Follow Us on Social Media

email icon rss icon linked.in icon google plus icon twitter icon facebook icon

Investors, Say Hello to Fannie & Freddie

by Troy Schuricht on February 14, 2008 · 5 comments

  

Fannie Mae & Freddie Mac Mortgages

Nearly every Bank, Credit Union, Mortgage Banker and Mortgage Broker can offer the loan products backed by the federal charted companies Fannie Mae and Freddie Mac. Investors that have good credit, can document income and are ready to put money down can acquire a loan from either Freddie or Fannie. Investor’s utilize this loan because they are the most competitive loans when it comes to interest rates and closing. These loans are underwritten through an automated system which takes credit, assets, loan to value, and debt ratios into consideration. Because the loans are underwritten by a computer there are certain compensating factors that can help approve your loan. Let’s say Joe investor has ok credit, high debt ratios (60%), but has lots of reserves and can put 30% down. They could approve this borrower because there are assets reserves to compensate for his high debt ratios and just ok credit. Believe it or not Freddie Mac even has a Stated income program. That’s right, a federal charted company has a stated income program. It truly is designed for self employed borrowers, but salaried individuals can use it as well.

Below is a thumb print of what you can expect from Freddie Mac on investment properties:

Full Documentation: Ideal for borrowers looking for conforming loan amounts who have good credit and assets:
1 unit: 90% LTV / 85% 1st Lien / 90% TLTV – $417,000
2 unit: 90% LTV / 85% 1st Lien / 90% TLTV – $533,850
3 unit: 75% LTV / 70% 1st Lien / 75% TLTV – $645,300
4 unit: 75% LTV / 70% 1st Lien / 75% TLTV – $801,950
Cash Out 1 unit: 85% LTV / 80% 1st Lien / 85% TLTV – $417,000
Cash Out 2 unit: 85% LTV / 80% 1st Lien / 85% TLTV – $533,850
Cash Out 3 unit: 70% LTV / 65% 1st Lien / 70% TLTV – $645,300
Cash Out 4 unit: 70% LTV / 65% 1st Lien / 70% TLTV – $801,950
Not available IO

Stated Income: Ideal for self-employed/salaries borrowers with excellent credit. No tax returns or other written verification of income. Assets are required to be verified.

1 unit: 90% / 90% – $417,000 – 720 75% / 90% – $417,000 – 680
2 unit: 90% / 90% – $533,850 – 720 75% / 90% – $533,850 – 680
3 unit: 80% / 80% – $645,300 – 720 75% / 80% – $645,300 – 700
4 unit: 80% / 80% – $801,950 – 720 75% / 80% – $801,950 – 700
Cash Out 1 unit: 75% / NA – $417,000 – 680
Cash Out 2 unit: 75% / NA – $533,850 – 680

A-minus; Ideal for borrower who don’t meet “A” paper credit standards. Allow borrowers to obtain a conventional product at a slightly higher rate.

1 unit: 90% LTV/85% w/sub. financing/90% TLTV – $417,000
2 unit: 90% LTV/85% w/sub. financing/90% TLTV – $533,850
1 unit:* 90% LTV/85% w/sub. financing/90% TLTV – $417,000
2 unit:* 90% LTV/85% w/sub. financing/90% TLTV – $533,850
3 unit:* 75% LTV/70% w/sub. financing/75% TLTV – $645,300
4 unit:* 75% LTV/70% w/sub. financing/75% TLTV – $801,950
Cash Out 1 unit:* 85% LTV/80% w/sub. financing/85% TLTV – $417,000
Cash Out 2 unit:* 85% LTV/80% w/sub. financing/85% TLTV – $533,850
*Borrowers may not own any other financed investment properties

This is great news for the investors that rely on the Fannie Mae and Freddie Mac loan products to finance your properties. Rates are down and Congress has passed legislation to increase the minimum loan about. The details are currently be worked out but some figures are has high has $739,000 in some markets. This increase will only be for 2008

Email *
  



{ 4 comments… read them below or add one }

Mike Farmer February 15, 2008 at 6:32 am

Very good and useful information. Thanks.

Reply

credit & debt relief February 16, 2008 at 7:41 pm

Thanks for the explanation. It gives me a better picture of what’s going on with the lenders.

Reply

KC TAN February 17, 2008 at 9:47 am

This is usefull information. Thanks !!

Reply

JH November 11, 2009 at 5:54 pm

Good information on current Fannie Mae financing.

Reply

Leave a Comment

Comment Policy:

• Use your real name and only your name in the field designated for your name.
• No keywords allowed as anchor text in the name or comment fields.
• No signature links allowed under your comments
• You may use links in the body of your comment, but it must be relevant to the discussion at hand, and not merely be some promotional link.
• We will have NO reservations about deleting your content if we feel you are posting merely to get a link without adding value to our discussion.
If you add value, but still post keywords, we'll use your comment, but remove your link and keywords.
• For more information about acceptable practice, see our site rules.

Want your photo to appear next to your comments? Set up your Gravatar today.

{ 1 trackback }

Previous post:

Next post: