What are Investment Mortgage Loans
If you want to invest in multiple residential properties, you need to realize that Fannie Mae has rules and regulations concerning iinvestment mortgage loans. Fannie Mae limits that no single homeowner can have more than ten financed residential investment mortgage loans. If you currently have ten residential investment mortgage loans financed, you will not be eligible to finance any other residential investment property unless you deal with a portfolio lender in which Fannie Mae Guidelines will not apply. Residential investment properties are residential properties that are one to four units and used as income producing properties.
One to Four Unit Properties qualify for Investment Mortgage Loans
If you currently own up to four residential or multi family residential properties and have mortgages on those four properties, you are allowed to refinance any one of the four properties or all four properties with limited cash out. However, if you own more than four residential properties but less than ten properties and all of those residential properties are financed, there are no cashout allowed when you refinance. You can only do a rate and term refinance and the minimum credit score required is 720 FICO. If you have a credit score of 840 and your spouse’s credit score is 689 and both of you are borrowers, you will not qualify for a investment propery refinance loan because we always use the lower of the two scores. One option we have is to just have the borrower with the higher credit score on the investment mortgage loan but we have to make sure that the individual will qualify with just one income.
Fannie Mae 5 to 10 Financed Properties
If you have more than 10 investment mortgage loans, I can help you. I have investment mortgage loans wholesale portfolio lenders who have unlimited amount of properties as long as the borrower qualifies with other mortgage conditions like income and debt ratios. I also have commercial lenders who are willing to lend on residential investment mortgage loans at extremely competitive rates. I also have wholesale lending sources that will do a refinance cashout without a seasoning restriction. If you need investment mortgage loans either for a purchase or refinance, please contact me at www.gustancho.com .
Gustan Cho NMLS ID 87393