Fannie Mae 1-4 Financed Properties

  • Minimum credit score 700

  • Second home maximum loan to value 80%

  • Investment property maximum loan to value 75% for 2-4 units, 80% 1 unit (Interest rate substantially lower with 5% additional down)

  • 2 months reserves required on subject if second home

  • 6 months reserves required on subject if investment property

  • 6 months reserves required on each financed 2nd home or investment property

Fannie Mae 5-10 Financed Properties

  • Minimum credit score 720

  • Second home maximum loan to value 75%

  • Investment property maximum loan to value 70% 2-4 units, 75% 1 unit

  • 2 months reserves required on subject if second home

  • 6 months reserves required on subject if investment property

  • 6 months reserves required on each financed 2nd home or investment property

Freddie Mac 1-6 Financed Properties

  • No minimum credit score

  • Second home maximum loan to value 85%

  • Investment property maximum loan to value 75% for 2-4 units, 85% for 1 unit (Interest rate substantially lower with 5-10% additional down payment)

  • 2 months reserves required on subject if second home

  • 6 months reserves required on subject if an investment property

  • 6 months reserves required on each financed 2nd home or investment property

Freddie Mac 7-10 Financed Properties

  • No minimum credit score

  • Second home maximum loan to value 75%

  • Investment property maximum loan to value 70% for 2-4 units, 75% for 1 unit

  • 2 months reserves required on subject if second home

  • 6 months reserves required on subject if an investment property

  • 6 months reserves required on each financed 2nd home or investment property

****Freddie Mac will allow self-employed borrowers 1 year tax returns instead of 2 years.

Alternative Investor Program

Designed for the experienced real estate investor who is purchasing or refinancing investment properties for which he or she plans to hold for business purposes.

Program Highlights:

  • The borrower is qualified based upon the cash flow of the subject property only, regardless of the number of properties owned by the borrower

  • No borrower income or employment is stated or verified

  • Debt coverage ratio is used for qualifying purposes

  • Minimum 680 credit score

  • 4506T not required

  • Debt-to-income (DTI) ratio not calculated

Program Qualifications:

  • Experienced real estate investors

  • History of owning and managing commercial or residential investment real estate (first time home buyer is allowed)

LTV Limitations for purchase only

Units

Credit Score

LTV

Minimum Loan Amount

Maximum Loan Amount

1-4 Units

720

70%

$100,000

$1,500,000

680

80%

$750,000

70%

$1,000,000

60%

$2,000,000

Product Description:

  • Available for fixed or ARM

Escrow Holdback
Escrow Holdbacks are allowed for weather related repairs on purchase transactions only.

  • Maximum $5,000 repair limit

  • Escrow withhold amount must be at least 1.5 times the cost of repairs

Gift Funds
Gift Funds are allowed. Requirements:

  • Gift funds are allowed for paying off debt, equity contribution refinances, and for closing costs and down payments.

  • Gift funds are not allowed for reserves

  • When 100% gift funds are used, a 10% reduction in max LTV is required.

  • A signed gift letter is required for all gift funds.

  • Transfer of funds or evidence of receipt must be documented prior to or at closing.

Housing History

  • Borrower may be a First Time Home Buyer.

  • Borrower must have a history of owning and managing commercial or residential investment real estate

  • Borrower does not need to currently be renting or have a mortgage.

Occupancy of subject property must be Investment Property ONLY.

Reserves

Loan Amount

Required Reserves

Less than or equal to $1,000,000

3 Months

Greater than $1,000,000 but less than $2,000,000

6 Months

Greater than or equal to $2,000,000

12 Months