1-4 Unit Non-Owner Occupied Financing - 80%+ LTV?

[Rob Flagg]

Hi Biggerpockets!

I have a question for those seasoned veterans out there that have more experience in the financing of 1-4 unit non-owner occupied multifamily. 

Let me start with a preface first: We purchased a townhome in July of last year with the ultimate goal of renting out, we are owner occupying this and put 5% down with a conventional lender. In March of this year we purchased a duplex with a bridge loan for 15 months from a local bank here as a portfolio loan, with 20% down or 80% LTV. Our plan is to cash out refi after the duplex seasons to pull our reno money out and get into a 30 year fixed.

Upon speaking with our favorite mortgage broker he informed us that it's a Fannie/Freddie rule that N/O/O multi-families require a 30% down or a 70% LTV.

Here are a few questions:

1) Has anyone else heard of this Fannie/Freddie rule of 70% LTV?

2) Has anyone had any success with a (Colorado-preferred) lender doing 80%+ LTV on a N/O/O multifamily?

Ultimately it's not financially troubling but I would love to lock less equity in this duplex to be able to do more deals faster!

Thanks in advance for your time and expertise!

Best,

Rob

[Melvin List]

@Rob Flagg on a multifamily conventional you will be capped at 70%.  There are many portfolio lenders that will cash out at 80%.