Updated about 5 years ago on . Most recent reply
Conventional 30yr Financing Rates
I have been speaking with a few customers and conventional loan officers lately regarding 30yr financing on investment properties and the rates I am now hearing are north of 5%. They tell me this is due to Fannie Mae changing their portfolio concentration on investment properties and they are trying to push people away. Is anyone else seeing this?
All of my properties are on 20yr amortizations with local banks so hasn't affected my underwriting personally, but as a commercial lender I am getting a lot more phone calls as well, which makes me curious.
Most Popular Reply
@J. Mitchell Bernier it depends on the lender and how close they are to their caps. Really need to shop rental and second home properties around. If talking with brokers rather than direct Fannie/Freddie sellers likely to see higher rates as those lenders don’t want to be adversely selected and get all the rental home second home.
5’s would be a bit high I think seeing in 4’s mostly however if putting just 20percent down and low loan amount or low score could see hitting those numbers.