Basics Of Conventional Financing

[Jerry Padilla]

FINANCING YOUR INVESTMENT PROPERTIES WITH CONVENTIONAL:

Required Documents:

• Credit report will be pulled tax returns for 2 years,
• Bank Statements and Assets - dating back to the past 60 days,
• W2's, pay stubs, and / or proof of income,
• Photo ID - Driver's License
• Gift Fund Letter - Allowed FOR PRIMARY Residence Only

Important Info You Need To Know:

• Gift funds are not allowed on Investment property transactions.
• Escrows for taxes and insurance are required unless otherwise approved by the underwriter.
• Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics
• Investment property transactions cannot close in trust.
• Maximum 2% sellers concessions is allowed!!

You can borrow for up to 10 conventional mortgages! You have the option of a 15, 20 or 30 year term.

For A Fixed Rate Purchase, Investment properties, Mortgages 1-6;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%

For A Fixed Rate Purchase, Investment properties, Mortgages 7-10;

• A SFR requires a LTV of 80 - 85%
• A MFR requires a LTV of 75%
• Minimum credit score of 720

For all 1- to 4-unit investment property transactions, cash reserves equal to 6 months PITI for the subject property are required.

Cash Reserve Requirements:

6 months Look Up Conforming Limits For Your Area!

Fannie Mae's Requirement for 1-4 Mortgaged Properties.

Fannie Mae's Requirements for 5-10 Mortgaged Investment Properties

Freddie Mac Requirements for 1-6 Mortgaged Properties.

Please Reach Out With Any Questions Or Financing Needs!