What do you need to know, getting a Investment Loan:

You must have 20% down.  The max # of financed properties cannot exceed four.  Must have two housing payments in cash reserve for each [property;

5.25% with 1% loan origination fee. 

Appraisal

·         Field Review Must be Provided on Investment Property Refinance Transactions – LTV/CLTV ? 70% or Follow the Investor’s Appraisal Requirements, if More Restrictive (except when the AUS requires, and the investor allows, a PIW/PIA or an inspection report instead of an appraisal report)

·         Appraiser Must Provide an acceptable Comparable Rent Schedule and an Income Operating Statement (regardless of DU/LP findings/requirements)

Miscellaneous

·         File Must Contain Proof of 6 Months Rent Loss Insurance, if Using Rental Income to Offset the Mortgage Payment on That Property

Notes:

1.     *If most recent 2 years tax returns do not verify a 2-year landlord history for the borrower(s), rental income cannot be used for qualification purposes.

2.     The borrower can own no more than 4 financed 1-4 unit residential properties (including their primary residence and the subject property).

NO FLIPS.  Loan is ineligible if seller was not in title for a minimum of 90 days prior to executed sales contract date