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Important Financing Update for 1-4 Unit Multi-Family Investment Properties

If you have 4-Financed Properties and feel you cannot buy more, you need to know about important new changes to Freddie Mac underwriting guidelines.

Previously, you would max out at 4 financed properties with 30-year fixed-rate loans. Now, you can have up to SIX (6) financed properties. Qualification is based on one-year’s income as reported on your tax return. Previously, the average of two-years’ tax returns was required.

Freddie Mac now allows cash-out refinancing on up to 6 properties.

Freddie Mac will now finance 75% loan-to-value on 6 properties. Previously, the first 4 were 75% LTV and more than 4 were 70% LTV.

Fannie Mae will allow up to 10 financed properties. The first four at 75% LTV with loans 5 to 10 capped at 705 LTV, however, the borrower must have a 720 credit score or higher and there can be no cash-out refinancing.

Please call me to discuss your particular financing needs.