Refinancing an Investment Property

Refinancing an investment property is my specialty. I am an experienced property investor myself and I have developed extensive knowledge of the underwriting requirements of products for refinancing an investment property. When refinancing an investment property, you can easily get to 80% of value and with the addition of either a home equity loan or home equity line of credit you may borrow up to 95% of the equity in your investment property. Email with any questions about refinancing an investment property.

Refinancing an investment property programs fall into two categories: Fannie & Freddie and our Investment Property Specialty Programs.

Investment property refinancing loans sold to Fannie Mae or Freddie Mac require equity of not more than 80% and will have an investment property fee of 1.5 points. Please understand that these investment property fees incurred when refinancing an investment property 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. Even with the investment property fees, these loans can be a good choice when refinancing an investment property 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, with excellent credit and some liquid reserves, it is not uncommon to see back ratios in the middle 40s. Investment property income is decreased by a 25% vacancy factor but there are underwriting methods which eliminates this issue for experienced investors.

The Investment Property Specialty program (actually a growing group of investor loan programs) allows refinancing 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 No Documentation loans are available. Available as a fixed or adjustable rate in many reduced down payment scenarios. Most of the loans we are currently doing are set up as interest only rather than as a fully amortizing loan to improve your cash flow. Learn more about the power of interest only loan products

For the the greatest flexibility, you may be interested in the Cash Flow ARM.

I have a page on how to calculate your refinancing an investment property qualification ratios.

I have a page on documentation requirements.

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

If your building contains 5 or more units, you will need commercial loans.

Learn more about investing

Rehab programs for non owner occupied units

Learn about closing in an LLC

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©Bob Gammache, CMPS
Certified Mortgage Planning Specialist

Carteret Mortgage
Leesburg and Smith Mountain Lake, VA

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