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Investor with 4 homes - evaluating buying 2 more homes - need help with traditional loans

I am an Investor with 4 homes - I am evaluating buying 2 more homes.......need help with traditional loan  for 100k or less per home - in other words, I am not a flipper and not looking for 'hard cash loan'. I have good credit scores - I am looking for low points, low interest  and down payment not to exceed 20%.

Can you help?
  • October 04 2011 - Phoenix
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Answers (4)

Hi Taza Guru, 
I work for a direct lending mortgage bank that does not add any of these additional guidelines. We can finance your purchase since we will finance up to 10 properties per person, and sometimes more than 10 properties if the borrower is "strong." This is somewhat rare in today's lending environment. We can do this because we not only process, underwrite and fund our loans in-house; we also service our loans as well. 
The common problem that many investors like yourself run into when trying to build their investment property portfolio, is that most of the lending institutions add their own additional set of lending qualification criteria known as "guidelines" on top of what Fannie Mae, Freddie Mac & Ginnie Mae state their guidelines are for purchasing loans. Most lenders will cap you at four financed properties, even though Fannie Mae guidelines state that an investor can finance up to 10 properties. Since we underwrite directly to Fannie Mae, Freddie Mac & Ginnie Mae guidelines, we can do many things that other banks won't. 
Now, Fannie Mae guidelines state that once you own five or more financed properties, they require 25% down. Looking at very low rates this morning for a 30-year, fixed-rate loan, lower with a 15-year fixed rate.. These are fantastic rates with what is going on in the market today. 
Please feel free to contact me if you have any further questions, I'd be glad to help. 
All the best, 
Ros 
Roswell Moore, CMPS 
Certified Mortgage Planner 
We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, and service our loans, in-house, FHA (starting at a 580 score), FHA Streamline loans (no minimum credit score, no appraisal required) FHA 203k rehab loans, HomePath, Investor Friendly (10 financed properties; more on a case-by-case basis), VA, USDA, Jumbo, and Conventional.
  • October 05 2011
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Nelson has excellent advice.  There are also local community Credit Unions that may be able to help as well.  These financial institutions keep some of these loans in their portfolios and do not need to sell them on the secondary market.
  • October 05 2011
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I will take a slightly different approach - contact a local community bank - What has happened over the past couple of years has not impacted you - the new investor. Once you exceed the traditional secondary market participants (the GSE's) guidelines - where do you turn? You turn to a stable local community lender - loaning their money - Many are member of the Federal Home Loan Bank - districts - in your region - Just in case you need to find who they are. But most of them will just be your lender that care about stabilizing their communities. If you call one, and they do not have a program to help, they will know which other bank may be participating and offering the best programs. The local mortgage broker does not have access to their programs. Many community lenders like knowing their customers and will look forward to sitting with you and discussing your management and development plans. Good luck - by the way look at www.homepath.com in finding investment opportunities. Oh! I did not mention - 'Blankets' - small lenders love talking about blankets.

  • October 05 2011
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You may find this to be difficult with the new lending guidelines that have taken place over the past couple of years and what is being (or in this case not being) sold on the secondary market.  Do you already have a mortgage on the other four homes and if so is one of those your primary residence?  Typical limitations include up to 4 investment properties with mortgages and at least 25% down.  Thus, you are close, but with a few adjustments you will likely open yourself up to having several options. 
  • October 05 2011
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