in the Cash Flow ARM. This may be the very best option for an investor.
Here are my thoughts on the difficulty of "flipping" investor properties.
New! I have added a page on how to properly compare different investment property that may be helpful to you
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.