All Forum Posts by: Jerry Padilla

At MB Financial we are a National Lender that goes above and beyond for our clients and I cater to assisting investors with all of their financing needs, including primary residence financing:

A credit tool to assist with improving your (or your clients) credit score to qualify for financing (Free of Charge)

Investor loans - Financing for up to 10 investment properties, with Conventional Financing, backed by Fannie Mae, or Freddie Mac
Conventional or Refinance

Cash Out Financing on the first four investment property's

Delayed financing with up to ten mortgages

Credit scores down to 600 on FHA/VA/USDA loans - primary residence only
National lender!

Streamline refinance programs for FHA/VA/Conventional - Save money with less documentation

Low rates & Low closing costs

I am available extended hours
Opportunity to increase your business to have more capital available for purchasing and rehabbing

Lender credit available for purchases

Automated approval system

BRRR....... Buy Rent Rehab Refinance

CASH OUT FINANCING

A cash out refinance is exactly what it sounds like. It is when you refinance your property and pull money out of a property. The mortgage can either be paid off free and clear or can have enough equity in the property to make it worth refinancing and pulling money out. Cash out refinances are available on primary and investment properties.

• The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
• On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
• On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a duplex is up to 70% equity.
• On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and duplex 65% LTV) You can take out up to the purchase price plus closing costs on the property.
• RATE and TERM REFINANCE - PROPERTY
• 5-10 If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.
• PROPERTIES LISTED FOR SALE
  For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
  For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
• Cash Reserves Required For Other Properties Owned by Investor;
  
  • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
  • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

DELAYED FINANCING EXCEPTION

Delayed Financing Exception

A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:

• The new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).

1. 1. SFR mortgage #1-4 - 75% LTV
2. 2. Duplex mortgage #1-4 70% LTV
3. 1. SFR mortgage #5-10 -70% LTV
4. 2. Duplex mortgage #5-10 - 65% LTV

• The purchase transaction was an arm’s length transaction
• The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
• The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

  Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.

• All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines.
  • Ineligible Transactions
    The following transaction types are not eligible as cash-out refinances:
    
    • The subject property was purchased by the borrower within the six months preceding the application for new financing except if delayed financing guidelines are met.
    • Investor and second home borrowers with 5-10 properties are ineligible for cash-out refinance transactions unless all of the delayed financing guidelines are met.
    • The subject property is currently listed for sale
    • The existing mortgage is a “restructured mortgage”
    • Transactions in which a portion of the proceeds of the refinance is used to pay off the outstanding balance on an installment land contract regardless of the date the installment land
      contract was executed.
    • The new loan amount includes the financing of real estate taxes that are more than 60 days delinquent and an escrow account is not established.

  This information is accurate as of the time of posting. Please also verify the accuracy of this information at the time you are considering these options as guidelines change.
  https://www.fanniemae.com/content/guide/selling/b2...

Rate & Term Refinance

Freddie Mac and Fannie Mae are both conventional lenders. They each have their own set of guidelines to be followed. There are investor friendly lenders that are able to specifically follow just one of the guidelines below. Below are the required LTV for Rate and Term Refinances.

THESE ARE FOR MORTGAGE 1-4;

For Freddie Mac, a Rate and Term Refinance for a Primary Residence;

95% for 1 unit

80% LTV for 2-4 units

For Fannie Mae, a Rate and Term Refinance for a Primary Residence;

1 unit - 95%

2 unit - 85%

3-4 unit is 75%

For Freddie Mac, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

5-10 Mortgages;

For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1 Units

70% for 2-4 Units

FHA Rate and Term Refinance -

Maximum LTV is 97.75%

FHA Cash Out Refinance -

Maximum LTV is 85% of appraised value if property has been owned 12 months or greater, and if less than 12 months from purchase than the lesser of purchase price or appraised value is used.

Please also see the qualifications for obtaining a second FHA Mortgage.

https://www.biggerpockets.com/blogs/5110/blog_post...

Some area's we lend in, but are not limited to are: Greensboro, Winston, Salem High Point, Providence, Warwick, Jacksonville, St. Marys Palate, Hartford, West Hartford, Louisville, Jefferson County, Elizabethtown, Madison, New Orleans, Metairie, Hammond, Muskegon, Greenville, Spartanburg, Anderson, Memphis, Forrest City, Oklahoma City, Shawnee, Birmingham, Hoover,mRichmond, Talladega, Harrisburg, York, Lebanon, Buffalo, Cheektowaga, Rochester, Batavia, Seneca Falls, Albany, Schenectady, Albuquerque, Santa Fe, Las Vegas, Tulsa, Muskogee,Bartlesville

@Pete Schwan

I can assist with the end loan, but not the land and construction loan. 

@James Wise

Thank you for the mention! It is great to work with such a knowledgeable and dedicated team! You have you clients best interest in mind and continue to grow as a result. Cleveland is a great and profitable place to invest. 

• Low rates and Low fees
• Financing for up to ten properties

• Online Application
• National Lender
• I work extended hours to meet all your mortgage needs, with my cell number in my signature.

BRRR....... Buy Rent Rehab Refinance

CASH OUT FINANCING

A cash out refinance is exactly what it sounds like. It is when you refinance your property and pull money out of a property. The mortgage can either be paid off free and clear or can have enough equity in the property to make it worth refinancing and pulling money out. Cash out refinances are available on primary and investment properties.

• The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
• On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
• On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a duplex is up to 70% equity.
• On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and duplex 65% LTV) You can take out up to the purchase price plus closing costs on the property.
• RATE and TERM REFINANCE - PROPERTY
• 5-10 If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.
• PROPERTIES LISTED FOR SALE
  For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
  For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
• Cash Reserves Required For Other Properties Owned by Investor;
  
  • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
  • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

DELAYED FINANCING EXCEPTION

Delayed Financing Exception

A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:

• The new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).

1. 1. SFR mortgage #1-4 - 75% LTV
2. 2. Duplex mortgage #1-4 70% LTV
3. 1. SFR mortgage #5-10 -70% LTV
4. 2. Duplex mortgage #5-10 - 65% LTV

• The purchase transaction was an arm’s length transaction
• The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
• The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

  Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.

• All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines.
  • Ineligible Transactions
    The following transaction types are not eligible as cash-out refinances:
    
    • The subject property was purchased by the borrower within the six months preceding the application for new financing except if delayed financing guidelines are met.
    • Investor and second home borrowers with 5-10 properties are ineligible for cash-out refinance transactions unless all of the delayed financing guidelines are met.
    • The subject property is currently listed for sale
    • The existing mortgage is a “restructured mortgage”
    • Transactions in which a portion of the proceeds of the refinance is used to pay off the outstanding balance on an installment land contract regardless of the date the installment land
      contract was executed.
    • The new loan amount includes the financing of real estate taxes that are more than 60 days delinquent and an escrow account is not established.

  This information is accurate as of the time of posting. Please also verify the accuracy of this information at the time you are considering these options as guidelines change.
  https://www.fanniemae.com/content/guide/selling/b2...

Rate & Term Refinance

Freddie Mac and Fannie Mae are both conventional lenders. They each have their own set of guidelines to be followed. There are investor friendly lenders that are able to specifically follow just one of the guidelines below. Below are the required LTV for Rate and Term Refinances.

THESE ARE FOR MORTGAGE 1-4;

For Freddie Mac, a Rate and Term Refinance for a Primary Residence;

95% for 1 unit

80% LTV for 2-4 units

For Fannie Mae, a Rate and Term Refinance for a Primary Residence;

1 unit - 95%

2 unit - 85%

3-4 unit is 75%

For Freddie Mac, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

5-10 Mortgages;

For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1 Units

70% for 2-4 Units

FHA Rate and Term Refinance -

Maximum LTV is 97.75%

FHA Cash Out Refinance -

Maximum LTV is 85% of appraised value if property has been owned 12 months or greater, and if less than 12 months from purchase than the lesser of purchase price or appraised value is used.

Please also see the qualifications for obtaining a second FHA Mortgage.

https://www.biggerpockets.com/blogs/5110/blog_post...

Some areas we lend in, but are not limited to,

Riverside, San Bernardino-Ontario, Phoenix,Mesa, Scottsdale, Minneapolis St. Paul, Cleveland, Akron, Canton, Seattle, Tacoma, Denver, Aurora, San Diego, Carlsbad, Portland, Vancouver, Salem, Orlando, Deltona, Daytona Beach, St. Louis, St. Charles, Farmington, Tampa, St. Petersburg, Clearwater, Baltimore,  Columbia, Towson, Pittsburgh, New Castle, Weirton, Sacramento, Roseville, Charlotte, Concord, Kansas City, Overland Park, Columbus, Marion, Zanesville

• Low rates and Low fees

• Online Application
• National Lender
• I work extended hours to meet all your mortgage needs, with my cell number in my signature.

BRRR....... Buy Rent Rehab Refinance

CASH OUT FINANCING

A cash out refinance is exactly what it sounds like. It is when you refinance your property and pull money out of a property. The mortgage can either be paid off free and clear or can have enough equity in the property to make it worth refinancing and pulling money out. Cash out refinances are available on primary and investment properties.

• The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
• On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
• On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a duplex is up to 70% equity.
• On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and duplex 65% LTV) You can take out up to the purchase price plus closing costs on the property.
• RATE and TERM REFINANCE - PROPERTY
• 5-10 If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.
• PROPERTIES LISTED FOR SALE
  For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
  For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
• Cash Reserves Required For Other Properties Owned by Investor;
  
  • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
  • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

DELAYED FINANCING EXCEPTION

Delayed Financing Exception

A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:

• The new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).

1. 1. SFR mortgage #1-4 - 75% LTV
2. 2. Duplex mortgage #1-4 70% LTV
3. 1. SFR mortgage #5-10 -70% LTV
4. 2. Duplex mortgage #5-10 - 65% LTV

• The purchase transaction was an arm’s length transaction
• The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
• The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

  Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.

• All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines.
  • Ineligible Transactions
    The following transaction types are not eligible as cash-out refinances:
    
    • The subject property was purchased by the borrower within the six months preceding the application for new financing except if delayed financing guidelines are met.
    • Investor and second home borrowers with 5-10 properties are ineligible for cash-out refinance transactions unless all of the delayed financing guidelines are met.
    • The subject property is currently listed for sale
    • The existing mortgage is a “restructured mortgage”
    • Transactions in which a portion of the proceeds of the refinance is used to pay off the outstanding balance on an installment land contract regardless of the date the installment land
      contract was executed.
    • The new loan amount includes the financing of real estate taxes that are more than 60 days delinquent and an escrow account is not established.

  This information is accurate as of the time of posting. Please also verify the accuracy of this information at the time you are considering these options as guidelines change.
  https://www.fanniemae.com/content/guide/selling/b2...

Rate & Term Refinance

Freddie Mac and Fannie Mae are both conventional lenders. They each have their own set of guidelines to be followed. There are investor friendly lenders that are able to specifically follow just one of the guidelines below. Below are the required LTV for Rate and Term Refinances.

THESE ARE FOR MORTGAGE 1-4;

For Freddie Mac, a Rate and Term Refinance for a Primary Residence;

95% for 1 unit

80% LTV for 2-4 units

For Fannie Mae, a Rate and Term Refinance for a Primary Residence;

1 unit - 95%

2 unit - 85%

3-4 unit is 75%

For Freddie Mac, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

5-10 Mortgages;

For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1 Units

70% for 2-4 Units

FHA Rate and Term Refinance -

Maximum LTV is 97.75%

FHA Cash Out Refinance -

Maximum LTV is 85% of appraised value if property has been owned 12 months or greater, and if less than 12 months from purchase than the lesser of purchase price or appraised value is used.

Please also see the qualifications for obtaining a second FHA Mortgage.

https://www.biggerpockets.com/blogs/5110/blog_post...

Some areas we lend in, but are not limited to, 

New York, Newark, Jersey City, Los Angeles Long Beach, Anaheim, Riverside, San Bernardino Ontario, Chicago Naperville, Washington, Baltimore, Arlington, San Jose, San Francisco, Oakland, Boston, Worcester, Providence, Philadelphia Reading, Camden, Dallas, Fort Worth, Miami, Fort Lauderdale, Port St. Lucie, Houston, The Woodlands, 
Atlanta, Athens, Clarke County, Sandy Springs,
Detroit Warren Ann Arbor

• I am a Loan officer with a specialty for assisting investors with their financing needs
• National lender
• Easy Online Application
• I am available extended hours

For VA home loan purposes, a veteran is a person who has served or is currently serving on active duty in the United States Military or Coast Guard and who was discharged or released from active duty under conditions other than dishonorable. Un-remarried surviving spouses of an eligible service member who died as a result of service or service-related injuries may also be eligible.

ELIGIBLE PROPERTY TYPES

1 – 4-unit single family detached homes

PUDs

Townhouses

Condominiums—per VA guidelines

INCOME

In order to be considered for approval of a VA home loan, income stability is a mandatory requirement

Veterans recently separated from the service must have a minimum 2 year work history in the same line of work that he/she did in the service. The veteran should be in his/her most recent job for at least 12 months.

W-2s for the last two years

Signed Federal tax returns for the past 2 years for self-employed borrowers and rental income/loss

MAXIMUM FINANCED PROPERTIES

The maximum number of financed properties that the borrower(s) can have is four (4). However, the borrower must still have remaining VA eligibility for a VA loan.

GIFTS

A gift letter, source of funds and evidence of transfer of gift funds is required.

MAXIMUM LTV

100% for Purchase transactions
90% for Refinance transactions
100% for IRRRL Refinance transactions

MINIMUM CREDIT SCORE

For loan amounts </= $417,000, the minimum FICO score required is 600. For loan amounts > $417,000, the minimum FICO score required is 700.

MINIMUM LOAN AMOUNT

There is no minimum loan amount.

OCCUPANCY

Owner-occupied, primary residences are allowed. Second homes or investment properties are not allowed.

RESERVE REQUIREMENTS
If the loan amount is $417,000 or less and the borrower is not qualified with rental income, there are no requirements for cash reserves. If the borrower uses rental income to qualify or if the loan amount is greater than $417,000, six (6) months of reserves must be documented.

SELLER CONCESSIONS

Seller concessions include, but are not limited to, the following:

Payment of the buyer's VA funding fee

Prepayment of the buyer’s property taxes and insurance

Gifts such as a television set or microwave oven

Payment of extra points to provide permanent interest rate buydowns

Provision of escrowed funds to provide temporary interest rate buydowns,

Payoff of credit balances or judgments on behalf of the buyer

Seller concessions do not include payment of the buyer’s closing costs or payment of points as appropriate to the market.

Any seller concession or combination of concessions which exceeds 4% of the established reasonable value of the property is considered excessive, and unacceptable for VA guaranteed loans.

The loan limits for VA Financing for 2015 are the same as FHFA - Fannie Mae and Freddie Mac guidelines. Here is a link with the most up to date information.

http://www.benefits.va.gov/homeloans/purchaseco_lo...

These California cities are in the High Cost areas for 2015;

Los Angeles, Anaheim, Long Beach, San Jose, Sunnyvale, Santa Clara, San Francisco, Oakland, Hayward, Santa Barbara, Santa Maria, Santa Cruz, Watsonville

The CA counties are included in the high cost areas;

Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz

These Colorado cities are in the High Cost areas for 2015;

Edwards, Glenwood Springs, Steamboat Springs, Breckinridge

The CO counties are included in the high cost areas;

Eagle, Garfield, Pitkin, Routt, San Miguel

Washington and Arlington - District of Columbia

These Hawaii cities are in the High Cost areas for 2015;

Kahului, Wailuku, Lahaina

The HI counties are included in the high cost areas;

Honolulu, Maui, Kalawao, Kauai

These Idaho cities are in the High Cost areas for 2015; Bailey, Hailey

The ID counties are included in the high cost areas; Blaine, Camas, Lincoln, Teton

The NY NJ PA counties are included in the high cost areas;

Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester

These New York, New Jersey, Pennsylvania cities are in the High Cost areas for 2015;

Jersey City, Newark, New York

Elizabeth City in NC with counties of Camden, Pasquotank, Perquimans

In DC, VA, MD, WV - Washington, Arlington, and Alexandria

In MA - Vineyard Haven - Dukes and Nantucket

Fannie Mae/Freddie Mac High Cost are limits are the same as FHA for 2015. VA is the same as FHA for 2015

FHA and VA are owner occupied and have to be mortgage 1-4. Conventional can be both owner occupied or investment with up to 10 mortgages.

For more information on VA Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

For more information on Conventional Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

For more information on FHA Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

@Joshua Beall

I am referring to the number of mortgages under a persons name. 

• I am glad to assist with all your residential financing needs 
• Apply directly online
• National lender
• Financing Up to 10 properties

Here is a link with all Counties and maximum mortgage allowances for 2015.

http://www.fhfa.gov/DataTools/Downloads/Documents/...

These 46 Counties recently had loan increases.

http://www.fhfa.gov/DataTools/Downloads/Documents/...

For HIgh Balance Mortgage Loans, DTI's are limited to a 45% ratio, with a minimum credit score of 620.

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

For A Fixed Rate Purchase, Investment properties, Mortgages 1-4;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 5-10;

• A SFR requires a LTV of 75%
• A MFR requires a LTV of 70%
• Minimum credit score of 720

Here are some answers to FAQ as well;

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

Cash Reserves Required For Other Properties Owned by Investor;

• If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required (if >30% equity and six (6) months reserves if not) and additional six (6) months for every other 2-4 unit investment property and second home
• If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

2. Gift funds are not allowed on Investment property transactions.

3. Escrows for taxes and insurance are required unless otherwise approved by the underwriter.

4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics

5. Investment property transactions cannot close in trust.

6. Maximum 2% sellers concessions is allowed!!

These California cities are in the High Cost areas for 2015;

Los Angeles, Anaheim, Long Beach, San Jose, Sunnyvale, Santa Clara, San Francisco, Oakland, Hayward, Santa Barbara, Santa Maria, Santa Cruz, Watsonville

The CA counties are included in the high cost areas;

Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz

These Colorado cities are in the High Cost areas for 2015;

Edwards, Glenwood Springs, Steamboat Springs, Breckinridge

The CO counties are included in the high cost areas;

Eagle, Garfield, Pitkin, Routt, San Miguel

Washington and Arlington - District of Columbia

These Hawaii cities are in the High Cost areas for 2015;

Kahului, Wailuku, Lahaina

The HI counties are included in the high cost areas;

Honolulu, Maui, Kalawao, Kauai

These Idaho cities are in the High Cost areas for 2015; Bailey, Hailey

The ID counties are included in the high cost areas; Blaine, Camas, Lincoln, Teton

The NY NJ PA counties are included in the high cost areas;

Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester

These New York, New Jersey, Pennsylvania cities are in the High Cost areas for 2015;

Jersey City, Newark, New York

Elizabeth City in NC with counties of Camden, Pasquotank, Perquimans

In DC, VA, MD, WV - Washington, Arlington, and Alexandria

In MA - Vineyard Haven - Dukes and Nantucket

Fannie Mae/Freddie Mac High Cost are limits are the same as FHA for 2015. VA is the same as FHA for 2015

FHA and VA are owner occupied and have to be mortgage 1-4. Conventional can be both owner occupied or investment with up to 10 mortgages.

For more information on VA Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

For more information on Conventional Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

For more information on FHA Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

High Cost Area FHA Financing & Maximum Mortgage Limits

Apply Online Today, Through Link In My Signature! 

Low Fee's and Rates! 

National Lender! 

http://portal.hud.gov/hudportal/documents/huddoc?i...

Here is a link that you can look up the most up to date information;

https://entp.hud.gov/idapp/html/hicostlook.cfm?CFI...

Keep in mind......when you are Purchasing a 3-4 unit multi-family with FHA - The full fair market rent determined by the appraiser must meet or exceed the mortgage payment (see link below as well)

https://www.biggerpockets.com/blogs/5110/blog_post...

These California cities are in the High Cost areas for 2015;

Los Angeles, Anaheim, Long Beach, San Jose, Sunnyvale, Santa Clara, San Francisco, Oakland, Hayward, Santa Barbara, Santa Maria, Santa Cruz, Watsonville

The CA counties are included in the high cost areas;

Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz

These Colorado cities are in the High Cost areas for 2015;

Edwards, Glenwood Springs, Steamboat Springs, Breckinridge

The CO counties are included in the high cost areas;

Eagle, Garfield, Pitkin, Routt, San Miguel

Washington and Arlington - District of Columbia

These Hawaii cities are in the High Cost areas for 2015;

Kahului, Wailuku, Lahaina

The HI counties are included in the high cost areas;

Honolulu, Maui, Kalawao, Kauai

These Idaho cities are in the High Cost areas for 2015; Bailey, Hailey

The ID counties are included in the high cost areas; Blaine, Camas, Lincoln, Teton

The NY NJ PA counties are included in the high cost areas;

Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester

These New York, New Jersey, Pennsylvania cities are in the High Cost areas for 2015;

Jersey City, Newark, New York

Elizabeth City in NC with counties of Camden, Pasquotank, Perquimans

In DC, VA, MD, WV - Washington, Arlington, and Alexandria

In MA - Vineyard Haven - Dukes and Nantucket

Up Front Mortgage Insurance Premium - For most of its mortgage insurance programs, FHA collects an:

• Upfront mortgage insurance premium (UFMIP), and
• Annual insurance premium which is collected in monthly installments

Mortgage Insurance Premium For FHA - For 15 year and greater than 15 years.

• 1.75% of purchase price

Annual Insurance Premium

• Greater than 15 years & greater than or = 95% LTV - 0.8%
• Greater than 15 years & less than 95% LTV - 0.85%
• Less than or = 15 years & Grester than 90% LTV - 0.7%
• Less than or = 15 years & less than 90% LTV - 0.45%

High Balance Loan Amounts For FHA and Annual Insurance Premium.

• Less than or = to $625,000 & less than or = to 95% LTV - 0.8%
• Less than or = to $625,000 & greater than 95% LTV - 0.85%
• Greater than $625,000 & less than or = to 95% LTV - 0.1%
• Greater than $625,000 & greater than 95% LTV - 0.105%

Fannie Mae/Freddie Mac High Cost are limits are the same as FHA for 2015. VA is the same as FHA for 2015

FHA and VA are owner occupied and have to be mortgage 1-4. Conventional can be both owner occupied or investment with up to 10 mortgages.

For more information on VA Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

For more information on Conventional Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

For more information on FHA Financing - please see one of my other blogs;

http://www.biggerpockets.com/blogs/5110/blog_posts...

@Leo Don

Absolutely. Guidelines change often, and FHA recently made several changes, so I just wanted to put some general information out there to help investors starting out this route.