I recently joined and would love to make some new connections. My husband and I have been investing in SFH but are looking to move into commercial investment in Las Vegas as well as flips in Los Angeles. We live in LA currently and I grew up in Las Vegas so we have lots of boots on the ground there. Give me a shout if you have any thoughts, advice or recommendations you want to share. Or if you just want a new connection. I'm all about that too.
Lender · Chicago, IL · Member since 2018 · 352 posts · 147 votes
7y
@Michael Hastings you mixed the programs, I was referring to Fannie HomeStyle renovation loans and you are referring to standard purchases on Freddie.
The reno loan with Fannie for owner occupied is 95% LTV on a SFR, 85% ltv on duplex and 75% on 3-4 units. For investment is 85% LtV on SFR only, MF are not allowed.
Lender · Chicago, IL · Member since 2018 · 352 posts · 147 votes
7y
@Esther Shpak for the flips you could consider FannieMae HomeStyle renovation loans for investment properties, only 15% down and no pre-pays, you can also roll in the mortgage payments into the loan during the renovation
Lender · Chicago, IL · Member since 2018 · 352 posts · 147 votes
7y
@Esther Shpak less than 1% of us, bankers, are certified in 203k FHA and FannieMae HomeStyle renovation loans. Just that people are not aware of the red carpet of conventional renovation loans
Investor · Aurora, CO · Member since 2016 · 114 posts · 112 votes
7y
@Diana Muresan , thanks for mentioning this here. This is news to me as well, and when researching this, I found information stating "The maximum loan-to-value (LTV) ratio on a HomeStyle mortgage varies by property type, but it's typically 97% for a one-unit, principal residence with a fixed-rate mortgage. The LTV maximum for two-unit principal residences is 85%, 75% for three- and four-unit principal residences, and 90% for one-unit second homes."
Can you confirm if these LTV limits are in place for owner-occupied properties or can they apply to off-premise investors? (I am specifically interested in using something like this to finance buy and repair of SFH/duplexes that can be used as rentals in the midwest).
Lender · Chicago, IL · Member since 2018 · 352 posts · 147 votes
7y
@Michael Hastings you mixed the programs, I was referring to Fannie HomeStyle renovation loans and you are referring to standard purchases on Freddie.
The reno loan with Fannie for owner occupied is 95% LTV on a SFR, 85% ltv on duplex and 75% on 3-4 units. For investment is 85% LtV on SFR only, MF are not allowed.