Investor · Gilbert, AZ · Member since 2015 · 6 posts · 5 votes
I'm a SFR investor and I'd like to do a 1031 exchange with a few of my properties into a small multifamily.
I had some financial trouble awhile back and allowed the bank to foreclose on one of my rentals. It will be 7 years next October since the foreclosure. I have a good credit score, around 770 and a decent amount of equity in the properties.
I am in the process of gaining knowledge on the subject, 'The Complete Guide to Buying and Selling Apartment Buildings' by Steve Berges is just awesome! So I'm not ready just yet to pull the trigger but I wanted to get some idea of how having a foreclosure on record will affect my ability to get financing.
I think it is a Fannie Mae rule for 7 years, so if you can find a bank that won't "flip the loan" and will hold the paper themselves, but that is harder and would likely be a higher interest rate. Find a good banker (and not just a broker, an actual banker) that can try to find you a good mortgage.
@John Laine try setting some appointments with local / regional banks and credit unions. They build their loans around the relationship more than hard cold numbers and thresholds.
Sines it's your first MF property you probably won't qualify for a Fannie/Freddy loan so getting in front of the local guys sooner is better.