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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.


  1. Elle Tea

    on said  

    What is the minimum credit score required for Freddie 1-4 family loans. Will they even require since CF is basis for sizing loans?


      on said  

      Freddie lenders financing 1-4 unit residential investment properties generally require a minimum score of 660. The lower your credit score, the higher the rate offered for the loan. The borrower must demonstrate W-2 income or 2-years tax returns to support self-employed income, to qualify for a loan. You can add 75% of the rental income from the property to your W-2/Business income to meet the income qualification standards.


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