Is anyone familiar with Freddie Mac lending guidelines and/or HomeSteps Financing?
I’m looking to finance my 5th property (I have 3 rentals and my primary). It is a Freddie Mac HomeSteps home. I am getting very mixed responses from lenders. I contacted loan officer at BB&T (HomeSteps lender)- unfortunately she said she could not help me as Freddie cuts you off at 4. I then contacted a different lender- she said Freddie recently (Oct 2015) changed the guidelines to allow 6 mortgaged properties, but she is not a HomeSteps approved lender.
What is your actual goal, that you think HomeSteps will help you achieve?
I would just like to purchase the property. I have used HomeSteps financing before- pretty quick and easy, only 15% down. I had hoped to use it again. I thought someone here might be familiar with the guidelines as I seem to be getting conflicting information. Thanks
Freddie Mac says right on their HomeSteps website "No matter which option you choose, if you pre-qualify to finance your purchase with a reputable third-party lender you will be considered a serious buyer." As a lender I do not keep track of what the various big asset holders call their REO loss mitigation departments, complete crap shoot if the person you call will know that HomeSteps is the REO loss mitigation department of Freddie Mac... really no reason for us to know, we don't care who is selling the property.
You just need an investor friendly local lender.
Now that you're at 4 financed properties and looking at #5, expect your down payment requirements to be bumped 5% from what they otherwise would have been. That is subject to the AUS looking at your credit report, but that is typically what I have seen it return. The logic is that if you're doing the right things as a successful REI, another 5% should be nothing to you, and if you implode then they are 5% less exposed.
Also, Fannie will let you purchase and rate/term refinance up to 10 financed properties.
Thank Chris. This property is a condo. My Fannie lender can't help me. Freddie will finance its own HomeSteps condos. I just need to figure out their max allowed financed properties.