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