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!!
• ***** New Investors - Now Require 1 year of rental history or property management experience to count rental income! For those with experience 75% of market or current rental income can be counted towards qualifying. 
  

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 PITI is required on subject property.

If you have 1-4 financed properties than it is now 2% of all unpaid principle balances.

If you have 5-6 financed properties than it is now 4% of all unpaid principle balances.

If you have 7-10 financed properties than it is now 6% of all unpaid principle balances.

Money must be in account for 60 days or sourced. A HELOC can be used as down payment, but not as cash reserves.

Acceptable Sources of Reserves; Cash and assets that are liquid or near liquid:

• Checking or savings accounts
• Investments in stocks, bonds, mutual funds, certificates of deposit, money markets funds and trust accounts
• The amount vested in retirement savings accounts
• Cash value of a vested life insurance policy

  Certain assets must be “discounted” when used for reserves. Terms and conditions of liquidation may be required depending on the asset used for reserves.

  **Assets Requiring Liquidation
  The following may be counted as cash assets at 100% of verified liquidated amounts:

  • Cash value of life insurance
  • Publically traded stocks
  • Bonds
  • Mutual Funds
  • U.S. Government Securities
  • Savings Bonds
  • Retirement Funds
• Gift Funds - Primary Residence and Second Home ONLY

Maximum Loan Limit Look up for your area can be found here;

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.