I found a great post from BiggerPockets.com today. It talks about the lending guidelines that Fannie Mae & Freddie Mac have on Investment Properties. Instead of rehashing the entire article- here’s the gist of it.

Full Documentation: Ideal for borrowers looking for conforming loan amounts who have good credit and assets:
1 unit: 90% LTV / 85% 1st Lien / 90% TLTV - $417,000
2 unit: 90% LTV / 85% 1st Lien / 90% TLTV - $533,850
3 unit: 75% LTV / 70% 1st Lien / 75% TLTV - $645,300
4 unit: 75% LTV / 70% 1st Lien / 75% TLTV - $801,950
Cash Out 1 unit: 85% LTV / 80% 1st Lien / 85% TLTV - $417,000
Cash Out 2 unit: 85% LTV / 80% 1st Lien / 85% TLTV - $533,850
Cash Out 3 unit: 70% LTV / 65% 1st Lien / 70% TLTV - $645,300
Cash Out 4 unit: 70% LTV / 65% 1st Lien / 70% TLTV - $801,950
Not available IO

Stated Income: Ideal for self-employed/salaries borrowers with excellent credit. No tax returns or other written verification of income. Assets are required to be verified.

1 unit: 90% / 90% - $417,000 - 720 75% / 90% - $417,000 - 680
2 unit: 90% / 90% - $533,850 - 720 75% / 90% - $533,850 - 680
3 unit: 80% / 80% - $645,300 - 720 75% / 80% - $645,300 - 700
4 unit: 80% / 80% - $801,950 - 720 75% / 80% - $801,950 - 700
Cash Out 1 unit: 75% / NA - $417,000 - 680
Cash Out 2 unit: 75% / NA - $533,850 - 680

A-minus; Ideal for borrower who don’t meet “A” paper credit standards. Allow borrowers to obtain a conventional product at a slightly higher rate.

1 unit: 90% LTV/85% w/sub. financing/90% TLTV - $417,000
2 unit: 90% LTV/85% w/sub. financing/90% TLTV - $533,850
1 unit:* 90% LTV/85% w/sub. financing/90% TLTV - $417,000
2 unit:* 90% LTV/85% w/sub. financing/90% TLTV - $533,850
3 unit:* 75% LTV/70% w/sub. financing/75% TLTV - $645,300
4 unit:* 75% LTV/70% w/sub. financing/75% TLTV - $801,950
Cash Out 1 unit:* 85% LTV/80% w/sub. financing/85% TLTV - $417,000
Cash Out 2 unit:* 85% LTV/80% w/sub. financing/85% TLTV - $533,850
*Borrowers may not own any other financed investment properties

With interest rates at a low point, and deals flowing from everywhere- this is some encouraging information! If you’re serious about picking up some investment properties, give me a call and we’ll find a great deal for you.

Hot off the wire! An Investor Group I know of has a package of 59 New Construction Homes under contract at 50% FMV all over the Valley. They are putting in $250,000 themselves, and are looking for an additional $9 Million for the rest of the funding. These homes are all from a single builder here in the Valley, who’s obviously dumping his inventory to stay afloat. The plan is to wholesale out the homes at 70-75% FMV and be completely out of the deal within 6 months. Here’s the facts I know in the moment…

• 59 New Construction Homes
• $9Mil required, will be secured by Title Reports, 1st Position Trust Deeds, and Fresh Appraisals
• Acquiring properties at 50% Fair Market Value
• Wholesaling them out at 70-75% Fair Market Value
• Total Holding Time: 6 Months Max
• Willing to pay points + return to funding entity
• Can assemble multiple investors for the take down, but would prefer just one or two

Most of the time you hear of these deals, they’re complete BS. However, I personally have known this investor for 7+ years, and feel confident in the deal. They’re looking to fund within 3 weeks, if possible. If you know anyone looking to get into this opportunity, please let me know ASAP.